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Home My WebLink About2007/06/18 RESOLUTION TO ENTER ECONOMIC DEVELOPMENT INCENTIVE AGREEMENT WITH CENTRAL CAROLINA HOLDINGS, INC. 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 $612,000.00-1) 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 Harnett 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. _4 This the 18th day of June, 2007. COUNTY OF HARNETT BY• VeatAei,:C ATTEST: trice B. Hi , Chairman . A. 4Pi 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 5612,000±) and the purchase and installation of new machinery and equipment(costing $I,888,000±) which will create approximately 22 new jobs with an average wage of SI3 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 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 (5750,000.00) 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 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 Hamett 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 Hamett 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: 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 CENTRAL CAROLINA HOLDINGS. L.L.C. By: (name and title) NORTH CAROLINA COUNTY I, 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: • 6 • Exhibit "A" NORTH CAROLINA ECONOMIC DEVELOPMENT INCENTIVE AGREEMENT HARNETT COUNTY THIS AGREEMENT, made and entered into this the L S 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.I (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 $612,0001)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 ofCENTRAL 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: S i A kAi i,#ML .e ATTEST: - dy J. B ..rm: • K /• / UC.ata lam Kay S. lanchard, Clerk NORTH CAROLINA HARNETT COUNTY I,-Penny41. Drou i l l and ,a Notary Public of the County and State aforesaid, certify that Teddy J. Byrd ersonally 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 % day of Sun ° , 2007. Notej Public My Commission Expires: (-e - a7- 09 a NOTAgy=p`_ • • o ° 4 UBLIC• �: 99 ac, vFTT CO 1, is III 10000°5 r . . .. CENTRAL CAROLINA HOLDINGS. L.L.C. By: 3a P I a (name and title) i • NORTH CAROLINA 1vitt t COUNTY Lips . _•' /r / / ,J: otary Public of the County and State aforesaid, do hereby certify that ,ii. i', _1_ ! Manager of CENTRAL CAROLINA HOLDINGS,L.L.C.,a limited liabilit ' company, •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 Is day of_CD,/ , 2007. _ % / / mue,,,,L, Notary Public My Commission Expires: /0 19 "oie/V 6 Board Meeting Agenda Item MEETING DATE: June 1;2007 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 buoy • COUNTY MANAGER'S RECODIIVIENDATII U:\My Documents\Templates mid Forms1agendaform2007.doc Page 1 of 2