County to weigh perk for business
By Steve Herring
Published in News on November 2, 2015 1:46 PM
Wayne County commissioners will hold a public hearing Tuesday on a possible incentive grant for an existing industry.
Information about the grant and industry will not be released until the hearing set for 9:15 a.m. in the commissioners' meeting room on the fourth floor of the county courthouse.
The meeting will begin with an agenda briefing at 8 a.m. followed by the formal session at 9 a.m. in the same room.
Commissioners implemented an incentive grant policy in August then just minutes later awarded the first grant. A second grant application was tabled at the request of the applicant.
At that meeting, commissioners said that the only tax money that would be used for the grants will be what is paid in by the companies receiving them.
The first grant, worth $7,439 per year over a five-year period for a total of $37,284, was awarded to Greensboro-based Repreve Renewables that produces bedding products for the poultry industry.
The grants hinge on the companies completing their project within two years once under way and creating the promised number of jobs and investment.
The grants will be broken down into four levels based on the cost of a qualifying capital investment by new or expanding industries:
* Level I (65 percent): $1 million to $4,999,999.
* Level II (75 percent): $5 million to $9,999,999.
* Level III (85 percent): $10 million to $24,999,999.
* Level IV (95 percent): $25 million or more. Grants at this level may quality for additional incentives including. Any additional incentives would come as a recommendation from a committee consisting of the county manager, a county commissioner, Wayne County Development Alliance board chairman and its president.
The annual grant is calculated by multiplying the dollar amount of the investment, as determined the Wayne County Tax Department, by the current general county tax rate and then by the percentage level of the grant.
For example, using the 95 percent level on a $25 million qualifying investment the $25 million is multiplied by 66.5 percent (.00665, the current general county tax rate) to get $166,250. The $166,250 is then multiplied by 95 percent to get $157,937.50 per year times five years for a total grant of $789,687.5.
Also on Tuesday's agenda, commissioners will consider applying for $1.5 million for projects through the Golden LEAF Foundation.
The foundation is the state agency created to distribute the tobacco settlement funds in North Carolina.
The grants are limited to projects that address economic development, education, workforce development, infrastructure, health care infrastructure and agriculture.
A 20 percent cash match would help each project to be competitive, County Manager George Wood said.
Any interested 501 (c) (3) non-profits or governmental agencies were eligible, and must have submitted a letter of interest in a format set out by the Foundation to the county manager's office.
The county manager is to forward any applications to Golden LEAF by Nov. 6.
Wood has received three requests.
The first is from the Rev. Dr. Ira Reynolds of First Missionary Baptist Church of Fremont and the town of Fremont for $31,169 for housing rehabilitation.
The second request is from Dr. Michael Dunsmore, Wayne County Public Schools superintendent, for $750,000 to help fund the system's new Information Technology Plan.
The third request is from Dr. Kay Albertson, president of Wayne Community College, for $750,000 for the Advanced Manufacturing Center for the welding component, but primarily to buy the welding booths and tables and some funds for facilities upgrades.
The limit is $1.5 million for up to three projects, meaning that commissioners have two options, Wood said.
The county could fund all three, but that would mean reducing WCC's and the schools' request by the $31,169 needed to accommodate the church request, he said.
The other option is to fund the two requests from the schools and the college, which total $1.5 million and not fund the church request.
In other business, the board will consider a request from the University of Mount Olive to be included on Welcome to Wayne County signs.
Consent agenda items include: Establishing a meeting of the Wayne County Board of Adjustment for Tuesday, Dec. 1, 9: 15 a.m.; applications for 2015 Disabled Veteran Property Tax Exclusion and for 201 5 Present Use Value; resolution adopting an amendment to the county's position classification and pay plan; and budget amendments.