033098Special Meeting - March 30, 1998
The Randolph County Board of Commissioners met in special session for a joint meeting with the
Archdale City Council at 7:30 p.m. at the Archdale Recreation Center, 214 Park Drive, Creekside Park,
Archdale, NC. Commissioners Frye, Kemp, Davis, Holmes, and Mason were present. The purpose of this
meeting was for both governing bodies to consider giving cash incentives, under the provisions of NCGS
158-7.1, to Sealy, Inc. to relocate to Archdale.
Mayor Warren welcomed those present.
Chairman Frye called the meeting to order and expressed appreciation for the use of the facility.
Mayor Warren opened the public hearing and called on Walter Sprouse, President of the Randolph
County Economic Development Corporation, to make a presentation.
Mr. Sprouse distributed a fact sheet on Sealy, Inc. and a summary of proposed contract terms and
provisions between the County, Archdale, and Sealy. He stated that it has been suggested that the City of
Archdale and Randolph County offer Sealy a total cash incentive of $500,000 ($125,000 from Archdale and
$375,000 from the County) in exchange for Sealy's location of its corporate headquarters and research and
development center in the City of Archdale. Sealy plans to purchase the 68 -acre facility formerly occupied
by Dar/Ran Furniture, which includes 150,000 square feet of manufacturing space and 29,000 square feet of
office space. Total Sealy employment in the area is expected to exceed 300: 125 in manufacturing, 150 at
the corporate headquarters, and 25 in research and development. Under the terms ofthe proposed contract,
Randolph County would recoup its investment, through ad valorem taxes, in 4 years; Archdale, in 2.6
years. The contract contains a provision that if Sealy leaves Randolph County in less than 8 years, a portion
of the incentive money will have to be returned, the amount decreasing proportionately for each year that
Sealy remains in the county.
Mayor Warren invited questions and comments from the public on behalf of the City and the County.
David Crabbe, Executive Director of the Archdale -Trinity Chamber of Commerce, 213 Balfour Drive,
Archdale, stated that he was speaking on behalf of the Chamber's members and officers and that they fully
support giving the requested incentives to Sealy because Sealy will be great for Archdale's economy..
Mike Miller, Vice Chairman of Randolph County Economic Development Corporation and President
of First National Bank, 375 Lexington Road, Asheboro, said he fully supports this request because Sealy
will help the county's economy.
No one else came forward to speak. Mayor Warren closed the public hearing for the City, and
Chairman Frye closed the public hearing for the County.
On motion of Councilman Miller, seconded by Councilman Beiter, the Archdale City Council
unanimously voted to enter into a contract with Randolph County and Sealy, Inc. to provide Sealy with a
total cash incentive of $500,000 in exchange for Sealy's location of its facilities in Archdale. The City will
provide $125,000 of this total amount, and payments will be made as follows:
1. An initial payment of $25,000 will be made when Sealy purchases the Dar/Ran facility in Archdale;
2. A second payment of $25,000 will be made when Sealy relocates a manufacturing business (currently
located elsewhere) to Randolph County;
3. A third payment of $25,000 will be made when Sealy lets a contract for the construction of a new
office building in Randolph County that is at least 50,000 square feet in size;
4. A final payment of $50,000 will be made when the office building has been completed and is actually
occupied by Sealy.
Furthermore, this contract will contain a provision to protect the County and the City in the event that Sealy
decides to leave the County prematurely. Sealy will agree to repay the County and the City the full amount
of the incentives, this amount decreasing proportionately over an eight-year period, beginning on the date of
the final payment of $50,000. The City designates Mayor Warren to execute this contract on behalf of the
City of Archdale.
On motion of Commissioner Holmes, seconded by Commissioner Davis, the Randolph County Board
of Commissioners unanimously voted to enter into a contract with the City of Archdale and Sealy, Inc. to
provide Sealy with a total cash incentive of $500, 000 in exchange for Sealy's location of its facilities in
Archdale. The County will provide $375, 000 of this total amount, and payments will be made as follows:
1. An initial payment of $75, 000 will be made when Sealy purchases the Dar/Ran facility in Archdale;
2. A second payment of $75, 000 will be made when Sealy relocates a manufacturing business (currently
located elsewhere) to Randolph County;
3. A third payment of $75, 000 will be made when Sealy lets a contract for the construction of a new
office building in Randolph County that is at least 50, 000 square feet in size;
4. A final payment of $150, 000 will be made when the office building has been completed and is actually
occupied by Sealy.
Furthermore, this contract will contain a provision to protect the County and the City in the event that
Sealy decides to leave the County prematurely. Sealy will agree to repay the County and the City the full
amount of the incentives, this amount decreasing proportionately over an eight year period, beginning on
the date of the final payment of $150, 000. The County designates Chairman Frye to execute this contract
on behalf of Randolph County.
Mayor Warren adjourned the meeting at 8:00 p.m.
Darrell L. Frye, Chairman
J. Harold Holmes
Robert O. Mason
Phil Kemp
Robert B. Davis
Alice D. Dawson, Clerk to the Board