2010/05/17 RESOLUTION TO ENTER INTO ECONOMIC DEVELOPMENT INCENTIVE AGREEMENT WITH OLD CASTLE APG SOUTH INCNORTH CAROLINA RESOLUTION TO ENTER INTO ECONOMIC
DEVELOPMENT INCENTIVE AGREEMENT
HARNETT COUNTY WITH OLDCASTLE APG SOUTH, 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, OLDCASTLE APG SOUTH, INC., doing business as Oldcastle Adams
Products (hereinafter " OLDCASTLE ADAMS PRODUCTS ") is a North Carolina corporation with
its principal place of business located in Morrisville, N.C.; that in 2006 after working with the
Harnett County Economic Development Department, OLDCASTLE ADAMS PRODUCTS decided
to locate and operate a manufacturing plant facility in Harnett County with the intent to apply for the
County's economic development incentives. On May 8, 2007, OLDCASTLE ADAMS PRODUCTS
purchased a 42.17 acre tract in the Edgerton Industrial Park II in Harnett County, N.C. and
subsequent thereto constructed an industrial facility which in January 2009 became operational in the
manufacture and marketing of concrete masonry units. In developing and operating its
manufacturing facility in Harnett County, OLDCASTLE ADAMS PRODUCTS established a 2009
tax base listing with the County on its manufacturing facility in the amount of $15,318,228; that in
addition OLDCASTLE ADAMS PRODUCTS has created 30 new jobs at this facility with an
average perjob annual payroll of $40,038; and,
WHEREAS, based upon OLDCASTLE ADAMS PRODUCTS' location of a new
manufacturing facility in Harnett County, the establishment of a tax base, and the creation of thirty
jobs, the COUNTY is willing to appropriate certain incentives in the form of ad valorem tax refunds
to OLDCASTLE ADAMS PRODUCTS 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 OLDCASTLE ADAMS PRODUCTS have negotiated an
economic development incentive package which includes an incentive to be paid to OLDCASTLE
ADAMS PRODUCTS in the form of an eighty percent (80 %) refund of County ad valorem taxes
paid over a possible five (5) year period depending on the continued level of capital investment
expended by OLDCASTLE ADAMS PRODUCTS as a basis for ad valorem taxes; that an
instrument entitled Economic Development Incentive Agreement between the COUNTY and
OLDCASTLE ADAMS PRODUCTS 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 17,
2010 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 OLDCASTLE ADAMS PRODUCTS 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 attached hereto as Exhibit "A" between the
COUNTY and OLDCASTLE ADAMS PRODUCTS is hereby approved; and that the proper
officials of the COUNTY are hereby authorized to enter into the Economic Development Incentive
Agreement with OLDCASTLE ADAMS PRODUCTS.
This the 17th day of May, 2010.
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ATTEST:
�. COUN ,.
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By: / x r�
Timothy B. Neill, Chairman
Harnett Couhry Board of Commissioners
Exhibit "A"
NORTH CAROLINA ECONOMIC DEVELOPMENT
INCENTIVE AGREEMENT
HARNETT COUNTY
THIS AGREEMENT, made and entered into this the day of May, 2010, 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 OLDCASTLE APG SOUTH, INC., doing business as
Oldcastle Adams Products, of P.O. Box 189, 5701 McCrimmon Parkway, Morrisville, N.C. 27560,
(hereinafter referred to as " OLDCASTLE ADAMS PRODUCTS ");
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, OLDCASTLE APG SOUTH, INC., doing business as Oldcastle Adams
Products, (hereinafter OLDCASTLE ADAMS PRODUCTS) is a North Carolina corporation with its
principal place of business located in Morrisville, N.C.; that in 2006 after working with the Harnett
County Economic Development Department, OLDCASTLE ADAMS PRODUCTS decided to locate
and operate a manufacturing plant facility in Harnett County with the intent to apply for the County's
economic development incentives as part of its industrial establishment process. On May 8, 2007,
OLDCASTLE ADAMS PRODUCTS purchased a 42.17 acre tract in the Edgerton Industrial Park II
in Harnett County, N.C. and subsequent thereto constructed an industrial facility which in January
2009 became operational in the manufacture and marketing of concrete masonry units. In
developing and operating its manufacturing facility in Harnett County, OLDCASTLE ADAMS
PRODUCTS established a 2009 tax base listing with the County on its manufacturing facility in the
amount of 515,318,228; that in addition, OLDCASTLE ADAMS PRODUCTS has created 30 new
jobs at this facility with an average per job annual payroll of $40,038; and,
WHEREAS, that as an inducement for OLDCASTLE ADAMS PRODUCTS to go forward
with its decision to locate an industrial manufacturing facility in Harnett County which has created
new jobs and established a new tax base through the location and establishment of facility buildings
and improvements and the purchase of manufacturing equipment and machinery which has been
located at said facility, the COUNTY is willing to appropriate certain incentives in the form of ad
valorem tax refunds to OLDCASTLE ADAMS PRODUCTS 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 OLDCASTLE ADAMS PRODUCTS hereby agree as
follows:
OLDCASTLE ADAMS PRODUCTS MANUFACTURING FACILITY LOCATION
IN HARNETT COUNTY AND CAPITAL INVESTMENT IN MACHINERY AND
EQUIPMENT IN EXCHANGE FOR ECONOMIC DEVELOPMENT INCENTIVE
GRANT.
