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<br />
<br />The ABB, Inc. plant in Orange County ranks as the County’s largest private employer, with
<br />nearly 600 current associates, who hold the highest average salaried manufacturing jobs in the
<br />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
<br />as detailed in the table below. If these real and personal property valuation targets are
<br />not achieved, the proposed annual incentive payment will be reduced proportionally.
<br />
<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
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<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
<br />reduced by $500 per full time equivalent employee not hired. By year #5, the Company
<br />will create 403 new positions with an average salary of $70,789 per year.
<br />
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<br />Employment Projections
<br />
<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 Time
<br />Jobs 104 274 8 8 9
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<br />The proposed inducement payment will be in the form of a performance-based grant paid over a
<br />five (5) year period at an amount equal to 75% of ABB’s projected net increase in real &
<br />personal property tax valuation. This specific formula represents the County’s current incentive
<br />policy that has been offered in the past to other industrial and commercial prospects. It ensures
<br />that annual tax revenues from this project’s additional investment, net of annual incentive
<br />payments, remain positive in all years of the incentive agreement.
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