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<br />
<br />III. PROJECT QUALIFICATIONS
<br />To be considered eligible for a industrial development incentive grant a project
<br />should be required to meat certain basle criteria. These criteria are to be used
<br />as guidelines in project evaluations. Additional criteria may be applied to a
<br />specific project based upon the terms of the agreement between the industrial
<br />client and county (cities/towns as applicable).
<br />
<br />minimum value project to qualify for consideration:
<br />Level I grant - $ 5,000,000 or greater
<br />Level II grant - $ 20,000,000 or greater
<br />Level III grant - $ 100,000,000 or greater
<br />Level I grant - up to 75% of local property taxes to be paid by the new nr
<br />expanding industry for a period of five consecutive tax years
<br />Level II grant - up to 80% of local property taxes to be paid by the new
<br />or expanding industry for a period of five consecutive tax years
<br />Level III grant - up to 85% of local property taxes to be paid by the new
<br />or expanding industry for a period of five consecutive tax years
<br />Under no circumstances would any new or expanding industry receive an
<br />industrial development incentive grant that lowered the net tax payments
<br />paid to the county (cities/towns as applicable) to a level less than the
<br />local property taxes paid in a prior year
<br />All industrial development incentive grants are to be specifically
<br />designed to be paid from the tax payments actually made by the industry
<br />receiving the benefit. Grant payments will not be made unless the
<br />applicable industry is current in all other required local property tax
<br />payments of record within Gabarrus County.
<br />Industrial development incentive grant benefits may not be transferred or
<br />otherwise conveyed to another party without the specific consent of the
<br />Board of County Commissioners
<br />Cities/towns must agree to abide by the terms of this proposal for it to
<br />be applied to sites within the cities/towns or on a site subject to
<br />annexation. The industrial development incentive grant formula applied to
<br />a project within one of the county's cities/towns will be applied at the
<br />same level as authorized by the Board of County Commissioners.
<br />ALL INDUSTRIAL DEVELOPMENT INCENTIVE GRANTS WILL BE CON~EYED BY A FORMAL
<br />AGREEMENT BETWEEN THE INDUSTRY RECEIVING THE GRANT AND THE COUNTY ALONG
<br />WITH AFFECTED CITIES AND TOWNS AS APPROPRIATE.
<br />
<br />IV. EXAMPLES OF APPLICATION OF THE GRANT PRO~RAM
<br />Industry XYZ buys a property that is currently paying annual property taxes to
<br />the county in the amount of $ 5,000 per year.
<br />
<br />Level I grant(based on a $5,000,000 qualifying investment at a 75% grant)
<br />Year 1 - property taxes paid - $ 5,000
<br />
<br />Year 2 - property taxes
<br />Year 3 - property taxes
<br />Year 4 - property taxes
<br />Year 5 - property taxes
<br />Year 6 - property taxes
<br />
<br />paid - $ 33,250 with an IDI Grant of $21,188
<br />paid - $ 33,250 with an IDI Grant of $21,188
<br />paid - $ 33,250 with an IDI Grant of $21,188
<br />paid - $ 33,250 with an IDI Grant of $21,188
<br />paid - $ 33,250 with an IDI Grant of $21,188
<br />
<br />Year 7 - property taxes paid - $33,250 IDI Grant ceases
<br />The IDI Grant would equal $105,940 at the current tax rate of $.565/$100.
<br />Effective annual property tax payments equal $5,000 year 1 and $12,062 in
<br />years 2-6.
<br />
<br />Level II grant (based on
<br />Year 1 property taxes
<br />Year 2 property taxes
<br />Year 3 property taxes
<br />Year 4 property taxes
<br />Year 5 property taxes
<br />Year 6 property taxes
<br />
<br />$20,000,000 qualifying investment at a 80% grant)
<br />paid - $5,000
<br />paid - $118,000 with an IDI Grant of $90,400
<br />paid - $118,000 with an IDI Grant of $90,400
<br />paid - $118,000 with an IDI Grant of $90,400
<br />paid - $118,000 with an IDI Grant of $90,400
<br />paid - $118,000 with an IDI Grant of $90,400
<br />
<br />Year 7 property taxes paid - $118,000 IDI Grant ceases
<br />The IDI Grant would equal $452,000 at the current tax rate of $.565/$100.
<br />Effective annual property equal $5,000 year 1 and $27,600 in years 2-6.
<br />
<br />Level III grant (based
<br />grant)
<br />Year 1 - property taxes
<br />Year 2 - property taxes
<br />Year 3 - property taxes
<br />Year 4 - property taxes
<br />Year 5 - property taxes
<br />
<br />on $100,000,000 qualifying investment at a 85%
<br />
<br /> paid - $5,000'
<br /> paid - $570,000 with an IDI Grant of $480,250
<br /> paid - $570,000 with an IDI Grant of $480,250
<br /> paid - $570,000 with an IDI Grant of $480,250
<br /> paid - $570,000 with an IDI Grant of $480,250
<br />
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