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<br /> The proposed incentive will be performance-based with respect to the County's annual verification
<br /> of Morinaga' 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. Incentives would
<br /> only be paid following confirmation of the Company's required annual growth measures.
<br /> Basis to Calculate the Value of Orange County's Performance-Based Incentives
<br /> 1) INVESTMENT — Morinaga will increase property valuation by at least $32,806,000 in real
<br /> property and at least $94,271 ,000 in personal property, to total $127,077,000 over five (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 /> Property'Real
<br /> $4,877,000 $25,778,000 $2,134,000 $17,000 $0 $32,806,000
<br /> Personal $23,856,000 $45,919,000 $20,671,000 $675,000 $3,150,000 $94,271,000
<br /> . . -
<br /> • $28,733,000 $71,697,000 $22,805,000 $692,000 $3,150,000 $127,077,000
<br /> 2) EMPLOYMENT – Morinaga 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 by
<br /> $500 per full-time equivalent employee not hired. By the year 2030, the Company will create 204
<br /> new positions with an average salary of $48,912 per year (or approximately $23.52 per hour).
<br /> NEEL AL
<br /> New Full- 57 51 48 36 12 204
<br /> Time Jobs
<br /> The proposed inducement payment will be in the form of a performance-based grant payable in
<br /> up to seven installments over a seven-year period, at an amount equal to 75% of Morinaga's
<br /> projected net increase in real & personal property tax valuation over the five-year investment
<br /> period as outlined in the chart above for 2024 – 2028. Since the company's employment creation
<br /> schedule (2026-2030) runs beyond the investment period, the County will withhold $500 per job
<br /> that has not yet been created by December 31, 2030. The final payment will be made upon
<br /> verification of job creation, with the final installment anticipated to occur in January 2031. This will
<br /> ensure 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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