Agenda - 09-17-2024; 5-a - Public Hearing Regarding a Proposed Economic Development Recruitment Incentive and Performance Agreement Between Orange County and Morinaga America Foods, Inc.

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5 Benefits of Morinaga America Foods Expanding in Orange County • Add another 204 full-time manufacturing jobs by 2030, paying approximately $23.52 per hour average wage. • The proposed recruitment incentive is revenue positive for each year of the incentive period, netting 25% per year of the actual new property tax valuation in the first five years. A ten-year revenue forecast (shown as Exhibit F in the Performance Agreement) indicates Morinaga will generate approximately $7,417,526 in additional gross property tax revenue for the County, receive up to a maximum of$2,910,898 in incentive grants, and the County will receive $4,506,628 in net property tax revenue. • Morinaga's Orange County property tax value for 2023 is listed at $31,602,085. With the projected $136 million in additional investment, the firm would likely become Orange County's 2nd largest manufacturing related corporate taxpayer (behind #1 Thermo Fisher Scientific, and with Medline Industries at #3). • Establishes another successful public/private partnership between Orange County and the City of Mebane to grow the industrial tax base and employment in a designated Rural Census Tract area. • Further illustrates the County's success applying Article 46 sales tax proceeds to fund water & sewer infrastructure in the Buckhorn Economic Development District for the goal of attracting significant non-residential tax base and employment growth. • Strengthen the County's partnership with the State of North Carolina's business and expansion efforts, as Governor Roy Cooper and N.C. Department of Commerce Secretary Machelle Sanders visited parent company Morinaga & Co., Ltd in Tokyo, Japan in October 2023 and met with President Eijiro Ota. State of North Carolina, Local Governments, &Workforce Development Partners Assisting Orange County in the Recruitment Effort • The North Carolina Community Colleges System & the Hillsborough campus of Durham Technical Community College will fund a "Customized Training Program" technical training assistance for the employees. This support will further elevate the skill level of Orange County residents who begin employment with Morinaga. • The NC Department of Commerce has now approved state incentives and will serve as a liaison for State-assisted workforce development & pre-screening of applicants by NC Works, and community college support. • The City of Mebane has recently approved its own performance grant and will waive development start-up construction fees. • The Capital Area Workforce Development Board (CAWD), which Orange County is affiliated with as a member, is expected to provide funding for employment recruiting and screening services, on-the-job training, and incumbent worker training assistance.