s040102April 1, 2002 Special Meeting
The Randolph County Board of Commissioners met in special session at 3:00 p.m. in the
Commissioners Meeting Room, County Office Building, 725 McDowell Road, Asheboro, NC.
Commissioners Kemp, Frye, Davis, Holmes, and Mason were present. The purpose of the
meeting was to hold a joint public hearing with the Asheboro City Council concerning a proposal
to enter into an economic development incentives contract with Unilever Bestfoods of Asheboro.
Chairman Kemp called the meeting to order and welcomed those present.
Asheboro Mayor David Jarrell explained the purpose of the meeting and opened the
public hearing on behalf of the City.
Chairman Kemp opened the public hearing on behalf of the County and called on Bonnie
Renfro, Director of the Randolph County Economic Development Corporation, to make a
presentation.
Ms. Renfro distributed a fact sheet on Unilever Bestfoods and a summary of the proposed
contract terms and provisions between the County, Asheboro, and Unilever. Bestfoods Knorr
first located a manufacturing operation in northern Asheboro in 1988, producing a full line of dry
soups and sauces. The operation has been very successful and today the company employs 130
workers in a state-of-the-art facility. In 2000, Bestfoods was acquired by Unilever.
Ms. Renfro stated that the proposal is for the County and the City to offer Unilever a total
cash incentive of $125,000 each in exchange for the company's choosing to remain in Asheboro
and expand its current facility. This funding would be paid in a single installment contingent on
the company's satisfying the following performance requirements: a $5,500,000 expansion of
real and personal property and the creation of a minimum of 55 new permanent jobs. Under the
terms of the proposed contract, the County would recoup its investment, through ad valorem
taxes, in 4.73 years; Asheboro, in 5.05 years. Based on the current City and County tax rate and
the company's planned investment of $5,500,000, the City can expect approximately $24,750 in
new tax revenues from Unilever annually, and the County can expect approximately $26,400
annually.
Chairman Kemp invited comments and questions from the public on behalf of the City
and the County.
Jack Marcus, 313 Dublin Road, Asheboro, stated that he has been Plant Manager for
Unilever's Asheboro site since 1991. He made a slide presentation detailing global product
information for Unilever as well as specific information on the Asheboro plant. The Asheboro
facility has 147,000 square feet, makes 200 products, and has a payroll of $8 million. He said
the expansion project should be completed by the second quarter of 2003, with 27,000 additional
square feet, 10 packaging machines, and one mixer. Payroll for the 55 new jobs will equate to
$2.5 million.
Charles Allen identified himself as Randolph County Economic Development
Corporation Chairman, President of Allen Precision Instruments, Randolph Community College
Foundation President, and a member of the Randleman Zoning Board. He said government
today is facing unparalleled challenges and that we must be creative and innovative to meet the
needs of existing industries. He said that a significant part of his business comes from Unilever,
and the loss of Unilever could mean the loss of some of his employees.
Jim Culberson, retired from First National Bank, stated that his concern is for quality
jobs and diversity and that he can think of no better company to provide these needs than
Unilever.
No one else came forward to speak. Mayor Jarrell closed the public hearing for the City.
Chairman Kemp closed the public hearing for the County.
On motion of Councilman Baker, seconded by Councilman Carter, the Asheboro City
Council unanimously voted to adopt a resolution to enter into an economic development
incentives contract with Unilever Bestfoods.
On motion of Commissioner Frye, seconded by Commissioner Davis, the Randolph
County Board of Commissioners unanimously voted to adopt a resolution to enter into an
economic development incentives contract with Unilever Bestfoods, as follows:
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 Unilever Bestfoods (the "Company')
entering into an economic development incentives contract whereby the County and the City each
contribute one hundred and twenty-five thousand dollars ($125,000.00) for a total payment of two
hundred and fifty thousand dollars ($250, 000.00) to the Company to offset the site and development costs
of the expansion of the Company's existing facilities 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 real and personal property associated with the project in an
amount equal to or in excess of five million and five hundred thousand dollars ($5,500, 000.00) and
created a minimum offifty-five new permanent 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 1st day ofApril, 2002, as follows:
Section 1. The County is authorized to expend up to one hundred and twenty-five thousand
dollars ($125, 000.00) of County funds for the Unilever Bestfoods economic development project.
Section 2. 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 the "Company" under this contract shall not exceed two hundred
and fifty thousand dollars ($250, 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 a single installment upon the completion by the Company
of the following performance requirements:
i. Upon completion of the expansion project, the Company must properly obtain
from the City a Certificate of Occupancy or letter/certificate of compliance, as
appropriate, certifying that the buildings) or land affected by the expansion
project may be occupied or used for Factory -Industrial Occupancy in
accordance with the provisions of zoning, building, and other applicable
ordinances and laws of the City of Asheboro and the State of North Carolina;
and
ii. The Company must deliver to the County and to the City a written certification
that the actual new value/investment in real and personal property of the project
equals or exceeds the sum of five million and five hundred thousand dollars
($5,500, 000.00); and
iii. The Company must deliver to the County and to the City Employment Security
Reports evidencing the creation offifty-five (55) new permanent jobs.
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 facility, as expanded, does not remain in full operation for
a period of five (5) years immediately following the date on which the single 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 that the company remains 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 County Manager 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.
Mayor Jarrell adjourned the meeting for the City.
Chairman Kemp adjourned the meeting for the County.
Phil Kemp, Chairman
J. Harold Holmes
Robert O. Mason
Darrell L. Frye
Robert B. Davis
Alice D. Dawson, Clerk to the Board