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February 20, 2017 (Regular Meeting) Page 3037
<br /> Ms. Nixon recommended funding through two grants as follows: one 5-year
<br /> grant for Phases 1 and 2 and one 5-year grant for Phase 3, each requesting a
<br /> grant amount equal to 85 percent of the net increase in personal property
<br /> assessed values for years 1-3, 75 percent for year 4 and 65 percent for year 5.
<br /> The first grant would be applied to Phases 1 and 2 ($2, 140, 110.00) , and upon
<br /> successful completion, the second grant could be initiated for Phase 3
<br /> ($4, 118, 467.00) . Both grants would total $6,258, 577.00. This would still allow
<br /> the County to receive tax revenues of $1, 663, 672.00 during the 10-year period.
<br /> In addition, she advised the City of Concord has approved a similar grant for
<br /> the company. She announced Eric Cheek, with Grant Thornton LLP, is present on
<br /> behalf of A1evo and available to answer questions.
<br /> A discussion ensued. During discussion, Ms. Nixon responded to questions
<br /> from the Board.
<br /> Cabarrus County Economic Development Grant Analysis - Project G2 (Phase 1&2)
<br /> Year 1 Year 2 Year 3 Year 4 Year 5
<br /> Total Assessed Value $77,400,000.00 $77,400,000.00 $77,400,000.00 $77,400,000.00 $77,400,000.00
<br /> County Taxes at .70 $541,800.00 $541,800.00 $541,800.00 $541,800.00 $541,800.00
<br /> Grant @ 85% 1-3, 75%
<br /> 4, 65% 5 $460,530.00 $460,530.00 $460,530.00 $460,530.00 $352,170.00
<br /> Net Taxes to County 1 $81,270.00 1 $81,270.00 $81,270.00 $135,450.00 $189,630.00
<br /> 5 Year Taxes $2,709,000.00
<br /> 5 Year Grant $2,140,110.00
<br /> 5 Year Net
<br /> Revenue $568,890.00
<br /> Cabarrus County Economic Development Grant Analysis - Project G2 (Phase 3)
<br /> Year 1 Year 2 Year 3 Year 4 Year 5
<br /> Total Assessed Value $148,950,000.00 $146,950,000.00 $148,950,000.00 $148,950,000.00 $148,950,000.00
<br /> County Taxes at .70 $1,042,650.00 $1,042,650.00 $1,042,650.00 $1,042,650.00 $1,042,650.00
<br /> Grant @ 85% 1-3, 75%
<br /> 4, 65% 5 $886,252.50 $986,252.50 $886,252.50 $781,987.50 $677,722.50
<br /> Net Taxes to County $156,397.50 $156,397.50 $156,397.50 $260,662.50 $364,927.50
<br /> 5 Year Taxes $5,213,250.00
<br /> 5 Year Grant $4,118,467.50
<br /> 5 Year Net
<br /> Revenue $1,094,782.50
<br /> Chairman Morris opened the public hearing at 6:53 p.m. The public hearing
<br /> notice was posted on the County' s website (www.cabarrus county.us) on February
<br /> 9, 2017 in accordance with Article 2, Administration, Section 2.1 (Use of
<br /> Electronic Means to Provide Public Notices) of the Cabarrus County Code of
<br /> Ordinances.
<br /> There was no one present to address the Board; therefore, Chairman Morris
<br /> closed the public hearing.
<br /> Commissioner Poole MOVED to approve an economic development investment
<br /> agreement for one 5-year grant for Phases 1 and 2 and one 5-year grant for
<br /> Phase 3 (with grant amounts equal to 85 percent of the net increase in
<br /> personal property assessed values for years 1-3, 75 percent for year 4 and 65
<br /> percent for year 5) between Project G2 (Alevo) and Cabarrus County, and to
<br /> authorize the County Manager to execute the Agreement on behalf of the Board,
<br /> subject to review and revision by the County Attorney. Commissioner Shue
<br /> seconded the motion.
<br /> Following a brief discussion, the MOTION unanimously carried.
<br /> (G-2) Economic Development Investment - Project Pinecone - Public Hearing 6:30
<br /> P.M.
<br /> LeAnn Nixon, Cabarrus Economic Development Corporation (EDC) , Existing
<br /> Industry Project Manager, presented a request for an economic development
<br /> investment for Project Pinecone pursuant to North Carolina General Statute
<br /> 158.7.1. She advised Project Pinecone (Corning) proposes a projected investment
<br /> in Cabarrus County of approximately $21, 000, 000.00 in real property and
<br /> $88, 000, 000.00 in personal property. She advised a 5-year grant equivalent to
<br /> 85 percent ($3,242, 750.00) of the ad valorem taxes on the increase in real and
<br /> personal property tax values is requested. This would allow the County to still
<br /> receive tax revenues of $572, 250. 00) during the five-year period.
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