c020705-IAClosed Session I A – February 7, 2005
At 5:25 p.m. the Board adjourned to closed session to discuss matters relating to the location or
expansion of business in the area, pursuant to NCGS 143-318.11(a)(4). Commissioners Holmes,
Kemp, Frye, Lanier and Davis were present, as well as County Manager Frank Willis; County
Attorney Alan Pugh; Cheryl Ivey, Deputy Clerk; Bonnie Renfro and Melissa Foust from Randolph
County Economic Development Corporation (EDC); and David Townsend, III, Public Works Director.
Melissa Foust told the Board that Hubbell Industrial Controls of Archdale wishes to purchase 2
new product lines through acquisition and to construct a research and development facility:
• DC Contactor Product Line—used for electrical braking of locomotive engines
(production currently located in Quebec)
• Pressure Switch Product Line—used in air compressors manufacturing that service the
commercial/industrial markets (production currently located in Mexico)
• Research and Development Facility—an additional 5,000 sq. ft. new construction of
high powered test lab to be used for development work on new product and sustaining
existing product
The company is considering 2 sister plants in 2 states and has required $500,000 in facility
improvements. The company has steadily held their employment at about 90 employees on one shift
over the years. The facility is mainly a components assembly and wiring operation with some metal
fabrication and machining. The Archdale facility is currently under capacity by about 35% with about
25,000 sq. ft. of unutilized production space. Although this allows opportunity for growth, future
consolidations are likely and without this expansion leave the operation in great jeopardy. These 2 new
product lines are high volume assembly and a very nice complement to the existing Archdale facility.
Both lines are similar to the bench assembly now in Archdale and both lines will remain on one shift.
New investment is projected at $4,910,591. About 150 new jobs can be expected (about 119
immediately and the remaining filled over 12-24 months). Many of these jobs are high-end positions
with an average wage of $579 per week without benefits.
To offset the facility improvements necessary for implementation of new lines Ms. Foust suggested
an incentives package of $150,000 ($97,500 from the County and $52,500 from the City of Archdale).
Ms. Foust recommended a performance-based cash incentives package paid over 4 years.
Upon consensus, the Board directed Ms. Foust to proceed with the EDC's recruitment of this
company's expansion plans with the proposed incentive package.
Closed session on this topic ended at 5:40 p.m.
J. Harold Holmes, Chairman
Phil Kemp
Darrell L. Frye, Vice Chairman
Robert B. Davis
Arnold Lanier Cheryl A. Ivey, Deputy Clerk to the Board
Approved: March 1, 2005 Unsealed: January 1, 2006