Title
Vote on a request to approve the Authorizing Resolution By Chatham County for the North Carolina Department of Commerce Building Reuse Program "Arauco Building Reuse Project"
Abstract
Action Requested: Vote on a request to approve the Authorizing Resolution By Chatham County for the North Carolina Department of Commerce Building Reuse Program "Arauco Building Reuse Project"
Introduction & Background: The NC Department of Commerce's Building Reuse (BR) Grant provides matching funds for three different types of projects and awards are based on net new job creation. The expansion of an existing industry is one project-type that falls within the BR program.
Arauco North America is planning to add a third molding line at its Moncure facility. The third line was approved in January of 2022 with an investment expectancy of $5.16 million. The proposed BR project for line 3 includes: floor repairs and painting, new lighting, removing existing piping and obstructions for the new line, repairs to existing sheet metal walls and repainting of walls, new electrical and mechanical installation of the equipment to produce the molding product. The approximate cost for this portion of the larger expansion project is $134,000 with the expected creation of 26 new jobs in the first year following completion.
Commerce's BR program requires that a local government apply for the grant, where, in this case and if awarded, the county would enter into an agreement with Commerce. Likewise, the county would also enter into an agreement with Arauco. Chatham County will be accountable to the State for the performance of job creation along with other requirements of the grant, and Arauco, through its agreement with the county, will be accountable to the county for the same. If Arauco does not perform, it will be the county's responsibility to repay Commerce any portion of the grant that has already been expended. As part of the agreement with the county, Arauco will provide a sec...
Click here for full text