June 9, 2020 - 11:30 AM - County Board of Commissioners Meeting Minutes (Special)

10 421 Meeting of the Johnston County Board of Commissioners June 9 , 2020 Special Meeting The Johnston County Board of Commissioners met in special session Tuesday , June 9 , 2020 at 11 30 am at the Workforce Development Center , 135 Best Wood Drive , Clayton , North Carolina The following members of the Board of Commissioners were present Present Chairman Ted G Godwin , Vice Chairman Chad M Stewart , Jeffrey P Carver , Tony Braswell , and RS “ Butch ” Lawter , Jr Absent Commissioners Larry Wood and Patrick E Harris Also Present County Manager Rick J Hester , Clerk to the Board Paula G Woodard , and County Attorney Jennifer J Slusser Chairman Ted G Godwin called the meeting to order and announced the purpose of the meeting is for a public hearing regarding an economic development incentive grant agreement Chairman Godwin stated after the public hearing notice was released , the Board received feedback from a few citizens that live nearby who , based on the location of today’s meeting , expressed concerns that the economic development project could directly affect them Chairman Godwin stated the citizens were concerned that specific details of the project were not included in the public hearing notice He explained that most of the time the confidential nature of economic development projects do not afford the Board the ability to release specific or identifying details in advance of the public hearing Chairman Godwin stated the Board is sensitive to the concerns of the citizens and for today’s hearing , he believes the actual location of this project will not directly affect those citizens that expressed concerns Chairman Godwin also stated for these types of projects , they are vetted through the Johnston County Economic Development Advisory Board , which is composed of fourteen citizens from all across the County Chairman Godwin opened the public hearing and called on Johnston County Economic Development Director Chris Johnson to present Mr Johnson began his remarks by stating that in the fall of this year , the Workforce Development th Center will celebrate its 15 anniversary Mr Johnson stated the Workforce Development Center is the product of the seeds of collaboration that were planted more than seventeen years ago and the County’s citizens as well as those within the triangle region and across the biopharma crescent continue to reap the benefits Mr Johnson continued that today’s announcement comes from a great public private partnership between a pro - business government and a tremendous corporate partner Mr Johnson explained that the economic development proposal before the Board today consists of an expansion by Grifols Therapeutics , LLC with a capital investment of approximately 350 million and the creation of 300 jobs at their Clayton , North Carolina campus Mr Johnson reported the proposed economic development incentive grant comes at no risk to the taxpayers and is based upon the company’s own investment Mr Johnson stated the proposal has been vetted and unanimously approved by the Johnston County Economic Development Advisory Board He also stated the project was vetted by Dr Adam Jones , Regional Economist , with The Swain Center at UNC Wilmington whose report shows that the monetary investment is multiplied exponentially and the ancillary job growth will be ten times for the region Mr Johnson asked the Board to consider awarding an economic development incentive grant to Grifols and noted the grant would be paid only after the project is complete and the requirements set forth in the agreement are met County Attorney Jennifer Slusser stated Grifols Therapeutics , LLC operates a biotechnological facility for the production of various therapeutic products and is located east of the Town of Clayton Ms Slusser reported Grifols proposes to expand its operations with a new fractionation building and a new PLC building , with all related site utilities , site preparations , and underground utilities including related additional wastewater pretreatment facilities Ms Slusser stated a fiscal analysis was completed , which indicated at full buildout the project would result in a substantial increase in direct property tax revenues for the County as well as the direct and indirect creation of substantial number of new jobs Ms Slusser stated the standards related to capital investment and job creation have been met with the planned investment of over 350 million and 300 jobs at an average annual salary of 69,032 Ms Slusser explained that the Board , in its determination of the incentive grant , must also consider if the project will be beneficial to the County’s efforts to increase economic opportunities for its citizens , its population , ad valorem tax and sales tax revenues , and enhance and improve business prospects in general Ms Slusser stated for this particular project , all of those standards have been met Ms Slusser presented a draftPage422 June 9 , 2020 – Special Meeting Continued resolution for the Board’s consideration and a draft economic development incentive grant agreement Ms Slusser stated the agreement , while in draft form , represents all of the material terms between the parties She noted anytime an agreement of this magnitude is being negotiated , there may be some minor revisions necessary and she asked the Board to authorize the County Manager to approve such minor revisions , subject to all pre - auditing requirements , for any items not materially inconsistent with the agreement Ms Slusser stated the material terms related to the capital investment and the creation of jobs will not change She explained the project would be completed in two phases , which is outlined within the agreement Mr Doug Burns , President of Grifols Therapeutics , LLC , stated today is a very exciting day Mr Burns reported Grifols , founded in Barcelona , Spain , is a global healthcare company working every day to improve the health and wellbeing of people in North Carolina , the United States , and around the world Mr Burns stated they are a global supplier of lifesaving medicines derived from human plasma and the Clayton campus is the largest of its kind anywhere in the world Mr Burns stated it is an honor to announce that Grifols will be bringing an additional 300 well - paying manufacturing jobs to Johnston County that will support a new state - of - the - art biopharmaceutical production facility and its related infrastructure on the Clayton campus Mr Burns stated on behalf Grifols , he would like to express their deep appreciation to Johnston County , the Johnston County Board of Commissioners , and Economic Development Director Chris Johnson for their collaborative partnership Mr Burns reported the State of North Carolina , during an open meeting of their Economic Investment Committee , approved a State incentive package earlier this morning and he would like to thank Governor Roy Cooper and Commerce Secretary Tony Copeland for their support of the life sciences industry Mr Burns stated both the County and State incentive proposals were a primary factor in their decision to bring the project to Clayton Mr Burns provided