2007/06/18 RESOLUTION TO ENTER ECONOMIC DEVELOPMENT INCENTIVE AGREEMENT WITH KIDDIE FIRE FIGHTING, INC. NORTH CAROLINA RESOLUTION TO ENTER INTO
ECONOMIC DEVELOPMENT INCENTIVE
HARNETT COUNTY AGREEMENT WITH KIDDE FIRE FIGHTING, INC.
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, KIDDE FIRE FIGHTING, INC., a subsidiary of United Technologies Corporation
(hereinafter "KIDDE FIRE") is a current industry located in Angier, N.C. with 120 employees who
manufacture, market and distribute a complete line of portable,rechargeable fire extinguishers and hose
bridging components; that KIDDE FIRE has made plans to purchase $3,000,000 of manufacturing
machinery and equipment in order to expand its capabilities to add a manufacturing line for its product at
its Angier facility; and,
WHEREAS, in order to induce KIDDE FIRE to go forward with its plan to purchase additional
manufacturing machinery and equipment which will immediately establish a new tax base through
KIDDE FIRE'S location and installation of said manufacturing machinery and equipment at the Angier
facility,the COUNTY is willing to appropriate certain incentives in the form of ad valorem tax refunds to
KIDDE FIRE 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 KIDDE FIRE have negotiated an economic development incentive
package which includes an incentive to be paid to KIDDE-FIRE 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 KIDDE FIRE as a basis for ad valorem taxes; that an instrument entitled
Economic Development Incentive Agreement between the COUNTY and KIDDE FIRE 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 KIDDE FIRE subject to those terms contained within said Agreement.
NOW,THEREFORE,BE IT RESOLVED by the Hamett County Board of Commissioners that the
Economic Development Incentive Agreement between the COUNTY and KIDDE FIRE is hereby
approved; and that the proper officials of the COUNTY are hereby authorized to enter into the Economic
Development Incentive Agreement with KIDDE FIRE.
2n
This the 18th day of June, 2007.
COUNTY OF HARNETT
BY: 1/�t��?L�.fi c‘C
ATTEST: Beatrice B. Hill, Vice Chairman
KOLA,' d. a-c e► d
Kay S. Ylanchard, 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 KIDDE FIRE FIGHTING, INC. of 141 Junny Road, Angier, N.C. 27501
(hereinafter referred to as "KIDDE FIRE");
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, KIDDE FIRE is a Delaware corporation with authority to do business in North
Carolina; that KIDDE FIRE is an existing industry located in Angier, Harnett County, N.C. with 120
employees who manufacture, market and distribute a complete line of portable, rechargeable fire
extinguishers and hose bridging components; that KIDDE FIRE has made plans to purchase
approximately$3,000,000 of manufacturing machinery and equipment in order to expand its capabilities
to add a manufacturing line for its product at its Angier facility; and,
WHEREAS, in order to induce KIDDE FIRE to go forward with its plan to purchase additional
manufacturing machinery and equipment which will immediately establish a new tax base through the
location and/or installation of said additional manufacturing machinery and equipment at the Angier
facility, the COUNTY is willing to appropriate certain incentives in the form of ad valorem tax refunds to
KIDDE FIRE upon the terms and conditions set forth in this Agreement.
1
NOW, THEREFORE, in consideration of these premises and the mutual covenants and promises
set forth below, the COUNTY and KIDDE FIRE hereby agree as follows:
1. KIDDE FIRE CAPITAL INVESTMENT IN ADDITIONAL MACHINERY AND
EQUIPMENT IN EXCHANGE FOR ECONOMIC DEVELOPMENT INCENTIVE
GRANT.
KIDDE FIRE agrees that it will conduct its plan to purchase additional machinery and
equipment and locate and/or install the same 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
KIDDE FIRE. The taxable capital investment level expended by KIDDE FIRE for 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 KIDDE FIRE completes all of the following: (a)procures and locates and/or installs
additional manufacturing machinery,equipment and business property at the Angier facility,(b)lists the
additional machinery, equipment and business property with the Harnett County Tax Department for ad
valorem tax purposes, and (c) pays the billed ad valorem tax on said newly listed machinery, equipment
and business property, then the COUNTY shall appropriate a refund to KIDDE FIRE of eighty percent
(80%)of the total tax paid per year for up to three(3)consecutive years on the additional and newly listed
machinery, equipment and business property. The first year of the three year consecutive term that
KIDDE FIRE may apply for and receive the incentive shall be at KIDDE FIRE'S option (it is not
mandatory that the incentive schedule begin with the 2007 or 2008 tax year).
