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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 <br />