120621 Megasite/Project Darwin
December 6, 2021 — Special Meeting — Megasite
The Randolph County Board of Commissioners met in special session at 9:00 a.m. in the
Randolph Community College Continuing Education and Industrial Center, 413 Industrial Park
Ave., Asheboro to consider an Economic Development Project at the Greensboro-Randolph
Megasite. Chairman Darrell Frye, Vice-Chairman David Allen, Commissioner Kenny Kidd,
Commissioner Maxton McDowell, and Commissioner Hope Haywood were present. Also present
were County Manager Hal Johnson, Assistant County Manager/Finance Officer Will Massie,
County Attorney Ben Morgan, Associate County Attorney Aimee Scotton, Deputy Clerk to the
Board Sarah Pack, and Clerk to the Board Dana Crisco. The meeting was livestreamed on
Facebook and Youtube.
Chairman Frye called the meeting to order and thanked attendees for their attendance. The
purpose of this meeting is to hear thoughts from the public regarding the incentives package
offered to the potential client interested in the Megasite and to consider economic development
incentive grants and the conveyance of property to the client. The name of the client will be
announced on the afternoon of December 6, 2021.
Chairman Frye introduced Kevin Franklin, President of the Economic Development
Corporation (EDC). The EDC has worked tirelessly to find a client for the Megasite.
Mr. Franklin thanked the Board for considering an incentives package for the client. The
product under consideration is a product of a decade of preparation. The project is known as
Project Darwin. They are considering the Megasite as a production facility. Mr. Franklin
discussed the investment of the client, jobs created, and expansion plans for the future. After the
Public Hearing, the Board will be asked to consider two resolutions; the first is in regards to a cash
grant, which will be funded by returning a portion of paid property taxes to the company. Mr.
Franklin detailed the expected tax receipts and reimbursement to the company. Building
inspections fees would also be reimbursed over a set time period. Conveyance of County-owned
Megasite property is contingent on an initial commitment by Project Darwin and is the third piece
of the proposed incentive package.
The support of the Board in this initiative will facilitate a stronger economy and higher tax base
which benefits citizens.
Chairman Frye said current fair market value is not what the County has paid for the Megasite
property.
Public Hearing
Chairman Frye opened the Public Hearing at 9:11 a.m. County Attorney Ben Morgan read
aloud the rules of procedure.
William Dula, 1320 Randolph Tabernacle Road, Asheboro, is opposed to the incentives
package offered. He believes the company will produce lithium batteries for electric cars. Lithium
is an extremely dangerous substance and can cause many severe or terminal health problems. The
only way this project is feasible is with tax redemption. North Carolina is a “right to work” state.
12/6/21
He questioned if citizens will have any say over how the plant is run. He is concerned about the
cost of cleanup if the company were to move to a different site. He would like to know where the
lithium is coming from and where the power for the plant is being supplied.
Chairman Frye said many County officials have been involved and have been working at the
site for weeks. There are clawbacks and outlets drafted by County attorneys which provide
protection for the County.
Filmore York, 505 Dogwood Drive, Liberty, is the Mayor of Liberty. He introduced Town
Manager Scott Kidd. They are representing the town of Liberty in support of locating this
company at the Megasite. Citizens have watched the town grow and change with businesses and
industries coming and going. The town Council and citizens are willing to help in any way with
the hopes of bringing quality growth back to the area. The Town of Liberty will support the County
in any way necessary to bring this project to fruition.
David Smith, 146 N. Church Street, Asheboro, is the Mayor of Asheboro. He introduced City
Manager John Ogburn. He said the City of Asheboro has been a strong supporter of the proposed
Greensboro-Randolph Megasite since its inception. The project highlights a strong cooperative
spirit in the Piedmont Triad. He urged the Board to approve the incentive request.
Alan Ferguson, 4794 Troy Smith Road, Liberty, has been involved in Megasite related
discussions since 2012. He intends to be a good neighbor to his newest neighbor. There are many
reasons for optimism. This project will be for the common good. Any business incentive that we
agree to support is an investment in our common future. He hopes that everyone will benefit from
the many individual sacrifices. Economic health is not cheaply had. State representatives have
met and approved funding of this project. This investment will, in time, grow other investments
in the county. He is willing to make sacrifices as a good neighbor to this company.
