c040813 I (Big Box)Closed Session I (Project Big Box) April 8, 2013
At 7:49 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 updated the Board on the United Furniture Industries project, in which the
company plans to develop a 1,000,000 sq. 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 consolidate from a leased distribution
center in Forsyth County and provide expansion room. 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 revised incentives plan, based on current tax rates for Randolph
County and Archdale and with a more equitable split between Archdale and the County, as
follows:
Investment Archdale
Revenues
Randolph
County Revenues
60%/Archdale
60%/County
Time
$25 M $435,000
$879,000
$261,000
$527,400
6 years
$30 M $522,000
$1,054,800
$313,200
$632,880
6 years
$35 M $609,000
$1,230,600
$365,400
$738,360
6 years
Assumes that capital investment occurs in Year I 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 period
of 10 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 with Ms. Renfro pursuing an agreement with
the Company in accordance with the information she provided at this meeting since the County
would realize a positive return from the beginning.
Closed Session on this topic ended at 8:12 pm.
J. Harold Holmes, Chairman Darrell L. Frye
Phil Kemp
Arnold Lanier
Stan Haywood
Cheryl A. Ivey, Clerk to the Board