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8 <br /> <br />Summary of State & Local Financial Incentives <br />County’s proposed incentive of $1,840,967 will be paid in 5 annual installments over 5 <br />years of Medline’s start-up operation. <br /> Performance based, and will be measured annually against verification of Medline’s <br />actual history to create 250 jobs and invest $65,300,000 in new property valuation over <br />each of the initial 5 years, as proposed. <br />Net property tax revenue collected is positive in all years, after paying the annual <br />incentive; ($1,151,003 net revenue in first 6 years; and, $3.2 million in first 10 years) <br /> <br />Commissioner McKee arrived at 7:15 p.m. <br /> <br />Net Property Tax Revenues Collected- chart <br /> (Projections) <br /> <br />Commissioner Dorosin referred to the property tax incentive, and said it has been <br />reported in the media is that Orange County is paying $1.8 million. He asked if this is accurate. <br />Steve Brantley said that is not accurate. <br />Commissioner Dorosin said the County is not collecting that portion of the property <br />taxes during the incentive period. <br />Steve Brantley said that is correct. <br />John Roberts said the County collects all of the taxes from the company, and then <br />provides a percentage of it back to the company as the incentive. <br />Commissioner Greene referred to the last chart, and clarified that there are no <br />payments in 2020 until after building completion. She asked if the company owns the land <br />already, or if it will do so in 2020. <br />Steve Brantley said the company has an option on the property, and technically cannot <br />buy the property until it and the State of North Carolina have officially announced what there <br />decision would be, as to which state, and which county. He said the company would exercise <br />the option and purchase the land, at that point to actually own the property. <br />Commissioner Greene asked if this is expected to be in 2020. <br />Steve Brantley said it may be later this year, and construction would begin thereafter. <br />He said the company anticipates making the great majority of the total investment by the end of <br />2020, and wants the County to make the schedule from that year, for five years, to look at the <br />performance grant. <br />Dmitry Dukhan thanked the Board of County Commissioners (BOCC) for this <br />opportunity to be in Orange County and the City of Mebane. He said Medline is looking to close <br />the land in the next 60-90 days. He said it is Medline’s goal to complete the purchase of the <br />land in 2019, commence construction in the first or second quarter of 2020, and complete by <br />construction by the first quarter of 2021. He said it will take 4-6 months to “energize” the <br />property (set up technology, hire people, etc.), and Medline expects to be fully operational by <br />the end of the second, or beginning of the third quarter of 2021. <br />Dmitry Dukhan said Medline Industries is a privately held company, based out of <br />Chicago, and is fourth generation privately owned, with no debt. He said this property is owned <br />free and clear with no debt. He said it is Medline’s goal to operate with the long-term in mind, <br />by investing back into the community, the company, and the employees. He said Medline is a <br />top 100 medical company to work for in the country. He said Medline provides a full continuum <br />of care from hospital to hospice, with over 550,000 products and services within the hospital <br />systems, and plans to manufacture 60% of the products it sells. <br />Dmitry Dukhan said this 1.2 million square foot facility will take care of Medline’s hospital <br />and medical needs in the state of North Carolina, South Carolina, parts of Virginia, parts of