Orange County NC Website
Browse       Search
4 <br /> <br />a local government entity, requires the local government to hold a Deed of Trust on the building. <br />This can create a potential financial obligation on the local government in the event the <br />Company does not perform as expected. As ABB incurs actual costs associated with the facility <br />improvements it plans to make to the existing building, and creates new employment, the <br />$500,000 State grant will be passed through the County to the Company. The grant is in the <br />form of a forgivable loan that is satisfied once ABB fulfills all investment and employment <br />requirements. To eliminate any financial risk for the County, the pass-through funds will not be <br />requested from the State until the Company meets all investment and employment criteria and <br />satisfies any other program requirements. <br /> <br />City of Mebane <br />ABB’s existing facility is currently located within the City of Mebane’s Extraterritorial Jurisdiction (ETJ). <br />The Company has agreed to annexation and the City of Mebane will consider the following additional <br />incentives at the August 5, 2019 City Council meeting and public hearing. City of Mebane Incentives <br />Performance Based Incentive $997,500 <br />Waiver of Development Fees $150,000 <br /> <br />FINANCIAL IMPACT: The attached Performance Agreement between Orange County and <br />ABB, Inc. outlines a total financial impact of up to $972,722 payable in five (5) annual <br />installments. Actual annual payments will be based on the Company’s investments that create <br />new property tax value of at least $24,300,000 in Real Property, and at least $15,600,000 in <br />new Personal Property, totaling a combined $39,900,000 in new taxable value. Annual incentive <br />payments by the County will be paid from net new property tax revenues generated by ABB, <br />Inc. and from available Article 46 funds. <br />The Company will create at least Four Hundred Three (403) full-time jobs with an average <br />annual salary of $70,789 per year at the Mebane facility. Other economic benefit multipliers to <br />the County include enhanced job skills for those employees through advanced technical training <br />to be provided by the Orange County campus of Durham Technical Community College. <br />Construction employment for the new 200,000 square foot facility, and renovations to the <br />existing 400,000 square foot facility, will also create many additional skilled trade jobs. <br /> <br />Steve Brantley, Economic Development Director, made the following PowerPoint <br />presentation: <br /> <br />Proposal for Orange County’s Financial Incentives for ABB, Inc. <br />Public Hearing by Orange County Board of Commissioners Whitted Building – <br />Hillsborough, NC <br />July 23, 2019 <br /> <br />Location of ABB, Inc. in Orange County (aerial photograph) <br /> <br />Mebane City Limits & ETJ: ABB, Inc. (aerial photograph) <br /> <br />Description of ABB’s “Project Clear Blue Sky” <br />• Consolidation into one U.S. hub of the manufacturing, engineering, & related electrical <br />products of ABB’s “Distribution Services” line. <br />• ABB hired consultant Deloitte U.S. to evaluate Mebane, NC versus a competing ABB <br />site in Senatobia, MS. <br />• $39.9 million in investment <br />o $24.3 MM in real property; $15.6 MM in personal property <br />o Forecast to occur in the first 3 years of operation