the Board with a background on the types of product that will be manufactured at the new facilities , stating it will help meet the growing demand for life saving plasma derived medicines Mr Burns took a moment to recognize the unwavering dedication of the Grifols employees at the Clayton campus , stating day in and day out the critical staff has worked during the ongoing pandemic to ensure the continued operation of their facilities and their ability to supply patients and health care providers with essential therapies Mr Burns stated he is also proud of the work the Clayton team has done in recent years to address global health threats and that Grifols is partnering with the Federal Government on treatments for COVID - 19 Mr Burns concluded his remarks by thanking their partners at the Workforce Development Center for the programs and services offered to the biotech companies , which are essential to ensuring they have a highly trained and skilled workforce Mr Burns stated he would also like to acknowledge and thank all the State and local elected officials for their leadership and friendship Representative Donna White expressed her appreciation to everyone that has been working behind the scenes on this project She thanked Johnston Community College and the Workforce Development Center for their work and support to the biotech industry Representative White stated as Chair of the Life Sciences Caucus for the North Carolina House , it is especially gratifying to her to see an expansion of the important and lifesaving programs by Grifols Representative White stated the research and development that will be enhanced through this expansion is very important during the COVID - 19 pandemic She stated it is very humbling to know that life changing work in research and development is taking place right here in Johnston County Representative White stated today’s announcement is phenomenal and she extends her appreciation on behalf of the biotech industry as well as the North Carolina General Assembly Clayton Mayor Jody McLeod stated today’s announcement is very exciting and it is nice to come together and share a strong and common vision that will bring good things to the area Mayor McLeod stated Clayton supports the economic development incentive grant proposal for the future growth and expansion of Grifols Mayor McLeod spoke on the community support and involvement by Grifols in the Clayton area and Johnston County , stating they are a part of the community and he could not ask for a better corporate neighbor Mayor McLeod stated Grifols truly appreciates the people of Johnston County as well as their relationships with everyone here as they share in the goal of making everyone’s life better Johnston Community College President Dr David Johnson stated the mission of the Community College is to both change the lives of people and save the lives of people , which is complimented and supported by the announcement from Grifols Dr Johnson thanked Mr Burns and Grifols for choosing Johnston County , stating they have had a wonderful partnership through the years and hope it will continue Dr Johnson stated he is also hopeful that many of those who are unemployed because of the COVID - 19 pandemic will consider training for employment at Grifols in one of the 300 new jobs Dr Johnson stated they look forward to additional announcements in the future Page423 June 9 , 2020 – Special Meeting Continued Chairman Godwin spoke on the significance of having the public hearing at the Workforce Development Center stating the Center is very important to the biotechnological companies in the area Chairman Godwin stated Grifols is an international company and could have taken the expansion anywhere , but he is very glad they chose Johnston County Commissioner Butch Lawter thanked Grifols for their history of being a great community partner in Clayton Commissioner Lawter also thanked them for their courage to go forward with a project of this size , given the uncertain times Commissioner Lawter stated he has heard the term “ collaboration ” many times today and he has been fortunate enough to be a Clayton Town Councilman , a County Commissioner , and serve on the Community College Board of Trustees , which has allowed him to see the daily collaboration and cooperation that goes on between all the parties Chairman Godwin thanked the representatives of the Johnston County Economic Development Advisory Board for their input and dedication to these types of projects There being no further public comments , Chairman Godwin closed the public hearing Commissioner Butch Lawter moved the Board adopt the following resolution authorizing incentives for economic development to Grifols Therapeutics , LLC , and further authorized the County Manager to approve minor revisions to the agreement , subject to all pre - auditing requirements , for any items not materially inconsistent with the agreement Commissioner Jeffrey P Carver seconded the motion which carried by unanimous vote RESOLUTION OF THE JOHNSTON COUNTY BOARD OF COMMISSIONERS AUTHORIZING INCENTIVES FOR ECONOMIC DEVELOPMENT WHEREAS , Grifols Therapeutics , LLC the Company currently operates a biotechnological facility for the production of various therapeutic products the Facility that is located on US 70 Business Highway West , east of the Town of Clayton , Johnston County , North Carolina ; WHEREAS , the Company proposes to expand its operations by constructing and expanding , in phases , a new fractionation building and new PLC building with related site utilities , site preparations and underground utilities to be built on a presently undeveloped tax parcel , as well as the installation of related additional wastewater pretreatment facilities for a wastewater plant and related access roads at the Facility the Expansion ; WHEREAS , an economic impact review containing a fiscal analysis of the proposed Expansion prepared for the Johnston County Economic Development Commission in June of 2020 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 ; WHEREAS , North Carolina General Statute 158 - 71 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 Expansion 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 at an average wage for the additional employees at or above the median average wage in the County at this time ; 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 therein the Agreement , 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 Expansion in Johnston County NOW , THEREFORE , the Board Page424 June 9 , 2020 – Special Meeting Continued 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 Expansion 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 at an average wage for the new employees or above the median average wage in the County at this time , 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 the 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 9 day of June , 2020 There being no further business , Commissioner Jeffrey P Carver moved the Board adjourn Commissioner Tony Braswell seconded the motion , which carried by unanimous vote The meeting adjourned at 12 00 pm ____________________________ Ted G Godwin , Chairman Paula G Woodard , Clerk to the BoardPage