Minutes 10-18-2016 - Laserfiche WebLink

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5 b. Public Hearing Regarding an Economic Development Recruitment Incentive for Wegmans Food Markets, Inc., and a Supplemental Interlocal Agreement Between Orange County & the Town of Chapel Hill The Board considered: 1) Receiving the proposal to consider the issuance of incentives to a private company for the recruitment of Wegmans Food Market, Inc. to Orange County; 2) Approving the "performance-based" economic development incentive agreement between Orange County and the Company, Wegmans Food Market, Inc., with claw- back provisions, subject to final review by the County Attorney, and authorizing the Chair to sign the agreement on behalf of the County; 3) Receiving the supplemental proposal to consider an Interlocal Agreement between Orange County and the Town of Chapel Hill, whereby the County administers the performance-based incentive agreement with the Company, and the County and Town equally share 50/50 in the cost-sharing of the annual incentive payment during the 5- year term of the incentive agreement; and 4) Approving the Interlocal Agreement, subject to final review by the County Attorney, and authorizing the Chair to sign on behalf of the County. Project Description: In response to the ongoing relocation by the Performance Automall car dealership operation (owned by Hendrick Automotive Group) out of Chapel Hill and Orange County and to the SouthPoint Mall area in adjacent Durham County, and the resulting transfer of over 300 full- time jobs out of the community, the Town and County have partnered to spur redevelopment of the 14-acre site that serves as an important gateway entry into Chapel Hill. During 2016, the leadership of Orange County and Chapel Hill collaborated closely in this regard to encourage the recruitment of a single high-quality tenant grocery store, with restaurants, prepared foods, a farmers market and related retail businesses by the grocery chain Wegmans Food Markets, Inc. This joint recruitment effort of Wegmans endeavors to attract to the community a significant number of new jobs, with health insurance & related employment benefits, and notable tax revenues that warrant the proposed incentive offer to the company. Considering Wegmans' competitive site selection efforts as it moves down the eastern seaboard and into North Carolina and establishes its first retail locations in the state, Orange County and Town of Chapel Hill have partnered in a joint recruitment and incentivization effort to attract this specific retail business to the U.S. 15-501 location. The proposed joint financial incentive, calculated at a value up to $4.0 million over a proposed 5-year start-up period by the company, will be equally shared 50/50 by the County & Town. The economic development inducement incentive will be performance-based with respect to the County's annual verification of the Company's targeted increases in (1) employment, wages & benefits, (2) net new taxable real & personal property additions, and (3) retail sales tax collections from projected revenue growth, as Wegmans establishes a Chapel Hill retail presence. Incentives would only be paid following confirmation of the Company's required annual threshold growth in these measures, and, on a pro-rata reimbursement in case the company's targeted growth in any year lags current growth projections.