September 6, 2022 - 2:00 pm - County Board of Commissioners Meeting Minutes (Special)

10 111 Meeting of the Johnston County Board of Commissioners September 6 , 2022 Special Meeting The Johnston County Board of Commissioners met in special joint session Tuesday , September 6 , 2022 at 2 00 pm with the Four Oaks Town Council in the Four Oaks Council Chambers located at the Four Oaks Town Hall , 304 North Main Street , Four Oaks , North Carolina The following members of the Board of Commissioners were present Present Chairman RS " Butch " Lawter , Jr , Vice Chairman Patrick E Harris , Tony Braswell , Fred J Smith , Jr , Richard D Braswell , and April Stephens Absent Commissioner Ted G Godwin Also Present County Manager Rick J Hester , Clerk to the Board Paula G Woodard , County Attorney Jennifer J Slusser , and Executive Assistant Deputy Clerk to the Board Dana Cuddington Four Oaks Mayor Vic Medlin called the Four Oaks Town Council meeting to order and welcomed everyone Chairman RS " Butch " Lawter , Jr called the meeting of the Johnston County Board of Commissioners to order at 2 00 pm Mayor Medlin invited Mr Harold Keen to give an invocation and Johnston County Economic Development Director Chris Johnson to lead everyone in the Pledge of Allegiance to the American Flag Mayor Medlin recognized Mayor William P Elmore , Jr with the City of Dunn and I - 95 I - 40 Crossroads of America Economic Development Alliance Director Reid Williams and Alliance Board Members in the audience Chairman Lawter recognized members of the Johnston County Economic Development Advisory Board , Representative Larry Strickland , Katie Smith from the office of Congressman David Rouzer and Adam Caldwell from the office of US Senator Tom Tillis Chairman Lawter opened the County's public hearing for the purposes of allowing public comment on a proposed economic development incentive grant Mayor Medlin opened the Town's public hearing Johnston County Economic Development Director Chris Johnson stated it is once again an honor and privilege to present an opportunity that would not have been possible without the willingness of Johnston County residents to share in a vision cast many years ago by individuals in today's audience Mr Johnson recognized Edsel Johnson , Johnnie Johnson , Travis Byrd , and William Upchurch along with their families stating they all came together and agreed it was time to provide an opportunity for current residents as well as future young people to have a quality job right here at home Mr Johnson continued that with the partnership between these individuals , the Town of Four Oaks , and Johnston County under the leadership of citizens such as the late County Commissioner Wade Stewart , it is on the shoulders of those that we now stand on today Mr Johnson stated Becton , Dickinson and Company plans to build a state - of - the - art 30,000 square foot Class A medical device processing facility that will be located in the Four Oaks Business Park He stated in addition to the over 25 million investment , the project has the ability to create over 22 new jobs in the foreseeable future , with an average salary of 83,000 which is nearly double the County average Mr Johnson explained the proposal comes at no risk to the taxpayers and the incentives only come from the company's investment , which equates to a percentage of the taxes that Becton Dickinson pays on the 25 million new investment He stated if the required benchmarks set forth in the agreement are not met then no incentive is given Mr Johnson noted the proposal has been vetted and approved by the Johnston County Economic Development Advisory Board , which consists of 14 business , civic and community leaders that has representation from every municipality in Johnston County Mr Johnson further noted the proposal has also been evaluated by Dr Mike Walden , Retired Professor and Economist from North Carolina State University He stated Dr Walden's report shows the monetary investment as well as the jobs and ancillary job growth is projected to be over 15 Million annually for the County Mr Johnson requested the Board to consider an Economic Development Incentive Grant for Becton Dickinson County Attorney Jennifer Slusser presented a draft resolution for the Board's consideration authorizing incentives for economic development for the project proposed by Becton , Dickinson and Company and described by Mr Johnson Ms Slusser explained that when reviewing incentive grant opportunities , there are several factors to consider in making a determination those being job creation , capital investment , competition ,Page112 September 6 , 2022 - Special Meeting Continued and diversifying the economy Ms Slusser reviewed the framework of the proposed agreement for Becton , Dickinson and Company with the Board Ms Slusser stated in order to receive incentives from the County Becton , Dickinson and Company is required to meet certain performance commitments , which include a capital investment of not less than 20 million to develop , construct , and operate a medical manufacturing facility in the Four Oaks Business Park She noted the employment commitment for this project is 20 permanent full - time job positions for employees working on the project site with an average salary of not less than 75,000 with benefits Ms Slusser stated the capital investment is estimated to be completed by December 2024 and the job creation completed by 2025 She reported the incentive proposal is a cash grant made in seven annual payments which will be made once the minimum capital investment is made and will only be paid upon ad valorem taxes actually paid and received with respect to annual investments placed on the project site through the seven year grant period Ms Slusser noted that if incentives are granted Becton Dickinson must provide certification of investments and employment Ms Slusser continued that the grant payments are conditioned upon the company paying in full its ad valorem tax bills for that year for all of its property situated in the County that is subject to ad