2007/06/18 RESOLUTION TO ENTER INTO ECONOMIC DEVELOPMENT INCENTIVE AGREEMENT WITH CENTRAL CAROLINA HOLDINGS, LLC NORTH CAROLINA RESOLUTION TO ENTER INTO ECONOMIC
DEVELOPMENT INCENTIVE AGREEMENT
HARNETT COUNTY WITH CENTRAL CAROLINA HOLDINGS, L.L.C.
THAT WHEREAS, the County of Harnett (hereinafter "COUNTY") has made economic
development in Harnett County a major priority in an effort to replace displaced industry previously
located in Harnett County, to retain and/or expand current industry located in Harnett County,to provide
local job opportunities for citizens of the COUNTY, and to increase the COUNTY tax base; and,
WHEREAS, Central Carolina Holdings, L.L.C., doing business as Central Carolina Tire and
Disposal (hereinafter"CENTRAL CAROLINA") is a North Carolina limited liability company with its
principal place of business located in Harnett County, N.C.; that CENTRAL CAROLINA has 52
employees that recycle and process scrap tires to be used for various base product purposes; that
CENTRAL CAROLINA has made plans to conduct a $2,500,000 manufacturing and processing
operations expansion which will include a facility building expansion (costing $612,000.00±) and the
purchase and installation of additional machinery and equipment(costing$1,888,000.00±);that as a result
of this facility and machinery/equipment expansion,22 new jobs will be created with an average wage of
$13 per hour; and,
WHEREAS, in order to induce CENTRAL CAROLINA to go forward with its facility expansion
plans in Harnett County which will ultimately create new jobs and will immediately establish a new tax
base through CENTRAL CAROLINA'S improvement and expansion of its facility building and the
purchase and location of manufacturing equipment and machinery to be located in its Hamett County
facility,the COUNTY is willing to appropriate certain incentives in the form of ad valorem tax refunds to
CENTRAL CAROLINA pursuant to the provisions of N.C. General Statutes §158-7.1 which allows
counties to make appropriations for the purpose of aiding and encouraging the location and/or expansion
of manufacturing enterprises and industrial plants in the COUNTY; and,
WHEREAS, the COUNTY and CENTRAL CAROLINA have negotiated an economic
development incentive package which includes an incentive to be paid to CENTRAL CAROLINA in the
form of an eighty percent(80%)refund of County ad valorem taxes over a possible three(3)year period
depending on the level of capital investment expended by CENTRAL CAROLINA as a basis for ad
valorem taxes; that an instrument entitled Economic Development Incentive Agreement between the
COUNTY and CENTRAL CAROLINA which is attached to this resolution as Exhibit "A" has been
prepared for agreement between the parties to comply with the provisions of N.C. General Statutes§158-
7.1; that pursuant to N.C. General Statutes §158-7.1(c) a public hearing was held on May 21, 2007
concerning the terms of the proposed Economic Development Incentive Agreement;that subsequent to the
close of said public hearing and after deliberations, it is the desire of the Board of Commissioners to
approve the appropriation of this Economic Development Incentive Agreement with CENTRAL
CAROLINA subject to those terms contained within said Agreement.
NOW,THEREFORE,BE IT RESOLVED by the Harnett County Board of Commissioners that the
Economic Development Incentive Agreement between the COUNTY and CENTRAL CAROLINA is
hereby approved; and that the proper officials of the COUNTY are hereby authorized to enter into the
Economic Development Incentive Agreement with CENTRAL CAROLINA.
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This the le day of June, 2007.
