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March 24, 2008 (Regular Meeting)
<br />Account No.
<br />00193230-9605
<br />Consultants
<br />00191910-9660
<br />Contingency
<br />Approved Budget Increase
<br />$37,819.00 $125,000.00
<br />$559,977.00
<br />(G) NEW BU9INE98
<br />- 6
<br />Page 762
<br />Decrease Revised Budget
<br />$162,619.00
<br />$125,000.00 $929,977.00
<br />Ryan McDaniels, with the Economic Development Corporation (EDC),
<br />presented a request for an Industrial Development Incentive Grant for Fly
<br />Right, Inc. He stated the company plans to invest $9 million in Phase I, $8
<br />million in Phase II and add an additional 18 employees through both phases
<br />with an average wage of $29.00 per hour. He then reviewed the following
<br />grant analysis for Phase I and II:
<br />Phase I Year 1 Year 2 Year3 Year 9
<br />Total Assessed Value $9,000,000.00 $9,000,000.00 $9,000,000.00 $9,000,000.00
<br />County Taxes at .63 $25,200.00 $25,200.00 $25,200.00 $25,200.00
<br />Incentive @ 85$ $21,920.00 $21,920.00 $21,920.00
<br />Net Taxes to County $3,760.00 $3,760.00 $3,780.00 $25,200.00
<br /> 3 Year Taxes $75,600.00
<br /> 3 Year
<br />Incentive
<br />$69,260.00
<br /> 3 Year Net
<br />Revenue
<br />$11,390.00
<br />Phase II Year 1 Year 2 Year 3 Year 9
<br />Total Assessed Value $6,000,000.00 $8,000,000.00 $8,000,000.00 $8,000,000.00
<br />County Taxes at .63 $50,900.00 $50,900.00 $50,900.00 $50,400.00
<br />Incentive @ B5~ $92,890.00 $42,890.00 $92,890.00
<br />Net Taxes to County $7,560.00 $7,560.00 $7,560.00 $50,900.00
<br /> 3 Year Taxes $151,200.00
<br /> 3 Year
<br />Incentive
<br />$128,520.00
<br /> 3 Year Net
<br />Revenue
<br />$22,660.00
<br />Mr. McDaniels announced that he and Patrick Zimmer, representative for
<br />Fly Right, Inc., are available to respond to questions from the Board. In
<br />response to questions related to delaying the economic benefit for five
<br />years, Mr. McDaniels reported such a provision would put Cabarrus County at
<br />an economic development disadvantage. He further reported that Concord
<br />included a five-year property lease provision in its incentive agreement with
<br />Fly Right, Inc.
<br />Chairman White opened the public hearing at 6:52 p.m. The Public
<br />Hearing Notice was published on March 13, 2008 in THE INDEPENDENT TRIBUNE and
<br />in THE CHARLOTTE OBSERVER (Cabarrus Neighbors).
<br />There was no one present to address the Board; therefore, Chairman
<br />White closed the public hearing.
<br />A brief discussion ensued regarding the "Level C" simulator and how it
<br />operates. Mr. McDaniels confirmed the simulator is a "Level C" model and
<br />listed the additional-features of the simulator.
<br />Commissioner Carruth MOVED to approve an Industrial Development
<br />Incentive Grant request for Fly Right, Inc. (3-year, 85 percent), with a
<br />five-year property lease clawback provision. Commissioner Mynatt seconded
<br />the motion.
<br />Commissioner Privette offered the following amendment: "the grant
<br />funds will be released only after the company has operated in Cabarrus County
<br />for at least eight years and all terms and conditions of the grant have been
<br />met".
<br />The AMENDMENT failed for lack of a second.
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