Title:
Business Investment Grant: Mosack Group
Summary
ACTION:
1) Open public hearing to receive comments on a proposed Business Investment Program grant to the Mosack Group;
2) Close public hearing; and
3) Adopt a resolution approving a Business Investment Program grant to the Mosack Group for a total estimated amount of $134,839 and authorize the County Manager to negotiate and execute the contract
Staff Contact: Peter Zeiler, Director, Economic Development Office
Presentation: Yes
BACKGROUND/JUSTIFICATION:
The Mosack Group imports and sells residential plumbing products to large-scale commercial retailers. The Mosack Group is presently located in Matthews, NC.
The Mosack Group is seeking to establish a new build-to-suit facility of approximately 115,000 square feet which will allow for the addition of extrusion lines for PEX pipe manufacturing.
The Mosack Group has announced its intent to locate the investment of its new facility and manufacturing line in Mint Hill, NC. The Mosack Group also considered relocating its operations to Monroe, NC,
Fort Mill, SC and Pageland, SC.
The Mosack Group’s expansion project, including a new facility, meets all the following grant guidelines for a five-year Business Investment Grant, specifically:
- A taxable investment of $9,700,000 to be completed in the next five years
- Creation of 21 new jobs with an average wage of $43,810 (which is equal to 115% of the average for the Charlotte-Gastonia-Rock Hill M.S.A.).
- There was competition for this project from Union County, NC and South Carolina.
The general terms and conditions of this grant include:
- A portion of the grant must be repaid if the company moves this investment from Mint Hill within 3 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 September 4, 2019.
The Town of Mint Hill indicated its intent to approve the Town's share of the grant at their August 8, 2019 closed session.
The State of North Carolina offered the intent of $800 - $1,000 in training support per new position created on July 18, 2019.
FUNDING:
Business Investment Grant Account; first payment estimated to be paid would be made in FY2022
PROCUREMENT BACKGROUND:
N/A
POLICY IMPACT:
N/A
FISCAL IMPACT:
N/A