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<br /> The ABB, Inc. plant in Orange County ranks as the County's largest private employer, with
<br /> nearly 600 current associates, who hold the highest average salaried manufacturing jobs in the
<br /> County. The original plant was acquired in June 2018 from General Electric's Industrial
<br /> Solutions division.
<br /> Under ABB's new management, in mid-2019, the Company hired the Deloitte U.S. site selection
<br /> consulting firm to assist in the evaluation of ABB expanding operations either at the Company's
<br /> competing Senatobia, Mississippi location or at the Orange County, NC plant. This competitive
<br /> site search, code named "Project Clear Blue Sky", evaluated consolidating operations into one
<br /> U.S. hub for the manufacturing, engineering, & related electrical products of ABB's "Distribution
<br /> Services" line. As part of the location evaluation, ABB considered financial inducement
<br /> proposals from the State of North Carolina, Orange County and the City of Mebane.
<br /> The proposed incentive will be performance-based with respect to the County's annual
<br /> verification of ABB's targeted increases in (1) employment, wages & benefits, and, (2) new
<br /> taxable real & personal property value over the next five years, as the Company expands its
<br /> Mebane presence. Incentives would only be paid following confirmation of the Company's
<br /> required annual growth measures.
<br /> Basis to Calculate the Value of Orange County Performance-Based Incentives:
<br /> (1) INVESTMENT — ABB will increase property valuation by at least $24,300,000 in real
<br /> property and at least $15,600,000 in personal property, to total $39,900,000 over 5 years
<br /> as detailed in the table below. If these real and personal property valuation targets are
<br /> not achieved, the proposed annual incentive payment will be reduced proportionally.
<br /> . . IIIIIIIIIIIIIIIIM
<br /> Real Property $5,000,000 $16,600,000 $2,700,000 $24,300,000
<br /> Personal $200,000 $10,200,000 $5,200,000 $15,600,000
<br /> Pry opertY
<br /> Total $5,200,000 $26,800,000 $7,900,000 $39,900,000
<br /> (2) EMPLOYMENT - ABB will add net new employment consistent with the job growth chart
<br /> below. If annual job targets are not achieved, the annual incentive payment will be
<br /> reduced by $500 per full time equivalent employee not hired. By year #5, the Company
<br /> will create 403 new positions with an average salary of $70,789 per year.
<br /> . . 4 �
<br /> 1 s Year 2nd Year 3r Year 41—" Year 5th Year
<br /> 2020 2021 2022 2023 2024
<br /> New Full Time 104 274 8 8 9
<br /> Jobs
<br /> The proposed inducement payment will be in the form of a performance-based grant paid over a
<br /> five (5) year period at an amount equal to 75% of ABB's projected net increase in real &
<br /> personal property tax valuation. This specific formula represents the County's current incentive
<br /> policy that has been offered in the past to other industrial and commercial prospects. It ensures
<br /> that annual tax revenues from this project's additional investment, net of annual incentive
<br /> payments, remain positive in all years of the incentive agreement.
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