|
2
<br />
<br />requirement that economic development appropriations “must be determined by the governing
<br />body of the city or county to increase the population, taxable property, agriculture industries,
<br />employment, industrial output, or business prospects of the city or county”. This public hearing
<br />has been scheduled in compliance.
<br />
<br />Project Description:
<br />ABB, Inc., with an existing 400,000 square foot manufacturing facility located in western Orange
<br />County, plans to invest $39.9 million to update the existing manufacturing facility and expand
<br />the Company’s total facility size by an additional 200,000 square feet. ABB also plans to add
<br />403 new jobs over the next 5 years of operation at this facility. These jobs will include
<br />production, maintenance, office, and management staff and have an average salary of $70,789
<br />per year. The ABB, Inc. plant in Orange County ranks as the County’s largest private employer,
<br />with nearly 600 current associates, who hold the highest average salaried manufacturing jobs in
<br />the County. The original plant was acquired in June 2018 from General Electric’s Industrial
<br />Solutions division.
<br />
<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 />
<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 />
<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 as
<br />detailed in the table below. If these real and personal property valuation targets are not
<br />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
<br />Property
<br />$200,000 $10,200,000 $5,200,000 $15,600,000
<br />Total $5,200,000 $26,800,000 $7,900,000 $39,900,000
<br />
<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 reduced by
<br />$500 per full time equivalent employee not hired. By year #5, the Company will create 403 new
<br />positions with an average salary of $70,789 per year.
<br />Employment Projections
<br />1st Year
<br />2020
<br />2nd Year
<br />2021
<br />3rd Year
<br />2022
<br />4th Year
<br />2023
<br />5th Year
<br />2024
<br />New Full
<br />Time Jobs
<br />104 274 8 8 9
<br />
|