BC 1998 11 30 - Laserfiche WebLink

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95 The Agreement, which is pursuant to the Cabarrus County Commercial/Retail Development Incentive Grant Program, is on file in the Office of the County Manager and hereby included by reference as a part of the minutes. Closed Session UPON MOTION of Commissioner Barnhart, seconded by Commissioner Carpenter and unanimously carried, the Board moved to go into closed session to consult with attorneys regarding pending litigation concerning Philip Morris as authorized by North Carolina General Statute 143-318.11(a) (3). Further, the Board invited the following individuals to join the Board in closed session: County Manager Frank Clifton and Staff Members Blair Bennett, Bill Kouri and John Patterson; County Attorney Fletcher Hartsell and Attorneys David Terry and Charles Meeker. UPON MOTION of Commissioner Carpenter, seconded by Commissioner Niblock and unanimously carried, the Board moved to end the closed session. Settlement of Philip Morris Property Tax Issue For the record, Mr. Clifton read the following Press Release. PRESS RELEASE: CABARRUS COUNTY RESOLVED AMICABLY PHILIP MORRIS PROPERTY TAX ISSUE The Cabarrus County Commission in an agreement reached with Philip Morris USA affirms a complete resolution of all outstanding tax issues between the parties has been completed. Tax disputes, involving the valuation of Philip Morris' manufacturing facilities in Concord have been pending for several years. Earlier this year, the County and Philip Morris reached agreement regarding the assessment of 'capitalized interest' as a value factor on personal property. Today's agreement focuses on the value of Philip Morris' real properties (land and buildings) in Concord. The agreement settles the disputed 1994 assessed valuation (now under review by the North Carolina Supreme Court) and also establishes assessed valuations for real properties inclusive of 1995, 1996, 1997, 1998 and 1999. As part of the agreement, Philip Morris will pay Cabarrus County approximately $2.6 million and the City of Concord approximately $2 million taxes and interest based upon correctly assessed values for the years 1994- 1997. Philip Morris' facilities in Concord includes buildings in excess of 2,000,000 square feet and 1200 acres of land valued at $425 million and personal properties valued in excess of $650 million. Philip Morris is Cabarrus County's and the City of Concord's largest taxpayer. Philip Morris and Cabarrus County working together in an atmosphere of mutual respect were able to apply the value methodology developed by the North Carolina Property Tax Commission's decision related to the 1994 assessment to value the plant for 1995 and ensuing years, taking into account the continued expansion of the plant and other developments that have occurred since 1994. County Commissioners are pleased that this agreement brings to an end the tax issues that have been the focus of disagreement between the parties for so long. In recent years, Philip Morris has maintained significant community involvement and worked closely with County, City officials and other local leaders in efforts to enhance regional cooperation and progress in Cabarrus County. Attached to the Press Release was the "Potential Settlement Proposal - Philip Morris Real Property Values (94-99)" showing a summary of the years based on the assessments, tax rates and taxes owed, including interest both for the County and the City of Concord. This summary is on file in the Office of the County Manager. UPON MOTION of Commissioner Barnhart, seconded by Commissioner Niblock and unanimously carried, the Board adopted the following Resolution.