Title
Business Location and Expansion - RXO Corporate Solutions, LLC
Action
ACTION:
1) Open public hearing to receive comments on a proposed Business Investment Program grant to RXO Corporate Solutions, LLC.
2) Close public hearing
3) Adopt a resolution to approve a 5-year, 75% Business Investment Program Grant to RXO Corporate Solutions, LLC, for a maximum amount not to exceed $223,411
4) Authorize the County Manager to negotiate and execute the contract.
Staff Contact: Clay Andrews, Senior Program Manager, Office of Economic Development
Presentation: Yes
BACKGROUND/JUSTIFICATION:
RXO Corporate Solutions, LLC (RXO) is a publicly traded high-tech transportation broker. RXO is the world's largest network of independent carriers, enabling them to match shippers' transportation needs with carriers looking to haul freight via ocean, air, and truck.
The company has approximately 10,000 customers, which includes 50% of the Fortune 500 companies. RXO currently employs more than 8,500 employes.
As the RXO plans for future growth, the company has identified finalist locations in both North Carolina and South Carolina for their new headquarters site.
RXO proposed project meets all the following grant guidelines for a five-year Business Investment Program (BIP) grant, specifically:
• A new taxable investment of $13,723,848, to be completed in the next five years.
• The creation of 216 new jobs with an average wage of $89,769 (which is equal or greater than 100% of the average Standard Occupation Code (SOC) for each job position for the Charlotte-Gastonia-Rock Hill M.S.A.).
• The retention of 699 jobs with an average wage of $100,605.
• There is competition for this project in Indian Land, SC.
The general terms and condition of this grant include:
• A portion of the grant must be repaid if the company moves this investment from Mecklenburg County within 5 years of the end of the grant term.
• Actual grant payments are based on the value of the investment as appraised by the Mecklenburg County Tax Office.
• All property taxes due from the company must be paid before a grant payment is made.
The Board of County Commissioners indicated their intent to approve this grant in a closed session on July 2, 2024.
PROCUREMENT BACKGROUND:
N/A
POLICY IMPACT:
N/A
FISCAL IMPACT:
Business Investment Grant Account: first estimated payment would be in FY28