COUNTY OF HARNETT
By: I.�Cic� 4L4t
ATTEST: Beatrice B. Hill, ice Chairman
Kay Blanchard, Clerk
Exhibit "A"
NORTH CAROLINA ECONOMIC DEVELOPMENT
INCENTIVE AGREEMENT
HARNETT COUNTY
THIS AGREEMENT, made and entered into this the_day of June, 2007, by and between the
COUNTY OF HARNETT, a body politic of 102 E.Front Street,Lillington,N.C. 27546(hereafter referred
to as "COUNTY") and CENTRAL CAROLINA HOLDINGS, L.L.C. of 1616 McKoy Town Road,
Cameron, N.C. 28326 (hereinafter referred to as "CENTRAL CAROLINA");
WITNESSETH:
THAT WHEREAS, the COUNTY is empowered pursuant to the provisions of North Carolina
General Statutes §158-7.1 (Local Development Act)as amended,to make appropriations for the purposes
of aiding and encouraging the location and/or expansion of manufacturing enterprises and industrial plants
in the COUNTY; and,
WHEREAS, CENTRAL CAROLINA is a North Carolina limited liability company that does
business as Central Carolina Tire and Disposal; that CENTRAL CAROLINA is an existing industry in
Harnett County,N.C.which has a facility with 52 employees that recycles and processes scrap tires to be
used for various base product purposes; that CENTRAL CAROLINA has made plans to conduct an
approximate$2,500,000 manufacturing and processing operations expansion which will include a facility
building expansion (costing $612,000±) and the purchase and installation of new machinery and
equipment(costing 51,888,000±) which will create approximately 22 new jobs with an average wage of
$13 per hour; and,
WHEREAS, in order to induce CENTRAL CAROLINA to go forward with its facility expansion
plans in Harnett County which will ultimately create new jobs and will immediately establish a new tax
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establish a new tax base through the improvement and expansion of the facility building and the purchase
of additional manufacturing equipment and machinery which will be located in said facility,the COUNTY
is willing to appropriate certain incentives in the form of ad valorem tax refunds to CENTRAL
CAROLINA upon the terms and conditions set forth in this Agreement.
NOW, THEREFORE, in consideration of these premises and the mutual covenants and promises
set forth below, the COUNTY and CENTRAL CAROLINA hereby agree as follows:
1. CENTRAL CAROLINA FACILITY EXPANSION AND CAPITAL INVESTMENT IN
ADDITIONAL MACHINERY AND EQUIPMENT IN EXCHANGE FOR ECONOMIC
DEVELOPMENT INCENTIVE GRANT.
CENTRAL CAROLINA agrees that it will conduct its manufacturing and processing
operations expansion project at its Harnett County facility before or during the first year that the economic
development incentive(EDI)grant from Harnett County makes any payments to CENTRAL CAROLINA.
The taxable capital investment level expended by CENTRAL CAROLINA for facility building expansion
and additional machinery, equipment or other business property items that would be newly listed for
County ad valorem tax purposes must equate to a value of Seven Hundred and Fifty Thousand Dollars
($750,000.00) or greater in order to receive the grant for the three (3) consecutive year term.
2. PAYMENT OF ECONOMIC DEVELOPMENT INCENTIVE GRANT.
Once CENTRAL CAROLINA completes all of the following: (a) completes its facility
building expansion construction, (b)begins to locate and/or install additional manufacturing equipment,
machinery and business property at the Harnett County facility,(c)lists the facility building real property
expansion improvements and the additional equipment/machinery/business property with the Harnett
County Tax Department for ad valorem tax purposes,and(d)pays the billed ad valorem tax on said newly
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billed ad valorem tax on said newly listed real property expansion improvements and the newly listed
equipment/machinery/business property, then the COUNTY shall appropriate a refund to CENTRAL
CAROLINA of eighty percent(80%)of the total tax paid per year for up to three(3)consecutive years on
the additional and newly listed real and personal business property. The first year of the three year
consecutive term that CENTRAL CAROLINA may apply for,and receive the incentive shall be at
CENTRAL CAROLINA'S option(it is not mandatory that the incentive schedule begin with the 2007 or
2008 tax year).
