Title
Hold a public hearing in accordance with NCGS 158-7.1 to consider a request for an economic development incentive grant with capital investment of $14 million for Mosaic Hospitality LLC
Abstract
Introduction & Background: In 2011, the Chatham County Board of Commissioners adopted the Chatham County Incentive Policy. The model represents the desire and need for quality jobs in Chatham County, while balancing the local governments’ need for additional capital investment (and associated property tax revenue), desire to preserve/protect the natural environment by focusing development to certain designated areas, and interest in targeting identified industry clusters. Depending on their score, new companies and existing company expansions are eligible to qualify for, but not guaranteed, a financial incentive grant based on the percentages of annual property taxes paid for each year for a five-year period as outlined below. The County utilizes a qualitative criterion outlined in the policy document to approve, reject, and/or modify the grant amount.
In 2016, the Chatham County Board of Commissioners held a public hearing on a proposed one-time incentive to help recruit a hotel to Chatham County to help support the Chatham County Agriculture and Conference Center.
At that time, the Chatham County Board of Commissioners agreed that the Chatham County Incentive Policy is normally utilized in large job creation and investment projects, but a hotel in Chatham County was viewed as a catalyst project which could spur continued job growth, boost County tourism, increase overnight visitors and increase sales tax revenue.
Discussion & Analysis: The Chatham County Board of Commissioners proposes to appropriate and expend county funds for an economic development project pursuant to North Carolina General Statute 158-7.1. Specifically, the county intends to enter into an Economic Development Agreement with Mosaic Hospitality LLC to construct and operate a hotel in Chatham County.
The Chatham County Board of Commissioners believes this project will stimulate the local economy of Chatham County and will provide local economic benefits for the residents of Chatham County through an increase in sales tax revenues and the increased purchases of local goods and services.
How does this relate to the Comprehensive Plan: By supporting strategic economic development, tourism, and targeted investment that generates jobs, increases tax revenues, and complements existing County assets such as the Agriculture and Conference Center.
Budgetary Impact: Economic Development Agreement, the county would make an annual cash incentive grant to Innovative Construction Group for 5 years equal to a declining percentage of actual increased property taxes paid: 90% in year 1, 80% in year 2, 75% in year 3, 75% in year 4, and 60% in year 5.
Recommendation/Motion:
1. Hold a public hearing in accordance with NCGS 158-7.1 to consider a request for an economic development incentive grant with capital investment of $14 million for Mosaic Hospitality LLC.
2. Motion to approve an economic development incentive agreement with Mosaic Hospitality LLC.