060517 II Project Flying EagleClosed Session II – Project Flying Eagle— June 5, 2017
At 8:26 p.m., already in closed session on another matter, the Board began closed session
on a different matter relating to the location or expansion of business in the area, pursuant to
NCGS 143-318.11(a)(4). Commissioners Allen, Frye, Haywood, McDowell and Kidd were
present. Also present were County Manager Hal Johnson; Finance Officer Will Massie;
County Attorney Ben Morgan; Aimee Scotton, Associate County Attorney; Amanda Varner,
Clerk to the Board; and Randolph County EDC President Bonnie Renfro and EDC Vice
President Kevin Franklin.
Randolph County EDC President Bonnie Renfro said this project has two sub projects and
both are being considered for the Greensboro Randolph Megasite. They are three -C industry
projects (computer, communication and consumer electronics) that are also considering other
locations such as Wisconsin, Pennsylvania and Indiana.
Project One: The client plans to hire 5200 employees with an average wage of $50,704.
The jobs are production plus various technical and management support positions. Based on
the client's proposed investment of $4.2 billion, the county's return on investment in
additional tax revenue should be realized within the first five years of operation.
Project Two: The client plans to hire 8800 employees with an average wage of $50,704.
The jobs are production with various technical and management support positions. Based on
the client's proposed investment of $6.1 billion, the county's return on investment in
additional tax revenue should be realized within the first five years of operation.
This would be the client's first operation in the US and Western hemisphere. Key factors
for consideration are costs, speed to market, and the ability to find and secure a workforce.
Ms. Renfro said the client stated that up to 120 suppliers would locate near them creating up
to an additional 6,000 jobs and anticipate approximately $700 million in supply chain
investment. Universities and Community Colleges have been involved in conversations with
the client regarding training of employees.
Ms. Renfro said the client would also require a greater amount of utilities than previously
estimated for an auto manufacturer. Each supplier has been contacted and is working on
plans to meet the needs. She is unsure of their rail needs but anticipates that it should not be
as much as auto manufacturer.
She said the State would take the lead on incentives with the megasite land valued at
around $35 million as part of the package. Ms. Renfro said that Mr. Massie assisted with
figuring the anticipated revenues based on the original investment in equipment and applying
appropriate depreciation rates. Ms. Renfro is seeking the guidance and direction of the Board.
She asked if they would consider a performance-based grant of up to 75% of the new tax
revenue over ten years.
• Project One: 75% $114,672,797/ 10 years
25% 38,224,266/ 10 years
• Project Two: 75% $166,598,688/ 10 years
25% 55,516,229/ 10 years
06/05/2017
The client requested a formal incentive proposal by end of June and plan to make a
decision by July. They would like to take possession of land by the third quarter of 2017.
The consensus of the Board was to agree to consider the proposed incentive and submit a
letter of intent. Ms. Renfro said she would keep everyone updated as the project progresses.
At 9:11 p.m., on motion of Frye, seconded by Kidd, the Board voted unanimously to end
closed session and to return to open session.
David Allen, Chairman
Stan Haywood
Maxton McDowell
Darrell L. Frye
Kenny Kidd
Amanda Varner, Clerk to the Board
06/05/2017