c031113 I (Big Box)Closed Session I (Project Big Box) March 11, 2013
At 8:23 p.m., the Board convened closed session on a matter relating to the location or
expansion of business in the area, 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; Public Works
Director Paxton Arthurs; and Bonnie Renfro, Randolph County EDC President.
Bonnie Renfro said that United Furniture Industries plans to develop a 1,000,000 square ft.
facility for manufacturing and distribution of upholstered seating. Three quarters of the building
will be used for distribution and the remaining quarter for manufacturing. The project will
replace a leased distribution center in Forsyth County and provide room for expansion. It will be
a Class A, high cube and cross -dock facility. The company is seeking a 100 -acre rail -served site
with good highway access, and will require industrial utilities. In Randolph County, the company
is considering two sites proximate to its existing plant on Old Glenola Road: Edgar Road
(preferred site) and Hill site on Tom Hill Road.
Investment: $25-$40 Million, consisting of mostly building and very little equipment
Jobs: 175-225 new, 145 retained (currently at Trinity American Complex)
Average wage: $10-$18/hr., skill dependent, piece work; some management positions
Wage rate based compensation
Benefits include health insurance: 80% employer -paid
Timetable: Decision: Spring 2013
Operational: October 2014
The company currently employs 1,053 in North Carolina, as follows
Glenola
421
Lexington
449
Trinity American Complex (TAC)
145
Union Cross
38
The company leases space at TAC and would continue to occupy that site if project is located in
Randolph County. A site in Davidson County is also under consideration along with sites in
several Midwestern states.
The City of Archdale is currently pursuing three grants totaling $2,040,000 to extend sewer to
TAC site. The City has already committed to $200,000 in matching funds and has expended
$60,000 to date for engineering and grant preparation.
The company is seeking incentives to offset cost of land acquisition in the form of a performance
based grant over time (period to be determined).
Ms. Renfro presented the following, based on current tax rates for Randolph County and
Archdale:
Investment*
New Tax Revenues
County/City Incentive Ratio
Over
$27,500,000
$701,786
50%
6 years
$32,250,000
$864,120
50%
6 years
$37,500,000
$964,586
50%
6 years
*Assumes that capital investment occurs in Year 1 of project
*Job creation would occur within first 12-18 months.
The company is focused on a grant that reimburses them for land cost. They have been
offered an incentive in Davidson County that reimburses them for land (free site) over a certain
period of years. The cost for land (in Davidson) is estimated at $2 million.
In Randolph County, cost estimates for land acquisition range from $3.2 to $3.4 million for
land of 160-190 acres.
Following discussion, the Board was agreeable in providing some type of performance-based
incentive package for assistance in land acquisition to the company; however, the Board felt that
the incentive amount should be more equitably split (rather than 50/50) between the County and
City due to the difference in property tax rates.
Closed Session on this topic ended at 8:49 pm.
J. Harold Holmes, Chairman Darrell L. Frye
Phil Kemp
Arnold Lanier
Stan Haywood
Cheryl A. Ivey, Clerk to the Board