081417 Joint AsheboroAugust 14, 2017 -- Special Joint Meeting with the City of Asheboro
Project Pine - Fibertex Personal Care
Public Hearing
The Randolph County Board of Commissioners met jointly with the Asheboro City Council in a
duly advertised special session at 3:00 p.m. in the 1909 Randolph County Historic Courthouse
Meeting Room, 145 Worth Street, Asheboro, NC. The purpose of this meeting was to hold a required
public hearing on the proposal to appropriate and expend funds for an economic development
project. Commissioners David Allen, Darrell Frye, Stan Haywood, Kenny Kidd and Maxton
McDowell were present, as well as, County Manager Hal Johnson; Finance Officer Will Massie;
County Attorney Ben Morgan; Associate County Attorney Aimee Scotton; Amanda Varner,
Clerk to the Board and Dana Crisco, Deputy Clerk to the Board. In attendance from the City of
Asheboro were Mayor David Smith; Council members Charles Swiers, Clark Bell, Katie Snuggs,
Eddie Burks, Walker Moffitt, and Jane Redding; City Manager John Ogburn; Holly Doerr, Clerk
to the Council; City Finance Officer Debbie Reaves; and City Attorney Jeff Sugg.
At 3:00 p.m., Chairman Allen welcomed everyone to the meeting.
Mayor David Smith called the meeting to order on behalf of the City and opened the public
hearing for the City.
Chairman Allen called the meeting to order on behalf of the County and opened the public
hearing for the County.
Randolph County Economic Development Corporation (EDC) Vice President Kevin
Franklin presented the following information about Project Pine — Fibertex Personal Care, the
investment, and job creation under consideration for Asheboro.
Mr. Franklin said the company was founded in Denmark in 1968 and is now among the
world's largest manufacturers of spunbond/spunmelt nonwovens used in the personal care
industry to produce diapers, feminine hygiene, and incontinence care products. In addition to
nonwoven production, the company also delivers high quality print on nonwovens via its
subsidiary, Innowo Print, which was founded in Germany in 2007. Fibertex Personal Care and
Innowo Print now have operations in Denmark, Germany, and Malaysia with a global workforce
of 600. Fibertex Personal Care, which is owned by Danish industrial conglomerate Schouw and
Co. is considering locating its first North American production facility in Asheboro with
capabilities for both nonwoven production and printing. Due to required access to rail, existing
utility infrastructure, and close proximity to an interstate highway, the rail -served portion of the
Thomas/Cetwick Holdings site off of Pineview Road in North Asheboro has been identified as
an ideal location for Fibertex Personal Care to expand its global operations. Other key factors
which have also influenced the company's decision-making include Randolph County's strong
manufacturing heritage and outstanding workforce and the high-quality education and training
which are readily available from state and local partners. Mr. Franklin said this was a
competitive project with a decision to locate in Asheboro contingent upon an offer of state and
local incentives.
8/14/2017
Fibertex Personal Care is considering a seven-year investment of $114,125,000 including
construction of a new facility and installation of machinery and equipment for both print and
nonwoven production. The company would create 145 new jobs in Asheboro over a six-year
period and would begin hiring in year two of the project. The average annual wage is projected
to exceed $40,000, which is significantly higher than the current county average wage of just
under $34,000.
Mr. Franklin said based on current tax rates and using the company's seven-year investment
projection of $114,125,000, the project is anticipated to generate new tax revenue for the city and
county totaling $3,507,794 over a seven-year period. The EDC requested that the City of
Asheboro and Randolph County consider a performance-based grant of 60% of anticipated
revenues over seven years for a total of $2.1 million, with the grant amount divided equally, or
$1.05 million per unit of government based on the revenue projections. He said the quality of the
jobs with higher wages, the capital intensive nature of the business, the potential for future
growth, and the diversification of the industrial base all support a high level of incentive
consideration.
Mr. Franklin stated that additional grants are under consideration to assist with the cost of
constructing a rail spur to serve the site, including CDBG rail, NCDOT rail, and NCRR Invests.
He said the EDC recommended that the $2.1 million incentive consideration include the required
local match requirement for the CDBG program.
The Randolph County EDC sees this request as an investment rather than an expense. Mr.
Franklin said economic development activities, through the location and expansion of
manufacturing companies, supports a strong local economy, a growing tax base that keeps tax
rates low for all, and much-needed job opportunities for local citizens.
He said the Fibertex Personal Care project presents an exciting opportunity for Asheboro and
Randolph County, and asked Randolph County Board of Commissioners and the Asheboro City
Council to consider the request.
