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<br /> 1 of its residents. The Local Government Act, North Carolina General Statute (NCGS) 158-7.1
<br /> 2 outlines the requirements of public hearings, and NCGS 158-7.1(a) specifically addresses the
<br /> 3 requirement that economic development appropriations "must be determined by the governing
<br /> 4 body of the city or county to increase the population, taxable property, agriculture industries,
<br /> 5 employment, industrial output, or business prospects of the city or county" This public hearing
<br /> 6 has been scheduled in compliance.
<br /> 7
<br /> 8 Proiect Description:
<br /> 9 ABB, Inc., with an existing 400,000 square foot manufacturing facility located in western Orange
<br /> 10 County, plans to invest $39.9 million to update the existing manufacturing facility and expand
<br /> 11 the Company's total facility size by an additional 200,000 square feet. ABB also plans to add
<br /> 12 403 new jobs over the next 5 years of operation at this facility. These jobs will include
<br /> 13 production, maintenance, office, and management staff and have an average salary of$70,789
<br /> 14 per year. The ABB, Inc. plant in Orange County ranks as the County's largest private employer,
<br /> 15 with nearly 600 current associates, who hold the highest average salaried manufacturing jobs in
<br /> 16 the County. The original plant was acquired in June 2018 from General Electric's Industrial
<br /> 17 Solutions division.
<br /> 18
<br /> 19 Under ABB's new management, in mid-2019, the Company hired the Deloitte U.S. site selection
<br /> 20 consulting firm to assist in the evaluation of ABB expanding operations either at the Company's
<br /> 21 competing Senatobia, Mississippi location or at the Orange County, NC plant. This competitive
<br /> 22 site search, code named "Project Clear Blue Sky", evaluated consolidating operations into one
<br /> 23 U.S. hub for the manufacturing, engineering, & related electrical products of ABB's "Distribution
<br /> 24 Services" line. As part of the location evaluation, ABB considered financial inducement
<br /> 25 proposals from the State of North Carolina, Orange County and the City of Mebane.
<br /> 26
<br /> 27 The proposed incentive will be performance-based with respect to the County's annual
<br /> 28 verification of ABB's targeted increases in (1) employment, wages & benefits, and, (2) new
<br /> 29 taxable real & personal property value over the next five years, as the Company expands its
<br /> 30 Mebane presence. Incentives would only be paid following confirmation of the Company's
<br /> 31 required annual growth measures.
<br /> 32
<br /> 33 Basis to Calculate the Value of Orange County Performance-Based Incentives:
<br /> 34 (1) INVESTMENT—ABB will increase property valuation by at least $24,300,000 in real
<br /> 35 property and at least $15,600,000 in personal property, to total $39,900,000 over 5 years as
<br /> 36 detailed in the table below. If these real and personal property valuation targets are not
<br /> 37 achieved, the proposed annual incentive payment will be reduced proportionally.
<br /> Investment 2019 2020 2021 Total
<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 /> Property
<br /> Total $5,200,000 $26,800,000 $7,900,000 $39,900,000
<br /> 38 (2) EMPLOYMENT -ABB will add net new employment consistent with the job growth chart
<br /> 39 below. If annual job targets are not achieved, the annual incentive payment will be reduced by
<br /> 40 $500 per full time equivalent employee not hired. By year#5, the Company will create 403 new
<br /> 41 positions with an average salary of$70,789 per year.
<br /> Employment Projections
<br /> 15t Year 2"d Year 3rd Year 4th Year 5th -Year
<br /> 2020 2021 2022 2023 2024
<br /> New Full 104 274 8 8 9
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