080717 II Project PineClosed Session 11– Project Pine— August 7, 2017
At 8:56 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; Finance Officer Will Massie; County Attorney Ben
Morgan; Aimee Scotton, Associate County Attorney; Amanda Varner, Clerk to the Board; and
Randolph County EDC Vice President Kevin Franklin.
Randolph County EDC Vice President Kevin Franklin reminded the Board that this is an
international company that is Danish owned with operations in Europe and Asia and 600
employees globally. The company utilizes state -of -the art processes to manufacture a nonwoven
textile suitable for use in diapers and other similar products. The company also owns a subsidiary
with unique capabilities to custom print on nonwovens. The company is considering 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 Tire site on Pineview Rd. has been
identified as a suitable location. This is a competitive project with a location decision in
Asheboro that is contingent upon an offer of state and local incentives. They plan operations to
begin mid -2018 with full production by 2023.
The company is considering a seven-year investment of $114,125,000 million including
construction of a new facility and installation of machinery and equipment. The company would
create 145 new jobs in Asheboro over a six-year period and would begin hiring in year two of the
project. Average annual wage is projected to exceed $40,000.
Using the company's stated investment projection of $114,125,000, the project will generate
new tax revenue of $3,507,794 (combined City and County total) over a seven-year period based
on current tax rates.
Mr. Franklin reminded the Board that the County had duly advertised a notice of public
hearing in the Courier -Tribune on August 4th setting the special meeting/public hearing for
August 14, 2017, at 3:00 p.m. The timing has been coordinated with the company who also
plans to attend the meeting. The EDC is requesting 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 between each unit of government,
or $1.05 million each.
Mr. Franklin said the only issue with the project is a recently -identified low quality
intermittent stream on the property. Stream delineation and the permit application are already
being addressed and can be completed in 90 days. The EDC Board has approved payment for
those and will also manage the project. This matter may need to be addressed in the future.
At 9:17 p.m., on motion of Frye, seconded by McDowell, 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