May 28, 2019 - 10:00 AM - County Board of Commissioners Meeting Minutes (Special)

10 793 Meeting of the Johnston County Board of Commissioners May 28 , 2019 Special Meeting The Johnston County Board of Commissioners met in special joint session Tuesday , May 28 , 2019 at 10 00 am with the Four Oaks Town Council at the Four Oaks Town Hall , 304 N Main Street , Four Oaks , 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 , Patrick E Harris , and RS “ Butch ” Lawter , Jr Absent Commissioner 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 Four Oaks Mayor Linwood Parker called the Four Oaks Town Council meeting to order Chairman Ted G Godwin called the meeting of the Johnston County Board of Commissioners to order at 10 00 am Commissioner Butch Lawter gave the invocation and Four Oaks Councilman Vic Medlin led those in attendance in the Pledge of Allegiance to the American Flag Mayor Parker opened the Town’s public hearing Chairman Godwin opened the County’s public hearing for the purposes of allowing public comment on a proposed economic development incentive grant Johnston County Economic Development Director Chris Johnson began his remarks by stating that as with any economic development prospect , this was a competitive project with sites offered for consideration from South Carolina and Virginia Mr Johnson explained the project consists of a new multi - purpose warehouse and distribution facility with limited retail space along with a call center to be located at 125 Brewer Road near the Town of Four Oaks Mr Johnson stated the company , Broad River Retail LLC , will create over 160 new jobs with an average annual salary of almost 40,000 He stated in addition to the 16 million investment in real and personal property to the local tax base , additional sales tax revenue will be generated through the limited retail portion of the facility Mr Johnson continued that the project includes infrastructure improvements that will not only support growth and development along the Interstate 95 corridor , but will also aid existing businesses with better utility service and fire protection Mr Johnson stated just like other economic development incentives , this proposal comes with no risk to the taxpayers since the actual incentive will be taken from the company’s own investment Mr Johnson stated the proposal has been reviewed and recommended for approval by the Johnston County Economic Development Advisory Board He concluded his remarks by stating Broad River Retail will only be eligible for incentives after they have met all the project components within the incentive agreement Four Oaks Town Attorney David Mills outlined the Town of Four Oaks ’ incentive proposal for the project , which involves the extension of sewer lines to the site and offered to answer any questions Mayor Parker asked if there were any citizens present who wished to comment on the incentive proposal by the Town of Four Oaks Upon questions by Mr Sam Austin , Mr Johnson reviewed available wage and benefit information from Broad River Retail and spoke on how it compares with state and local averages There were no additional citizen comments regarding the Four Oaks incentive proposal Johnston County Attorney Jennifer Slusser outlined the County’s incentive grant proposal for Broad River Retail LLC Ms Slusser stated in consideration of the incentives to be paid and delivered by the County , the company has agreed to locate and expand its industrial and commercial operations at the project site in exchange for the grant She stated it has been determined through an analysis performed by the Johnston County Economic Development Office , vetted by the Johnston County Economic Development Advisory Board , and reviewed by the County Attorney’s Office , that this investment , in exchange for the commitment of Broad River Retail to locate in Johnston County , will be beneficial to the County’s efforts to increase economic development 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 Ms Slusser stated the proposed incentive hearing was properly noticed pursuant to the applicable North Carolina General Statutes and staff requests the Board to consider adopting a resolution authorizing the Chairman and , alternatively , thePage794 May 28 , 2019 – Special Meeting Continued County Manager to enter into an economic development agreement on behalf of the County Ms Slusser reviewed the following the project summary , which is included within the resolution ? The Project The Project consists of a new multi - purpose warehouse distribution facility with limited retail space and a call center Facility on a parcel located at 125 Brewer Road , in or near the Town of Four Oaks in Johnston County , North Carolina The Company will locate its operations in 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 and commercial 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 no less than 160 million The Company expects the Project to require the creation of 124 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 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 160 million by the end of Year 1 and a maximum investment of 200M through the grant period If Company elects to begin the grant period based on ad valorem taxes paid for the 2020 tax year , Year 1 shall mean calendar year 2020 , Year 2 shall mean calendar year 2021 , Year 3 shall mean calendar year 2022 , Year 4 shall mean calendar year 2023 , Year 5 shall mean calendar year 2024 , Year 6 shall mean calendar year 2025 , and Year 7 shall mean 2026 If Company elects to begin the grant period based on ad valorem taxes paid on the eligible investments for the 2021 tax year , Year 1 shall mean calendar year 2021 , Year 2 shall mean calendar year 2022 , Year 3 shall mean calendar year 2023 , Year 4 shall mean calendar year 2024 , Year 5 shall mean calendar year 2025 , Year 6 shall mean calendar year 2026 , and Year 7 shall mean calendar year 2027 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 ? 