MINUTES
STATE
OF
COUNTY
OF HENDERSON JUNE 22, 2009
The Henderson
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
Those present
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.
Public Input
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.
CLOSED SESSION
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.
ADJOURN
Commissioner McGrady made the motion to adjourn the
meeting at 11:11a.m. All voted in favor
and the motion carried.
Attest:
Teresa L. Wilson, Clerk to the Board William L. Moyer,
Chairman