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032522 Joint Meeting Technimark March 25, 2022 – Special Joint Meeting – Economic Development The Randolph County Board of Commissioners met in a special meeting at 12:00 p.m. in the City of Asheboro Public Works building at 1312 N. Fayetteville Street, Asheboro, North Carolina 27203. Chairman Darrell Frye, Vice-Chairman David Allen, and Commissioner Kenny Kidd were present. Commissioner Maxton McDowell and Commissioner Hope Haywood were absent. Also present were Assistant Manager/Finance Officer Will Massie, Associate County Attorney Aimee Scotton, Clerk to the Board Dana Crisco, and Deputy Clerk to the Board Sarah Pack. County Manager Hal Johnson was absent. Also present were Asheboro Mayor David Smith, Asheboro City Council Members Charles Swiers, Walker Moffitt, Kelly Heath, Clark Bell, Bill McCaskill, and Jane Redding. Also present with the City of Asheboro were City Manager John Ogburn, Finance Officer Debbie Reeves, Attorney Jeff Sugg, City Clerk Holly Doerr, and Deputy City Clerk Tammy Williams. City Council member Eddie Burks and County Attorney Ben Morgan were absent. Chairman Frye called the meeting to order for the County at 12:05 p.m. Public Hearing At 12:06 p.m., Chairman Frye opened the Public Hearing on behalf of the County. Kevin Franklin, Economic Development Corporation (EDC) President, said Project Jetson (for the company Technimark) is contemplating an expansion of its operations in Asheboro. This project remains competitive with other locations, and an incentive offer will factor into Technimark’s consideration of Asheboro and Randolph County as the location for its expansion project. Technimark is a full-service solutions provider to users of plastic products. The company started out in 1983 as a small industrial molder in Asheboro and today is one of the largest independent injection molders in the world. In the United States, Technimark has sites in North Carolina, West Virginia, Pennsylvania, and Texas. Internationally, they have four sites in Mexico, three in Europe and one in China. The company has experienced growth in its core target markets and is considering an expansion. Asheboro is Technimark’s global headquarters, where the company operates a large campus composed of 7 manufacturing buildings and a number of warehouses totaling over one million square feet. The company is Randolph County’s largest private employer, the largest injection molder headquartered in the Southeast U.S., and a top 10 injection molder in North America. If Asheboro is chosen for the expansion project, Technimark will retain 1,435 current jobs and create 220 new jobs; the average annual wage of the new jobs would be $44,290, exceeding Randolph County’s current private sector average wage of $40,522. The company is contemplating the purchase of a building in Asheboro. Technimark’s total investment for the project would be $62 million dollars, including $54 million in machinery and equipment. The EDC is proposing a total local incentive package of $950,000 paid in five annual installments, equally divided between the City of Asheboro and Randolph County. 3/25/22 Specific to the City of Asheboro, Technimark is contemplating construction of a new rail spur to serve the property under consideration, and the company is eligible for a $250,000 rail grant from the NCRR (North Carolina Railroad) Invests program. Should Technimark proceed with expansion plans in Asheboro and formally request NCRR funding, the city would serve as the applicant for this program and would enter into separate agreement with Technimark for the NCRR Invests program. The EDC believes that the Technimark expansion project is an exceptional economic development project for the city and county which would increase the value of the building, generate significant investment in new machinery and equipment, and result in the creation of 220 quality new jobs. Therefore, the EDC requests that the city and county approve the resolution offering $950,000 in local incentives to encourage company decision-makers to expand in Asheboro. The EDC also requests that City Council approve the resolution authorizing the city to partner with the North Carolina Railroad to apply for grant funding for the rail spur. Mr. Franklin read aloud a statement from Fred Ritchey, Vice President of Corporate Development for Technimark. Chairman Frye asked if the NCRR will contribute to the cost of the project. Mr. Franklin said the NCRR would contribute $250,000. There is also potential for collaboration with the North Carolina Department of Transportation. The railroad portion of the project will be with the City of Asheboro as the applicant. The County does not participate in that. Vice-Chairman Allen said the investments offer has five parts and asked if those parts coincide with the projected five-year length of the project. Mr. Franklin explained the setup of the contract and said there will likely be some leeway on the length of the project in relation to incentives payouts. This is based on anticipated job creation and investment. Jeff Morado, citizen of Asheboro, asked if employment levels will change if Technimark chooses an alternate location. Mr. Franklin said losing positions is not anticipated. After hearing no additional comments, Chairman Frye closed the Public Hearing at 12:26 p.m. On motion of Kidd, seconded by Allen, the Board voted 3-0 to adopt a Resolution Authorizing the County of Randolph to Enter into an Economic Development Incentives Contract with Technimark, LLC., as follows: RESOLUTION AUTHORIZING 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 3/25/22 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 Technimark LLC, and all related entities, (the “Company”) approving an economic development incentives package whereby the County and the City each contribute up to four hundred seventy-five thousand dollars ($475,000.00) for a total expenditure of up to nine hundred fifty thousand dollars ($950,000.00) to or on behalf of the Company to offset the costs of the Company’s expansion of its 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 2 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 sixty-two million dollars ($62,000,000.00), maintained one thousand four hundred and thirty-five (1,435) currently existing jobs, and created a minimum of two hundred twenty (220) 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; NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of Randolph County, this 25th day of March, 2022, as follows: Section 1. The County is authorized to expend up to four hundred seventy-five thousand dollars ($475,000.00) of County funds for the Technimark economic development project. Section 2. The expenditures authorized in Section 1 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,” under this contract shall not exceed nine-hundred fifty thousand dollars ($950,000.00). 