Dan Ellingson, Director of America's Fibertex Personal Care, said he expects the company to
grow. Fibertex had an expansion in Malaysia in 2003 and the Innowo Print had one in 2007 in
Germany. Mr. Ellingson said locating in the US is a big deal for them and they are excited to be
locating in Randolph County. They have toured many states and sites in NC and felt this was the
right place for them. Incentives were important but said they needed to feel they had a good
connection where they do business. Mr. Ellingson said they know they made the right choice.
He said the site they have chosen had some issues they needed to work through and the EDC was
able to help them work through each on behalf of the City and County. Work ethic is very
important to them and they saw the same qualities in everyone they came in contact with. He
appreciated how everyone worked together through each problem that came up and truly
believes it will continue. He thanked everyone for all the hard work they've put into the
partnership this far.
Chairman Allen complimented the EDC and agreed they had put a lot of work into this
project and he said that he and the Board appreciated it.
8/14/2017
Faye Cox, 1211 Grantville Lane, Asheboro, asked if Randolph County "could afford to invest
that kind of money in this business." She said she understood that a lot of it is coming out of the
General Fund and that a certain balance has to be kept. "Are we capable of doing that without
raising County taxpayers' taxes?"
Chairman Allen explained that this is a performance based project. The company will be
generating tax revenue and part of it will go back to the company when they meet the established
requirements during the first seven years. After that, they will still continue to pay taxes.
Ms. Cox asked "so it's a kind of win-win situation?" Chairmen Allen replied that it was.
Ms. Cox said these were not just her questions but questions from some others in the
community. She then asked if the employees would be citizens that currently live here or would
people be brought in. Commissioner Frye stated the company would probably have their
management team here to get the company started and to train employees.
Ms. Cox asked if she understand that the average pay was around $30,000 and Chairman
Allen replied that it was $40,000, which is above the current average for Randolph.
She said the taxpayers' concerns are whether their taxes would go up. "We've seen a lot of
spending" and she said she was not saying it wasn't necessary, but "it's hard for a lot of people"
and "wanted to keep that down" where they "didn't have to bear the burden of the price."
Chairman Allen replied that all of the Board members are taxpayers, they are cognizant, and they
made every effort during the budget process to make sure they did not increase taxes.
Mayor Smith stated to Ms. Cox that this package is incentive based after the fact. They will
not be receiving money up front. They will be paying taxes on their investment. In turn, the
company will be given some of the tax money back as goals are met. They will not be given
back more than they are paying in over the seven years. He explained that the company will be
providing 145 more jobs for "the people she was hearing from."
Ms. Cox asked what happens if Fibertex doesn't meet the performance requirements. Mayor
Smith and Commissioner Frye both responded that the company doesn't get their incentive
money. Commissioner Frye told Ms. Cox that "there is nothing about this project that would
make your taxes go up."
Charles Crickmore, 202 Sterling St., Asheboro, said he recently retired from Energizer, a
company who also received similar incentives when they came to Randolph County. He said,
over the years, incentives have brought other companies and kept good jobs located here. Mr.
Crickmore's only concern was that local people may not be hired. He said he would like his kids
to be able to live and work in Asheboro after college and was thankful that the company wants to
locate here and be a part of the community.
Mayor Smith said it was also the goal of the City Council and Board of Commissioners to
provide jobs for Mr. Crickmore's children and others in this community.
8/14/2017
Tim Greene, 735 Sherwood Rd., Asheboro, said he was a letter carrier and was glad that jobs
with good wages are coming to Randolph County. He joked that he hoped they would use the
postal service for their deliveries. He said not only is Asheboro the All -America City, they also
have the distinction of being a certified retirement community so those "Depends" would come
in handy.
At 3:19 p.m., hearing no further comments, Mayor Smith closed the public hearing for the
City of Asheboro and Chairman Allen closed it for the County.
