Agenda - 12-07-2020; 8-h - Proposed One-Year Extension to ABB’s Inc.’s Incentive Performance Agreement Concerning the Company’s Employment & Investment Target Dates

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2 commencement date of no later than June 30, 2020, and by or before the Dec. 31, 2024 termination date. The Performance Agreement's Section 6. B (Delay of Inducement Package Initiation) has language that gives ABB, Inc. the option to request an extension of up to a one- year as a result of an unforeseen delay, if needed, in order to meet required employment and investment goals. However, the contract's provision requires the Company to first submit a written request to the County by no later than June 30, 2020 (a date that has since passed). Due to 2020's COVID pandemic, many businesses across the State have experienced an unexpected and significant negative impact on their business activity, growth plans and employment during the current year. While ABB was able to substantially complete construction of its' new 200,000 sq. ft. factory addition, the firm's employment effort to add new 403 positions became stalled. Then in mid-2020, the North Carolina Department of Commerce announced a COVID-related financial remedy to ABB and similar businesses experiencing interrupted employment goals tied to State incentive goals. On June 30, 2020 the State contacted all corporate and industrial recipients of North Carolina's special recruitment incentives, to include ABB, and offered a special one-year extension to allow each of those firms one additional year of eligibility to meet the State's required employment and investment targets. The State's June 30, 2020 COVID relief measure sought to compensate businesses such as ABB for this year's unanticipated shut downs, and employment disruptions caused by the COVID pandemic. ABB, Inc. received the State's extension notice on June 30, 2020, and accepted that offer on August 26, 2020 regarding ABB's $4.3 million "Jobs Development Investment Grant" State incentive. Consequently, ABB missed the County's June 30, 2020 notification deadline, (as outlined in the Performance Agreement, Section 6. B), to submit a written request to the County to receive a one-year delay in the incentive schedule. ABB's timing to learn about, and receive a one-year extension on their State incentive created an unexpected 12-month mismatch with respect to Orange County's (and Mebane's) original local incentive agreements governing annual employment and investment target dates. As a result, the company contacted Orange County (and the City of Mebane) in early September, and asked for similar consideration with our local financial incentive agreement. REQUESTED ACTION: ABB, Inc. believes the unexpected consequences of the COVID pandemic that delayed their employment hiring schedule, plus the timing of the State's June 30 relief notice to extend North Carolina's incentive-related employment target dates, warrant Orange County's consideration to likewise align our existing Performance Agreement target dates for an additional year for ABB's employment and investment goals. The County Attorney advises that the Board of Commissioners may consider ABB's request by either (1) waiving the Performance Agreement's Section 6. B (Delay of Inducement Package Initiation) concerning the Agreement's now-expired June 30, 2020 notification deadline, or, (2) by amending the Agreement to establish new dates. The Agreement between the County and ABB currently requires the company to meet's its 403 employment target by December 31, 2024, and complete the $39.9 million total taxable investment by January 1, 2025. The Board's waiver of Section 6. B, if approved, would extend the Performance Agreement's termination date to January 1, 2026 and accommodate ABB's request. The City of Mebane has verbally informed ABB that it will grant a one-year extension on their joint $997,500 incentive agreement.