OLDCASTLE ADAMS PRODUCTS agrees that it will continue to own and operate
its Harnett County manufacturing facility located at 192 Gateway Drive, Dunn, N.C. 28334 during
each year that the economic development incentive (EDI) grant from Harnett County makes any
payments to OLDCASTLE ADAMS PRODUCTS. The taxable capital investment level established
by OLDCASTLE ADAMS PRODUCTS for its Harnett County facility in the form of acquisition of
real property, and the construction and installation of facility improvements, machinery, equipment
or other business property items that would be listed for Harnett County ad valorem tax purposes
must equate to a value of Ten Million Dollars ($10,000,000.00) or greater in order to receive the
grant for the five (5) consecutive year term.
2. PAYMENT OF ECONOMIC DEVELOPMENT INCENTIVE GRANT.
The parties acknowledge that OLDCASTLE ADAMS PRODUCTS located and
constructed its manufacturing facility in Harnett County and subsequently began operations at said
facility in January 2009. The parties further acknowledge that OLDCASTLE ADAMS
PRODUCTS' capital investment listing of its manufacturing facility for Harnett County ad valorem
taxes for 2009 was in the amount of $15,318,228. In order to receive the County's economic
development incentive grant, OLDCASTLE ADAMS PRODUCTS agrees that it shall complete the
following: (a) for the 2010 tax year, OLDCASTLE ADAMS PRODUCTS shall continue to list the
facility building real property improvements and the facility equipment/machinery /business property
with the Harnett County Tax Department for ad valorem tax purposes in an amount in excess of Ten
Million Dollars ($10,000,000.00); and (b) OLDCASTLE ADAMS PRODUCTS agrees that it shall
timely pay the billed ad valorem tax to the Harnett County Tax Department on said listed real
property improvements and the listed equipment/machinery/business property. Upon the completion
of the two above listed requirements, then the COUNTY shall appropriate a refund to OLDCASTLE
ADAMS PRODUCTS of eighty percent (80 %) of the total ad valorem "base tax" paid per year for
up to five (5) consecutive years beginning for the 2010 tax year on the condition that the above listed
requirements continue to be met by OLDCASTLE ADAMS PRODUCTS for each of the subsequent
years in the five (5) year period. The ad valorem "base tax" is the tax amount based upon the
Countywide base tax rate; any supplemental taxes paid for fire district, the Averasboro school tax or
other special taxes or fees are not included in the incentive grant calculation.
3
The annual economic development incentive grant payment shall be paid by the
COUNTY to OLDCASTLE ADAMS PRODUCTS within 30 days of (a) the County Tax
Department's receipt of OLDCASTLE ADAMS PRODUCTS' S payment of its total ad valorem tax
obligation for the applicable tax year and (b) evidence of said payment is forwarded by
OLDCASTLE ADAMS PRODUCTS and received by the County Economic Development Director
whichever last occurs..
3. ASSIGNMENT.
The assignment of the incentive benefits of this Agreement by OLDCASTLE
ADAMS PRODUCTS 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:
COUNTY: HARNETT COUNTY
Attn: County Manager
P. O. Box 759
102 E. Front Street
Lillington, NC 27546
OLDCASTLE ADAMS PRODUCTS: OLDCASTLE APG SOUTH, INC.
Attn: Corporate President
P. O. Box 189
5701 McCrimmon Parkway
Morrisville, NC 27560
Either the COUNTY or OLDCASTLE ADAMS PRODUCTS 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.
rd
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 OLDCASTLE ADAMS PRODUCTS 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
am
ATTEST:
Margaret Regina Wheeler, Clerk
NORTH CAROLINA
HARNETT COUNTY
Timothy B. McNeill, Chairman
Harnett County Board of Commissioners
I, a Notary Public, certify that Timothy B. McNeill 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 Margaret Regina Wheeler 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 Timothy B. McNeill acknowledged said instrument to
be the act and deed of Harnett County.
Witness my hand and official stamp or seal, this _ day of May, 2010.
Notary Public
My Commission Expires:
OLDCASTLE APG SOUTH, INC.
NORTH CAROLINA
COUNTY OF
Colin Clampett, Vice President
I, allotary Public, do hereby certify that Colin Clampett personally came before me this day
and acknowledged that he is Vice President of OLDCASTLE APG SOUTH, INC., allorth Carolina
Corporation, and that he as Vice President being authorized to do so, executed the foregoing
instruction on behalf of the corporation.
Witness my hand and official stamp or seal, this day of May, 2010.
My Commission Expires:
L
Notary Public