Title
Resolution Authorizing an Economic Development Incentive Grant to Ecolab, Inc., Not to Exceed $193,768.00 for New Capital Investment in Real Property, Machinery and Equipment, and New Jobs
Body
Department: Executive
Council District: 5
Public Hearing: 12/8/2015
Advertising Date/By: 11/25/2015
Contact 1 and Phone: Jim Westmoreland, Ext. 2002
Contact 1 and Phone: Kathi Dubel, Ext. 4579
PURPOSE:
The City of Greensboro has been requested to consider an economic development incentive grant of up to $193,768.00 to Ecolab, Inc. for expansion of manufacturing operations in Greensboro. The grant is for the purposes of making capital investment in construction and property improvements, and new machinery and equipment purchases.
BACKGROUND:
Kay Chemical, a division of Ecolab, is headquartered in Greensboro and is currently evaluating options for growth of its cleaning and sanitizing products manufacturing operations. Currently the company operates manufacturing and administrative functions in Greensboro with 445 total local employees. Options for this expansion are at the Ecolab facility located at 8300 Capital Drive and at a competitive site in Texas. The Greensboro option would include $4,500,000.00 for building upfit and property improvements, and $22,500,000.00 in new machinery and equipment purchases. The company estimates adding thirty-five (35) new jobs, at an annual average wage of $38,840.00
BUDGET IMPACT:
A total of up to $193,768.00 to be paid to the company over a three (3) year period after the capital investment of $27,000,000.00 is completed and the new jobs have been created. 35 jobs are expected to be created by December 31, 2018. The incentive grant is expected to be paid in FY18/19, FY 19/20, and FY 20/21
RECOMMENDATION / ACTION REQUESTED:
In accordance with the City’s economic development guidelines and N.C.G.S. § 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 $193,768.00, based on an investment of $27,000,000.00 in real property improvements and machinery and equipment to be paid over a three year period after the capital investment has been completed and the new jobs have been created.