Title
Resolution Authorizing an Economic Development Incentive Grant to Natty Greene’s Brewing Co., LLC not to exceed $387,500.00 for New Capital Investment in Real Property, Machinery and Equipment, and New Jobs
Body
Department: Executive
Council District: 2
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 $387,500.00 to Natty Greene’s Brewing Co., LLC for expansion of manufacturing and distribution operations in Greensboro. The grant is for the purposes of making capital investment in construction and new machinery and equipment purchases.
BACKGROUND:
Natty Greene’s, a production and distribution craft brewing company that has been headquartered in Greensboro since the founding of its downtown brewpub on the corner of Elm and McGee Streets in 2004, is currently evaluating options for growth of its manufacturing and distribution operations. A new facility of over 50,000 sq ft will allow for Natty Greene’s to significantly increase production capacity and to potentially expand future distribution to the entirety of the east coast. Presently, in addition to its downtown brewpub, the company operates a 16,000 sq ft brewery and tap room at 1918 W Lee St with 136 total local employees and distribution throughout NC, SC and VA. Options for this expansion are a location at 1601 Yanceyville Street in the City of Greensboro and at competitive sites both in state and in Virginia. The Greensboro option would include $6,750,000.00 for real property improvements, and $7,500,000.00 in new machinery and equipment purchases. The company estimates adding twenty-seven (27) new jobs, at an annual average wage of $40,000.00.
BUDGET IMPACT:
A total of up to $387,500.00 to be paid to the company over an eight (8) year period after the capital investment of $14,250,000.00 is completed by December 31, 2018. 27 jobs are expected to be created by December 31, 2020. The incentive grant is expected to be paid in FY18/19, FY 19/20, FY 20/21, FY 21/22, FY 22/23, FY 23/24, FY 24/25, and FY 25/26
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 $387,500.00 based on an investment of $14,250,000.00 in real property improvements and machinery and equipment to be paid over an eight year period after the capital investment has been completed and the new jobs have been created.