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Public Hearing - Step 2 Economic Development Incentive Grant Request to Amcor Rigid Packaging USA, LLC (Project 409)
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INFORMATION CONTACT:
Ron Mahle, Economic Development, Director, 980-476-5279
ACTION REQUESTED:
Hold Public Hearing.
PRIOR BOARD ACTIONS:
None.
BACKGROUND:
The Union County Department of Economic Development has been working with Amcor Rigid Packaging USA, LLC, under the codename Project 409, regarding a potential expansion of manufacturing operations at its existing facility located at 3414 Wesley Chapel Stouts Road in Indian Trail, Union County. The company is considering a capital investment of approximately $5,200,000 to purchase and install new manufacturing equipment.
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 $73,320, paid over a five-year period beginning in FY 2029, with a maximum annual grant payment of $14,664. Annual grant payments would be based on verified eligible taxable investment and compliance with the applicable provisions of the economic development incentive agreement.
This grant is based on the company's projected investment of approximately $5,200,000 in 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, the company will pay estimated ad valorem taxes on the new taxable investment in the amount of $112,892 over the five-year grant period. The grant is also contingent upon the company retaining its existing jobs at the Union County facility.
FINANCIAL IMPACT:
The project, if undertaken in Union County, would have an economic development incentive grant in an amount not to exceed $73,320 but would generate approximately $112,892 in ad valorem tax revenue over the five-year grant period. Actual tax revenue to the County will be based on the assessed value of the investment each year by the Union County Tax Administration Office and will vary depending upon the depreciation schedule and the timing of the investments.