BC 2013 08 19 Regular Meeting - Laserfiche WebLink

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August 19, 2013 (Regular Meeting) Page 1660 This coming Monday, August 19, 2013, a request for incentives for an existing industry in Cabarrus County will come before you. This is a high tech company that supports the Motorsports Industry and is owned by Gene Haas. Windshear, is asking for an incentive to help build a 10, 000 square foot building addition for a commercial scale truck testing facility. This expansion will not only bring 7 new high paying jobs, ($30.00 /hour) but will have a multiplier effect on the businesses in the community. Windshear has clients come to their location every day that they provide catered meals for and when they are from out of town, they use our hotels in the area. They use our Regional Airport as well as the Charlotte Douglas International Airport for travel. Windshear plans to invest their own capital into this $5,000,000_.00 project but cannot do this totally on their own. They have stated that they will not be able to do the expansion without the City and County's help. Let me strongly encourage you to think about our goals to provide jobs for our citizens, the growth of our County for the future and support for this industry that has brought large amounts of revenue to the County. I am asking that you support this project and vote "YES" to the Project Incentive Request. Sincerely Yours, Lynne Scott Safrit President, Castle & Cooke North Carolina, LLC There was no one else present to address the Board; therefore Chairman Poole closed the public hearing. Commissioner Morris spoke in support of the incentive grant. He stated the request before the Board is a good case study for how incentives work, because had it not been for this program, Windshear would not have located in Cabarrus County. He advised these types of investments enable the county to keep the tax rate low on account of revenues received from these types of businesses. Vice Chairman Measmer expressed opposition to tax incentives, stating that while jobs are the issue facing us, there are a lot of policies that affect job growth, both on national and state levels. He advised North Carolina has one of the highest corporate income tax rates as well as the highest gas taxes in the southeast, factors that are hindering business. He stated he cannot see a direct benefit from the tax incentives and questioned why the tax rate steadily increases. He also stated the Board does not see any direct benefit from the occupancy tax. Commissioner Burrage expressed opposition to the incentive grant. He further expressed his opinion, stating incentives are legalized extortion and are unfair to the taxpayers and the rest of the businesses in Cabarrus County. Commissioner Oesterreich expressed appreciation for the opportunity to tour the Windshear facility along with Commissioner Morris; he also commended Jeff Bordner, Site Manager, for bringing Windshear to Cabarrus County. He stated the continually increasing tax rate is stifling job growth in Cabarrus County. After making a comparison of the financial impact of a 63 cents tax rate versus the current 70 cents tax rate, Commissioner Oesterreich advised reducing the tax rate to 63 cents would reflect the equivalent of the incentive for Windshear. He further advised that he would attempt to reduce the tax rate to 63 cents to provide the incentive to Windshear, while giving the same incentive to other businesses and taxpayers. Chairman Poole expressed support for the incentive grant, noting Windshear's good standing in the community, the value of the investment and resulting net gain to the County, which would continue over time. As it relates to the occupancy tax, she advised 10 percent of the occupancy tax is provided to the County, where the funds are used to offset other costs. Commissioner Morris made a MOTION, seconded by Chairman Poole, that the Board approve an Economic Development Grant (3 years, 85 percent) between Windshear and Cabarrus County, and authorize the County Manager to execute the Agreement on behalf of the Board, subject to review and /or revisions by the County Attorney. The MOTION failed with Chairman Poole and Commissioner Morris voting for and Vice Chairman Measmer and Commissioners Burrage and Oesterreich voting against.