c042605jointclosedsessClosed Session from Special Meeting — April 26, 2005
At 4:35 p.m. the Board adjourned to joint closed session with the Asheboro City Council to
discuss matters relating to the location or expansion of business in the area served by the Board and the
Council, pursuant to NCGS 143-318.11(a)(4). Commissioners Holmes, Kemp, Davis, and Lanier were
present. Commissioner Frye was absent. City Council members present were Linda Carter, Keith Crisco,
Nancy Hunter, John McGlohon, and Mayor David Jarrell. Also present representing the City were City
Manager John Ogburn; Carol Cole, City Clerk; Debbbie Juberg, Finance Officer; and City Attorney Jeff
Sugg. Also present representing the County were Cheryl Ivey, Deputy Clerk to the Board; County
Manager Frank Willis; County Attorney Alan Pugh; Associate County Attorney Aimee Scotton; and
Deputy Finance Officer Will Massie. Representing the Randolph County Economic Development
Corporation (EDC) were Bonnie Renfro and Melissa Foust.
Chairman Holmes called on Ms. Foust to make a presentation.
Melissa Foust, Existing Industry Coordinator for Randolph County EDC, said that Kayser Roth
Corporation of Asheboro is planning an $8-$10 million expansion project. The company is evaluating
three plants as the potential location for a facility expansion: 1 in Dayton, Tennessee, 2 sister plants in
Graham, NC and the Asheboro location. The company will be purchasing 140-150 new knitting
machines and investing $3 million in new equipment. The facility is out of capacity and this addition will
require adding 100,000 s.f to an existing facility, which will result in an additional $5-7 million new
investment. This project will create 180 new jobs.
Incentives will be used to facilitate expansion and match grant funds offered by the state of NC.
EDC has submitted a request for grant assistance and up to $200,000 has been made available from the
Governor's One NC Fund, which requires a 100% match. She said that Graham has already offered a
$200,000 incentives package.
The company is requesting $200,000 ($75,000 over 3 years from the County to offset costs
associated with the expansion of the building and $125,000 over 4 years from the City for costs associated
with new equipment.) With the following plan there will be a positive cash flow from the start. Ms. Foust
reviewed the following presentation:
Investment
and property tax increase schedule based on current tax rate
Machinery & Facility
Equipment
Incentive Proposal
New Investment:
$3,000,000 $5,000,0000
$75,000
over 3 years
Randolph County
Running total new tax revenue
Year 2
* $25,000
$25,000
Year 3
* $25,000
$50,000
Year 4
* $25,000
$75,000
Year 5
* $25,000
$100,000
Year 6
* $25,000
$125,000
Year 7
* $25,000
$150,000
Year 8
* $25,000
$175,000
Year 9
* $25,000
$200,000
Year 10
* $25,000
$225,000
Year 11
* $25,000
$250,000
$250,000
City of Asheboro
City
County
Year 1
$15,180
$15,180 $125,000
Year 2
$13,365
$27,500
$56,045 over 4 years
Year 3
$12,210
$27,500
$95,755
Year 4
$10,890
$27,500
$134,145
Year 5
$9,570
$27,500
$171,215
Year 6
$8,415
$27,500
$207,130
Year 7
$7,095
$27,500
$241,725
Year 8
$5,610
$27,500
$274,835
Year 9
$4,455
$27,500
$306,790
Year 10
$4,125
$27,500
$334,290
$65,000
$90,915
$247,500
Incentive Proposal Structure
City
County
Combined
Performance Triggers
Incentive
Payment
Year 1
$15,000
$0
$15,000
New investment equaling $3 million &
creation of at least 45 new jobs
Year 2
$41,000
$25,000
$66,000
Certificate of Occupance certifying 100,000
s.f facility expansion & creation of at least
45 new jobs for a total of 90 new jobs to date
Year 3
$40,000
$25,000
$65,000
Creation of at least 45 new jobs for a total of
135 jobs to date
Year 4
$29,000
$25,000
$54,000
Written proof of creation & retention of all
180 jobs
* Randolph County will collect new property tax revenue for equipment installed by Company but that amount
was not used in the calculation of project incentives.
At 5:00 p.m., on motion of Kemp, seconded by Davis, the County Commissioners voted
unanimously to return to regular session.
The City also voted to return to regular session.
J. Harold Holmes, Chairman
Phil Kemp
Cheryl Ivey, Deputy Clerk to the Board
Approved: June 6, 2005
Unsealed: June 6, 2005
Arnold Lanier
Robert B. Davis