041723 Project Power-Joint Meeting with City of Asheboro
April 17, 2023
Special Joint Meeting with the City of Asheboro – Project Power
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 Asheboro City Council were Mayor David Smith, Mayor
Pro Tem Walker Moffitt, Council Members Clark Bell, Eddie Burks, Kelly Heath, Bill McCaskill,
and Charles Swiers. Also present for the City of Asheboro was City Manager John Ogburn.
Present from Randolph County Economic Development Corporation (EDC) was President Kevin
Franklin.
At 5:00 p.m., Chairman Frye called the meeting to order, recognized Mayor David Smith, City
of Asheboro, and thanked everyone for attending the meeting tonight.
Project Power
Kevin Franklin, President of the Randolph County Economic Development Corporation,
reported that Energizer is contemplating an expansion of its operations in Asheboro. This project
remains competitive with other locations, and an incentive offer will factor into Energizer’s
consideration of Asheboro and Randolph County as the location for its expansion project.
Energizer has been producing alkaline batteries in Asheboro for decades, has been a legacy
employer in our community, and is a well-recognized household brand. Energizer is currently
reviewing its production and packaging operations and considering several options to maximize
efficiency. All of Energizer’s facilities, domestic and global, are under consideration to gain or
lose equipment and/or volume. One option consists of transferring several production and
packaging lines to Energizer's two facilities in Asheboro. Any changes would begin in 2023 and
be implemented over the following three years.
If Asheboro is chosen for the expansion project, Energizer will retain 411 current full-time jobs
and create 178 new full-time jobs; the average annual wage of the new jobs would be $54,000,
exceeding Randolph County’s current private sector average wage of $43,080. Energizer’s total
investment for the project would be $43 million dollars in machinery and equipment.
The EDC is proposing a total local performance-based incentive package of $420,000 paid in
five annual installments, equally divided between the City of Asheboro and Randolph County. The
proposed incentive amount is equivalent to fifty percent of the anticipated new tax revenue
generated by the new investment over a five-year period.
Energizer is also eligible for a One NC grant through the NC Department of Commerce. If
awarded, the One NC grant has a local match requirement; the proposed local incentive is more
than sufficient to cover the match requirement.
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The EDC believes that the Energizer project is an exceptional economic development project
for the City and County which would generate significant investment in new machinery and
equipment, result in the creation of 178 quality new jobs, and generate over $9.5 million in new
annual payroll. Therefore, the EDC requests that the City and County approve the resolution
offering local incentives to encourage Energizer leadership to grow its production in Asheboro.
Vice Chairman Allen asked who would be liable for any fall backs from the One NC Grant.
Mr. Franklin stated that the company would be liable.
Vice Chairman Allen asked what tax rate was used in determining the anticipated generated tax
revenue. Mr. Franklin stated he has worked with Will Massie, Assistant County Manager/Finance
Officer, on this item, understanding and taking into consideration the revaluation that was just
held, they used a lower anticipated new tax rate. The anticipated generated tax revenue was not
based on the current rate.
Chairman Frye asked if this would have any physical expansion of the current facilities or was
this just the addition of equipment and jobs. Mr. Franklin stated that it was just the addition of
equipment and jobs.
At 5:06 p.m. Chairman Frye opened the Public Hearing for the County.
Allyson Azar, 800 Albermarle Road, Asheboro, NC spoke on behalf of Energizer. She thanked
the Board for their consideration of the Project Power proposal. Energizer is very excited about
the potential opportunity to continue their legacy growth in Randolph County. Ms. Azar expressed
her gratitude for the opportunity to work with Mr. Franklin and Randolph County on this potential
opportunity.
Chairman Frye stated he could remember when there were discussions about the closing of the
Albemarle Road location. Energizer is a legacy corporation in Randolph County with a long
history and has been a good corporate citizen.
Commissioner Haywood stated she would like to commend Energizer for the flexibility, the
adjustments, for being nimble making decisions that have kept them strong as a company, but also
having kept their presence here in Randolph County. So many Randolph County citizens have
worked there for years. She is excited for Energizer, the citizens of Randolph County, and for the
City of Asheboro.
At 5:12 p.m. Chairman Frye closed the Public Hearing after everyone wanting to speak had
done so.
On motion of Kidd, seconded by Haywood, 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
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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 Energizer Manufacturing, Inc. (the “Company”) approving an economic
development incentives package whereby the County and the City each contribute up
to Two Hundred Ten Thousand Dollars ($210,000.00) for a total expenditure of up to
Four Hundred Twenty Thousand Dollars ($420,000.00) to the Company to offset the
costs of the Company’s expansion in the City of Asheboro, Randolph County, North
Carolina; and
WHEREAS, upon the completion by the Company of this expansion project, the
Company will have generated new value/investment in personal property, machinery
and equipment associated with the project in an amount equal to or in excess of Forty-
Three Million Dollars ($43,000,000.00) and created a minimum one hundred seventy-
eight (178) 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 17 day of April, 2023, as follows:
Section 1. The County is authorized to expend up to Two Hundred Ten Thousand
Dollars ($210,000.00) of County funds for the Energizer economic development
project.
Section 2. The appropriation outlined in Section 1 above will be paid to or on behalf
of the Company pursuant to a performance-based incentive contract, said contract to
be inclusive of the local match requirements for any and all grant funding awarded to
the project. 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 Four Hundred Twenty Thousand Dollars ($420,000.00).
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b. Fifty-percent of the total contract amount will be paid by the County, and
the other fifty-percent of the total contract amount will be paid by the City.
c. Payments made pursuant to the contract shall not begin until the Company
has met certain performance requirements. These 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 personal property machinery and equipment in connection with this
project equals or exceeds ten million dollars ($10,000,000.00) and
must provide Employment Security Reports to the County and the City
evidencing the retention of four hundred eleven (411) full-time jobs
and the creation of eleven (11) 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 additional new investment by the
Company in personal property, machinery and equipment in
connection with this project equals or exceeds 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
seventy-four (74) 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 the
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
in personal property, machinery and equipment in connection with
this project equals or exceeds an additional ten million dollars
($10,000,000.00) and must provide Employment Security Reports to
the County and the City evidencing the creation of an additional fifty-
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nine (59) 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 the jobs
referenced in Paragraphs (i) and (ii) above; and
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, machinery and equipment in connection with
this project equals or exceeds an additional ten million dollars
($10,000,000.00) and must provide Employment Security Reports to
the County and the City evidencing the creation of an additional
thirty-four (34) 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 jobs
referenced in Paragraphs (i), (ii) and (iii) above; and
v. 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 (i), (ii), (iii) and (iv) above. Furthermore, the Company
shall provide documentation certifying that the average annual wages
of the one hundred seventy-eight (178) newly-created jobs is equal to
or greater than fifty-four thousand dollars ($54,000.00).
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 the
above-referenced performance requirements.
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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, as
expanded, do not remain in full operation, maintaining the retained and
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.
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 Section 2 of this resolution and any other documents necessary for
the implementation of this economic development project.
At 5:14 p.m., on motion of Allen, seconded by Kidd, the Board voted 5-0 to adjourn.
________________________________ _________________________________
Darrell Frye, Chairman David Allen
________________________________ _________________________________
Kenny Kidd Maxton McDowell
________________________________ ________________________________
Hope Haywood Dana Crisco, Clerk to the Board
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