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Consider a Step 2 Economic Development Incentive Grant Request to Safe Fire Detection, Inc. (Project Smokey)
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INFORMATION CONTACT:
Ron Mahle, Economic Development, Director, 980-476-5279
ACTION REQUESTED:
1) Award a Step 2 Economic Development Incentive Grant to Safe Fire Detection, Inc. (Project Smokey) in an amount not-to-exceed $141,000 over a five-year period; and 2) authorize the County Manager to i) negotiate and execute an agreement substantially consistent with this agenda item, ii) exercise any renewal or extension term options set forth in the Agreement, and iii) terminate the Agreement if deemed in the best interest of the County, each in the County Manager's discretion.
PRIOR BOARD ACTIONS:
October 6, 2025, Regular Meeting, Agenda Item # 25-604 - Public Hearing Held
BACKGROUND:
The Union County Economic Development Department started conversations with Safe Fire Detection, Inc under codename Project Smokey in 2023 about the potential relocation of their manufacturing operation from Indian Trail, NC, to a 10-acre parcel located within the Piedmont Innovation Industrial Park off Goldmine Road or a 14-acre parcel located in the Monroe Corporate Center. The company is considering the purchase of either the 10-acre parcel or the 14-acre parcel, the construction of a 40,000 square foot manufacturing facility, and the purchase and installation of new production equipment. Total capital investment is approximately $10,000,000.
Safe Fire Detection, Inc. is a manufacturer of advanced fire detection systems for several key industry sectors including nuclear power, electric utilities, Petro-chemical, and space exploration. The company opened its doors in 1985 in Indian Trail. They have grown to employ 25 people, of whom 16 are Union County residents.
The company is at capacity at its current location and needs a building and land large enough to accommodate future business growth. The purchase of either parcel and the construction of a 40,000 SF facility would satisfy growth needs for years to come.
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 $141,000 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 $10,000,000 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 $217,000 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 and creating a minimum of 10 new full-time jobs.
FINANCIAL IMPACT:
The project, if brought to Union County, would have an economic development incentive grant in an amount-not-to-exceed $141,000 but would generate approximately $217,000 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.