2
The annual economic development incentive payment shall be paid by the COUNTY to
KIDDE FIRE within 30 days of(a) the County Tax Department's receipt of KIDDE FIRE'S payment of
its total ad valorem tax obligation for the applicable tax year and (b) evidence of said payment is
forwarded by KIDDE FIRE 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
additional manufacturing machinery,equipment and business property listed by KIDDE FIRE upon which
the ad valorem tax is based is machinery, equipment and business property that is new to the Harnett
County tax listing for KIDDE FIRE and/or has not been transferred from another Harnett County tax
listing for KIDDE FIRE and any of its subsidiaries, divisions or parent holding companies.
3. ASSIGNMENT.
The assignment of the incentive benefits of this Agreement by KIDDE FIRE is prohibited
except with the written consent of the COUNTY.
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 KIDDE FIRE: Kidde Fire Fighting, Inc.
Attn: Operations Manager
141 Junny Road
Angier, NC 27501 •
3
Either the COUNTY or KIDDE FIRE 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.
IN WITNESS WHEREOF, the COUNTY and KIDDE FIRE 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 Hamett County.
Witness my hand and official stamp or seal, this_day of 2007.
My Commission Expires:
Notary Public
4
KIDDE FIRE FIGHTING, INC.
By:
(name and title)
NORTH CAROLINA
COUNTY OF
I, ,Notary Public,certify that (official)
personally came before me this day and acknowledged that he/she is (title)of KIDDE
FIRE FIGHTING, INC., a corporation, and that he/she, as (title) being
authorized to do so, executed the foregoing on behalf of the corporation.
•
Witness my hand and official seal, this the day of 2007.
Notary Public
My Commission Expires:
•
5
Fi
C
Exhibit "A"
NORTH CAROLINA ECONOMIC DEVELOPMENT
INCENTIVE AGREEMENT
HARNETT COUNTY
THIS AGREEMENT, made and entered into this the I $ day of June, 2007, by and between
the COUNTY OF HARNETI', a body politic of 102 E. Front Street, Lillington, N.C. 27546
(hereafter referred to as"COUNTY")and KIDDE FENWAL, INC. DBA KIDDE FIRE FIGHTING
of 141 Junny Road; Angier, N.C. 27501 (hereinafter referred to as "KIDDE FIRE");
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, KIDDE FIRE is a Delaware corporation with authority to do business in North
Carolina; that KIDDE FIRE is an existing industry located in Angier,Harnett County,N.C. with 92
employees who manufacture, market and distribute a line of layflat hose for fire fighting, industrial,
agricultural and military use; that KIDDE FIRE has made plans to purchase approximately
53,000,000 of manufacturing machinery and equipment in order to expand its capabilities to add a
manufacturing line for its product at its Angier facility; and,
WHEREAS, in order to induce KIDDE FIRE to go forward with its plan to purchase
additional manufacturing machinery and equipment which will immediately establish a new tax base
through the location and/or installation of said additional manufacturing machinery and equipment at
the Angier facility, the COUNTY is willing to appropriate certain incentives in the form of ad
valorem tax refunds to KIDDE FIRE 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 KIDDE FIRE hereby agree as follows:
1. KIDDE FIRE CAPITAL INVESTMENT IN ADDITIONAL MACHINERY AND
EQUIPMENT IN EXCHANGE FOR ECONOMIC DEVELOPMENT INCENTIVE
GRANT.
