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033 <br />EXHIBIT 1) <br />FO AGREEMEN1 BLTWEEN <br />CITY OF SANFORD <br />AND <br />LEE. COUNTY ECONOMIC DEVI- LOPNILN"f CORPORATION <br />DESCRIPTION OF PROJECT AND INCENTIVES <br />The Project: Construction of additional space and the cost of new machinery <br />on property owned by Frontier Spinning LLC on Boone Trail Road in Sanford. <br />Lee County, N.C. The Company trill construct at least a 70,000 square foot <br />facility and purchase new machinery that will have a cumulative initial ad <br />valorem taxable value (prior to depreciation) of at least $20,000,000.00 <br />providing employment for at least 40 people. <br />2. <br />City of Sanford <br />Not in an Urban Progress Zone <br />• Real - $4,000,000 <br />Machinery - $16.000,000 <br />Jobs - 40 <br />Real <br />city <br />95% = $3,800,000 <br />x $0.0055 Tax Rate <br />$20,900 <br />x 5 Years <br />$104,500 <br />Local Incentives <br />Machinery' <br />City <br />78% = <br />$12,480 <br />,000 <br />x $0. <br />0075 = <br />$68,640 <br />66% = <br />$10,560 <br />.000 <br />x $0 <br />0075 = <br />558,080 <br />54% = <br />$8,640 <br />,000 <br />x $0. <br />0075 = <br />$47,520 <br />42% = <br />$6,720 <br />,000 <br />x $0. <br />0075 = <br />$36,960 <br />291 = <br />$4,640 <br />,000 <br />x $0- <br />0075 = <br />$25.520 <br />$236,720 <br />$104,500 <br />$236,720 <br />$341,220 x 70% = $238,854 <br />-Depreciation rates based on Dept. of Revenue 2007 8-year schedule for textile equipment. <br />3. The Incentive: Estimated costs of the financial incentives for the project <br />are: <br />Site preparation $564,564.00 <br />City of Sanford's share $238,854.00 <br />Lee County's share $325,710.00 <br />• This contract covers the City of Sanford's share of the incentives described above. <br />It is anticipated that the incentives will be paid out as follows: <br />24 of 27 <br />