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HomeMy WebLinkAbout2007/06/18 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 • COUNTY MANAGER'S RECOMMENDATII • U:\My Doamments\Templates and Fonns\agendaform2007.doc Page • I oft 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 • • 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 • ; 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 • 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 • 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). 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