KIDDE FIRE agrees that it will conduct its plan to purchase additional machinery and
equipment and locate and/or install the same 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 KIDDE FIRE. The taxable capital investment level expended by KIDDE FIRE for 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 KIDDE FIRE completes all of the following: (a) procures and locates and/or
installs additional manufacturing machinery,equipment and business property at the Angier facility,
(b) lists the additional machinery, equipment and business property with the Harnett County Tax
Department for ad valorem tax purposes,and(c)pays the billed ad valorem tax on said newly listed
machinery, equipment and business property, then the COUNTY shall appropriate a refund to
KIDDE FIRE of eighty percent (80%) of the total tax paid per year for up to three (3) consecutive
years on the additional and newly listed machinery,equipment and business property. The first year
of the three year consecutive term that KIDDE FIRE may apply for and receive the incentive shall be
at KIDDE FIRE'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 KIDDE FIRE within 30 days of(a) the County Tax Department's receipt of KIDDE FIRE'S
2
payment of its total ad valorem tax obligation for the applicable tax year and (b) evidence of said
payment is forwarded by KIDDE FIRE 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 additional manufacturing machinery, equipment and business property
listed by KIDDE FIRE upon which the ad valorem tax is based is machinery, equipment and
business property that is new to the Hamett County tax listing for KIDDE FIRE and/or has not been
transferred from another Harnett County tax listing for KIDDE FIRE and any of its subsidiaries,
divisions or parent holding companies.
3. ASSIGNMENT.
The assignment of the incentive benefits of this Agreement by KIDDE FIRE is
prohibited except with the written consent of the COUNTY.
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 KIDDE FIRE: Kidde Fire Fighting
Attn: Operations Manager
141 Junny Road
Angier, NC 27501
Either the COUNTY or KIDDE FIRE 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.
3
5. AMENDMENTS. CHANGES AND MODIFICATIONS.
Except as othenvise 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.
IN WITNTESS WHEREOF,the COUNTY and KIDDE FIRE 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 dayfand.,year first above written.
\` -
2.
_ COUNTY/F H
4ail Al
ATTEST: 'r -, WddfirBy gel, Chai !nW
KayS lanchard, Clerk
•
NORTH CAROLINA
HARNETT COUNTY
I. EA-Inca (N1.Off;ti .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. Pang
Witness my hand and official._stamp or seal, this —j day of CJ ..ice+y ,X889-'
J;�" Ni. 8
1.4��0 TA/is tiLS'
_ vo� 's
car. Public
My Commission Expires: `Z
y U ;
3 ��2�UB�\G,s-k-/
`••••. coop'..... 4
KIDDE FENWAL, INC..
DBA KIDDIE FIRE
�FIGHTING
By: di- T SJ ^
P(LFS t E k T_ (name and title)
Marc.A.C-h>tib
\Simi-CAROLINA
COUNTY OF eorrICrou.i i +Ik4'1c-c
_ I, 61-use; YV rccss � 4 Notary Public, certify that
Sxlhvar4 (official) personally came before me this day and acknowledged that he/she is
lresideak (title) of KIDDE FENWAL, INC., a corporation DBA KIDDIE FIRE
FIGHTING,and that he/she,as Bresiderar (title)being authorized to do so,executed
the foregoing on behalf of the corporation. ��jj ]\, -
Witness my hand and official seal, this the / Inv of r'1J�%_ /Ji/r , X007.
410 1 a --CAA 0-P-4 00:1 _
o ary Public .. ;
My Commission Expires: ' •=
Mme) 5WEI
5
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
C5,1 C
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COUNTY MANAGER'S RECOMMENDATII
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U:\My Doamments\Templates and Fonns\agendaform2007.doc Page
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Board Meeting
Agenda Item
MEETING DATE: June 412007
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
U:IMy Documents Templates and Fonnslagendaform2007.doc Page
I of 2
NORTH CAROLINA RESOLUTION TO ENTER INTO ECONOMIC
DEVELOPMENT INCENTIVE AGREEMENT
HARNETT COUNTY WITH EDWARDS BROTHERS, INC.
