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HomeMy WebLinkAboutAugust 7, 2018 meeting minutes 1 August 7, 2018 IREDELL COUNTY BOARD OF COMMISSIONERS PRE-AGENDA MINUTES August 7, 2018 The Iredell County Board of Commissioners met in pre-agenda session on Tuesday, August 7, 2018 at 5:00 PM, in the Iredell County Government Center (South Wing Conference Room), 200 South Center Street, Statesville, NC. Board Members Present Chairman James B. Mallory III Vice Chairman Tommy Bowles Gene Houpe Jeff McNeely Marvin Norman Staff present: County Manager Beth Jones, County Attorney Lisa Valdez, Deputy County Manager Susan Robertson, Finance Director Deb Alford, and Clerk to the Board Retha Gaither. CALL TO ORDER: Chairman James Mallory called the meeting to order. ADJUSTMENTS TO THE AGENDA: County Manager Beth Jones said there will be a discussion with the Board regarding the Industrial Incentives Policy update and amendments. It is on the agenda under Administrative Matters: Commissioner McNeely suggested this item should not be on the consent agenda and it should be moved for discussion before the public hearings. Chairman Mallory said the Board will discuss it in pre-agenda but it will not be on the consent agenda. It will be voted on prior to the public hearings. ADMINISTRATIVE MATTERS Request from Tax Administration to present the Annual Tax Settlement for 2017 along with orders for collection: Tax Administrator Bill Furches presented the following Annual Tax Settlement for 2017 which is required by law. Furches also shared the tax rates for each municipality in the County. The City of Statesville increased two cents and the Mooresville Solid Waste fee increased $60.00 from last year. Iredell County has the 15th lowest tax rate in the State and is the lowest in the region. Also requested are orders for the Tax Collector and Sheriff to collect taxes plus permission to advertise prior year tax liens that were appealed to the Property Tax Commission but remain unpaid. Tonight 111,001 tax bills will be passed to collections. A Hyper-Reach message will be dispersed about the bills being sent, another message when the bills are due and then again a message at the end of the year before interest is added. * * * * * Tax Rates for 2018: Iredell County $.5275; City of Statesville $.4811; City of Statesville (Special Downtown Business) $.10; Wood Municipal Service (Special District) $.21; Statesville Solid Waste $120.00; Mooresville Town $.58; Mooresville Solid Waste $120.00; Mooresville Downtown $.16; Mooresville School $.185; Harmo ny $.10; Love Valley $.25; Town of Troutman $.52; Town of Davidson $.35; Privilege Tax (Town of Davidson) $20.00; Davidson Solid Waste $201.00. Fire Tax: #1 East Alexander $.07; #2 Shepherds $.07; #3 Mount Mourne $.06; #4 All County $.07; #5 B&F $.07. Solid Waste: Per household real estate $52.00; per apartment $52.00; per mobile home space $52.00. * * * * * 2 August 7, 2018 2017 Taxes: Real & Personal Levy $110,387,924.04 MV – VTS 9,696,889.53 Add: Discoveries 358,127.66 Deduct: Releases (316,303.54) $120,126,637.69 Collections 118,820,264.17 2017 Outstanding Taxes $1,306,373.52 Collection Rates: All Property 98.91 % Excluding Motor Vehicles 98.82 % Motor Vehicles 100.00 % Delinquent Taxes Collections $1,406,690 Delinquent Taxes Outstanding $3,100,310 Prepaid Taxes: 2018 Taxes Collected $1,461,960 The Numbers Collected $2,555,079 more in current Iredell County taxes than previous year – up 2.2% Collected $484,449 more than was budgeted – 100.4% of original budget Fourteen year cumulative total $22.614 million over budgeted revenues Fourteen year cumulative delinquent collections $25,367,813 Collected for all jurisdictions: 6-30-18 $184,784,184 Tax Collection Actions Vehicle Tags Blocked 0 Tax Statements 1,164 Sheriffs Warrants 162 Debt Setoff 717 ($289,251) Garnishments 741 ($846,723) Credit Agency 0 Payment Arrangements 0 Lien Holder Letters 48 Bank Attachments 293 ($854,745) Tax Collection Problems Bankruptcies 100 for $124,056 (135 for $145,521 FY2017) 1,341 bankruptcy mail items with 1,860 researched Foreclosures filed 342 (decrease from 418) Collection Rates Last Nine Fiscal Years Fiscal Year Original Collection Rate Current Collection Rate 2017 98.85% 99.52% 2016 98.54% 99.63% 2015 98.58% 99.75% 2014 97.74% 99.71% 2013 97.06% 99.64% 2012 96.77% 99.62% 2011 96.81% 99.68% 2010 96.77% 99.69% 2009 96.89% 99.74% Average 97.56% 99.66% 3 August 7, 2018 Debt Setoff For the fiscal years 2002-2018, Iredell ranked 22nd in the state out of 505 units of government participating with $3,277,943 collected. Iredell County did not participate in 2002 and 2003. For all years, Iredell ranked 15 th among counties. Foreclosures As of this date, the collector’s office has sent 962 properties to foreclosure. 684 (71.1%) of these cases have settled with 278 open. We have collected $6,618,698 in current and delinquent taxes. * * * * * Furches said that history indicates a recession is due, inflation is up, mortgage rates are up, and car sales are leveling. Commissioner Houpe asked if the department is cross training employees. Furches said yes. However, there have been several recent personnel changes and the department is too small to cross train extensively. This item was placed on the consent agenda. Request from the Finance Department to approve BA #7 to appropriate additional funding to Iredell Statesville Schools based on an updated Average Daily Membership count and the corresponding increase to Mitchell Community College: Finance Director Deb Alford said Melissa Wike, Finance Director for ISS, called on July 12 to say the current expense was based on incorrect average daily membership. The membership is actually 50 students higher than what was budgeted. Alford reminded Wike that the numbers were doubled checked and signed- off by her (Wike). However, ISS is requesting the current expense for those 50 students which equates to $81,250. Mitchell Community College’s expense is based on the increase between ISS and Mooresville Graded so their current expense was increased as well. Alford proposed to take this money from School Debt Reserve. It will not increase the overall budget; it will just move $95,000 to the two school systems. Vice Chairman Bowles asked if the average daily enrollment is provided by the schools. Alford said yes. County staff estimates but then Terry Haas emails the number from MGSD and Melissa Wike submits the numbers from ISS. This item was placed on the consent agenda. BA#7 To appropriate School Debt Service Reserve to Iredell-Statesville Schools and Mitchell Community College due to change in school enrollment. 