The annual economic development incentive payment shall be paid by the COUNTY to
CENTRAL CAROLINA within 30 days of (a) the County Tax Department's receipt of CENTRAL
CAROLINA'S payment of its total ad valorem tax obligation for the applicable tax year and(b)evidence
of said payment is forwarded by CENTRAL CAROLINA and received by the County Economic
Development Director, whichever last occurs. Payment is further conditioned upon verification by the
Harnett County Tax Office that the increase in the real property tax value due to the facility expansion or
improvements and the new equipment/machinery/business property listed by CENTRAL CAROLINA
upon which the ad valorem tax is based is equipment/machinery/business property that is new to the
Harnett County tax listing for CENTRAL CAROLINA and/or has not been transferred from a Harnett
County tax listing for CENTRAL CAROLINA and any of its subsidiaries, divisions or parent holding
companies.
3. ASSIGNMENT.
The assignment of the incentive benefits of this Agreement by CENTRAL CAROLINA is
prohibited except with the written consent of the COUNTY.
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4. NOTICES.
All notices and other communications hereunder shall be in writing and shall be deemed to
have been given on the date of actual delivery of mail, registered or certified mail, return receipt
requested, postage prepaid, to the following respective addresses:
To the COUNTY: Harnett County
Attn: County Manager
P. O. Box 759
102 E. Front Street
Lillington, NC 27546
To CENTRAL CAROLINA: Central Carolina Holdings, LLC
Attn: Thomas Womble
1616 McKay Town Road
Cameron, NC 28326
Either the COUNTY or CENTRAL CAROLINA may change the address to which all
notices shall be sent by addressing a notice of such change in the manner provided in this article.
5. AMENDMENTS, CHANGES AND MODIFICATIONS.
Except as otherwise provided in this Agreement, this Agreement may not be amended,
changed, modified or altered except by written agreement of the parties hereto.
6. SEVERABILITY.
If any provision of this Agreement is held invalid or unenforceable by any court of
competent jurisdiction, such holding shall not invalidate or render unenforceable any other provision
hereof.
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is
ti'�1.
IN WITNESS WHEREOF, the COUNTY and CENTRAL CAROLINA have caused this
Agreement to be executed in duplicate originals, in their respective names, by persons duly authorized,
and have sealed the same on the day and year first above written.
COUNTY OF HARNETT
By:
ATTEST: Teddy J. Byrd, Chairman
Kay S. Blanchard, Clerk
NORTH CAROLINA
HARNETT COUNTY
I, ,a Notary Public of the County and State aforesaid,certify that Teddy
J. Byrd personally came before me this day who being by me duly sworn,deposes and says: that he is the
Chairman of the Harnett County Board of Commissioners and Kay S. Blanchard is the Clerk of said
Board, that the seal affixed to the foregoing instrument is the official seal of Harnett County, that said
instrument was signed by her, attested by said Clerk and the County's seal affixed thereto, all by authority
of the Board of Commissioners of said County, and the said Teddy J.Byrd acknowledged said instrument
to be the act and deed of Harnett County.
Witness my hand and official stamp or seal, this day of 2007.
Notary Public
My Commission Expires:
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i1
CENTRAL CAROLINA HOLDINGS. L.L.C.
By:
(name and title)
NORTH CAROLINA
COUNTY
h a Notary Public of the County and State aforesaid,do hereby certify
that Manager of CENTRAL CAROLINA HOLDINGS, L.L.C., a limited
liability company, personally appeared before me this day and acknowledged the due execution of the
foregoing instrument on behalf of the company.
Witness my hand and official stamp or seal, this day of 2007.
