c030105Closed Session March 1, 2005
At 5:22 p.m. the Board adjourned to closed session to discuss a matter relating to the location
or expansion of business in the area served by the Board, pursuant to NCGS 143-318.11(a)(4).
Commissioners Holmes, Frye, Davis, Kemp and Lanier were present. Also present were Frank Willis,
County Manager; County Attorney Alan Pugh; Associate County Attorney Aimee Scotton; Alice
Dawson, Clerk to the Board; Cheryl Ivey, Deputy Clerk to the Board; Bonnie Renfro, Randolph
County Economic Development Corporation (EDC); Tony Sears, Randleman City Manager; Bruce
Moore, Mayor of Randleman; Randleman Alderman Melissa Blalock; and Bob Wilhoit, Randleman
City Attorney.
Bonnie Renfro reminded the Board that at their February closed session meeting she had
spoken to them about a possible economic development incentives package for The Timken Company
to assist in the company's expansion plans. After hearing this Board's and the City of Randleman's
concerns about the precedent that this could set she met with Timken's local manager and expressed
the two Boards' concerns. She said that she told him that the legal basis for governmental economic
incentives includes the "but for" condition, such that "but for this assistance, the economic
development project would not take place," and that governmental entities had to be very careful to
stay within the legal guidelines for economic development incentives. Later, after talking with his
superiors, he spoke again with Ms. Renfro and told her that Timken feels certain that this expansion
will take place in Randolph County and that they withdraw their request for assistance.
For information purposes, Ms. Renfro distributed and discussed acceptable types of economic
incentives, as follows:
1. Public infrastructure
a. Water and sewer
b. Streets and roads
c. Railroad spurs
d. Electric and natural gas facilities
2. Payment of specific company costs
a. Land or building acquisition or construction
b. Site preparation
c. Training
d. Other
3. Cash grants
a. Tied to capital investment
b. Tied to jobs created
c. Tied to payroll
Not Constitutional
• Tax abatements
• Loan guarantees
• Enforcement promise not to annex a
specific parcel
• Incentives after a location or expansion
has taken place
At 5:37 p.m. the Board returned to regular session.
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: April 4, 2005 Unsealed: June 6, 2005