May 10, 2021 - 11:00 AM - County Board of Commissioners Meeting Minutes (Special)

10 153 Meeting of the Johnston County Board of Commissioners May 10 , 2021 Special Meeting The Johnston County Board of Commissioners met in special joint session Monday , May 10 , 2021 at 11 00 am with the Smithfield Town Council at the Smithfield Recreation and Aquatics Center located at 600 M Durwood Stephenson Parkway , Smithfield , North Carolina The following members of the Board of Commissioners were present Present Chairman Chad M Stewart , Tony Braswell , Ted G Godwin , Patrick E Harris , RS " Butch " Lawter , Jr , and Fred J Smith , Jr Absent Vice Chairman Larry Wood Also Present County Manager Rick J Hester , Clerk to the Board Paula G Woodard , County Attorney Jennifer J Slusser , and Paralegal Deputy Clerk to the Board Dana Cuddington Smithfield Mayor Andy Moore welcomed everyone to the special meeting Smithfield Councilman David Barbour gave the invocation and the Council and Board of Commissioners together led those in attendance in the Pledge of Allegiance to the American Flag Smithfield Mayor Andy Moore called the Smithfield Town Council meeting to order and offered opening remarks as well as recognized elected officials in the audience Chairman Chad M Stewart called the meeting of the Johnston County Board of Commissioners to order at 11 00 am and welcomed everyone to the joint meeting Chairman Stewart noted the absence of Vice Chairman Larry Wood due to an unexpected job obligation Chairman Stewart continued that today's gathering is the culmination of many months of collaboration between Johnston County and the Town of Smithfield He thanked Mayor Moore and the members of the Smithfield Town Council , along with their staff , for their ongoing partnership with the County Chairman Stewart stated the work has helped attract an American business titan to the community along with a significant economic impact Chairman Stewart opened the County's public hearing for the purposes of allowing public comment on a proposed economic development incentive grant Mayor Moore opened the Town's public hearing Johnston County Economic Development Director Chris Johnson stated today's announcement is the result of a competitive project in which the citizens of Johnston County and Smithfield will benefit from for many years He added the project is the epitome of a public private partnership between pro - business government and tremendous corporate partners Mr Johnson explained the project has the ability to once again move the Town of Smithfield to the forefront of growth and opportunity that has not been seen since companies like Sylvania , Burlington Mills , and Fieldcrest Mills dotted the landscape of the Town Mr Johnson stated it is Amazon's desire to build a facility in the Town of Smithfield and he noted that sites were considered in other counties Mr Johnson stated in addition to a nearly 100 million investment , Amazon will create approximately 500 new jobs with starting salaries at 1500 an hour along with benefits and health coverage Mr Johnson stated as with all economic development incentives , the proposal comes with no risk to the taxpayers since the actual incentive will be taken from the company's own investment which equates to the percentage of the taxes paid by Amazon on the 100 million new investment He noted the company will only be eligible for incentives after they have met all the project components within the incentive agreement Mr Johnson stated even during the grant period , the Town of Smithfield is projected to receive and add to their tax base over 14 million while the County is projected to receive and add 19 million from the new investment during this time Mr Johnson further noted that Samet Corporation will be investing over 2 million in infrastructure which will be dedicated to the Town of Smithfield at the West Smithfield Business Park which will be voluntarily annexed into the Town Mr Johnson reported the Town is already working with Grants Consultant Skip Green to parlay this investment into additional state and federal funds to support not only the continued growth of the West Smithfield Business Park , but to infrastructure improvements in other areas of the Town of Smithfield Mr Johnson stated the proposal has been reviewed and recommended for approval by the Johnston County Economic Development Advisory Board Mr Johnson stated the proposal has also been evaluated by Dr Mike Walden , Professor and Economist from North Carolina State University Mr Johnson introduced Sam Blatt , Manager of Economic Development with Amazon , for remarks Mr Blatt stated it is a pleasure to be in Smithfield and Johnston County and he thanked the Board of CommissionersPage154 May 10 , 2021 - Special Meeting Continued and the Smithfield Town Council for consideration of the incentives Mr Blatt stated in addition to their investment and creation of new jobs , Amazon wants to be a good community partner and be engaged in the area Johnston County Attorney Jennifer Slusser presented the County's incentive grant proposal She stated the proposed incentive agreement is between the County and Amazoncom Services LLC Ms Slusser stated this project is the culmination of a great partnership between the State of North Carolina , the County of Johnston , the Town of Smithfield , and Amazon Ms Slusser presented a resolution to the Board authorizing incentives for economic development for a new multi - purpose warehouse distribution facility to be located in the Town of Smithfield Ms Slusser explained that pursuant to North Carolina General Statutes , when considering such proposals , the Board of Commissioners must determine if the process was competitive and if there is a return on investment Ms Slusser stated with regards to the return on investment analysis , two components must be considered which includes capital investment and job creation She explained this project consists of a 100 million investment proposed to be completed by December 31 , 2022 She stated the job creation will be 500 new jobs with an hourly wage of 1500 and more importantly , excellent benefits Ms Slusser stated the 500 new jobs is proposed for completion by December 31 , 2023 Ms Slusser