Agenda Package 4-1-13 - Reg. Meeting

Home Browse Search

U )` 4 The new or expanding industy - business must create and maintain a minimum of 40-25 new jobs in Lee County to be considered for an incentive. An existing Indust y-- business will be required to maintain the same number of existing jobs as well as create the 4925 new jobs.__,_-, - The industay- business will be required to maintain all jobs for the duration of the incentive period Businesses will be required to show proof of job creation and be subject to random audits for verification. 2-} All iobs counted towards the incentive must be t ull -time employee positions that are reported monthly by the company to state Employment Security. 3}�A new Gemffap,y- business must create at least $40-20 million in new investment in the County to be considered for an incentive. An existing Company must invest a minimum of $5-10 million to be considered for an incentive. Under bGt# either option the investment must be verified as taxable property under North Carolina law and verified by the Lee County Tax Office. These are target investm ZLAny Company receiving an incentive must commit to continue operations - , without seasonal variations that cause its number of iobs to fall below required levels, for the duration of the incentive period_.. 4} 8) Economic incentives will not be offered in advance of business investment or iob creation in Lee County. The County will review requests for public infrastructure which benefits4HA- elaly-the iRdust y- business but-�and the entire community as an alternative ffwars--e€to incentives fGF a GGFnpan y 53 10) All incentives shall be paid pursuant to a (written incentive _ agreement between Lee County and the recipient business. Olawbask pProvisions willshall be st °^tives ^eRtFaG• °included in every incentive agreement to ensure the county recaptures sums appropriated or expended by the county has r emed 1 es in the event the business fails to adhere to its mob creation, investment, and continuous operations agreements at any time during the contract period. 5j11 L Clawback provisions may include termination of the contract, proration of future incentive cash payouts, and /or repayment of incentives already issued to a seaRpaay NOW BE IT FURTHER RESOLVED, that the guidelines listed above are not intended to be entitlements for industry or businesses to receive incentives from Lee County. The County reserves to the right to review all proposals and recommendations for or against incentive offers by the LCEDC and to make the final decision on incentive awards on the basis of what is in the best interest for the citizens of Lee County. All incentives are subject to Public Hearing to be Comment [TM5]: I wasrt t sure whether this policy was intended to cover one or both of two similar circumstances described below. Incentives are lawful in both situations. As written, it will allow Lee County to otter incentives in the first scenario but not the second as described below: 1. Company intends to create new jobs hue or in some other jurisdiction — incentives designed to induce company to retain existing jobs and create the new jobs in Lee County. 2. Company doe a not intends to create any new jobs, but it is considering relocating all existing jobs outside of the county. For example, company is making significant equipment purchase to streamline operations. It could install the equipment in Lee County or another jurisdiction. Once complete, the company won't need quite as many workers because the equipment is more efficient Company asks for incentives if Lee County wishes for the company to install the equipment in Lee Canty and thereby retain some jobs in Lee County. Alternative is to lose all jobs. I interpret the law as allowing an incentive in such a circumstance. Job retention in this siduation is similar to job creation, because in the absence of incentives, this company will have zero jobs in Lee Canty. 7be incentives are offered to induce the company to keep more than zero employees in the Comment [TMG]: I recommend defining full - time. Here are two examples from agreements that I've seen, other definitions are possible: (1) person employed at 35 hours or more a week, with a salary or wage package that includes health benefits (2) A full-time job requires a minimum of 1,600 hours per year Commmat [TM7]: I believe the commissioners are trying to mirror G.S. 159- 7.1(h) here: "requiring the recapture of sums appropriated or expended by the city or county upon the occurrence of events specified in the agreement. Events that would require the city or county to recapture fiords would include the creation of fewer jobs than specified in the agreemem, a lower capital investment then specified in the agreement, and failing to maintain operations at a specified level for a period of time specified in the agreement "