Reynolds Lisk, 1763 Old Lexington Road, Asheboro, said that since the 1970s, Randolph
County has been fighting against job loss. Textile and furniture manufacturers, which have long
been a manufacturing cornerstone in the county, have been disappearing from the local market.
Randolph County has lost an estimated 8,000 jobs between 2000 and 2010. This is a unique
opportunity to fundamentally change the future. He commended those with the vision and courage
to facilitate this project. He encouraged the Board to pass the investment package.
Bob Shackleford, 1651 Acorn Drive, Randleman, is the President of Randolph Community
College (RCC). He introduced Elbert Lassiter, Vice President for Workforce Development and
Continuing Education. Dr. Shackleford said for years, citizens have seen companies leave, taking
jobs with them. He told an anecdote of a company entering a local community and positively
impacted the citizens living there. He has seen the “behind the scenes” preparation of this site.
RCC will be training workers for this facility.
Linda Brown, 507 Woods Drive, Randleman, agrees with the sentiments of Mr. Ferguson. Ms.
Brown represents the Asheboro/Randolph Chamber of Commerce. The Chamber supports the
incentives package presented. The addition of 1700 jobs is a game-changer for the county’s
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economy. A one-billion-dollar capital investment will greatly affect the tax base. This support is
for the community and families as well as the economy.
Loren Hill, 416 Gallimore Dairy Road, Greensboro, is the Carolina Core Regional Economic
Development Director for the Piedmont Triad Partnership, and has worked closely with the EDC.
He has both professional and personal interest in Randolph County. Hard work has led to the
Megasite’s fruition. Completing transformational projects will be highly impactful to the county.
This project will anchor the 17-county Carolina Core region. The Piedmont Triad Partnership
offers full support of this project.
Bob Crumley, 1157 S. Cox Street, Asheboro, Randolph County Economic Development
Corporation Vice-Chairman, said not every Board deals with transformational issues. In the past,
grants for water and sewer were turned down, which are still affecting the county today. Before
the Board now is another transformational project. There will be a huge economic impact from
salaries alone. He encouraged the Board to do the right thing and vote to support the package
unanimously.
Neal Griffin, 913 Mountain Valley Drive, Asheboro, said this project is a game changer for
standards of living. Increasing salaries to this magnitude determines whether employees can own
a home versus renting, buy a new car, et cetera. Randolph County has always been a good steward
of its money. He urged the Board to support the project.
Joel Leonard, 807 Shamrock Road, Asheboro, said he has worked to help people find
resources to support their education. If we can leverage these activities and build a culture of
doers, we can help our community members get these jobs. Approval of the package also supports
the supply chain that will be generated from this project. He supports the project and is willing to
help in any way he can.
Luke Estola, 709 Robin Lane, Archdale, grew up in Michigan but moved to South Carolina
due to the impact of the BMW plant in the area. He would love to see the same thing happen here.
Scott Darr, 100 Sealy Drive, Archdale, commended the Board and their foresight and hopes
they will continue with other projects. Support of the Board brings these projects to fruition. As
a taxpayer, he appreciates where money has been invested.
Mark Hensley, 1326 Middleton Circle, Asheboro, is the Executive Director of the Randolph
Senior Adults Association (RSAA). This is a historic day for the community. This is likely one
of the most significant decisions in our history. He speaks for the voices not often heard such as
those in the community who are in need. He wonders how we encourage young people to build a
life in the community. We are on the cusp of this by offering an exciting employment opportunity.
Increased economic impact will provide additional income that will filter down to organizations
who rely on grant and government money to serve the citizens. RSAA can provide workforce
transportation using the Regional Coordinated Area Transportation System (RCATS). He
encouraged the Board to approve the incentives package.
12/6/21
Walker Moffitt, 1 Richland Place, Asheboro, is the Chairman of the North Carolina Zoological
Park Council. He thanked the Board for their work to bring positive economic change.
Dr. Shackleford clarified that the funding for the on-site training facility for the plant was
provided by the Golden Leaf Foundation in the amount of $25 million.
Chairman Frye said the City of Greensboro has pledged $21 million to bring water and sewer
to the site. The County’s investment has leveraged millions of additional dollars for the site. There
are good partners to help this happen.
Mr. Dula said he is not against manufacturing at the Megasite. He wants people to realize how
dangerous lithium is. We are bringing something in that we may not be able to get rid of. Lithium
is a toxic waste to our community.
