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Consider a "STEP 2" Economic Development Incentive Grant for BFS Operations LLC dba Builders FirstSource (Project TEMPER) in an Amount not to Exceed $104,500 over a Five-Year Period
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INFORMATION CONTACT:
Ron Mahle, 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 $104,500 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:
August 12, 2024, Regular Meeting, Agenda Item # 24-542 - Public Hearing Conducted.
BACKGROUND:
BFS Operations LLC dba Builders FirstSource, is requesting an Economic Development Incentive Grant in support of the purchase and installation of manufacturing equipment at their 1709 Airport 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 $104,500 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 $5,500,000.
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 $104,500 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 $5,500,000 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 $161,700 over the grant period. Actual tax revenue to the C...
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