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,Edwards Brothers,Inc.(hereinafter"EDWARDS BROS)is a current industry located
in Lillington,Harnett County,North Carolina;that EDWARDS BROS has 280 employees that print,bind,
publish and distribute books;that EDWARDS BROS has made plans to conduct a$10,000,000 expansion
which will include the construction of an additional building at its Lillington facility (costing
$1,500,000-1), the purchase and installation of additional manufacturing machinery and equipment in
order to expand production capabilities (cost $8,500,000-1), and the creation of 30-40 new jobs with an
average pay of$16 - $17 per hour; and,
WHEREAS, in order to induce EDWARDS BROS. 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 EDWARDS BROS'S expansion of its facility building and the purchase and location of
manufacturing equipment and machinery to be located in its Harnett County facility, the COUNTY is
willing to appropriate certain incentives in the form of ad valorem tax refunds to EDWARDS BROS
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 EDWARDS BROS have negotiated an economic development
incentive package which includes an incentive to be paid to EDWARDS BROS in the form of an eighty
percent (80%) refund of County ad valorem taxes over a possible three (3) to five (5) year period
depending on the level of capital investment expended by EDWARDS BROS as a basis for ad valorem
taxes; that an instrument entitled Economic Development Incentive Agreement between the COUNTY
and EDWARDS BROS 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 EDWARDS BROS 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 EDWARDS BROS is hereby
approved; and that the proper officials of the COUNTY are hereby authorized to enter into the Economic
Development Incentive Agreement with EDWARDS BROS.
1,3
This the 18`h day of June, 2007.
COUNTY OF HARNETT
By: is..moi • WA
ATTEST: • Beatrice B. Hill, Vic- hairman
Kay S4 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 EDWARDS BROTHERS, INC. of 800 Edwards Drive, Lillington, N.C. 27546
(hereinafter referred to as "EDWARDS BROS");
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, EDWARDS BROS is a North Carolina corporation which is a current industry
located in Lillington, Harnett County, N.C. with 280 employees that print, bind, publish and distribute
books; that EDWARDS BROS has made plans to conduct an approximate S10,000,000 manufacturing
and processing operations expansion which will include the construction of an additional building at its
Lillington facility (costing $1,500,000±), the purchase and installation of additional manufacturing
machinery and equipment in order to expand production capabilities (costing $8,500,000±) and the
creation of 30-40 new jobs with an average pay of$16 - $17 per hour; and,
WHEREAS, in order to induce EDWARDS BROS 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
1
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 EDWARDS BROS 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 EDWARDS BROS hereby agree as follows:
I. EDWARDS BROS FACILITY EXPANSION AND CAPITAL INVESTMENT IN
ADDITIONAL MACHINERY AND EQUIPMENT IN EXCHANGE FOR ECONOMIC
DEVELOPMENT INCENTIVE GRANT.
EDWARDS BROS 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 EDWARDS BROS. The
.,
capital investment level expended by EDWARDS BROS 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. In order to receive the grant
for an additional two(2)years(total five(5)consecutive year term)the property value new taxable listing
must be Five Million Dollars ($5,000,000) or greater.
2. PAYMENT OF ECONOMIC DEVELOPMENT INCENTIVE GRANT.
Once EDWARDS BROS completes all of the following: (a)completes its facility building
expansion construction, (b) begins to locate and/or install manufacturing equipment, machinery and
business property at the Harnett County facility, (c) lists the facility building real property expansion
2
property expansion improvements and 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 listed
real property expansion improvements and the newly listed equipment/machinery/business property,then
the COUNTY shall appropriate a refund to EDWARDS BROS of eighty percent (80%) of the total tax
paid per year for up to five (5) consecutive years on the additional and newly listed real and personal
business property. (Note, the number of years depends on the property value amount of property newly
listed for County ad valorem tax purposes per section 1 of this Agreement). The first year of the potential
five year consecutive term that EDWARDS BROS may apply for and receive the incentive shall be at
EDWARDS BROS'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
EDWARDS BROS within 30 days of(a)the County Tax Department's receipt of EDWARDS BROS'S
payment of its total ad valorem tax obligation for the applicable tax year and(b)evidence of said payment
is forwarded by EDWARDS BROS 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/or the
additional equipment/machinery/business property listed by EDWARDS BROS upon which the ad
valorem tax is based is equipment/machinery/business property that is new to the Harnett County tax
listing for EDWARDS BROS and/or has not been transferred from a Harnett County tax listing for
EDWARDS BROS and any of its subsidiaries, divisions or parent holding companies.
