Agenda Package - 01-31-11 - Laserfiche WebLink

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if 1.1 SUMMARY OF SIGNIFICANT PROVISIONS IN • CATERPILLAR'S PERFORMANCE AGREEMENT WITH THE ONE NORTH CAROLINA FUND (N.C. DEPARTMENT OF COMMERCE) Performance Criteria • Caterpillar agrees to make a "good faith effort" to: • Operate a facility that manufactures Sid Steer Loaders in Lee County • Maintain its current operations and a base level of 825 full time jobs in North Carolina 86 division HQ/admin jobs comparable to the ones now located in Cary 739 jobs at the Sanford and Clayton facilities • Create and maintain 325 new jobs in Sanford by 12 -31 -2014 (244 by 12 -31 -2013) Cannot be existing NC positions or Caterpillar employees transferred to NC If jobs must be created to maintain the required number of existingjobs, they may not be double counted as "new" jobs "New" may be jobs created by a Caterpillar supplier that locates in Lee County • Supplier must provide and pay 50% of the cost of health insurance • Caterpillar must annually report and certify the supplier created jobs Wage standard for new jobs will be $616 /wk ($15.40/hr) Health insurance to be provided for all permanent full -time jobs • Make privately funded investment of $28,300,000 in project real estate and equipment • + Grant proceeds may be used only for statutorily qualifying expenses • Payments also are conditioned upon Caterpillar complying with a separate Community Economic Development Agreement (CEDA) Disbursement of Grant Funds • $600,000 disbursed by Department of Commerce (DOC) to County in three installments. o $261,000 upon certification of Caterpillar's 2011 grant year CEDA report and proof that: (1) 106 new jobs were created and retained; (2) statutorily qualifying expenses made in the amount of disbursement; (3) environmental permits obtained; and, (4) 100% of the existing 825 jobs retained o $162,000 upon certification of Caterpillar's 2012 grant year CEDA report and proof that: (1) 172 new jobs were created and retained; (2) statutorily qualifying expenses made in the amount of disbursement; and, (3) 100% of existing 825 jobs retained o $177,000 upon certification of Caterpillar's 2013 grant year CEDA report and proof that: (1) 244 new jobs were created and retained; (2) statutorily qualifying expenses made in the amount of disbursement; and, (3) 100% of existing 825 jobs maintained; (4) 90% ($25,470,000) of the required investment made • Disbursements made upon only upon application by County to DOC based upon proof of creation of the new jobs required during the grant year and compliance with other performance criteria • County disburses funds to Caterpillar