Agenda 11-19-19 Item 5-a - Public Hearing Regarding an Economic Development Recruitment Incentive for Piedmont Metalworks, LLC

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5 Basis to Calculate the Value of Orange County's Performance-Based Incentive: (1) NEW INVESTMENT — Piedmont Metalworks, LLC proposes to relocate its current Durham-based sheet metal manufacturing facility to Orange County and build a new 40,000 square foot production space adjacent to the existing Forma-Fab Metals operation. This plan will increase real property valuation by approximately $3,050,000 and personal property valuation by approximately $1,100,000 to yield a total of $4,150,000 in combined real and personal property investment over the next 5 years. New lnvestmeIV110201TI�0211 190"Iqnnl"IVI�024 Real Property $1,500,000 $0 $750,000 $0 $800,000 Personal Property $150,000 $200,000 $250,000 $250,000 $250,000 Total (annual) $1,650,000 $200,000 $1,000,000 $250,000 $1,050,000 TOTAL NEW INVESTMENT BY 2024: $4,150,000 (2) NEW EMPLOYMENT — Piedmont Metalworks will maintain employment consistent with the hiring schedule outlined below during the term of the incentive agreement. If annual job targets are not achieved, the incentive payment will be reduced proportionally. By year #5, the Company plans to add 42 positions with an average salary of $41,236 per year (equivalent to an average salary of $19.83 per hour), plus health and related employment benefits. Of these 42 jobs, 12 positions will be existing jobs that will relocate to Orange County, and 30 positions will be new hires over the next 5 years. IIIIL 1st Year Employment Projection —4 2—d Year 3r Year 4th Year 5th Year 2020 2021 2022 2023 2024 New Full Time 15 4 10 4 9 Jobs (annual) TOTAL NEW EMPLOYMENT BY 2024: 42 Jobs The proposed economic development incentive follows the County's previously adopted incentive formula that has been utilized with other industrial prospects, and is calculated at an amount equal to 75% of Piedmont Metalworks' projected investment in additional real & personal property tax valuation over each of the first 5 years. County policy ensures that annual revenues from this project's additional property tax values, net of annual incentive payments, remain revenue positive in all years of the incentive agreement. The incentive will be performance-based, revenue positive, and require annual verification by the County of Piedmont Metalworks' actual metrics over the next 5 years to note annual increases in (1) employment, wages & benefits, and, (2) new taxable real & personal property additions. Incentives would only be paid following confirmation of the Company's required annual threshold growth in these measures, and, on a pro-rata reimbursement in case the company's targeted growth in any year lags current growth projections.