INCENTIVES
Economic Development Grant Application
Cabarrus County and our municipalities offer an Economic Development Grant Program for both new and existing companies. The following information describes the purpose, project categories, program provisions and approval procedures. Please note the programs of each government are similar, but will vary somewhat by how they are administered.
I. PURPOSE
The economic welfare of Cabarrus County is directly linked to the vitality, diversity and success of its businesses and industries. The purpose of the ECONOMIC DEVELOPMENT GRANT PROGRAM is to stimulate development of new industries and expansion of existing businesses. It is intended that Cabarrus County will experience a positive economic benefit associated with each project.
Increasing and diversifying the local property tax base are the primary intentions of the ECONOMIC DEVELOPMENT GRANT PROGRAM, however, other factors may be considered in authorizing a grant to any specific project. These may include but are not limited to:
- » The type of industry as a further diversification of Cabarrus County's business base;
- » The size and scope of the project based upon investment in site development, facilities, buildings and other business infrastructure inclusive of technology;
- » The diversity, quality and quantity of jobs created by a project and the availability of labor;
- » The potential for future expansion of investment and employment;
- » Site specific issues impacting public infrastructure;
- » Actions that if pursued, stimulate development in areas of Cabarrus County deemed beneficial;
- » The ratio of investment in real versus personal property assets; and
- » The environmental impact of the project.
Economic conditions, legal issues or other factors may cause the Cabarrus County Board of Commissioners to modify, amend, suspend or even terminate the ECONOMIC DEVELOPMENT GRANT PROGRAM subject to the continuance of contracted grants previously awarded and in effect at that time.
II. PROJECT CATEGORIES AND ELIGIBILITY
Eligible Uses - Eligible uses include, but are not limited to corporate headquarters, manufacturing, assembly, fabrication, processing operations, research & development, motorsports facilities, warehouse/distribution, or office buildings.
Grant Categories - The following Economic Development Grant categories have been established:
Economic Development Grant for Owners and Lessees
- » minimum capital investment of $1.5 million
- » grant equivalent to 85% of real and personal property tax paid
- » grant award period of three (3) consecutive years
- » beginning date for grant calculations is the date of useful occupancy and/or production startup
- » grant amounts calculated based upon the increase in assessed real and personal property value generated by the project, as determined by the County Tax Assessor
- » owner provides required documentation
- » in no event should the lease term be less than the length of the grant if the recipient is leasing the building
Economic Development Speculative Buildings
- » applies only to new speculative buildings to be constructed to attract an eligible economic development user
- » a minimum estimated capital investment of $1.5 million in a single shell building and associated site improvements is required, not including estimated upfit costs for occupancy
- » speculative buildings may be designed for single, or multiple occupancy but only one Economic Development Grant per building will be considered if certified
- » the grant shall be in the form of an agreement between Cabarrus County and the owner of a speculative building, which may include an option to pass through the grant if a lessee decides to purchase the building during the grant period
- » the grant must begin prior to the third year after construction is complete.
III. PROGRAM PROVISIONS
These criteria serve as guidelines in project evaluations. Specific criteria may be different for any particular project and may be incorporated in the terms of the formalized Industrial Grant Agreement. All Economic Development Grants are awarded solely at the discretion of Cabarrus County Board of Commissioners.
Each project will be considered on an individual basis using these guidelines and other directives established by Cabarrus County. These guidelines are subject to change.
Projects considered under these guidelines shall be viewed independently of any project previously considered, awarded or rejected by Cabarrus County.
All grants are offered by the Cabarrus County of Commissioners following notice and a public hearing. The Cabarrus County Board of Commissioners will determine the length of time each incentive will be offered.
Primary consideration shall be given to estimated real and personal property tax base created by a project. Additional consideration will be given, but not limited to, the number of jobs to be created, wages to be paid, secondary job creation, and/or business spin-offs.
Major consideration will be given to projects that meet high quality building design standards. Additional consideration will be given to projects that incorporate exit strategies so that buildings can accommodate multiple uses without significant structural changes in order to sustain their value to the community when the initial use of the facilities changes where appropriate.
The beginning date of the grant award period shall be flexible in order to accommodate construction and production start-up time, but shall commence no later than five years after the date of the Cabarrus County Board of Commissioners vote to approve the grant. An extension to these limits may be granted, based upon specific project related issues, but is not guaranteed or required.
Calculations of the project grant award shall be based upon estimates of anticipated new property tax revenues Cabarrus County could expect to receive from a specific project, excluding revenues generated by a Municipal Service District.
The annual grant award due to the grantee will be paid on or before April 15 each year during the grant period, subject to the project's date of useful occupancy and/or production startup.
During the grant award period, the grantee shall remain current with all real and personal property taxes assessed, along with other fees, taxes or other assessments levied by the grantors to remain eligible for the grant. Failure to do so may result in termination of the grant award.
Grants are not transferable and may not be otherwise conveyed to another party without the specific consent of the grantors.
The grantee shall provide necessary reports to Cabarrus County Tax Assessor during the grant period to ensure compliance with the terms, conditions and other specific requirements of the grant award agreement. Such information shall remain confidential. Failure of the grantee to provide required documentation shall cause termination of grant.
Any information obtained by Cabarrus County in connection with an incentive grant request is subject to laws regarding disclosure of public records set forth in NCGS Chapter 132 and subject to laws regarding the protection of trade secrets set forth in Article 24 of NCGS Chapter 66.
IV. GRANT APPROVAL PROCEDURE
Completion – Prior to initiating a project for which a grant application is proposed, the grant applicant shall complete a Development Grant Application to the Cabarrus Economic Development Corporation.
Recommendation – Upon completion of the Development Grant Application by the applicant, the Cabarrus Economic Development Corporation Board will review the application, and determine if the application will be recommended to the Cabarrus County Board of Commissioners.
Application – Applications recommended by Cabarrus Economic Development Corporation Board will be submitted to County Manager’s office.
Acceptance – The Cabarrus County Board of Commissioners shall consider acceptance of the Development Grant Application. If it is accepted, a public hearing will be scheduled. Cabarrus County shall have a notice published of the public hearing at least 10 days before the hearing is held. The notice shall describe the project, and The Cabarrus County Board of Commissioners’ intention to consider approval of the Development Grant request
Public Hearing – The Cabarrus County Board of Commissioners shall conduct a public hearing on the Development Grant Application to inform the public of the incentive grant request and invite comments.
Offer or Contract – The Cabarrus County Board of Commissioners shall approve grants by offering the applicant an Industrial Grant Agreement. Offers not accepted are deemed rejected by the applicant. Unless otherwise adopted and approved by the Cabarrus County Board of Commissioners, incentives are offered for 90 days from the date of approval of the specific offer of the Industrial Grant Agreement by the Cabarrus County Board of Commissioners. Acceptance is the execution of the Industrial Grant Agreement between Cabarrus County and the applicant. Cabarrus County Board of Commissioners reserves the right to reject any grant application.
Construction – Construction shall be required to adhere to plans approved in the plan review and permitting process, as well as to plans, or plan elements approved as conditions of the Industrial Grant Agreement.
Assessment – The value of the subject property following the completion of construction shall be established by the County Tax Assessor. The actual increase in post-construction assessed value over pre-construction assessed value shall equal, or exceed the estimated increase specified in the contract. Failure to meet, or exceed the estimated increase shall render the grant null and void. In the event that the actual increase exceeds the estimated increase and qualifies for a higher level grant, the grant amount will be adjusted accordingly without further action by the Cabarrus County Board of Commissioners.