Title
Resolution Authorizing an Economic Development Incentive Grant to Ecolab, Inc., not to Exceed the Amount of $166,980.00 for new Capital Investment in Real Property and New Jobs
Body
Department: Economic Development & Business Support
Council District: 5
Public Hearing: November 3, 2014
Advertising Date/By: October 23, 2014
Contact 1 and Phone: Jim Westmoreland 373-2002
Contact 2 and Phone: Kathi Dubel 373-4579
PURPOSE:
The City of Greensboro has been requested to consider an economic development incentive grant in the amount of up to $166,980 for an existing industry considering expanding their office capacity in Greensboro. The grant is for the purposes of making real property improvements by constructing a new 37,000 square foot office building.
BACKGROUND:
Kay Chemical, a division of Ecolab, is headquartered in Greensboro and is currently evaluating options to support continued growth. Currently, the company is leasing office space to accommodate administrative staff outside their location at 8300 Capital Drive. Options for expansion are to construct an office building in Greensboro on their existing site or consolidate positions at Ecolab's corporate headquarters in St. Paul, MN. The Greensboro option would include a new 37,000 sq ft office building, investing $11,000,000.00. The company estimates adding forty-five (45) new jobs, at an average annual wage of $48,029.
If the company chooses to consolidate in St. Paul, MN the 212 administrative jobs in Greensboro would be moved. The Greensboro manufacturing operation will not be affected by this project.
BUDGET IMPACT:
A total of up to $166,980 to be paid to the company over a three (3) year period after the capital investment of $11,000,000.00 is completed and the new jobs have been created. They expect to create 45 new jobs by December 2016. Thus the incentive grant is expected to be paid in FY16/17, FY17/18, and FY18/19.
RECOMMENDATION / ACTION REQUESTED:
In accordance with the City's economic development guidelines and N.C.G.S. ยง 158-7.1, it is recommended that City Council approve the request for an economic development grant and authorize city staff to execute a performance agreement between the City of Greensboro and the company in an amount not to exceed $166,980.00, based on an investment of $11,000,000.00 in real property improvements to be paid over a three year period after the capital investment has been completed and the new jobs have been created.