Title
Resolution Authorizing a Reimbursement of up to $624,120.00 to Samet Corporation for the Design and Construction of Public Sewer Infrastructure Improvements to Facilitate the Industrial Development of a Site Located at 2335 Campground Road
Body
Department: Executive
Council District: 2
Public Hearing: April 17, 2018
Advertising Date/By: April 5, 2018
Contact 1 and Phone: Barbara Harris, Assistant City Manager - City of Greensboro- 373-2002
Contact 2 and Phone: Kathi Dubel, Manager -Economic Development & Business Support - 373-4579
PURPOSE:
The City of Greensboro has been requested to consider an economic development reimbursable grant in the amount of up to $624,120.00 to Samet Corporation for the reimbursement of public sewer infrastructure improvements to facilitate the industrial development of sites located at 2335 Campground Road. The grant is for the purpose of creating jobs and bringing new industrial development opportunities to east Greensboro.
BACKGROUND:
Samet Corporation has been working toward industrial development of property located at 2335 Campground Road, an ideally located, highly visible, 38 acre industrial development site, located inside of the urban loop, at the southern intersection of Business 85, Interstate 85, Interstate 73 and less than a mile from US 220. This site highlights the logistical benefit our community provides and stands as the front door to the City limits for anyone entering Greensboro from the south. The company has committed to preparing this site for construction of a 120,000 sf speculative building to attract a distribution/manufacturing company, with an anticipated cost of approximately $5 million with completion by year end 2018. The site will support another 100,000 sf building. The company will invest approximately $10 million in developing the site and construction of two buildings. Reimbursement of off-site sewer expenses will be significantly more beneficial to this project than the Shovel-Ready Site Grading Loan awarded on November 12, 2013, because it would result in the immediate construction of a 120,000 sf speculative industrial building. At present Greensboro’s inventory of speculative industrial buildings is not sufficient to meet the market demands for such space.
The site is located adjacent to the city limits. The annexation and rezoning for this property is in process and should be completed by June 2018.
Samet Corporation will make the public sewer improvements and be reimbursed by the City in accordance with §2-91, Infrastructure Reimbursement Agreements, of the City’s Code of Ordinances which includes compliance with the City’s M/WBE Program for design and construction of water and sewer infrastructure. Reimbursement by the City is contingent on improvements being completed and meeting City standards. A preliminary project design and budget have been provided to the City of Greensboro. Annexation in the City limits of Greensboro, and rezoning to support industrial development are also required.
Summary of contract clawback provisions:
- Initial $5 million investment
- Construction of 120,000 sf speculative building
- At least 13 full-time equivalent positions created by December 31, 2020
- Annexation of property into the city
BUDGET IMPACT: A total of up to $624,120.00 to be paid in FY18/19 after the public sewer infrastructure improvements have been made. The reimbursement will be funded by the November 2006 voter approved Economic Development Bond, account 454-6001-19.5932.
RECOMMENDATION / ACTION REQUESTED:
In accordance with the City’s Urban Development Investment Guidelines and N.C.G.S. § 158-7.1, it is recommended that City Council approve the request for reimbursement of capital investment required to design and construct public sewer infrastructure necessary for industrial development and authorize city staff to execute a performance agreement between the City of Greensboro and the company in an amount not to exceed $624,120.00 to be paid in FY18/19 after the capital investment for the speculative building has been completed. The agreement will have a claw-back provision that requires that the reimbursement be repaid to the City if at least 13 full-time equivalent positions have not been created by December 31, 2020.