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1 <br /> ORANGE COUNTY <br /> BOARD OF COMMISSIONERS <br /> ACTION AGENDA ITEM ABSTRACT <br /> Meeting Date: February 7, 2023 <br /> Action Agenda <br /> Item No. 8-i <br /> SUBJECT: Proposed Extension to Medline Industries, LP Incentive Performance <br /> Agreement Concerning the Company's Employment & Investment Target Dates <br /> DEPARTMENT: Economic Development, <br /> Manager's Office, Attorney's <br /> Office <br /> ATTACHMENT(S): INFORMATION CONTACT: <br /> 1) October 2019 Signed Performance <br /> Agreement between Orange Steve Brantley, Director, Economic <br /> County & Medline Industries Development, (919) 245-2326 <br /> 2) Proposed Contract Amendment to <br /> the Original Performance <br /> Agreement <br /> PURPOSE: To approve and authorize the Chair to sign a contract amendment (Attachment 2) <br /> for Medline Industries, LP, formally Medline Industries, Inc., authorizing an extension for the <br /> company's contractual requirement to achieve overall employment hiring and investment goals <br /> over the first 5 years, as authorized in Section 6. B. (Delay of Inducement Package Initiation) in <br /> the October 2019 Performance Agreement (Attachment 1). <br /> BACKGROUND: On September 12, 2019, North Carolina Governor Roy Cooper, Orange County <br /> and the City of Mebane jointly announced a decision by Medline Industries to build a 1.2 million <br /> square-foot LEED certified distribution center in Mebane, Orange County. Medline delivers <br /> medical devices and supplies to hospitals, independent physician practices, critical care units, <br /> surgical centers, home healthcare and EMS providers. Medline manufactures and distributes <br /> more than 550,000 products to more than 90 countries. <br /> Previously, during a special meeting on September 10, 2019, the Orange County Board of County <br /> Commissioners held a public hearing and approved a Performance Agreement with Medline <br /> Industries. That Agreement requires the company to (1) add 250 new employee positions, and <br /> (2) complete a $65.3 million investment by the end of the first five years. These two targets are to <br /> be achieved between an assumed commencement date of no later than July 31, 2020, and by or <br /> before the January 31, 2026 termination date. These numbers were anticipated to be achieved <br /> by year 5 of the investment period, but according to the Orange County Tax Office, the 2022 Real <br /> Property and Business Property Investment exceeds $95 million. Additionally, Medline's October <br /> 2022 employment exceeded the 250 employee goal. <br />