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 160M by December 31 of Year 1 o Attain and certify the Required Minimum Employment of one hundred twenty - four new permanent full - time employees at incremental employment levels at an average annual wage of no less than 39,716 by December 31 of Year 4 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 No incentives or grants will be paid on eligible investments in excess of 20M 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 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 , and Incentives will be adjusted for partial achievement of the investment and employment goals Chairman Godwin asked if there were any citizens present who wished to comment on the incentive proposal by Johnston County Page795 May 28 , 2019 – Special Meeting Continued There were no citizen comments regarding the Johnston County incentive proposal There being no further public comments , Mayor Parker closed the Town’s Public Hearing Chairman Godwin closed the County’s public hearing The Four Oaks Town Council took action on their respective economic development incentive proposal Commissioner Chad M Stewart moved the Board adopt the following resolution authorizing the Chairman , and alternatively , the County Manager , to enter into an economic development agreement on behalf of the County to grant incentives on terms not materially inconsistent with the project summary as outlined by the County Attorney 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 , 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 thereby reduce physical , economic and social distress resulting from unemployment and underemployment existing in its jurisdiction ; and WHEREAS , the County is in discussions to induce Broad River Retail , LLC the Company to locate a new multi - purpose warehouse distribution facility with limited retail space and a call center Facility on a parcel located at 125 Brewer Road , in or near the Town of Four Oaks in Johnston County , North Carolina 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 and expand its industrial and commercial operations the Facility in the County at the Project Site 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 ; 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 ; and WHEREAS , the Board has determined that granting the 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 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 Project 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 and commercial 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 a minimum Sixteen Million Dollars 16,000,000 and place such real and personal property in service on the Project Site , 2 employ approximately one hundred twenty - four 124 new permanent full - time employees at an average annual wage of no less than Thirty - Nine Thousand Seven Hundred Sixteen Dollars 39,716 to operate the Facility , and 3 Page796 May 28 , 2019 – Special Meeting Continued 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 28 day of May , 2019 PROJECT SUMMARY COMPANY – COUNTY May 2019 ? The Project The Project consists of a new multi - purpose warehouse distribution facility with limited retail space and a call center Facility on a parcel located at 125 Brewer Road , in or near the Town of Four Oaks in Johnston County , North Carolina The Company will locate its operations in 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 and commercial 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 no less than 160 million The Company expects the Project to require the creation of 124 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 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 160 million by the end of Year 1 and a maximum investment of 200M through the grant period If Company elects to begin the grant period based on ad valorem taxes paid for the 2020 tax year , Year 1 shall mean calendar year 2020 , Year 2 shall mean calendar year 2021 , Year 3 shall mean calendar year 2022 , Year 4 shall mean calendar year 2023 , Year 5 shall mean calendar year 2024 , Year 6 shall mean calendar year 2025 , and Year 7 shall mean 2026 If Company elects to begin the grant period based on ad valorem taxes paid on the eligible investments for the 2021 tax year , Year 1 shall mean calendar year 2021 , Year 2 shall mean calendar year 2022 , Year 3 shall mean calendar year 2023 , Year 4 shall mean calendar year 2024 , Year 5 shall mean calendar year 2025 , Year 6 shall mean calendar year 2026 , and Year 7 shall mean calendar year 2027 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 ? 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 160M by December 31 of Year 1 o Attain and certify the Required Minimum Employment of one hundred twenty - four new permanent full - time employees at incremental employment levels at an average annual wage of no less than 39,716 by December 31 of Year 4 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 No incentives or grants will be paid on eligible investments in excess of 20M PagePage pageNumber5797 May 28 , 2019 – Special Meeting Continued 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 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 , and Incentives will be adjusted for partial achievement of the investment and employment goals There being no further business , Commissioner Jeffrey P Carver moved the Board adjourn Commissioner Butch Lawter seconded the motion , which carried by unanimous vote The meeting adjourned at 10 25 am Ted G Godwin , Chairman Paula G Woodard , Clerk to the BoardPage