BC 2005 05 23 REGULAR - Laserfiche WebLink

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May 23, 2005 - Regular Meeting Page 182 Ryan McDaniels of the Cabarrus Economic Development Corporation (EDC) presented the request by Golden Gait Trailers (GGT) for a small corporate headquarters grant pursuant to the Industrial Development Incentive Grant program guidelines effective January 1, 2004. The customized trailer manufacturing company plans to construct a 40,000 square foot facility at the intersection of Highway 73 and 1-85. The estimated investment is $3 million ($2 million real estate; $1 million machinery and equipment) with 100 new jobs planned. Mr. McDaniels said the EDC Board of Directors recommends approval of the incentives and the Kannapolis City Council has approved incen~ives for GGT. Chairman Carpenter asked if the creation of jobs was guaranteed by the company. John Day, County Manager, reported the grant is based on the County's incentive program which is tied to the amount of investment rather than the number of jobs created. He explained the incentives under the current policy are paid annually when the business owner pays the property tax for that year. He also pointed out there was a general consensus of the Board at the work session to support the GGT incentive grant. At 7 :40 p.m., Chairman Carpenter opened the pub~ic hearing on the Industrial Development Incentive Grant (Small Corporate Headquarters) for Golden Gait Trailers. The Public Hearing Notice was published in THE INDEPENDENT TRIBUNE on May 12, 2005. There was no one else to address the Board, and Chairman Carpenter closed the public hearing at 7:41 p.m. Vice Chairman Carruth made a motion to: (1) Approve the Industrial Development Incentive Grant (Small Corporate Headquarters) for Golden Gait Trailers; and (2) Direct staff to prepare a recommendation to modify the Incentive Grant Policy to include a provision for the guarantee or creation of jobs. Mr. Day proposed that a committee be established, including elected officials from each municipality, to review the job creation issue and make a recommendation concerning revisions to the incentive grant program. He pointed out the municipalities also consider incentives based on the geographic location of the business being considered. Vice Chairman Carruth withdrew the second part of his motion, and the motion was seconded by Chairman Carpenter. He also amended the motion to include authorization for the County Manager and ,County Attorney to conclude negotiations with GGT. Fletcher L. Hartsell, Jr., County Attorney, reported that no incentive would be given until the projected investment reaches $3 million in tax value. There was general discussion -about the current incentive grant program being tied to the amount of investment rather than the number of jobs created. Commissioner Privette also questioned an inconsistency between figures in the Incentive Analysis Overview (estimated) and a recent newspaper article with figures presented to the City of Kannapolis. Mr. McDaniels reported the numbers that were originally presented to the Board for Golden Gait were used tonight to be consistent. He said the company qualified for the incentive grant at the $3 million threshold and has since increased its projected investment amount to $4 million. UPON MOTION of Vice Chairman Carruth, seconded by Chairman Carpenter with vice Chairman Carruth, Chairman Carpenter and Commissioners Freeman and Commissioner Juba voting for and Commissioner Privette voting against, the Board approved the incentive grant (small corporate headquarters) for Golden Gait Trailers (GGT) subject to the negotiation and execution of a definitive agreement between Cabarrus county and GGT, as outlined in the Industrial Development Grant Program, and authorized the County Manager and County Attorney to conclude the negotiations and execute the agreement. UPON MOTION of Vice Chairman Carruth, seconded by Commissioner Privette and unanimously carried, the Board agreed for a committee consisting of members of the various jurisdictions in the county to craft a provision in the Economic Development Incentive Program that would provide for a guarantee of both jobs and wages. Consideration of the new provision is to be scheduled during August.