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December 15, 2003 Page 322 (H-8) ,~m~n,"~t to ~ C~ab~crua Xndust~aJ. Inc~n~Lv~ G~nt P~oC~am Mr. Jonathan Marshall, Cormnerce Director, reviewed proposed revisions to the Cabarrus Industrial Incentive Grant Program. These revisions included the addltlon of a small corporate headquarters category, a facility lease provision, a change in the percentage in each category {1.e., Level 1 from 75 percent to 65 percent, Level 2 from 80 percent to 70 percent and Level 3 from 85 to 75 percent) and a reduction in the period for real property from five years to four years. The changes will ~ake the County's program more consistent with the City of Concord program. There was discussion regarding the revised program, including the definition of "corporate" headquarters as compared to "division" or "subsidiary" headquarters and efforts to attract small businesses rather than 3ust large industries. Coranlssloner Carpenter proposed a provision that would require a company receiving a incentive to refund the money if it falls to meet specific criteria such as the ntumber of jobs to be created and/or if the company goes out of business. During discussion, the Board addressed the potential impact of a "clawback" provision and the need for consistency of the County incentive program with those of the local municipalities. UP(H~MOTIO~ of Conr~ssloner Carruth, seconded by Co,missioner Prlvette and unanimously carried, the Board adopted the following revised Cabarrus County Industrial Incentive Grant Program as presented. CABARRUS COUNTY INDUSTRIA~ DEVELOPMENT GRANT PROGRAM I. OVERVIEW The econonu%c welfare Of the county is directly linked to the vitality, diversity and success of its businesses a~d ~ndustrles. Cabarrus Co%mty has used financial incentives to stimulate development of new industries and expansion of existing businesses. The original program enacted in 1995 and modified in 1996 was directly or partlally responsible for lndustrlal pro3ects that had a substantial economic impact in Cabarrus County. To remain consistent wlth its intent, it is prudent that the program be periodically reviewed and modified to account for changes in economic parameters, effectlven~ss and applicability. The County Con~lsslon directed staff to conduct routine review of the county's incentive programs; recomend changes whenapproprlate; and, monitor program effectiveness. The input of participating municipalities, the Chamber of Con~erce and the Cabarrus County Econo, tlc Development Corporation was sought and received through direct reco~nendatlons and endorsements. This document reflects amended incentive program parameters adopted by the County Commission (June 1, 1999 and January 1, 2004). Each pro]ect considered under these guidelines shall be viewed Independently of any pro3ect previously considered, awarded or re3ected by the county and participating municipalities. A proposed project to be located within the bo%mdafles of a m~mlclpalltymay he st[b3ect to a different set of g~ldel~nes set by the City than those applying to award of a grant by the county. The Cabarrus County Economic Development Corporation shall pre-screen applicants to be considered for award of grants under this program. Applicants will be required to present relevant lnfoxmatlon related tO the application to the appropriate elected hoard of the Cities and County Inclusive of details of the pro3ect, its ~mpact and the rationale for award of the incentive grant (s). The presentation shall carry forward a reco~endation from the Cabarrus County Econo~lc Development Corporation as to the award of a grant and specific conditions that should be considered relative to the proposed pro3ect. II. PROGRAM PARAMETERS The INDUSTRI3~L DEVELOPMENT GRANT PROGRAM ls designed to create a rational relationship between incentIves authorized and the true eco~omlc l~0act of a q~allfylng pro3ect. Recognizing that it is difficult to determine wlth any exactness the actual fiscal impact of a SpeClflc pro3ect, Cabarrus Cotmty has chosen to use the estimated new taxable real and personal property tax assessment base created by a pro]ect in determining attributable fiscal in~act upon the local economy to decide whether a particular project merits COnsideration. Even though the County has chosen the estimated property tax assessment base as the value criterion for the INDUSTRIAL DEVELOPMENT GRANT PROGRAM, incentives offered by the County are not considered as allocated from any dedicated revenue source. Incentives are paid frown the County's General Fund after appropriate budgetary actlons by the County Commission. The General Fund conslsts of revenue sources inclusive of ad valorem taxes, local sales taxes, intergovernmental revenues, permit and fee revenues, sales and servlce fee revenues, financing sources, lnterest earnings and other miscellaneous revenues. Other than as establlshed by applicable federal or state law, revenues have no dedicated expenditure purpose. The flscal impact of a project could be evaluated using methods to Include employment data, wages and beneflts, secondary ]ob creation, business spin- offs and related factors. Those methods could produce a ~a~re favorable view