valorem taxation She stated the company must be current on all payments owed to County , current on the filing of annual property tax listings , have no current appeal pending regarding the valuation of the property at the project site , and not be in violation of any other obligation to the County including all county ordinances and regulations Ms Slusser stated the agreement will provide for recapture provisions if the company does not carry out and maintain the terms of the agreement Ms Slusser presented the following factors the Board is required to consider prior to making a decision ? Job Creation Does the project provide the creation of new , good paying jobs Yes , in this case at least 20 jobs with an average salary of not less than 75,000 According to the Economic Impact Analysis by Dr Mike Walden , the private sector direct and indirect job creation as a result of the investment is substantial ? Capital Investment - Increasing the Tax Base Does the project increase the tax base Yes , the required capital investment is 20 million , but it is anticipated to be more According to the Walden Report the private sector annual operating impact , taking into account all direct , indirect , and induced impacts from the development , is estimated to be well in excess of the initial capital investment ? Competition An initial " but for " or necessity determination is made that the incentive is required for a project to go forward , typically in a competitive situation In this case , the County was competing with several locations The proposed project meets the County's incentive policies for this type of project The Economic Development Incentive Grant Agreement meets the policies for the programs as more particularly described previously and final approval is made at a public meeting , properly noticed A written agreement governs implementation ? Diversifying the Economy Diversification of the economy alongside job creation and increasing the tax base as an indicator of " net public benefit " arising from an incentive " Diversification of the economy " refers to significant impacts on sectors of the economy or making a location attractive for additional development This is addressed in the Walden Report and the direct and indirect impacts on the economy are significant Ms Slusser reviewed with the Board the following schedule of grants within the project summary of the proposed resolution and agreement 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 Page113 September 6 , 2022 - Special Meeting Continued Ms Slusser stated this project meets all the above - referenced criteria should the Board choose to approve it She offered to answer any questions Mr Johnson introduced Mr Travis Anderton , Vice President of Becton , Dickinson and Company Mr Anderton thanked the Board and the Four Oaks Town Council for their consideration of economic development incentive grants for the project Mr Anderton stated the project will help to improve their supply chain resilience Mr Anderton reiterated the company's appreciation stating this is a wonderful opportunity Chairman Lawter asked if there were any citizens present that wished to speak during the hearing Upon questions by Mr Sam Austin , Mr Anderton stated no hazardous chemicals would be used in their processes He stated this would be a sterilization facility for a manufactured product that would utilize electricity and there would be no residual waste There being no further public comments , Chairman Lawter closed the County's public hearing Mayor Medlin closed the Town's Public Hearing Commissioner Tony Braswell moved the Board adopt the following resolution to enter into an economic development incentive grant agreement with Becton , Dickinson and Company Vice Chairman 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 , Johnston County , NC County seeks to promote economic growth and development within its jurisdiction and the social and economic improvement of its citizens , and desires to accelerate the quality and quantity of economic growth and employment opportunities in its jurisdiction by encouraging business enterprises satisfying the aforementioned public purposes and hereby reduce physical , economic and social distress resulting from unemployment and underemployment existing in its jurisdiction ; and WHEREAS , the County is in discussions to induce Becton , Dickinson and Company the Company to locate a new medical manufacturing facility Facility on a parcel located at the Four Oaks Business Park at or near the Town of Four Oaks in Johnston County , North Carolina more particularly described as being all of that 16 acre + - parcel identified as NC PIN 167113 - 13 - 5379 , Tax Parcel ID 08I11078B located at Four Oaks Parkway , Four Oaks , North Carolina and more particularly shown as Tract 1 on that map recorded at Plat Book 96 , Page 211 Johnston County Registry Project Site " ; and WHEREAS , the County has presented the Company with various incentives in order to induce the Company's commitment to locate the Facility in Johnston County ; and WHEREAS , in partial consideration of the incentives to be paid and delivered by County to the Company , 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 the construction of new buildings and other real property improvements , as well as installation of new manufacturing equipment at the Facility in exchange for the grant by the County of certain economic incentives set forth below and in the Project Summary attached to this resolution the Incentives ; and WHEREAS an economic impact review containing a fiscal analysis of the proposed Facility on the Project Site prepared for the Johnston County Economic Development Commission in August 2022 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 158 - 71 a authorizes the County to make appropriations to aid and encourage the location of manufacturing enterprises , industrial and commercial plants within the County and other purposes which will increase the population , taxable property and business prospects of the County ; andPage114 September 