Agenda - 10-18-2016 - 5-b - Public Hearing Regarding an Economic Development Incentive for Wegmans Food Markets, Inc., and Interlocal Agreement Between Orange County & Chapel Hill

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41 2 -Performance-Based Economic Incentive Proposal "Located on the eastern gateway to Chapel Hill, this is a unique site, one that has challenges as well as opportunity," said Mayor Pam Hemminger. "We are working proactively to bring new retail to our town and believe that Wegmans will further solidify Chapel Hill as a regional foodie destination." Orange County Board of Commissioners Chair Earl McKee said Orange County is seeking out a new market for area farmers and food producers. "We are working together to attract companies that create diversified, well- paying employment opportunities for our residents," McKee said. "This incentive proposal will help us take another step toward making Orange County more competitive—especially by adding a substantial market for farmers and food producers." The Interlocal Agreement between the Town and County outlines a proposed plan for each government to contribute a maximum amount of$2 million over five years -- if Wegmans meets specific targets for new jobs, and increases in sales and property tax revenue. The agreement will be considered by the Town Council on Monday, Oct. 17, 2016, and Orange County Board of Commissioners on Oct. 18, 2016. "If approved, the agreement is based on performance," said Town Manager Roger Stancil. "Incentives are paid only after the company meets specific goals in jobs, property tax and sales tax from increased revenues received by the Town and County from the project. Goals are annual and achievement must be documented." The Town and County would each commit to providing a maximum "We are delighted to move annual $400,000 incentive for five years, depending upon the retailer's forward with our plans for a performance each year. Orange County would serve as the primary store in Chapel Hill," says Ralph administrator of the performance-based incentive agreement with Uttaro, Wegmans senior vice Wegmans, and the Town will have an Interlocal Agreement with the County to contribute its portion. president of real estate. "I know that we will bring a "This collaborative effort is historic, and we hope to have future unique shopping experience to successful recruitment initiatives, said Orange County Manager Bonnie Hammersley. the market that will deliver on our promise of incredible Chapel Hill and Orange County expect an increase of$1.7 million customer service, the best annually in net-new tax revenue derived from sales and property taxes as a result of the 120,000 SF project. In addition to revenue ingredients, restaurant-quality increases, the store will provide new employment opportunities for prepared foods, and consistent hundreds of local workers. low prices." Wegmans ranks #4 on FORTUNE Magazine's 2016 list of the "100 Best Companies to Work For" and has been on this list every year since it first began in 1998, and in 2005, ranked #1. It also ranks #5 on FORBES 2016 list of"America's Best Employers." The company has an employee scholarship program, available to both part-time and full-time employees, that has awarded more than $105 million in college tuition assistance to more than 33,000 employees since the program began in 1984. -more-