Agenda - 07-23-19 Special Meeting Item 1 - Public Hearing and Decision Regarding an Economic Development Recruitment Incentive for ABB, Inc

Browse Search

4 requirements. To eliminate any financial risk for the County, the pass-through funds will not be requested from the State until the Company meets all investment and employment criteria and satisfies any other program requirements. City of Mebane ABB's existing facility is currently located within the City of Mebane's Extraterritorial Jurisdiction (ETJ). The Company has agreed to annexation and the City of Mebane will consider the following additional incentives at the August 5, 2019 City Council meeting and public hearing. IIIIM� City of Mebane Incentives- Ammmmdl�� Performance Based Incentive $997,500 Waiver of Development Fees $150,000 FINANCIAL IMPACT: The attached Performance Agreement between Orange County and ABB, Inc. outlines a total financial impact of up to $972,722 payable in five (5) annual installments. Actual annual payments will be based on the Company's investments that create new property tax value of at least $24,300,000 in Real Property, and at least $15,600,000 in new Personal Property, totaling a combined $39,900,000 in new taxable value. Annual incentive payments by the County will be paid from net new property tax revenues generated by ABB, Inc. and from available Article 46 funds. The Company will create at least Four Hundred Three (403) full-time jobs with an average annual salary of $70,789 per year at the Mebane facility. Other economic benefit multipliers to the County include enhanced job skills for those employees through advanced technical training to be provided by the Orange County campus of Durham Technical Community College. Construction employment for the new 200,000 square foot facility, and renovations to the existing 400,000 square foot facility, will also create many additional skilled trade jobs. SOCIAL JUSTICE IMPACT: The following Orange County Social Justice Goal is applicable to this item: • GOAL: ENSURE ECONOMIC SELF-SUFFICIENCY The creation and preservation of infrastructure, policies, programs and funding necessary for residents to provide shelter, food, clothing and medical care for themselves and their dependents. RECOMMENDATION(S): The Manager recommends that the Board: (1) Conduct the Public Hearing and receive public comments; (2) Close the Public Hearing; and (3) Approve the five-year performance-based economic development incentive agreement between Orange County and the Company, ABB, Inc., subject to final review by the County Attorney, and authorize the Chair to sign the agreement on behalf of the County.