Title
Vote to direct the County Attorney to send notice to terminate the economic development agreement between Chatham County and VinFast Manufacturing USA, LLC
Abstract
Introduction & Background: On October 17, 2022, the Chatham County Board of Commissioners approved an economic development agreement with VinFast Manufacturing USA, LLC pursuant to N.C.G.S. ? 158-7.1. The agreement provided for performance-based economic development incentives associated with the construction and operation of an advanced electric vehicle manufacturing facility and related uses in southeastern Chatham County. The agreement contemplated a minimum investment of $4 billion in real and personal property and the creation of at least 7,500 full-time equivalent jobs.
Discussion & Analysis: The economic development agreement allows the County to terminate the agreement with 60 days' notice if Vinfast has not increased the tax value of the property by $700,000,000 and created at least 1,750 eligible positions by January 1, 2026. Vinfast had not increased the tax value of the property by $700,000,000 or created at least 1,750 eligible positions by January 1, 2026. County staff and legal counsel have reviewed the existing economic development agreement and recommend that the County terminate the agreement. Termination of the agreement will eliminate any future obligations associated with the incentive grant program and land acquisition reimbursement provisions contained in the original agreement.
The proposed action will direct the County Attorney to send the required notice to formally terminate the economic development agreement approved by the Board on October 17, 2022, and release the County and VinFast Manufacturing USA, LLC from future obligations under the agreement.
How does this relate to the Comprehensive Plan: The proposed cancellation supports the Comprehensive Plan's principles of responsible fiscal stewardship, transparency, and sound management of public resources.
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