c120213 (Big Box)Closed Session - Project Big Box December 2, 2013
At 8:19 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; County Attorney Ben Morgan;
Aimee Scotton, Associate County Attorney; Cheryl Ivey, Clerk to the Board; 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 with a projected investment of $35 million. The company operates at the Old
Glenola Road site in Archdale and leases at the Trinity American Complex. 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.
Investment: $35 Million
Jobs: 200 new
550 retained at 2 locations
Average wage: $10-$18/hr., skill dependent, piece work
Benefits include health insurance: 80% employer -paid
Timetable: Decision: December 2013
Ms. Renfro reminded the Commissioners that a Davidson County site is also under
consideration. In Randolph County, the company is now focusing only on the Old Glenola Road
site. She also reminded the Board that, as directed by the Board in October, she proposed the
following performance-based incentive plan for the project: $1.323 million paid over seven
years at equal installments of $189,000/year, proportionate to the new tax revenues for each
government (County and Archdale). Performance requires investment of $35 million in taxable
real property and the creation of 200 new jobs within three years and the retention of 550 jobs for
the life of the grant.
Ms. Renfro said that the company's response to this proposal is for a more competitive
package from Randolph County. Their argument is that land and tax cost is higher in Randolph
than it is in Davidson.
Ms. Renfro suggested that the Board consider offering the same package except over eight
years rather than 7 years. This represents 4.3% of invested capital at $1,762,000, which is greater
than 3.8% of the current proposal (over 7 years).
Following discussion, the Board directed Ms. Renfro to communicate to the company the
Board's willingness to offer the eight-year performance-based incentives plan.
At 8:47 pm, on motion of Frye, seconded by Kemp, the Board voted unanimously to end
closed session and to return to open session.
J. Harold Holmes, Chairman Darrell L. Frye
Phil Kemp
Arnold Lanier
Stan Haywood
Cheryl A. Ivey, Clerk to the Board