reported the project was highly competitive and there were many other potential sites and facilities considered in other areas Ms Slusser stated the return on investment is also very important and according to the report by North Carolina State University Professor Dr Mike Walden , there will be an investment return for Johnston County and the Town of Smithfield at approximately 97 million Ms Slusser stated the incentive grant would never be more than what is paid by Amazon in property taxes and the grant would only be paid once Amazon makes the capital investment and creates the new jobs She reviewed the following percentages of the grant proposal and applicable conditions Real Property Personal Property Tax Year Grant Tax Year Grant Year 1 Year 1 90 50 Year 2 Year 2 90 50 Year 3 Year 3 90 50 Year 4 Year 4 80 50 Year 5 Year 5 70 50 Year 6 Year 6 60 0 Year 7 Year 7 50 0 Conditions During each of the years that Amazon is eligible for Grants , the Grant for such year will be paid to Amazon only after whichever of Amazon , or any Affiliate or Fortress is responsible for paying any portion of the taxes applicable to the Facility , the Project Site or any personal property located thereon or used in connection therewith , as applicable , pays in full its ad valorem tax bills for that year related to such assets provided that , subject to the following condition relating to appeals , Amazon , any Affiliate , or Fortress may in good faith appeal any such tax bills In addition , the County will be obligated to make Grants for Eligible Investments only if the following conditions are satisfied or , at County's discretion , waived • Amazon and any Affiliate are then current in the payments of all taxes , charges , and fees of every nature owed by them to the County ; • All taxes , charges , and fees of every nature owed to the County for the Project Site and all assets located at the Project Site are in a current payment status by whoever payable ; • There is no current appeal pending regarding the valuation of property at the Project Site in which case any Grant payment will be held in abeyance pending final resolution of the appeal ;Page155 May 10 , 2021 - Special Meeting Continued • No violation of any other obligations of Amazon or any Affiliate to the County , including conformity with all County ordinances and regulations and any laws , orders or regulations that the County is obligated to enforce against Amazon or an Affiliate on behalf of another body of government , has occurred and not been cured ; and • No violation in any material respects of any other obligations of Amazon , any Affiliate or Fortress to the County with respect to the Project Site , including conformity with all County ordinances and regulations and any laws , orders or regulations that the County is obligated to enforce against Amazon , Fortress or the Project Site has occurred and not been cured by Amazon or Fortress ; and • Each of Amazon , any Affiliate and Fortress has complied with its other obligations and duties to the County as set forth herein Ms Slusser submitted a resolution authorizing the incentive grant agreement to the Board and offered to answer any questions Smithfield Town Attorney Bob Spence outlined the Town of Smithfield's incentive proposal for the project Mayor Moore asked if there were any citizens present who wished to comment on the incentive proposal by the Town of Smithfield David Johnson , 39 Sassafras Lane , Clayton , welcomed Amazon to the community and stated the new jobs , investment , and increase in the tax base make this a tremendous opportunity Mr Johnson thanked Johnston County Economic Development Director Chris Johnson , Economic Development Technician Janel Parker , the Town of Smithfield , and the County of Johnston for all the work on the project Mr Johnson asked the Council and the Board of Commissioners to be just as eager to assist the existing businesses in the County with their needs and problems as they arise Johnston Community College President Dr David Johnson also welcomed Amazon to the area and stated the College stands ready to support Amazon in whatever way is needed Dr Johnson stated the College's role in Economic Development is to help attract businesses as well as help those businesses sustain their employees Chairman Stewart asked if there were any citizens present who wished to comment on the incentive proposal by Johnston County There were no citizen comments regarding the Johnston County incentive proposal Smithfield Councilman David Barbour stated this is a great investment for Smithfield , especially for the District 4 citizens within Smithfield He thanked Amazon for their investment in the Town Commissioner Tony Braswell thanked the leadership and staff of both the County and the Town of Smithfield along with the Johnston County Economic Development Office and the Johnston County Economic Development Advisory Board for their work on this project Commissioner Braswell thanked Amazon for believing in Johnston County Commissioner Braswell stated today another chapter is being written in Johnston County's history and it is the beginning of endless opportunities for the future He stated good paying jobs enable the citizens to support their families and today's announcement helps to make that possible Commissioner Patrick E Harris stated today is truly a great day as he can remember years ago when the Burlington Mills Plant closed and how it affected the people that lost their jobs Commissioner Harris stated the County and the Town has since come a long way and thanks to a lot of hard work and dedication by all , the page has turned and Amazon will be a great fit for Smithfield and Johnston County Commissioner Ted G Godwin stated he is very gratified to see this kind of growth taking place in West Smithfield and he is hopeful that growth will continue and Smithfield will prosper Commissioner Butch Lawter stated for him it always begins and ends with the people and while many have been thanked today for their parts in this project , it is the people of Johnston County that Amazon had the confidence in that made this project happen Page156 May 10 , 2021 - Special Meeting Continued There being no further public comments , Chairman