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 in equal installments over a period of five (5) 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: 3/25/22 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 twelve million dollars ($12,000,000.00) and must provide Employment Security Reports to the County and the City evidencing the retention of one thousand four hundred thirty-five (1,435) existing jobs and the creation of six (6) new full-time jobs located in the City of Asheboro, Randolph County. 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 deliver to the County and the City written certification that the actual value of new investment by the Company in personal property and equipment in connection with this project equals or exceeds an additional eleven million dollars ($11,000,000.00) and must provide Employment Security Reports to the County and the City evidencing the creation of an additional forty-seven (47) new full-time jobs located in the City of Asheboro, Randolph County. 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. Additionally, the Company must provide written certification that the Company has not reduced its level of operations in the County and the City since the date of the immediately preceding installment payment. By way of illustration and without limitation, the Company shall be deemed to have reduced its level of operations in the County and the City if the Company fails to maintain the entirety of retained and newly-created jobs referenced in Paragraph (i) above; and iii. The Company must deliver to the County and the City written certification that the actual value of new investment by the Company personal property and equipment in connection with this project equals or exceeds an additional thirteen million dollars ($13,000,000.00) and must provide Employment Security Reports to the County and the City evidencing the creation of an additional fifty-five (55) new full-time jobs located in the City of Asheboro, Randolph County. 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. Additionally, the Company must provide written certification that the Company has not reduced its level of operations in the County and the City since the date of the immediately preceding installment payment. By way of illustration and without limitation, the Company shall be deemed to have reduced its level of operations in the County and the City if the Company fails to maintain the entirety of retained and newly-created jobs referenced in Paragraph (ii) above; and 3/25/22 iv. The Company must deliver to the County and the City written certification that the actual value of new investment by the Company in personal property and equipment in connection with this project equals or exceeds an additional thirteen million dollars ($13,000,000.00) and must provide Employment Security Reports to the County and the City evidencing the creation of an additional fifty-seven (57) new full-time jobs located in the City of Asheboro, Randolph County. 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. Additionally, the Company must provide written certification that the Company has not reduced its level of operations in the County and the City since the date of the immediately preceding installment payment. By way of illustration and without limitation, the Company shall be deemed to have reduced its level of operations in the County and the City if the Company fails to maintain the entirety of retained and newly-created jobs referenced in Paragraph (iii) above; and v. The Company must deliver to the County and the City written certification that the actual value of new investment by the Company in personal property and equipment in connection with this project equals or exceeds an additional thirteen million dollars ($13,000,000.00) and must provide Employment Security Reports to the County and the City evidencing the creation of an additional fifty-five (55) new full-time jobs located in the City of Asheboro, Randolph County. 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. Additionally, the Company must provide written certification that the Company has not reduced its level of operations in the County and the City since the date of the immediately preceding installment payment. By way of illustration and without limitation, the Company shall be deemed to have reduced its level of operations in the County and the City if the Company fails to maintain the entirety of retained and newly-created jobs referenced in Paragraph (iv) above. 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 five (5) 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 five (5) 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 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. 3/25/22 Section 3. 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. Adjournment At 12:29 p.m., on motion of Allen, seconded by Kidd, the Board voted 3-0 to adjourn. ________________________________ ________________________________ Darrell Frye, Chairman David Allen ________________________________ _________________________________ Kenny Kidd Sarah Pack, Deputy Clerk to the Board 3/25/22