After hearing no additional comments, Chairman Frye closed the Public Hearing at 9:55 a.m.
on motion of Kidd, seconded by McDowell.
Vice-Chairman Allen said that he lives in the area local to the Megasite and has also had
concerns about safety and has asked many questions. This offers closure to the neighborhood that
is affected by the Megasite. This is a new chapter for the community. This is not the end; we can
celebrate today but there is more work to be done. His aim is to make sure the County gets the
benefits of the investment. He wants to be an advocate for Randolph County.
On motion of Kidd, seconded by McDowell, the Board voted 5-0 to approve the Resolution
Authorizing the County of Randolph to Enter into an Economic Development Incentives Contract.
On motion of McDowell, seconded by Kidd, the Board voted 5-0 to approve the Resolution
Authorizing the Conveyance of Real Property for Economic Development.
Chairman Frye said former Commissioner Harold Holmes is in attendance. Mr. Holmes was
involved in this project years ago. The late Stan Haywood and Phil Kemp were also involved in
the project. Chairman Frye appreciates the foresight of Boards past. County money has been
leveraged well.
Commissioner Kidd said this project belongs to the citizens of Randolph County. He said we
wouldn’t be here today without all of our community partners. He thanked Chairman Frye for his
leadership.
Adjournment
At 10:05 a.m. on motion of Allen, seconded by Kidd, the Board voted 5-0 to adjourn.
_______________________________ ________________________________
Darrell Frye, Chairman David Allen
12/6/21
________________________________ _________________________________
Kenny Kidd Maxton McDowell
________________________________ _________________________________
Hope Haywood Sarah Pack, Deputy Clerk to the Board
12/6/21
Darrell Frye, Chairman
David Allen, Vice Chairman
RANDOLPH COUNTY
Kenny Kidd
BOARD OF COMMISSIONERS
Maxton McDowell
Hope Haywood
Randolph County Office Building ■ 725 McDowell Road
Hal Johnson, County Manager
Asheboro, North Carolina 27205 ■ Telephone 336-318-6300
Ben Morgan, County Attorney
Dana Crisco, Clerk to the Board
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RESOLUTION AUTHORIZING THE COUNTY OF RANDOLPH TO
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ENTER INTO AN ECONOMIC DEVELOPMENT INCENTIVES
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CONTRACT
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WHEREAS, Section 158-7.1 of the North Carolina General Statutes authorizes a county
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to undertake an economic development project by extending assistance to a company in order to
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cause the company to locate or expand its operations within the county; and
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WHEREAS, Project Darwin (the “Company”) is a Delaware corporation that is or shall
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be authorized to do business in the State of North Carolina; and
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WHEREAS, the Company desires to construct, install, equip, and operate facilities for the
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production of automotive batteries in North America (the “Project”); and
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WHEREAS, the Company plans to invest at least one billion dollars ($1,000,000,000.00)
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in capital costs, which include real and personal property, in the Project and create or cause to be
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created at least one thousand seven hundred and fifty (1,750) new full-time jobs for the Project
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(“Phase I”); and
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WHEREAS, the Company is considering an expansion of the Project that, if the Company
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elects to proceed with in a three year period, would require an increase of its (i) investment to a
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total of three billion dollars ($3,000,000,000.00) in capital costs, which includes real and personal
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property, in the County, and (ii) job creation commitment to at least three thousand eight hundred
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and seventy-five (3,875) full-time jobs (“Phase II”); and
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WHEREAS, the County finds that in order to aid and encourage the Company to locate,
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develop, and construct the Project in the County, it is necessary and desirable to offer an economic
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incentives package as provided herein to the Company; and
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WHEREAS, the Board of Commissioners of Randolph County has held a public hearing
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to consider whether to grant the economic development incentives described herein; and
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WHEREAS, said incentives shall be granted pursuant to an economic development
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incentives contract as provided in Section 1 of this resolution; and
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WHEREAS, upon the completion by the Company of Phase I of the Project, the Company
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will have generated new value/capital investment, including real and personal property and
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equipment associated with the Project in an amount equal to or in excess of
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one billion dollars ($1,000,000,000.00) and will have created or caused the creation of a minimum
of one thousand seven hundred fifty (1,750) new full-time jobs in connection with the Project; and
WHEREAS, if the Company elects to proceed with and completes Phase II of the Project,
the Company will have generated new value/capital investment, including in real and personal
property and equipment associated with the Project in an amount equal to or in excess of three
billion dollars ($3,000,000,000.00) and will have created or caused the creation of a minimum of
three thousand eight hundred and seventy-five (3,875) new full-time jobs in connection with the
Project; and
WHEREAS, this economic development project will stimulate and stabilize the local
economy, promote business in the County, and result in the creation of a significant number of
jobs in the County; and
WHEREAS, the County expects property tax revenues generated by the Company’s
investment to be sufficient to fund this economic development project;
NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of Randolph
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County, this 6 day of December, 2021, as follows:
Section 1. The County is authorized to enter into a performance-based incentives contract with
the Company. In addition to the standard terms found in contracts that the County routinely
executes in the ordinary course of business, the economic development incentives contract entered
into by and between the County and the Company must contain the following essential terms and
conditions:
a. Phase I Incentives and Performance Requirements
i. For a period of five years commencing with the effective date of the
incentives contract, the County shall make an annual payment to the
Company in an amount equal to any fees and expenses for permits paid by,
or on behalf of, the Company to the County. For the purposes of this
paragraph, permits shall mean any and all permits, licenses, authorizations,
and approvals for the Company and any of its contractors, vendors, or
agents needed for the development, construction and operation of the
Project.