Notary Public
My Commission Expires:
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'AN.; Exhibit "A"
NORTH CAROLINA ECONOMIC DEVELOPMENT
INCENTIVE AGREEMENT
HARNETT COUNTY
THIS AGREEMENT, made and entered into this the L ? day of June, 2007,by and between
the COUNTY OF HARNETT, a body politic of 102 E. Front Street, Lillington, N.C. 27546
(hereafter referred to as "COUNTY") and CENTRAL CAROLINA HOLDINGS, L.L.C. of 1616
McKoy Town Road, Cameron,N.C. 28326(hereinafter referred to as"CENTRAL CAROLINA");
WITNESSETH:
THAT WHEREAS, the COUNTY is empowered pursuant to the provisions of North
Carolina General Statutes§158-7.1 (Local Development Act)as amended,to make appropriations for
the purposes of aiding and encouraging the location and/or expansion of manufacturing enterprises
and industrial plants in the COUNTY; and,
WHEREAS, CENTRAL CAROLINA is a North Carolina limited liability company that does
business as Central Carolina Tire and Disposal;that CENTRAL CAROLINA is an existing industry in
Harnett County,N.C. which has a facility with 52 employees that recycles and processes scrap tires to
be used for various base product purposes;that CENTRAL CAROLINA has made plans to conduct
an approximate$2,500,000 manufacturing and processing operations expansion which will include a
facility building expansion (costing $612,000±)and the purchase and installation of new machinery
and equipment (costing $1,888,000±)which will create approximately 22 new jobs with an average
wage of$13 per hour; and,
WHEREAS, in order to induce CENTRAL CAROLINA to go forward with its facility
expansion plans in Harnett County which will ultimately create new jobs and will immediately
1
establish a new tax base through the improvement and expansion of the facility building and the
purchase of additional manufacturing equipment and machinery which will be located in said facility,
the COUNTY is willing to appropriate certain incentives in the form of ad valorem tax refunds to
CENTRAL CAROLINA upon the terms and conditions set forth in this Agreement.
NOW, THEREFORE, in consideration of these premises and the mutual covenants and
promises set forth below, the COUNTY and CENTRAL CAROLINA hereby agree as follows:
1. CENTRAL CAROLINA FACILITY EXPANSION AND CAPITAL INVESTMENT
IN ADDITIONAL MACHINERY AND EQUIPMENT IN EXCHANGE FOR
ECONOMIC DEVELOPMENT INCENTIVE GRANT.
CENTRAL CAROLINA agrees that it will conduct its manufacturing and processing
operations expansion project at its Harnett County facility before or during the first year that the
economic development incentive (EDI) grant from Harnett County makes any payments to
CENTRAL CAROLINA. The taxable capital investment level expended by CENTRAL CAROLINA
for facility building expansion and additional machinery, equipment or other business property items
that would be newly listed for County ad valorem tax purposes must equate to a value of Seven
Hundred and Fifty Thousand Dollars ($750,000.00) or greater in order to receive the grant for the
three (3) consecutive year term.
2. PAYMENT OF ECONOMIC DEVELOPMENT INCENTIVE GRANT.
Once CENTRAL CAROLINA completes all of the following:(a)completes its facility
building expansion construction, (b) begins to locate and/or install additional manufacturing
equipment, machinery and business property at the Harnett County facility, (c) lists the facility
building real property expansion improvements and the additional equipment/machinery/business
property with the Harnett County Tax Department for ad valorem tax purposes, and (d) pays the
2
, billed ad valorem tax on said newly listed real property expansion improvements and the newly listed
equipment/machinery/business property,then the COUNTY shall appropriate a refund to CENTRAL
CAROLINA of eighty percent (80%) of the total tax paid per year for up to three (3) consecutive
years on the additional and newly listed real and personal business property. The first year of the
three year consecutive term that CENTRAL CAROLINA may apply for and receive the incentive
shall be at CENTRAL CAROLINA'S option (it is not mandatory that the incentive schedule begin
with the 2007 or 2008 tax year).
The annual economic development incentive payment shall be paid by the COUNTY
to CENTRAL CAROLINA within 30 days of(a)the County Tax Department's receipt of CENTRAL
CAROLINA'S payment of its total ad valorem tax obligation for the applicable tax year and (b)
evidence of said payment is forwarded by CENTRAL CAROLINA and received by the County
Economic Development Director, whichever last occurs. Payment is further conditioned upon
verification by the Harnett County Tax Office that the increase in the real property tax value due to
the facility expansion or improvements and the new equipment/machinery/business property listed by
CENTRAL CAROLINA upon which the ad valorem tax is based is equipment/machinery/business
property that is new to the Harnett County tax listing for CENTRAL CAROLINA and/or has not
been transferred from a Harnett County tax listing for CENTRAL CAROLINA and any of its
subsidiaries, divisions or parent holding companies.