6 , 2022 - Special Meeting Continued WHEREAS , the Board has determined that granting the incentives Incentives in exchange for the commitment of the Company to locate and operate the Facility in Johnston County would be beneficial to the County's efforts to increase economic opportunities for its residents , its population , ad valorem tax revenues , sales tax revenues , and business prospects in general , including the creation of a substantial number of jobs ; 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 on terms not materially inconsistent with the Project Summary attached to this resolution the Summary ; NOW THEREFORE , the Board Authorizes the Chairman of the Board and , alternatively , the County Manager , to enter into an economic development agreement on behalf of the County for the County to grant Incentives on terms not materially inconsistent with the Summary in exchange for the commitment by the Company to 1 locate its operation 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 improvements subject to ad valorem taxation by Johnston County with a non - depreciated initial capital investment cost of 20 Million Dollars 20,000,000 and place such real and personal property in service on the Project Site , 2 employ approximately twenty 20 new permanent full - time employees at an average annual wage of no less than Seventy - Five Thousand Dollars 75,000 to operate the Facility , and 3 continue in business and full - time operation the Facility and employ that number of full - time workers to do so for a term of not less than seven 7 years th Adopted this the 6 day of September , 2022 PROJECT SUMMARY COMPANY - COUNTY September 2022 ? The Project The Project consists of a new medical manufacturing facility Facility on a parcel located at the Four Oaks Business Park at or near the Town of Four Oaks in Johnston County , North Carolina more particularly described as being all of that 16 acre + - parcel identified as NC PIN 167113 - 13 - 5379 , Tax Parcel ID 08I11078B located at Four Oaks Parkway , Four Oaks , North Carolina and more particularly shown as Tract 1 on that map recorded at Plat Book 96 , Page 211 Johnston County Registry Project Site " The Company will locate its operations on the Project Site and , in connection therewith , construct or cause to be constructed and up - fit improvements , comprising of the Facility and install or cause to be installed on the Project Site industrial machinery , equipment and other real and personal improvements subject to ad valorem taxation by Johnston County The Company expects a new total capital investment of 200 million The Company expects the Project to require the creation of 20 net new jobs ? Schedule and Grants Provided that the required minimum investment has been made and that the applicable incremental employment level or required minimum employment has been attained and maintained , and further provided the Company is in compliance with terms of the written economic development agreement , grants will be paid only upon ad valorem taxes actually paid and received with respect to eligible investments placed on the Project Site through the seven 7 - year grant period , with a minimum required investment of 200 million If Company elects to begin the grant period based on ad valorem taxes paid for the 2025 tax year , Year 1 shall mean calendar year 2025 , Year 2 shall mean calendar year 2026 , Year 3 shall mean calendar year 2027 , Year 4 shall mean calendar year 2028 , Year 5 shall mean calendar year 2029 , Year six shall mean calendar year 2030 , and Year seven shall mean 2031 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 PagePage pageNumber5115 September 6 , 2022 - Special Meeting Continued ? Investment by Company o Invest , or induce and cause to be invested by a Third Party Investor , eligible investments of real and personal property not less than the 200M by the December 1 of Year 1 o Attain and certify the Required Minimum Employment of twenty new permanent full - time employees at an average annual wage of no less than 75,000 by December 31 of Year 2 o Continue directly or through an Affiliate in business and full - time operation in the Facility on the Project Site at all times during the Grant Period , subject to temporary interruptions of operations as a result of force majeure , repairs following casualty damage and routine maintenance o Retention of those facility improvements , business property , and net new jobs counts through Year 7 ? Other Incentives for Completion and Operation of Investment by Company o Payment and performance of incentives by County are conditional on reporting and verification of eligible investments and on Company not being in default of obligations to County , including the taxes and contracts o Company to begin its receipt of monetary incentives in Grant Year 1 ? Incentives for investment in real and personal property will be adjusted for then - current economic trends in Johnston County , correlated dollar for dollar to changes in the County's ad valorem tax rate The Four Oaks Town Council took action on their respective economic development incentive proposal Chairman Lawter expressed his appreciation to Becton , Dickinson and Company stating they are leaders in the medical devices field and he thanked them for choosing to locate and invest in the people of Johnston County Chairman Lawter also recognized Johnston Community College Interim President Dr Kenneth Boham and Vice President of Continuing Education Vic McCormick for their work and support to economic development in the County Dr Boham pledged the Community College's support to Becton , Dickinson and Company Mayor Medlin expressed his appreciation on behalf of the Four Oaks Town Council to everyone that had a part in today's announcement There being no further business , Vice Chairman Patrick E Harris moved the Board adjourn Commissioner Tony Braswell seconded the motion , which carried by unanimous vote The meeting adjourned at 2 25 pm RS " Butch " Lawter , Jr , Chairman Paula G Woodard , Clerk to the BoardPage