020617 IV Project EchoClosed Session IV — Project Echo February 6, 2017
At 8:45 p.m., already in closed session on another matter, began closed session on a
different matter relating to the location or expansion of business in the area, pursuant to
NCGS 143-318.11(a)(4). Commissioners Allen, Frye, Haywood, McDowell and Kidd were
present. Also present were County Manager Hal Johnson; Will Massie, Assistant County
Manager/Finance Officer; County Attorney Ben Morgan; Aimee Scotton, Associate County
Attorney; Amanda Varner, Clerk to the Board; Randolph County EDC Existing Industry and
Business Coordinator Kevin Franklin, and Randolph County EDC President Bonnie Renfro.
Randolph County EDC Existing Industry and Business Coordinator Kevin Franklin said
the parent company of SouthCorr Packaging is considering an expansion project that would
require construction of up to 50,000 square feet of additional space to accommodate
investment in new state-of-the-art equipment to streamline the production process, make the
company more competitive, and open the company up to new verticals within their industry.
He said the company is evaluating expansion potential at facilities in Maryland, South
Carolina, Pennsylvania, and Massachusetts. The new production would be similar to the
current operation in Asheboro.
Mr. Franklin said the company's proposed investment is $2,217,316 in real property
including construction, $6,336,988 in machinery and equipment over five years, creating 22
jobs in three years with an average wage of $36,200. The projected new property tax revenue
for Randolph County over five years is $188,777.
The company has requested that the proposed Asheboro location have "un -delayed access
to road and rail transportation," i.e. extension of Commerce Place to Pineview Road to avoid
having to cross the railroad tracks. He said the City of Asheboro is communicating with
impacted property owners to evaluate feasibility. The company has also requested
consideration of all applicable state and local incentives, as well as customized training and
recruitment assistance.
Mr. Franklin said the project is eligible for an Occupied Building Reuse Grant of up to
$225,000 requiring a 5% local match totaling $11,250. If evenly divided with the City of
Asheboro, the County's share would be $5,625. The City would be the applicant and thus the
County would not be liable for any repayment of funds in the event of an unsuccessful project.
The project is also eligible for a performance-based One NC Grant of up to $50,000 requiring
a 50% local match totaling $25,000. If evenly divided with the City, the County's share
would be $12,500, a sum which could be incorporated into the County's own performance
based grant.
Mr. Franklin gave the proposed breakdown of incentives that are available totaling
$95,000 over a five year period, as follows:
• $5,625 for Building Reuse Grant match
• $89,375 for five-year performance-based incentive (includes $12,500 One NC match)
The City of Asheboro's participation preliminary estimates reflect a cost of $500,000 for
road construction. If construction is feasible, the City will pursue grant opportunities to assist
with cost of road construction, or construct the road using City funds. Depending on the
amount of investment in road construction, Asheboro may construct the road in lieu of , or
partial payment toward, performance-based cash grants with the exception of match
requirements for State grants. If road construction is not feasible, Asheboro will consider
incentives package similar to what has been outlined.
Mr. Franklin asked that the Board set a public hearing for the March 6th meeting to consider
incentives incorporating the Building Reuse Grant match, One NC grant match, and local
performance-based incentives totaling $95,000.
Mr. Franklin said the City of Asheboro will hold a public hearing at its regular March
meeting.
At 8:55 p.m., on motion of McDowell, seconded by Kidd, the Board voted unanimously to
end closed session and to return to open session.
David Allen, Chairman
Stan Haywood
Maxton McDowell
Darrell L. Frye
Kenny Kidd
Amanda Varner, Clerk to the Board