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Consider a Step 4 Economic Development Incentive Grant to McGee Corporation (Project Canopy)
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INFORMATION CONTACT:
Ron Mahle, Economic Development, Director, 980-476-5279
ACTION REQUESTED:
1) Award a Step 4 Economic Development Incentive Grant in an amount not to exceed $696,000 over a 5-year period and 2) authorize the County Manager to a) negotiate and execute an agreement substantially consistent with this agenda item, b) exercise any renewal or extension term options set forth in the Agreement, and c) terminate the Agreement if deemed in the best interest of the County, each in the County Manager's discretion.
PRIOR BOARD ACTIONS:
October 20, 2025, Regular Meeting, Agenda Item # 25-624 - Public Hearing Conducted.
BACKGROUND:
The Union County Economic Development Department started conversations with McGee Corporation under codename Project Canopy in late 2024 about the potential relocation of their manufacturing operation from Stallings, North Carolina, to a 60-acre parcel located off Goldmine Road. The company is considering the purchase of 60-acres, the construction of a 366,000 square foot manufacturing facility, and the purchase and installation of new production equipment. Total capital investment is approximately $40,000,000.
McGee Corporation is a fourth-generation existing manufacturer located in Stallings, North Carolina. The company is an industry leader in the production of steel-frame canopy systems used at fueling stations and other custom architectural applications. Current employment at McGee Corporation is 163 people earning an average annual salary of $63,000.
Due to exceptional growth in their business, they have outgrown the capacity at their current location and are searching for a site which will accommodate future growth.
Based on the anticipated capital investment, it is proposed that the Board award a STEP 4 Economic Development Incentive Grant in an amount-not-to-exceed $696,000 paid over a 5-year period beginning in FY 2028. 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 investment of approximately $40,000,000 in land, new building construction, and purchase and installation of new manufacturing 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 $868,400 over the grant period. Actual tax revenue for the County will be based on the assessed value of the investment each year by the Union County Tax Administration Office and will vary each year depending upon the depreciation schedule and the timing of the investments.
The grant is also contingent upon the company retaining its current number of employees located within Union County.
FINANCIAL IMPACT:
The project, if brought to Union County, would have an economic development incentive grant in an amount-not-to-exceed $696,000 but would generate approximately $868,400 in ad valorum taxes over the 5-year grant period. Actual tax revenue for the County will be based on the assessed value of the investment each year by the Union County Tax Administration Office and will vary each year depending upon the depreciation schedule and the timing of the investments.