Stewart closed the County's Public Hearing Mayor Moore closed the Town's public hearing The Smithfield Town Council took action on their respective economic development incentive proposal Commissioner Tony Braswell moved the Board adopt the following resolution to enter into an economic development incentive grant agreement with Amazon Commissioner Patrick E Harris seconded the motion which carried by unanimous vote RESOLUTION OF THE JOHNSTON COUNTY BOARD OF COMMISSIONERS AUTHORIZING INCENTIVES FOR ECONOMIC DEVELOPMENT WHEREAS , AMAZONCOM SERVICES LLC " the Company " proposes to locate a new multi - purpose warehouse distribution facility the " Facility " on the parcel located at or near the Town of Smithfield in Johnston County , North Carolina more particularly described as being all of that 169674 acre , Tract 1 and that 23353 acre Tract 2 shown on a Recombination Plat for Samet Corporation by RWK , PA recorded 4 28 2021 in Plat Book 93 , Page 241 of the Johnston County Registry " the Project Site " ; and WHEREAS , the Company will locate the Facility on the Project Site and , in connection therewith , construct or cause to be constructed and up - fit improvements comprising the Facility and install or cause to be installed on the Project Site industrial machinery , equipment , and other real and personal property improvements subject to ad valorem taxation by Johnston County , by including construction and expansion of new buildings and other real property improvements , as well as installation of new manufacturing equipment at the Facility ; and WHEREAS , an economic impact review containing a fiscal analysis of the proposed Expansion prepared for the Johnston County Economic Development Commission in May 2021 indicates that at full buildout the proposed project would result in a substantial increase in direct property tax revenues for the County and the direct and indirect creation of a substantial number of new jobs ; and WHEREAS , North Carolina General Statute 15871 a authorizes the County to make appropriations to aid and encourage the location of manufacturing enterprises , industrial and commercial facilities within the County and other purposes which will increase the population , taxable property , employment , industrial output or business prospects of the County ; and WHEREAS , the Board has determined that granting incentives the Incentives to the Company in exchange for the commitment of the Company to locate and operate the Facility at the Project Site in Johnston County would be beneficial to the County's efforts to increase economic opportunities for its residents , its population , ad valorem tax revenues and sales tax revenues , and enhance and improve business prospects in general , including the creation of a substantial number of jobs ; and WHEREAS , the Board has received and reviewed a proposed Economic Development Agreement between the County and the Company providing for the County's granting the Incentives to the Company in consideration of the Company's commitments set forth there the Agreement , and a copy of which is attached hereto as Exhibit A and incorporated herein by reference ; and WHEREAS , the Board has , pursuant to the notice and hearing requirements of North Carolina General Statute 158 - 71 , held a public hearing to consider whether to grant the Incentives in exchange for the commitment of the Company to locate and operate the Facility at the Project Site in Johnston County NOW , THEREFORE , the Board 1 Determines and concludes a that granting the Incentives in exchange for the commitment of the Company to proceed with the development and buildout of the Facility at the Project Site in the County would be beneficial to the County's efforts to increase overall economic opportunities for , and improve the general welfare of , its residents and increase ad valorem tax revenues , sales tax revenues and business prospects in general and result in the creation of a substantial number of new jobs in the County , and b that the benefits described above accruing to the County will outweigh the cost of the Incentives granted hereunder , creating a net public benefit ; and 2 In consideration of the undertakings of the Company set forth in the Agreement and the benefits derived by the County as described above , the County's grant of Incentives to the Company as set forth in thePagePage pageNumber5157 May 10 , 2021 - Special Meeting Continued Agreement is hereby approved , and the County Manager , subject to compliance with any pre - audit requirements under the Local Government Budget and Fiscal Control Act , is hereby authorized to enter into and execute the Agreement on behalf of the County in the form set forth on Exhibit A or with revisions as the County Manager , in consultation with the County Attorney , shall find to be not materially inconsistent with the form of the Agreement attached hereto and the intent and purpose thereof 3 The Agreement shall be construed as a continuing contract in accordance with North Carolina General Statutes 153A - 13 th Adopted this the 10 day of May , 2021 Chairman Stewart and Mayor Moore presented gifts of welcome and appreciation to Amazon and Samet Corporation Mr Johnson recognized and thanked the Fleming Family and the Lee Family who agreed to have their sites certified at the business park years ago Chairman Stewart thanked all the speakers and stated the staff members of both the County and the Town have done yeoman's work on this project He stated a win like this requires leadership and collaboration , and Smithfield and Johnston County have been a showcase for what goes in to landing game - changing projects Chairman Stewart also thanked and congratulated Amazon stating it is one of the world's fastest - growing businesses , and this project in Johnston County is first and foremost the result of its own hard work and great success Chairman Stewart stated the Board is proud that Amazon has chosen to make Johnston County part of its strategic business planning and he welcomed them to Johnston County There being no further business , the Chairman adjourned the County's portion of the meeting at 11 40 am Chad M Stewart , Chairman Paula G Woodard , Clerk to the BoardPage