Agenda 12-02-19 Item 8-e - Resolution to Accompany the North Carolina Department of Commerce’s Building Reuse Grant Incentive Application for ABB, Inc.

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2 discretionary Jobs Development Investment Grant (JDIG) valued at $4.4 million, and, a $500,000 Building Reuse Grant. The Building Reuse Grant is essentially a forgivable loan requiring ABB to invest at least $500,000 in new renovation improvements to its existing facility, and create a targeted level of new job creation in the initial 2 - 3 years. Once ABB meets those requirements, the forgivable loan will convert to a grant. State requirements for the Building Reuse Grant also involve a local government agreeing to serve as the administrator during a company's building renovation and job hiring phase. That local government role includes the transfer of State funds from the N. C. Department of Commerce directly to the local government, which, in turn, passes the funds over to the recipient industry. Documentation includes (1) an initial grant application, which requires a Resolution, and (2) a formal contract. The local government must also issue a Deed of Trust with the contract. In the case of ABB's expansion, the grant application with the State has already been filed, while the contract phase will begin soon (coming to the BOCC for review at a later date). Orange County and ABB have mutually agreed to delay the request of State funds from the Building Reuse Grant until after ABB has actually satisfied making all required building renovation improvements and job hiring goals. Therefore, language outlining this mutual agreement will be added by the County to the contract document. This method will remove any potential local government liability with the County receiving and transferring the $500,000 in State funds to ABB up front, before ABB completes all investment and hiring requirements, in the remote case that ABB were to not perform and cause the County to have to repay the State funds. At this time, the County's first step is to issue the required Resolution in support of participating in the State's Building Reuse Grant for ABB. The additional contract agreement between Orange County and the North Carolina Department of Commerce will proceed at a later date, with BOCC review. Although the Resolution refers to the County agreeing to provide a local 5% match, or $25,000, for the State's $500,000 Building Reuse Grant incentive award to ABB, Orange County's funds match is already provided as part of the County's $972,722 performance-based County incentive which the BOCC approved for ABB in a public hearing on July 23, 2019. FINANCIAL IMPACT: There is no additional financial impact associated with the proposed Resolution. SOCIAL JUSTICE IMPACT: The following Orange County Social Justice Goal is applicable to this item: • GOAL: ENSURE ECONOMIC SELF-SUFFICIENCY The creation and preservation of infrastructure, policies, programs and funding necessary for residents to provide shelter, food, clothing and medical care for themselves and their dependents. ENVIRONMENTAL IMPACT: The following Orange County Environmental Responsibility Goal impacts are applicable to this item: • ENERGY EFFICIENCY AND WASTE REDUCTION Initiate policies and programs that: 1) conserve energy; 2) reduce resource consumption; 3) increase the use of recycled and renewable resources; and 4) minimize waste stream impacts on the environment.