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along with the development of the North Carolina Research Campus, present medium term growth opportunities. The county's $21.3 billion taxbase benefits from proximity to the City of Charlotte, which has spurred residential and industrial growth in the county resulting in 8.8% average annual growth in assessed value over the last five years, inclusive of the county's 2009 revaluation in which taxable values grew 25.8°/x. In June 2007, Philip Morris (Altria Group, rated Baal /stable outlook), the largest taxpayer (representing 5.3% of the 2009 tax base) and employer in the county announced that manufacturing would cease by July 1, 2009. Phillip Morris employed 1,384 people; a workforce reduction equal to just 1.6% of county's total workforce. Favorably, county officials have developed a multi -year plan to ensure stable financial operations. The county is projecting that all of the company's personal property will be removed as of July 1, 2012 and as such has assumed the company's taxable value will be cut in half for the fiscal 2013 budget. Additionally, the county has developed scenarios to account for a loss of real property values as well. Under all scenarios, property tax increases are expected to be necessary to offset the loss of Phillip Morris revenues. Officials believe the company's 2,023 acres, much of which is undeveloped, with proximity to Charlotte and major highways, will be an attractive site for redevelopment; however, no increased value associated with redevelopment is assumed in the county's medium term projections. The current economic environment is likely to slow the redevelopment process. Moving forward, the county is expected to benefit from a large scale redevelopment project in the City of Kannapolis (not rated by Moody's), where a former textile manufacturing site is being redeveloped into a new $1 billion bio- technology research center called the North Carolina Research Campus. There has been significant investment from private corporations and nine academic institutions including Duke University (rated Aal) and UNC- Chapel Hill (rated Aaa). Four major research facilities have opened at the site. In addition, Lowe's Motor Speedway, a recreational facility that hosts events such as NASCAR races, is continuing to expand its facilities in the county, including the opening of a drag strip in the summer of 2008. The state's largest tourist attraction (by number of visitors), Concord Mills, an outlet shopping center is also located in the county, which together with the racing facilities is spurring hotel and convention center developments in the area. Wealth indices approximate state levels with per capita income at 104% of the state, while the strong full value per capita of $116,399 reflects the substantial commercial and industrial presence (including Phillip Morris). ABOVE AVERAGE DEBT BURDEN EXPECTED TO REMAIN MANAGABLE; NO VARIABLE RATE DEBT OR SWAP EXPOSURE Moody's believes the county's debt position will remain manageable given the county's adjustments to near term capital plans, reflecting the expectation of moderated population growth over the medium term, and average amortization of Attachment number 3 1 -1 Page 356