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HomeMy WebLinkAbout2007/06/18 RESOLUTION TO APPROVE ECONOMIC DEVELOPMENT INCENTIVE TO BOON EDAM TOMSED CORPORATION (2) NORTH CAROLINA RESOLUTION TO APPROVE ECONOMIC DEVELOPMENT INCENTIVE HARNETT COUNTY TO BOON EDAM TOMSED CORPORATION 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,Tomsed of Lillington is a current industry located in Lillington,Harnett County,N.C. with 115 existing employees that design, manufacture, market and distribute turnstile and crowd control equipment and doors; that in September 2005 Governor Mike Easley awarded Tomsed ofLillington a One North Carolina Fund Grant in the amount of$60,000.00. The Grant was awarded to assist the company with an expansion and to keep the company from locating to Utah or California after it was acquired by Boon Edam,a large European corporation. This Grant was instrumental in helping the company to decide to stay in Lillington and to move the operations and jobs from two other U.S. locations to Harnett County. Upon the award, the company signed a"Company Performance Agreement"committing to the creation of 60 new jobs. The Employment Security Commission will confirm that the required number of new full time jobs have been created before grant funds are released to the company; and, WHEREAS, a requirement of the One North Carolina Fund Grant program is that local government is required to match the Grant dollar for dollar. In order to meet the match requirement, the proposed local government contribution is itemized as follows: COUNTY incentive of$45,381.76 and Town of Lillington incentive of$14,618.24; that as of February 13, 2007, Boon Edam Tomsed has 1) completed its move from a 60,000 square foot facility to a 300,000 square foot facility;2)created 60 new jobs with an average pay of$15.00-$16.00 per hour with benefits; 3)added approximately$175,000.00 in machinery and equipment; and,4)made$950,000.00 in improvements to the facility building all which will increase the COUNTY tax base; and, WHEREAS, in order for the COUNTY to meet the match of the One North Carolina Funds Grant, the COUNTY desires to enter into an economic incentive package for the benefit of Boon Edam Tomsed whereby a monetary incentive with contributions from both the County and the Town ofLillington would be paid to Boon Edam Tomsed based upon the company's investment in machinery and equipment and real property improvements made to their production facility located on Alexander Drive in Lillington, N.C.,and based upon its decision to create new jobs, and remain located in Harnett County; that pursuant to N.C. General Statutes §158-7.1(c)a public hearing notice was published and a public hearing was held on May 21, 2007 concerning this economic development incentive; that subsequent to the close of said public hearing and after deliberations, it was the desire of the Board of Commissioners to approve the appropriation of this economic development incentive to Boon Edam Tomsed in the form of a lump sum incentive payment in the amount of $45,381.76; that this appropriation is approved subject to the condition that the Town of Lillngton approve the appropriation of an incentive in the amount of $14,618.24 which will complete the One North Carolina Fund Grant match. 3 NOW,THEREFORE,BE IT RESOLVED by the Harnett County Board ofCommissioners that the Economic Development incentive in order to match the One North Carolina Fund Grant in the shares as previously set forth is hereby approved;that the proper officials of the COUNTY are hereby authorized to process said incentive for the benefit of Boon Edam Tomsed at such time that the Town of Lillington approves the appropriation of its incentive share as previously set forth. This the 18th day of June, 2007. COUNTY OF HARNETT By: 1°;ZetTLC) ATTEST: eatrice B. Hill, ''ice Chairman Ka, I dieztaaitd Kay S.OBlanchard, Clerk Board Meeting • Agenda Item MEETING DATE: June 12)2007 TO: HARNETT COUNTY BOARD OF COMMISSIONERS SUBJECT: Approval of Resolution to Approve Harnett County Matching Funds for One NC Grant for Boon Edam Tomsed REQUESTED BY: Lee Anne Nance, Director, Economic Development Commission REQUEST: The Economic Development Commission is requesting approval of a resolution to provide the required matching funds for a$60,000 One NC Grant from the State of NC for Boon Edam Tomsed corporation of Lillington, NC. COUNTY MANAGER'S RECOMMENDATION: • U:1My Documents\Templates and Fmmslagendafonn2007 Tomsed.doc Page 1 of2 _ T • DWIGHT W. SNOW ATTORNEY AT LAW 302 W.EDGERTON STREET MAUING ADDRESS FACSIMILETELEPHONE ; 910-8924199 iasa n 54179 DUNK,NORTH CAROLINA 28334 E.a sox 3m DUNN,NC 28335 &mat Uet410,v®,ca.c093 • June 14, 2007 VIA EMAIL: lnance(ahamett.org Ms. Lee Anne Nance, Director Economic Development Commission P.O. Box 1270 Lillington, North Carolina 27546 Re: Economic Incentive Resolutions Dear Lee Anne: Enclosed for your review are four Resolutions involving economic incentives to a) Boon Edam Tomsed,b)Central Carolina Holdings,L.L.C.,c)Edwards Brothers,Inc. and d)Kidde Fire Fighting, Inc. Please note that the latter three Resolutions include proposed Economic Development Incentive Agreements. I am assuming that the process of insuring that ad valorem tax refunds are properly developed pursuant to the Economic Development Incentive Agreements will go through your office. Therefore it will be necessary that you carefully review the Agreement and be comfortable with its process terms. Call me with questions or comments. At such time that these documents are approved in final form, then I will forward to Kay Blanchard for inclusion into the Commissioner meeting agenda notebooks. Sincerely yours, Dwight W. Snow DWS:lm Enc.