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0 'p <br />BOOK 21 PAGE 6Si Z <br />IIA11IBIT U <br />10 AGREENII N F BETWEEN <br />CITY OF SANFORD <br />AND <br />LEE, COUNTY ECONOMIC DEVELOPMENT CORPOILITION <br />DESCRIPTION OF PRO.IEC1 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 Companv will construct at least a 70,000 square foot <br />facility and purchase new machinciv 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 - <br />$4,000,000 <br />Machinery - <br />$16,000,000 <br />Jobs - <br />40 <br />Local Incentives <br />Real <br />Machinery' <br />City <br />City <br />95% _ $3,800,000 <br />78% = <br />$12,480,000 <br />x $0.0075 = <br />$68,640 <br />x $0.0055 <br />Tax Rate <br />66% = <br />$10,560,000 <br />x $0.0075 = <br />$58,080 <br />$20,900 <br />54% = <br />98,640,000 <br />x 50.0075 = <br />547,520 <br />x 5 <br />Years <br />42% _ <br />$6,720,000 <br />x $0.0075 = <br />$36,960 <br />$104,500 <br />29% _ <br />$4,640,000 <br />x$0.0075= <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 />