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February 4, 2008 (Work Session)
<br />The Board of Commissioners for the County of Cabarrus met
<br />Work Session in the Multipurpose Room at the Cabarrus County
<br />Center in Concord, North Carolina on Monday, February 9, 2008, at
<br />Present - Chairman: H. Jay White, Sr.
<br />Vice Chairman: Joni D. Juba
<br />Commissioners: Robert W. Carruth
<br />Grace M. Mynatt
<br />Coy C. Privette
<br />Page 702
<br />for an Agenda
<br />Governmental
<br />3:30 p.m.
<br />Also present were John Day, County Manager; Richard M. Koch, County
<br />Attorney; Mike Downs, Deputy County Manager; Pam Dubois, Deputy County
<br />Manager; and Kay Honeycutt, Clerk to the Board.
<br />Call to Order
<br />Chairman White called the meeting to order at 3:35 p.m.
<br />Flv Right Inc. - Industrial Development Incentive Grant Request
<br />John Cox and Ryan McDaniels of the Cabarrus Economic Development
<br />Corporation (EDC) requested a public hearing be scheduled to consider an
<br />Industrial Development Incentive Grant (3-year - 85 percent) for Fly Right,
<br />Inc. Mr. McDaniels reported the new proposal includes two phases with a
<br />total investment of $16 million (Phase I - $9 million; Phase II - $12
<br />million) and the creation of approximately 20 new high-paying jobs (Phase I -
<br />10; Phase II - 8). He further reported the CVB (Cabarrus Visitors Bureau)
<br />estimated the direct economic impact to Cabarrus County for this project as
<br />follows:
<br />Room Nights Economic Impact
<br />Year 1 1,200 $192,000.00
<br />Year 3 3,600 $576,000.00
<br />He also stated the availability of Matt Hapgood, the company's CEO
<br />(Chief Executive Officer), to attend the February regular meeting. Mr. Cox,
<br />Mr. McDaniels and DeSales Wagster, CVB Director, responded to a variety of
<br />questions from the Board. The following issues were addressed: phasing,
<br />clawback provisions, lease agreement, calculation of the direct economic
<br />benefit, the EDC's vote, Federal Aviation Administration (FAA) permitting,
<br />licensing and certification process, etc.
<br />John D. Day, County Manager, explained the impetus for including a 5-
<br />year clawback provision in the agreement was to keep the County from
<br />subsidizing the company's equipment purchases. He said the clawback would
<br />require the company to stay in the County for a specified period of time and
<br />repay the entire grant if the company leaves prematurely. He also reported
<br />that the Concord City Manager plans to include a 5-year clawback provision in
<br />its agreement.
<br />At the request of Chairman White, Richard Koch, County Attorney,
<br />addressed the following issues related to clawback provisions: filing
<br />bankruptcy, going out of business, etc. A brief discussion ensued.
<br />Phase I Year 1 Year 2 Year 3 Year 9
<br />Total Assessed Value $9,000,000.00 $9,000,000.00 $9,000,000.00 59,000,000.00
<br />County Taxes at .63 $25,200.00 $25,200.00 $25,200.00 525,200.00
<br />Incentive @ 858 $21,920.00 $21,920.00 $21,920.00
<br />Net Taxes to County $3,780.00 $3,780.00 $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 $8,000,000.00 $8,000,000.00 $8,000,000.00 58,000,000.00
<br />County Taxes at .63 $50,900.00 $50,900.00 $50,900.00 $50,900.00
<br />Incentive @ 85$ $92,890.00 $92,890.00 $92,890.00
<br />Net Taxes to County $7,560.00 $7,560.00 $7,560.00 550,900.00
<br /> 3 Year Taxes $151,200.00
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