3
3. ASSIGNMENT.
The assignment of the incentive benefits of this Agreement by EDWARDS BROS is
prohibited except with the written consent of the COUNTY.
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 EDWARDS BROS: Edwards Brothers, Inc.
800 Edwards Drive
Lillington, NC 27546
Either the COUNTY or EDWARDS BROS 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 EDWARDS BROS 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:
5
EDWARDS BROTHERS, INC.
By:
(name)
NORTH CAROLINA
COUNTY OF
I, ,Notary Public,certify that (official)
personally came before me this day and acknowledged that he/she is (title) of
EDWARDS BROTHERS,INC.,a corporation,and that he/she,as (title)being
authorized to do so, executed the foregoing on behalf of the corporation.
Witness my hand and official seal, this the day of 2007.
Notary Public
My Commission Expires:
•
6
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Exhibit"A"
NORTH CAROLINA ECONOMIC DEVELOPMENT
INCENTIVE AGREEMENT
HARNETT COUNTY
THIS AGREEMENT, made and entered into this the (Q, 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 EDWARDS BROTHERS, INC. of 800 Edwards Drive,
Lillington, N.C. 27546 (hereinafter referred to as "EDWARDS BROS");
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,EDWARDS BROS is a North Carolina corporation which is a current industry
located in Lillington, Harnett County, N.C. with 280 employees that print, bind, publish and
distribute books; that EDWARDS BROS has made plans to conduct an approximate $10,000,000
manufacturing and processing operations expansion which will include the construction of an
additional building at its Lillington facility (costing $1,500,000±), the purchase and installation of
additional manufacturing machinery and equipment in order to expand production capabilities(costing
$8,500,000±) and the creation of 30-40 new jobs with an average pay of$16 - $17 per hour; and,
WHEREAS, in order to induce EDWARDS BROS 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 the improvement and expansion of the facility building and the purchase of
1
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
EDWARDS BROS 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 EDWARDS BROS hereby agree as follows:
1. EDWARDS BROS FACILITY EXPANSION AND CAPITAL INVESTMENT IN
ADDITIONAL MACHINERY AND EQUIPMENT IN EXCHANGE FOR
ECONOMIC DEVELOPMENT INCENTIVE GRANT.
EDWARDS BROS 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
EDWARDS BROS. The capital investment level expended by EDWARDS BROS 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. In order to receive the grant for an additional two (2) years (total five (5)
consecutive year term) the property value new taxable listing must be Five Million Dollars
($5,000,000) or greater.
2. PAYMENT OF ECONOMIC DEVELOPMENT INCENTIVE GRANT.
Once EDWARDS BROS completes all of the following: (a) completes its facility
building expansion construction, (b) begins to locate and/or install manufacturing equipment,
machinery and business property at the Harnett County facility, (c) lists the facility building real
property expansion improvements and equipment/machinery/business property with the Harnett
2
County Tax Department for ad valorem tax purposes, and(d)pays the 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 EDWARDS
BROS of eighty percent (80%) of the total tax paid per year for up to five (5) consecutive years on
the additional and newly listed real and personal business property. (Note, the number of years
depends on the property value amount of property newly listed for County ad valorem tax purposes
per section 1 of this Agreement). The first year of the potential five year consecutive term that
EDWARDS BROS may apply for and receive the incentive shall be at EDWARDS BROS'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 EDWARDS BROS within 30 days of(a) the County Tax Department's receipt of EDWARDS
BROS'S payment of its total ad valorem tax obligation for the applicable tax year and(b)evidence of
said payment is forwarded by EDWARDS BROS 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/or the additional equipment/machinery/business property listed by
EDWARDS BROS upon which the ad valorem tax is based is equipment/machinery/business property
that is new to the Harnett County tax listing for EDWARDS BROS and/or has not been transferred
from a Harnett County tax listing for EDWARDS BROS and any of its subsidiaries, divisions or
parent holding companies.
3
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3. ASSIGNMENT.
The assignment of the incentive benefits of this Agreement by EDWARDS BROS is
prohibited except with the written consent of the COUNTY.
