c100713 II Project LibertyClosed Session II (Project Liberty) October 7, 2013
At 7:40 p.m., the Board, already in closed session on another matter, began closed session on
a different matter to discuss matters related to the location or expansion of business in the area
served by this body pursuant to NCGS 143-318.11(a)(4). Commissioners Holmes, Frye, Kemp,
Lanier and Haywood were present. Also present were County Manager Richard Wells; Will
Massie, Assistant County Manager/Finance Officer; Ben Morgan, County Attorney; Aimee
Scotton, Associate County Attorney; Cheryl Ivey, Clerk to the Board; Amanda Varner, Deputy
Clerk to the Board and Bonnie Renfro, Randolph County EDC President.
In a quick update regarding the proposed Greensboro Liberty mega site, Ms. Renfro told the
Board these types of projects are highly competitive, requiring that communities and states have
a site that is ready to go and who are willing to offer financial incentives that will offset both
upfront and operational costs for a company. She said that in preparation for this type of
opportunity, the State has asked that we identify all local government support for a mega site
project based on some conservative assumptions about the economic impact of a potential
project.
Ms. Renfro provided a handout to Board members, which contains the following
conservative project assumptions for their consideration, saying that a decision would be needed
soon on the County's desired participation, if any, in this project:
Phase 1
Jobs
Year 1
Year 2
Year 3
Year 4
Year 5
Total
Total Jobs
-
100
500
1,400
-
2,000
Assemblers (Avg. wage $30K)
-
300 -
300
1,200
-
1,500
Management/Engineering
(Avg. wage $80K)
-
100
200
200
-
500
Total Average Wage $42,500
Investment
Year 1 Year 2 Year 3
Year 4 Year 5 Total
Total Investment
$160 M $550M $400 M
- - $1,110,000,000.00
Real Property
$160 M $50 M
$210,000,000.00
Personal Property
$500 M $400 M
$900,000,000.00
Phase 2
Jobs
Year 1
Year 2
Year 3
Year 4 Year 5
Total
Total Jobs
450
450
350
350 -
1,600
Assemblers (Avg. wage $30K)
400
400
300
300 -
1,400
Management/Engineering
(Avg. wage $80K)
50
50
50
50 -
200
Total Average Wage $36,250
Investment Year 1 Year 2 Year 3
Year 4
Year 5
Total
Total Investment $400 M $400M -
-
-
$800,000,000.00
Real Property
Personal Property $400 M $400 M
$800,000,000.00
Note 91: These assumptions are intended to be conservative estimates of job creation, average wages and
capital investment based on past automotive projects and discussions with knowledgeable site
selection experts.
Note 92: In Phase 1, job creation does not begin until the second year due to the two-year construction
time table of the facility.
Note 93: It is anticipated that Phase 2 will begin in about four to five years after the initial announcement
and there may be some overlap with Phase 1.
Local Government Incentive Proposal: Randolph County & City of Greensboro
Incentive Type
Structure
Value
Application
Funding Source
Upfront Cash
$10 M/ea gov't
$20 M
Used for site
Revenue bond funded
Grants
(Randolph/G'boro)
acquisition or
by percentage of
Gross Property Taxes
$55,083,000
preparation
landfill revenue
Property Tax
% of tax
$64-68 M /
Reduction in
New property tax
Grants
revenues/term
67-80% / 15-
operation costs
revenues generated
$20,000,000
20 yrs
by project
Infrastructure
Water & sewer
$20 M
Utility access
Seek all available
extension
federal and state
grants where
applicable
Fee waivers
Waive building
Up to
Reduce upfront
Forego fee revenues
permit &
$630,000
construction costs
inspection fees
Green Energy
Methane gas
TBD
Renewable energy
Variety of federal and
capture from
source
state tax credit
landfill
programs
1. Assumes an inter -local agreement with Randolph County and Greensboro for cost and
revenue sharing for site and project.
2. Water cost and source to be negotiated with Greensboro
3. Develop supplier and vendor recruitment incentive plan
Summary of Possible Cash Incentives
Investment
Phase 1 Phase 2
Real
$210 M - $210 M
Equipment
$900 M $800 M $1.7 B
Jobs
2,000 1,600 3,600
Scenario 1: 15 years to recoup initial cash grant:
15 / 10 Years
Phase 1
Phase 2
Totals
15 Years
10 Years
80%
75%
Gross Property Taxes
$55,083,000
$29,646,000
$84,729,000
Local Retained
$11,016,600
$9,241,500
$20,258,100
Incentive
$44,066,400
$20,404,500
$64,470,900
Land Value
$20,000,000
Waived Inspection Fees $630,000
Total Local Incentives $85,100,900
Scenario 2: 10 years to recoup initial cash grant:
20 / 15 Years
Phase 1
Phase 2 Totals
20 Years
15 Years
67%
67%
Gross Property Taxes
$68,350,500
$35,746,000 $104,096,500
Local Retained
$22,555,665
$13,430,980 $35,986,645
Incentive
$45,794,835
$22,315,020 $68,109,855
Land Value
$20,000,000
Waived Inspection Fees
$630,000
Total Local Incentives
$88,739,855
At 8:14 pm, on motion of Frye, seconded by Haywood, the Board voted unanimously to end
closed session and to return to regular session.
J. Harold Holmes, Chairman Darrell L. Frye
Phil Kemp
Arnold Lanier
Stan Haywood
Cheryl A. Ivey, Clerk to the Board