COUNTY OF HENDERSON JUNE 22, 2009
County Board of Commissioners met for a special called meeting at 11:00 a.m. in
the Commissioners' Meeting Room of the Historic Courthouse on
were: Chairman Bill Moyer, Vice-Chairman
Also present were: Public Information Intern Christy DeStefano, Tax Assessor/Interim Collector Stan Duncan and Research/Budget Analyst Amy Brantley.
Absent was: Commissioner Mark Williams
CALL TO ORDER/WELCOME
Chairman Moyer called the meeting to order and welcomed all in attendance. The purpose of the meeting is a Public Hearing to consider grant of Economic Development Incentives for Project Safety.2 Company.
Commissioner McGrady made the motion that the Board go into public hearing to consider grant of Economic Developement Incentives for Project Safety.2 Company. All voted in favor and the motion carried.
County Attorney Russ Burrell stated this public hearing is to consider a grant of economic development incentives to an unnamed company (referred to herein as “Project Safety.2 Company’). Project Safety.2, which has requested to remain unnamed at this time (and through this hearing) due to competitive pressures, is a manufacturing concern located inside and outside of the United States contemplating the expansion of an existing Henderson County factory. The number of jobs created would ultimately allow an incentive (under Henderson County guidelines) at a maximum of 120% of each year’s ad valorem property taxes on the actual new invested capital for a period of up to seven (7) years. From a legal standpoint, Mr. Burrell felt that the Board could proceed with this hearing without naming the company until such time that an actual agreement is in place.
Henderson County Partnership for Economic Development President and CEO Andrew Tate outlined the size and scope of the project and the job creation. He stated that the company does request confidentiality prior to making the decision of where the project will take place. They are currently considering one of three (1 of 3) locations for this project. As the company goes through the process of evaluating each site, they clearing need to identify consideration of any economic development assistance from those locations prior to making their decisions. Under the project as proposed, the public benefit to be derived from the capital project is a total taxable capital investment by the Project Safety.2 Company of at least $30,157,000.00 in machinery and equipment, made on a schedule from 2009 through 2011. To qualify for the proposed incentives, Project Safety.2 Company must create at least 338 full-time employment positions (in addition to the existing employment base) on a schedule beginning 2011, with all jobs created by the end of 2014. The amounts required to be invested by Project Safety.2 Company each year under this project are: 2009 - $4,264,000.00; 2010 - $16,393,000.00; and, 2012 - $9,500,000.00. The new jobs required to be created each year are as follows: in 2011 – 128; 2013 – 59; and, 2014 – 47. Wages associated with those positions would be an average of $36,179 per year which comfortably exceeds the county’s average wage. In addition to those wages, benefits would include a minimum of 70% of health insurance premiums being paid by the company, life insurance, short and long-term disability insurance, and a 401K program.
County Attorney Russ Burrell stated that while it is impossible to give an exact dollar figure on the proposed incentives, the proposal would be 120% of the ad valorem property taxes on the new invested capital based on whatever that year’s assessed value for the new invested capital; equipment would have to be reassessed each year based on its depreciated value.
Mr. Tate stated that the 120% multiplier would take effect in the first year of the first year of employment only. The Company would not receive an economic development grant from Henderson County or any other unit of government until they have met performance based guidelines that commit to the number of jobs created, investment made, and the wages associated with those jobs. The earliest that grant payments would take place would be 2011 and stretch through 2017. He noted that the Town of Fletcher had a public hearing on Friday evening at 6:00 p.m. and voted unanimously to extend their support, roughly half of what the County is considering at this time toward the project.
Mr. Burrell stated that if a motion were made by the Board it would be for the 120% over a period of seven (7) years.
There was none.
Close the Public Hearing
Commissioner McGrady made the motion for the Board to close the public hearing. All voted in favor and the motion carried.
Commissioner Young made the motion that the Board grants the proposed incentives. All voted in favor and the motion carried.
Commissioner McGrady made the motion for the Board to go into closed session as allowed pursuant to NCGS 143-318.11 for the following reason(s):
1. (a)(3) To consult with an attorney employed or retained by the public body in order to preserve the attorney-client privilege between the attorney and the public body, which privilege is hereby acknowledged. To consult with an attorney employed or retained by the public body in order to consider and give instructions to the attorney with respect to a claim.
All voted in favor and the motion carried.
Commissioner McGrady made the motion to adjourn the meeting at 11:11a.m. All voted in favor and the motion carried.
Teresa L. Wilson, Clerk to the Board William L. Moyer, Chairman