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 EDWARDS BROS: Edwards Brothers, Inc.
800 Edwards Drive
Lillington, NC 27546
Either the COUNTY or EDWARDS BROS 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 EDWARDS BROS 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: / II /
AIIEST: - eddyJ. B � saim-an
Kay lanchard, Clerk
NORTH CAROLINA
HARNETT COUNTY
I,Tenn., U. Ofn t .i((Rol ,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 !43 day of 3-3 n e , 2007.
\ att r.-_d .g raciAd
Not Public
My Commission Expires: U - a7- Q Ci
ai N0T4Ay p"=
0
40
U8LtC 4.1 r
9715) O«.O' O c
5
EDWARDS BROTHERS, INC. -
By: 4e/ •%
A/o{/e-71/ U-Cc (name)
NORTH CAROLE%rA
COUNTY OF tra.rnefi-
I, utuL. �Sdn, , Notary Public, certify that
A/w newt 13ttss (official) personally' ame before me this day and acknowledged that he/she is
Cpera+ions /Yle�- (title) of EDWARDS BROTHERS, INC., a corporation, and that he/she, as
Cp!f h`, s 011 (title)being authorized to do so,executed the foregoing on behalf of the
corporation. 0
Witness my hand and official seal, this the 3 day of ?tidy_
, 2007.
l/gVt&J/J.JiL mps
Notary Public {�
My Commission Expires:
-Num) (s, do o j
6
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Board Meeting
Agenda Item
MEETING DATE: May 7, 2007
TO: HARNETT COUNTY BOARD OF COMMISSIONERS
SUBJECT: Request County Commissioners approve Edwards Brothers, Inc. request for
county incentives.
REQUESTED BY: Randy McLean
REQUEST:
Please place on the agenda the Public Hearing regarding a proposed economic incentive
agreement between the County of Harnett and Edwards Brothers, Inc. The proposed
economic incentive package is in accordance with the standard Harnett County Economic
Development Incentive Grant Program will include a monetary incenitve to be paid to
Edwards Brothers, Inc., in the form of a refund of County ad valorem taxes based upon the
company's investment in machinery and equipment to be newly listed for Harnett County
taxes. Edwards Brothers manufactures short and medium run books and journals.
Edwards Brothers will invest $10 million in new machinery and a new building and will also
bring 30 to 40 new jobs to Lillington, N.C. The new jobs will be in pre-press, printing,
binding, and shipping, as well as in other areas of the company. The average pay will be $16-
$17 per hour.
COUNTY MANAGER'S RECOMMENDATION:
\\hcfilerlaMnance\my documents\Incentives\Edwards Brothers Agenda Item.doc Page
1 of 2
1
ic Economic Development Commission
Summary of Pubic Hearing Requests for May 21, 2007
Company Information Reason for Request Action Requested
Kidde Fire Arms Expansion ($3 million) Refund 80% of county
1 taxes paid on the newly
Angier
Purchase $3 million of manufacturing listed equipment for three
equipment in order to expand 3
years.
Manufacturer of a capabilities to add a manufacturing line
complete line of for portable, rechargeable fire Estimated incentive over
portable, rechargeable extinguishers and hose bridging the three year period is
fire extinguishers and equipment. $41,630.40 (analysis
hose bridging attached).
components No new jobs with expansion.
120 existing
employees
Central Carolina lire Expansion ($2.5 million) ae u paid 8 %n thof eunty
Cameron Building expansion of $612,000. listed equipment for three
(3) years.
Scrap tire processing New machinery and equipment
$1,888,000. Estimated incentive over
52 existing employees the three year period is
22 new jobs with an average wage of $36,995.08 (analysis
$13 per hour. attached).
Edwards Brothers Expansion ($10 million) Reunty
tafund
paid 8 %nthofenewly
Lillington New building $1,500,000. listed equipment for five
(5) years.
Small and medium run Manufacturing equipment in order to
book publishing expand production $8,500,000. Estimated
incenear pertive sver
the 280 existing 30-40 new jobs with an average pay of $213,032.40 (analysis
employees $16-$17 per hour. attached).
Submitted for County Commissioner Review
May 16, 2007
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