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

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9 The first installment shall occur on January3l, 2020 upon receipt of proof, as described in Section 5 of this Agreement, that the minimum employment and investment numbers referenced in Section 2 of this Agreement have been met and proof that all outstanding local property taxes on the real and business personal property owned by the Company and located within Orange County, for which a bill for such taxes has been issued to the Company, have been paid. Subsequent annual installments will occur during the month of January for the term of this Agreement with the final installment occurring in January 2024. No installment shall be required to be paid until such time as County receives proof of the payment of all outstanding property taxes and verification of employment and investment levels has been submitted to the County. Subject to Section 3C the final Inducement Grant amount shall be determined based on the Company's Total Taxable Investment at the time of the final inducement installment and according to the formula in 3B. B. TOTAL COUNTY COMMITMENT: The maximum amount of the Inducement Grant payment is based on the Total Taxable Investment by Company in an amount of Thirty-Nine Million Nine Hundred Thousand Dollars ($39,900,000.00). The Inducement Grant payments shall be calculated based on the Company's Minimum Taxable Investment for the time period preceding the current Inducement Grant payment. County shall adjust the Inducement Grant payment amount according to the following formula: Amount of investment divided by 100 multiplied by the current ad valorem tax rate(currently$0.8679 per$100 of valuation) multiplied by 0.75 (percentage of inducement)multiplied by 5 (number of years). Utilizing this formula, and an estimate of depreciation as outlined in Exhibit B, a taxable investment currently estimated at Thirty-Nine Million Nine Hundred Thousand Dollars ($39,900,000.00)would result in an Inducement Grant in the amount of Nine Hundred Seventy-Two Thousand Seven Hundred Twenty-Two Dollars ($972,722.00)payable in 5 installments. Subject to 3C below, in the event the amount of taxable investment increases or decreases,the amount of inducement shall increase or decrease based on the formula specified herein, however the total amount of inducement shall not exceed Nine Hundred Seventy-Two Thousand Seven Hundred Twenty- Two Dollars ($972,722.00). Further,this example assumes a static Total Taxable Investment of Thirty-Nine Million Nine Hundred Thousand Dollars ($39,900,000.00)throughout the 5 year term. The formula specified herein shall be applied to the taxable investment annually during the term to determine the actual amount of the 5 inducement installments. C. MAXIMUM COUNTY COMMITMENT: The Inducement Grant SHALL NOT EXCEED Nine Hundred Seventy-Two Thousand Seven Hundred Twenty-Two Dollars ($972,722.00). This is the maximum allowable inducement amount based on an estimated Total Taxable Investment by the Company of Thirty-Nine Million Nine Hundred Thousand Dollars ($39,900,000.00). This maximum amount may be reduced based on lower than anticipated investment by the Company. 4. EXPANSION OPPORTUNITY Participation in this Agreement shall not exclude the Company from consideration for additional inducements from the County either during or upon completion of this Agreement. Future projects shall be considered on a case-by-case basis and induced at the discretion of the County based on new taxable investment and job creation in excess of the minimum levels outlined in Section 2 above. Any such agreement shall require a separate"Performance Agreement"which shall conform to all relevant North Carolina Statutes and/or Orange County Ordinances, Policies or Resolutions, shall be in writing, and shall be mutually agreed upon by the Parties. Page 5 of 19