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020623 Joint with Archdale February 6, 2023 Special Joint Meeting with the City of Archdale – Project Superman The Randolph County Board of Commissioners met in a special joint session with the City of Archdale City Council in the 1909 Randolph County Historic Courthouse Meeting Room, 145 Worth Street, Asheboro, NC., during their regular meeting starting at 5:00 p.m. Chairman Darrell Frye, Vice-Chairman David Allen, and Commissioners Kenny Kidd, Maxton McDowell, and Hope Haywood were present. Also present were County Manager Hal Johnson, Assistant County Manager/Finance Officer Will Massie, Assistant County Manager/Operations William Johnson, Associate County Attorney Aimee Scotton, Clerk to the Board Dana Crisco, and Deputy Clerk to the Board Jenny Parks. Present for the Archdale City Council were Chairman Lewis Dorsett, Council Members Roger Blackwell, Tim Williams, Trey Gray, John Glass, City Manager Zeb Holden, City Attorney Beth Koonce, and Clerk to the Council Susan Swaim. Present from Randolph County Economic Development Corporation (EDC) were President Kevin Franklin and Business Recruitment Director Crystal Gettys. At 5:00 p.m., Chairman Frye called the meeting to order for the County. Project Superman Ms. Gettys said Project Superman is contemplating a facility location in Archdale, NC. This project remains competitive with other locations. Local and state incentive offers will factor into Project Superman’s consideration of Archdale and Randolph County as the location for its new facility project. Project Superman is an Ohio based packaging products manufacturer with multiple locations in the US as well as Canada and Mexico. North Carolina along with another state is being considered for a new plant location to better serve their existing customer base. The company plans to build a 200,000 square foot facility to manufacture their packaging products, creating 129 new job opportunities paying an average annual wage of $45,969. State and local incentives will have a major impact on the company’s location decision. Project Superman qualifies for more than $1.7 million in State incentives to include but not limited to a One North Carolina Fund and the North Carolina Community College System’s Customized Training Value. Based on the company’s capital investment, job creation, and average wages, Project Superman qualifies for a 50% cash grant over a five-year period in local incentives. The local grant amount is totaled at $656,498 to be split between Randolph County in the amount of $440,613 and the City of Archdale in the amount of $215,885. The company plans to make their final location decision contingent upon each state/community formally approving the incentives offered and a full review of each by the company. The EDC believes that Project Superman is an exceptional economic development project for the City and County which would increase the value of the property, generate significant investment in new machinery and equipment, and result in the creation of 129 quality new jobs. Therefore, the EDC requests that the City and County approve the Resolution offering $656,498 in local incentives contingent upon State incentive approval to encourage company decision- makers to locate in Archdale. 2/6/23 At 5:06 p.m. Chairman Frye opened the Public Hearing for the County and closed it after hearing no comments. On motion of Frye, seconded by Kidd, the Board voted 5-0 to approve a Resolution Authorizing the County of Randolph to Enter into an Economic Development Incentives Contract, 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 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 Archdale (the “City”), and an unnamed company (the “Company”) approving an economic development incentives package whereby the County contributes up to four hundred forty thousand six hundred and thirteen dollars ($440,613.00) and the City contributes up to two hundred fifteen thousand eight hundred and eighty-five dollars ($215,885.00) for a total expenditure of up to six hundred fifty-six thousand four hundred and ninety-eight dollars ($656,498.00) to or on behalf of the Company to offset the costs of the Company’s location of its manufacturing and distribution facility in the City of Archdale, 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; 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 thirty-six million dollars ($36,000,000.00) and created a minimum of one hundred twenty-nine (129) 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 th Randolph County, this 6 day of February 2023, as follows: Section 1. The County is authorized to expend up to four hundred forty thousand six hundred thirteen dollars ($440,613.00) of County funds for this 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 2/6/23 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 six hundred fifty-six thousand four hundred ninety- eight dollars ($656,498.00). b. Four hundred forty thousand six hundred thirteen dollars ($440,613.00) of the contract amount will be paid by the County, and two hundred fifteen thousand eight hundred eighty-five dollars ($215,885.00) of the contract amount will be paid by the City. i. 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: ii. The Company must deliver to the County and the City written certification that the actual value of new investment by the Company in real property in connection with this project equals or exceeds fifteen million dollars ($15,000,000.00). 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 Archdale, Randolph County; and iii. 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, machinery 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 creation of sixty-nine (69) new full-time jobs located in the City of Archdale, 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 Archdale, Randolph County; and iv. The Company must deliver to the County and the City written certification that the actual value of new investment by the Company personal property, machinery and equipment in connection with this project equals or exceeds an additional five million dollars ($5,000,000.00) and must provide Employment Security Reports to the County and the City evidencing the creation of an additional sixty (60) new full-time jobs located in the City of Archdale, 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 Archdale, 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 2/6/23 City if the Company fails to maintain the entirety of the newly-created jobs referenced in Paragraph (ii) 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, machinery and equipment in connection with this project equals or exceeds an additional four million dollars ($4,000,000.00). 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 Archdale, 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 jobs referenced in Paragraphs (ii) and (iii) above; and vi. 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 jobs referenced in Paragraphs (ii) and (iii) above. c. 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. d. 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 proportionally between the County and the City. 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 Section 2 of this resolution and any other documents necessary for the implementation of this economic development project as provided herein. Section 4. Participation in this economic development project by Randolph County is expressly contingent upon participation by the City of Archdale at the level outlined herein. At 5:10 p.m., on motion of Allen, seconded by Kidd, the Board voted 5-0 to adjourn. 2/6/23 ________________________________ _________________________________ Darrell Frye, Chairman David Allen ________________________________ _________________________________ Kenny Kidd Maxton McDowell ________________________________ ________________________________ Hope Haywood Dana Crisco, Clerk to the Board 2/6/23