ii. For a period of twenty years (the “Incentive Period”), said period to start
the first year that the Company receives a Job Development Investment
Grant award from the North Carolina Department of Commerce, the County
shall make annual incentive payments to the Company in an amount equal
to sixty percent (60%) of the general countywide real and personal property
taxes paid by the Company to the County in the preceding twelve-month
period, provided however, that the first Phase I incentive payment shall be
an amount equal to sixty percent (60%) of the countywide real and personal
property taxes paid by the Company after the effective date of the incentives
contract through the incentive start date.
www.randolphcountync.gov
iii. Within ten years of the effective date of the incentive agreement, the
Company shall make an investment in the Project in an amount not less than
one billion dollars ($1,000,000,000.00) and create or cause to be created at
least one thousand seven hundred and fifty (1,750) new full-time jobs.
b. Phase II Incentives and Performance Requirements
i. In order for the Company to qualify for Phase II incentives, it must
announce its commitment to proceed with Phase II of the Project on or
before December 6, 2024.
ii. Upon the announcement of Phase II of the Project, the permit incentive
payments referenced in paragraph a (i) above will be extended for an
additional five years.
iii. Upon the announcement of Phase II of the Project, the County’s annual
incentive payments referenced in paragraph a (ii) above shall be increased
to seventy percent (70%) of the general countywide real and personal
property taxes paid by the Company in each preceding twelve-month period
for the remainder of the Incentive Period unless decreased as provided in
paragraph b (v) below.
iv. Under Phase II, the Company must make an investment in the Project of not
less than three billion dollars ($3,000,000,000.00) and create or cause to be
created at least three thousand eight hundred seventy-five (3,875) new full-
time jobs by December 31, 2034 (Phase II Commitment Deadline).
v. If the Company fails to make at least 90% of the Phase II investment amount
detailed in paragraph b (iv) above by the Phase II Commitment Deadline,
then the County’s investment payments shall decrease to the Phase I
calculated level for the remainder of the Incentive Period, and the Company
shall be required to reimburse the County for a prorated portion of the
additional 10% reimbursement that the Company has received for the Phase
II investment payments.
c. The contract must provide the County and the City with a means of recouping a portion
of the incentive payments if the Company’s facilities do not remain in operation for a
period of ten (10) years immediately following the date on which the Company’s Phase
I commitments are met.
Section 2. The Chairman of the Randolph County Board of Commissioners is hereby
authorized to execute on behalf of the County of Randolph a contract drafted in accordance with
the provisions of this resolution and any other documents necessary for the implementation of this
economic development project.
www.randolphcountync.gov
Darrell L. Frye, Chairman
Randolph County Board of Commissioners
ATTEST:
Dana Crisco, Clerk
Randolph County Board of Commissioners
www.randolphcountync.gov
Darrell Frye, Chairman
David Allen, Vice Chairman
RANDOLPH COUNTY
Kenny Kidd
BOARD OF COMMISSIONERS
Maxton McDowell
Hope Haywood
Randolph County Office Building ■ 725 McDowell Road
Hal Johnson, County Manager
Asheboro, North Carolina 27205 ■ Telephone 336-318-6300
Ben Morgan, County Attorney
Dana Crisco, Clerk to the Board
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RESOLUTION AUTHORIZING THE CONVEYANCE OF REAL PROPERTY FOR
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ECONOMIC DEVELOPMENT
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WHEREAS, North Carolina General Statute 158-7.1 authorizes a county to undertake an
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economic development project by conveying property to a company in order to cause the company
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to locate or expand its operations within that county; and
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WHEREAS, Randolph County (“County”), the Greensboro-Randolph Megasite Foundation, Inc.
