|
24
<br /> new jobs over the next 5 years of operation at this facility. These jobs will include production,
<br /> maintenance, office, and management staff and have an average salary of$70,789 per year.
<br /> The ABB, Inc. plant in Orange County ranks as the County's largest private employer, with nearly
<br /> 600 current associates, who hold the highest average salaried manufacturing jobs in the County.
<br /> The original plant was acquired in June 2018 from General Electric's Industrial Solutions division.
<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 proposals
<br /> from the State of North Carolina, Orange County and the City of Mebane.
<br /> The proposed incentive will be performance-based with respect to the County's annual verification
<br /> of ABB's targeted increases in (1) employment, wages & benefits, and, (2) new taxable real &
<br /> personal property value over the next five years, as the Company expands its Mebane presence.
<br /> Incentives would only be paid following confirmation of the Company's required annual growth
<br /> measures.
<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 not
<br /> achieved, the proposed annual incentive payment will be reduced proportionally.
<br /> Investment i i
<br /> Real Property $5,000,000 $16,600,000 $2,700,000 $24,300,000
<br /> Personal $200,000 $10,200,000 $5,200,000 $15,600,000
<br /> Property
<br /> Total $5,200,000 $26,800,000 $7,900,000 $39,900,000
<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 reduced
<br /> by $500 per full time equivalent employee not hired. By year #5, the Company will create
<br /> 403 new positions with an average salary of $70,789 per year.
<br /> _ Employment Projections `
<br /> 1 st Year 2"d Year 31d Year 4t" Year 5t" Year
<br /> 2020 2021 2022 2023 2024
<br /> New Full Time 104 274 8 8 9
<br /> Jobs
<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 & personal
<br /> property tax valuation. This specific formula represents the County's current incentive policy that
<br /> has been offered in the past to other industrial and commercial prospects. It ensures that annual
<br /> tax revenues from this project's additional investment, net of annual incentive payments, remain
<br /> positive in all years of the incentive agreement.
<br />
|