Adoption of Resolution Approving Incentive Request
On motion of Frye, seconded by Haywood, the Board voted unanimously to adopt a resolution
authorizing the County of Randolph to enter into an economic development incentives contract with
the City of Asheboro for Fibertex Personal Care Corporation, authorize legal staff to draft a
contract, and authorize the Chairman to sign the contract, as follows:
RESOL UTION A UTHORIZING THE COUNTY OF RANDOLPH TO ENTER INTO
AN ECONOMIC DEVELOPMENT INCENTIVES CONTRACT
WHEREAS, Section 158-7.1 of the North Carolina General Statutes authorizes a
county to undertake an economic development project by extending assistance to a
company in order to cause the company to locate or expand its operations within the
county; and
WHEREAS, the Board of Commissioners of Randolph County has held a public
hearing to consider whether to participate in an economic development project that will
result in the County of Randolph (the "County'), the City of Asheboro (the "City'), and
Fibertex Personal Care Corporation, and all related entities, (the "Company')
approving an economic development incentives package whereby the County and the City
each contribute up to one million fifty thousand dollars ($1,050,000.00) for a total
expenditure of up to two million one hundred thousand dollars ($2,100, 000.00) to or on
behalf of the Company to offset the costs of the Company's development of a non -woven
textile production facility in the City of Asheboro, Randolph County, North Carolina; and
WHEREAS, said incentives shall be granted pursuant to an economic development
incentives contract as provided in Section 3 of this resolution, said contract to be
inclusive of the local match requirements for any and all grant funding awarded to the
project; and
WHEREAS, upon the completion by the Company of the proposed project, the
Company will have generated new value/investment in real and personal property and
equipment associated with the project in an amount equal to or in excess of one hundred
fourteen million one hundred twenty-five thousand dollars ($114,125, 000.00) and created
a minimum of one hundred forty-five (145) new full-time jobs in the County and City; and
WHEREAS, this economic development project will stimulate and stabilize the local
economy, promote business in the County and City, and result in the creation of a
significant number of jobs in the County and City; and
WHEREAS, the County has in its General Fund available revenues sufficient to fund
this economic development project;
8/14/2017
NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of
Randolph County, this 14th day of August, 2017, as follows:
Section 1. The County is authorized to expend up to one million fifty thousand
dollars ($1,050, 000.00) of County funds for the Fibertex economic development project.
Section 2. Of the appropriation outlined in Section I above, a portion will be used,
in combination with equal contributions from the City of Asheboro, as one-half of the
required local matches) for any grants awarded to the project. More specifically, the
first two (2) years of incentive payments made pursuant to the contract referenced in
Section 3 below will be dedicated to the provision of any required local match(es) for the
construction and improvement of rail infrastructure.
Section 3. The remaining expenditures authorized in Section I above will be paid
to the Company pursuant to a performance-based incentive contract. In addition to the
standard terms found in contracts that the County routinely executes in the ordinary
course of business, the economic development incentives contract entered into by and
between the County, the City, and the Company must contain the following essential
terms and conditions:
a. The total payment made to or on behalf of the "Company, " inclusive of the local
match(es) referred to in Section 2 above, under this contract shall not exceed two
million one hundred thousand dollars ($2,100, 000.00).
b. Fifty percent of the contract amount will be paid by the County, and the other fifty -
percent of the contract amount will be paid by the City.
c. The contract amount will be paid over a period of seven (7) years to coincide with the
Company's satisfactory completion of certain performance requirements. The said
performance requirements include, but are not limited to, the following:
i. The Company must deliver to the County and the City written certification that
the actual value of new investment by the Company in real and personal property
and equipment in connection with this project equals or exceeds one hundred
fourteen million one hundred twenty-five thousand and no/100 dollars
($114,125, 000.00). The written certification of the actual value of the new
investment shall further certify that said new investment is located within the
corporate limits of the City of Asheboro, Randolph County; and
ii. The Company must provide Employment Security Reports to the County and the
City evidencing the creation of one hundred forty-five (145) new full-time jobs
located in the City of Asheboro, Randolph County.
d. The contract must provide the County and the City with a means of recouping a
portion of the contract amount if the Company's facilities do not remain in full
operation, maintaining the newly created jobs referenced above, for a period of seven
(7) years immediately following the date on which the final installment of the contract
amount is paid to the Company.
e. If the Company does not remain in full operation during this seven (7) year period, a
portion of the incentive money must be returned. The amount to be returned shall
decrease on a pro -rated amount for each year of said period that the company
8/14/2017
remains in full operation in the City and County. Any amounts returned by the
company in this manner shall be divided equally between the County and the City.
Section 4. The Chairman of the Randolph County Board of Commissioners is
hereby authorized to execute on behalf of the County of Randolph a contract drafted in
accordance with the provisions of this resolution and any other documents necessary for
the implementation of this economic development project.
Section 5. Participation by the County in this economic development project is
expressly contingent upon equal participation by the City of Asheboro.
City of Asheboro Approval of Incentive Request
The City of Asheboro also voted unanimously to approve the incentive request.
Fibertex Personal Care Presentation
Mr. Ellingson then presented a gesture of gratitude. The EDC, City and County each received
a hand carved wooden statue of a soldier made by a famous designer in Denmark. It is to
replicate the soldiers that stand guard in front of the home of their king and queen.
City of Asheboro Adiournment
Mayor Smith said this is a big day for Asheboro and thanked everyone for being there. The
Asheboro City Council adjourned.
County Adiournment
Chairman Allen echoed the Mayor's comments and said the County was happy to have
Fibertex here and looked forward to working with them.
At 3:22 p. m., on motion of Haywood, seconded by Kidd, the meeting adjourned.
David Allen, Chairman
Stan Haywood
Maxton McDowell
Darrell L. Frye
Kenny Kidd
Amanda Varner, Clerk to the Board
8/14/2017