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(“GRMF”), and North Carolina Railroad Holdings I, LLC (“NCRR”) are the owners of those
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parcels of property collectively known as the Greensboro Randolph Megasite (the “Megasite”);
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and
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WHEREAS, the entirety of the Megasite is located in Randolph County; and
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WHEREAS, Project Darwin (the “Company”) desires to locate a project on the Megasite for the
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construction, equipping, and operation of manufacturing operations (the “Project”); and
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WHEREAS, the County owns those parcels of Megasite property described in Attachment A to
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this Resolution (the “County Properties”); and
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WHEREAS, the GRMF owns those parcels of Megasite property described in Attachment B to
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this Resolution (the “GRMF Properties”); and
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WHEREAS, the GRMF has agreed in writing to transfer ownership of the GRMF Properties to
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the County; and
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WHEREAS, the County and the Company have engaged in negotiations for the conveyance of
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the County Properties (Attachment A) and the GRMF Properties (Attachment B), together the
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“Property,” to the end that the Company may construct the Project on the Megasite, and have
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reached tentative agreement on the terms for the conveyance; and
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WHEREAS, the County finds that in order to aid and encourage the Company to locate, develop,
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and construct the Project in the County, it is necessary and desirable to offer conveyance of the
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land as provided herein; and
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WHEREAS, the Board of Commissioners of Randolph County has held a public hearing to
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consider whether to approve the conveyance of the Property to the Company;
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NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of Randolph County
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this 6 day of December, 2021:
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The Board of Commissioners shall accept the transfer of the GRMF Properties listed in
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Attachment B to this Resolution.
The Chairman of the Board of Commissioners is authorized to execute a land conveyance
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agreement in accordance with this resolution and the necessary documents to convey to Project
Darwin all or a portion of those properties described in Attachments A and B to this Resolution
(together, the “Property”); and
The conveyance of the Property to Project Darwin will stimulate the local economy, promote
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business and result in the creation of a substantial number of jobs in Randolph County that pay
at or above the median average hourly wage in the County. According to the most-recent
publications of the United States Bureau of Labor Statistics, the median average hourly wage
in Randolph County is $16.22 per hour. The probable average hourly wage at the facility to
be constructed by Project Darwin is estimated to be $29.92 per hour, which is above the current
median hourly wage in the County. The determination of the probable average hourly wage at
the facility is based upon materials provided to Randolph County Economic Development
Director Kevin Franklin by the North Carolina Department of Commerce; and
The fair market value of the Property, subject to covenants and conditions, is $34,902.00 per
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acre. This determination of fair market value is based upon the sales price of recent sales and
current listings of comparable tracts of land in Randolph County, as reported to the Randolph
County Board of Commissioners; and
As consideration for the conveyance of the property, Project Darwin will contractually agree
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to construct and equip facilities on the Megasite with an investment by the Company of at least
One Billion Dollars ($1,000,000,000.00). At the County’s current tax rate, said facilities will
generate real and personal property tax revenues over the next ten (10) years in an amount at
least sufficient to return to the County the fair market value of the Property.
The documents executed in the conveyance of the Property shall include provisions that
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contractually obligate Project Darwin to construct, within 5 years, the improvements and
investments at the Megasite that will generate the tax revenues taken into account in arriving
at the consideration as described in paragraph (5) above and providing for the reconveyance of
the Property to the County if the Company fails to make these improvements and investments.
In lieu of reconveyance, the conveyance documents shall allow the Company to make a
payment to the County in the amount necessary, together with the prospective taxes on the
improvements actually in place at that time, to fully compensate the County for the value of
the Property.
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This the 6 day of December, 2021.
______________________________
Darrell Frye, Chairman
Randolph County Board of Commissioners
Attest:
www.randolphcountync.gov
___________________________
Dana Crisco
Clerk to the Board
www.randolphcountync.gov