3. ASSIGNMENT.
The assignment of the incentive benefits of this Agreement by CENTRAL
CAROLINA is prohibited except with the written consent of the COUNTY.
3
4. NOTICES.
All notices and other communications hereunder shall be in writing and shall be
deemed to have been given on the date of actual delivery of mail, registered or certified mail, return
receipt requested, postage prepaid, to the following respective addresses:
To the COUNTY: Harnett County
Attn: County Manager
P. O. Box 759
102 E. Front Street
Lillington, NC 27546
To CENTRAL CAROLINA: Central Carolina Holdings, LLC
Attn: Thomas Womble
1616 McKay Town Road
Cameron, NC 28326
Either the COUNTY or CENTRAL CAROLINA may change the address to which all
notices shall be sent by addressing a notice of such change in the manner provided in this article.
5. AMENDMENTS, CHANGES AND MODIFICATIONS.
Except as otherwise provided in this Agreement,this Agreement may not be amended,
changed, modified or altered except by written agreement of the parties hereto.
6. SEVERABILITY.
If any provision of this Agreement is held invalid or unenforceable by any court of
competent jurisdiction, such holding shall not invalidate or render unenforceable any other provision
hereof.
4
' IN WITNESS WHEREOF, the COUNTY and CENTRAL CAROLINA have caused this
Agreement to be executed in duplicate originals, in their respective names, by persons duly
authorized, and have sealed the same on the day and year first above written.
•
COUNTY OF HARNETT
By: Q� '
ATTEST: • - Fe6dy J. B �� ; .'rm:
K01 &(aa cka td
Kay S. lanchard, Clerk
NORTH CAROLINA
HARNETT COUNTY
I,-Penni, J. Drou.;l klcd ,a Notary Public of the County and State aforesaid, certify that
Teddy J. Byrd idersonally came before me this day who being by me duly sworn, deposes and says:
that he is the Chairman of the Harnett County Board of Commissioners and Kay S. Blanchard is the
Clerk of said Board, that the seal affixed to the foregoing instrument is the official seal of Harnett
County, that said instrument was signed by her, attested by said Clerk and the County's seal affixed
thereto, all by authority of the Board of Commissioners of said County, and the said Teddy J. Byrd
acknowledged said instrument to be the act and deed of Harnett County.
Witness my hand and official stamp or seal, this 1 ?j day of Sun- , 2007.
liftliNtoicii Public
My Commission Expires: Ce - a`l- 09
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CENTRAL CAROLINA HOLDINGS. L.L.C.
�
By: 4 P
a (name and title)
I
NORTH CAROLINA" " -
rAtat COUNTY
I,�•,.. _i
_•'c, /r i -,i: otary Public of the County and State aforesaid, do hereby
certify that ,ti, , _1 ! Manager of CENTRAL CAROLINA HOLDINGS,L.L.C.,a
limited liabilit ' company, I ersonally appeared before me this day and acknowledged the due
execution of the foregoing instrument on behalf of the company.
Witness my hand and official stamp or seal, this if day of / 2�G/. , 2007.
gc-fi .,e rue,....,te___
/ /� Notary Public
My Commission Expires: ! 1) 17 - �1��V
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Board Meeting
Agenda Item
MEETING DATE: June 112007
TO: HARNETT COUNTY BOARD OF COMMISSIONERS
SUBJECT: Approval of Resolutions to Approve the Harnett County Economic
Development Incentive Grant Program for three existing industries
REQUESTED BY: Lee Anne Nance,Director, Economic Development Commission
REQUEST:
The Economic Development Commission is requesting approval of resolutions to approve the
offering of the Economic Development Incentive Grant for three existing industries:
1. Kidde Fire Arms in Angier, NC
2. Central Carolina Tire in Cameron, NC
3. Edwards Brothers in Lillington, NC •
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COUNTY MANAGER'S RECOMMENDATII
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