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Consider a "STEP 2" Economic Development Incentive Grant for Surteco North America, Inc. dba OMNOVA (Project PULSAR) in an Amount not to Exceed $190,000 over a Five-Year Period.
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INFORMATION CONTACT:
Ron Mahle, Interim Director, Monroe-Union County Economic Development Commission, 704-282-5780
ACTION REQUESTED:
1) Award a "STEP 2" Economic Development Incentive Grant in an amount not to exceed $190,000 over a five-year period and 2) authorize the County Manager to negotiate and execute an agreement substantially consistent with this agenda item.
PRIOR BOARD ACTIONS:
None.
BACKGROUND:
Surteco North America, Inc. dba OMNOVA, is requesting an Economic Development Incentive Grant in support of the purchase and installation of manufacturing equipment at their 2011 Rocky River Road location in Monroe, NC (Union County). The "STEP 2" Economic Development Incentive Grant (Grant Factor of 1.90%) is in an amount not to exceed $190,000 over a five-year period beginning in FY 2026.
The company is considering the purchase and installation of manufacturing equipment with a potential value totaling $10,000,000.
Based on the anticipated capital investment, it is proposed that the Board award a "STEP 2" Economic Development Incentive Grant in an amount not to exceed $190,000 paid over a five-year period beginning in FY 2026. The value of the incentive grant will be based upon appraised value each year as appraised by the Union County Tax Administration office. This grant is based on the company's projected total investment of $10,000,000 in new equipment over the grant period, but not less than $2,000,000. Based on its projected investment in Union County, the current tax rate, and assuming a consistent assessed value with no depreciation, the company will pay estimated ad valorem taxes on the new taxable investment in the amount of $294,000 over the grant period. Actual tax revenue to the County will be based on the assessed value of the investment each ye...
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