Loading...
c100713_II_LibertyClosed Session II (Project Liberty) October 7, 2013 At 7:40 p.m., the Board, already in closed session on another matter, began closed session on a different matter to discuss matters related to the location or expansion of business in the area served by this body 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; Amanda Varner, Deputy Clerk to the Board and Bonnie Renfro, Randolph County EDC President. In a quick update regarding the proposed Greensboro Liberty mega site, Ms. Renfro told the Board these types of projects are highly competitive, requiring that communities and states have a site that is ready to go and who are willing to offer financial incentives that will offset both upfront and operational costs for a company. She said that in preparation for this type of opportunity, the State has asked that we identify all local government support for a mega site project based on some conservative assumptions about the economic impact of a potential project. Ms. Renfro provided a handout to Board members, which contains the following conservative project assumptions for their consideration, saying that a decision would be needed soon on the County's desired participation, if any, in this project: Phase 1 Jobs Year 1 Year 2 Year 3 Year 4 Year 5 Total Total Jobs - 100 500 1,400 - 2,000 Assemblers (Avg. wage $30K) - 300 - 300 1,200 - 1,500 Management/Engineering (Avg. wage $80K) - 100 200 200 - 500 Total Average Wage $42,500 Investment Year 1 Year 2 Year 3 Year 4 Year 5 Total Total Investment $160 M $550M $400 M - - $1,110,000,000.00 Real Property $160 M $50 M $210,000,000.00 Personal Property $500 M $400 M $900,000,000.00 Phase 2 Jobs Year 1 Year 2 Year 3 Year 4 Year 5 Total Total Jobs 450 450 350 350 - 1,600 Assemblers (Avg. wage $30K) 400 400 300 300 - 1,400 Management/Engineering (Avg. wage $80K) 50 50 50 50 - 200 Total Average Wage $36,250 Investment Year 1 Year 2 Year 3 Year 4 Year 5 Total Total Investment $400 M $400M - - - $800,000,000.00 Real Property Personal Property $400 M $400 M $800,000,000.00 Note #1: These assumptions are intended to be conservative estimates of job creation, average wages and capital investment based on past automotive projects and discussions with knowledgeable site selection experts. Note 42: In Phase 1, job creation does not begin until the second year due to the two-year construction time table of the facility. Note 43: It is anticipated that Phase 2 will begin in about four to five years after the initial announcement and there may be some overlap with Phase 1. Local Government Incentive Proposal: Randolph County & City of Greensboro Incentive Type Structure Value Application Funding Source Upfront Cash $10 M/ea gov't $20 M Used for site Revenue bond funded Grants (Randolph/G'boro) acquisition or by percentage of Gross Property Taxes $55,083,000 preparation landfill revenue Property Tax % of tax $64-68 M / Reduction in New property tax Grants revenues/term 67-80% / 15- operation costs revenues generated $20,000,000 20 yrs by project Infrastructure Water & sewer $20 M Utility access Seek all available extension federal and state grants where applicable Fee waivers Waive building Up to Reduce upfront Forego fee revenues permit & $630,000 construction costs inspection fees Green Energy Methane gas TBD Renewable energy Variety of federal and capture from source state tax credit landfill programs 1. Assumes an inter -local agreement with Randolph County and Greensboro for cost and revenue sharing for site and project. 2. Water cost and source to be negotiated with Greensboro 3. Develop supplier and vendor recruitment incentive plan Summary of Possible Cash Incentives Investment Phase 1 Phase 2 Real $210 M - $210 M Equipment $900 M $800 M $1.7 B Jobs 2,000 1,600 3,600 Scenario 1: 15 years to recoup initial cash grant: 15 / 10 Years Phase 1 Phase 2 Totals 15 Years 10 Years 80% 75% Gross Property Taxes $55,083,000 $29,646,000 $84,729,000 Local Retained $11,016,600 $9,241,500 $20,258,100 Incentive $44,066,400 $20,404,500 $64,470,900 Land Value $20,000,000 Waived Inspection Fees $630,000 Total Local Incentives $85,100,900 Scenario 2: 10 years to recoup initial cash grant: 20 / 15 Years Phase 1 Phase 2 Totals 20 Years 15 Years 67% 67% Gross Property Taxes $68,350,500 $35,746,000 $104,096,500 Local Retained $22,555,665 $13,430,980 $35,986,645 Incentive $45,794,835 $22,315,020 $68,109,855 Land Value $20,000,000 Waived Inspection Fees $630,000 Total Local Incentives $88,739,855 At 8:14 pm, on motion of Frye, seconded by Haywood, the Board voted unanimously to end closed session and to return to regular session. J. Harold Holmes, Chairman Darrell L. Frye Phil Kemp Arnold Lanier Stan Haywood Cheryl A. Ivey, Clerk to the Board