Agenda 12-01-2025; 8-h - Approval of ABB, Inc. Performance Agreement Amendment

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E.8TA!rUr0RY Q01WLLkNQE: The Company understands that the County's participation.is contingent upon authority found in North Carolina General Statute 158-7.1 and other relevant North Carolina(jeneral Statutes and that should such statutory audiority be withdrawn by the North Carolina General Assembly County may terminate d3is Agreement without penalty to County anti without further compliance with this Agreeni(mt- 3. LNDUCEWNT PACKAGE A�COUNTY LNDUCEMENT GRANT: Subject to the liutations set out herein the County, upon execution of this Agreement,shall provide to the Company an Inducement Grant to offiet Facility development,expansion,and acquisition costs in an amount esffiiiated at Nine Hundred Seventy-Two Thousand Seven Hundred Twenty-Two Dollars($972,7212.00)payable in five instailments . nie estimated annual amount of each year's grant payment is shown irk Exhibit A. The first installment shall occur on fanuary3l.,2020 upon receipt of proof,as described in. Section 5 of this.Aggreement,that the minimum employment.and investment numbers referenced in Section 2 of this Agreement have been met and proof that all outstanding local property taxes on the real and business personal property owned by the Company and located within Orange County,for which a bill for such taxes has been issued to the Company,have been paid. Subsequent annual installments will occur during the month of lanuary for the term of this Agreement"rich the final installment occurring in January 2025. No installment shall be required to be paid until such time as County receives proof of the payment of all outstanding property taxes and verification of employment and investment levels has been submitted to the County. Suiaject to Section 3C the fmal Inducement Grant amount shall bit determined based,on the Company's Total Taxable investment at the time of the fmal inducement installment and according to the formula in 3B. B.TOTAL COUNTY CONLNfflIffiNT:The maximum amount of the Inducement Grant payment is based on the Total Taxable hivestment by Company in an amount of Thhv-Ninc Million Nine Hundred Thousand Dollars($39,900,000.00). The Inducement Grant payments shall be calculated based on the Company's'Minimum Taxable Investment for the dme period preceding the current Inducement Grant payment, County shall adjust the Inducement Grant payinent amount according to the following forniula: Amount of investment divided by 100 mijItiplied.by the current ad valorem tax.rate(currently$0.8679 per$100 of valuation) multiplied by 0.75 (percentage of inducement)multiplied by 5(number of years). Utilizing this formula, and an estimate(if depreciation as outlined in Exhibit A, a taxable investment currently estimated at Thirty-Nine Million Nine Hundred Thousand Dollars($39,900,000.00)would result in an Inducement Grant in the amount of Nine Hundred Seventy-Two Thousand Seven Hundred Twenty-Two Dollaks($972,722.00)payable in 5 installments. Subject to 3C below, in the event the amount of taxable investment increases or decreases,the amount of itiducementshall increase or decrease based on the formula specified herein,however the total amount of induc-ement shall not exceed Nine Hundred Seventy-Two Thousand Seven Hundred Twenty- Two Dollars($972,722.00).Further,this example assumes astatic Total Taxable Investment of Thirty-Nine Million Nine Hwidred Thousaad Dollars ($39,900,000.00)throughout the 5 you term. The formula specified herein shall be applied to the taxable investment annually during the term to determine the actual amount of the 5 inducement installments. C. MAX11MLIM COUNTY CON.fiWFUENT: The Inducement Grant SHALL NOT EXCEED Nine Hundred Seventy-Two Thousand Seven Hundred Twenty-Two Dollars($972,722.00). This is the maximum allowable inducement arnount based on.an estimated Total Taxable- Page 5 of 20