8/7/2018 Account # Current Budget Change Amended Budget 105700 560500 School Debt Service Reserve 4,479,181 (95,749) 4,383,432 105700 560001 Iredell-Statesville - Current Expense 37,108,500 81,250 37,189,750 105700 560401 Mitchell - Current Expense 3,458,231 14,499 3,472,730 Request from Emergency Management to accept the fiscal year 2018 North Carolina Tier II Grant from the North Carolina Department of Public Safety and approve BA #8 to expend the $1,000 award on the Local Emergency Planning Committee (LEPC): Emergency Management Director Kent Greene said this grant was submitted to the Board last fiscal year. It is a non-competitive grant from the Local Emergency Planning Committee. They award these grants to continue programs and bolster support of hazardous materials response and awareness throughout the County. The grant was awarded and will be used to purchase mobile weather 4 August 7, 2018 stations that will measure wind speed/direction, relative humidity, temperature, and dew point. The cost was about $271 above the $1,000 grant, however, several thousand dollars was received from McGuire that was above the budgeted amount which will cover the extra costs. The request is to approve budget amendment #8 to move the grant funds into department supplies. Commissioner McNeely asked about the Tier II grant in a Tier III County. Greene said the tier system is different in regards to municipalities or governmental entities. This is specific to hazardous materials facilities. It is not the same tier system. Chairman Mallory asked about the Local Emergency Planning Committee. Greene said the committee was originally formed under the super-fund amendment to identify hazardous material entities within local jurisdictions. The committee will work with those entities to report the chemicals or materials that were used, consumed, or produced in order for local responders to be aware of those particular dangers. Over the years it has become more of a planning committee that shares information. All records and information is on-line, so focus has been shifted to more response and preparedness. Chairman Mallory asked how new businesses know to report such information. Greene said material safety data sheets are required by all facilities, plus chemicals are required to have permits. These reports are shared with Emergency Management. It is not a perfect program but the EPA governs at the federal level. This item was placed on the consent agenda. BA#8 To accept and appropriate NC Tier II-2018 Grant for $1,000 8/7/2018 Account # Current Budget Change Amended Budget 104546 438405 54618 NC Tier II Grant - (1,000) (1,000) 105546 535000 54618 Supplies-Departmental - 1,000 1,000 Request from Emergency Management for approval of a three-year agreement with Hyper-Reach: Emergency Management Director Kent Greene said ConnectCTY was changed to Hyper-Reach two years ago. This is an emergency communication system that citizens can receive alerts for weather, rabies, tax bills, etc. This three-year agreement will lock in the cost. This item was placed on the consent agenda. Request from the Parks and Recreation Department for formal approval to change the location of the Ropes Challenge Course project from South Iredell High School campus to Jennings Park: Parks/Rec Director Michelle Hepler asked for formal approval to change the location of the Ropes Challenge Course from South Iredell High School to Jennings Park. Due to unforeseen infrastructure needs, it is cost prohibitive to move forward with the project at its current proposed site. Changing the location will save approximately $175,000. The Parks Department is recommending to the Iredell-Statesville School Board to continue with an existing agreement and partnership for the use of the 30 acres at SIHS for future recreational uses including an environmental education program and possibly a second ropes course. Parks and Rec does not want to sever any agreement nor forego any potential future collaboration with the school system. Hepler asked for permission to approach the school board on that issue. The change in location 5 August 7, 2018 will provide a new recreational feature to the citizens of North Iredell. Changing this location will also initiate the start of additional development at Jennings Park, which has been slo w and will show citizens that Iredell County is committed to developing the park. Also, upon approval, this will serve as a formal addendum to the Jennings Park site specific master plan that was adopted in March of 2018. Commissioner McNeely asked how the school system reacted to the change in location. Hepler asked County Manager Jones to send an email to Superintendent Johnson to inform him but cannot speak to his response. However, a conversation with Rob Jackson revealed that information was being circulated among the Board members. The members were disappointed but they understood the reasons. Vice Chairman Bowles asked if there was data showing the typical clients of the Ropes Course and if that clientele would no longer participate. Hepler said SIHS is within 10 miles of 62% of the clients. As it moves 15 miles further north it is planned to market to the demographics/populations such as Winston Salem, Mocksville, Hickory, Wilkesboro, and Elkin. Chairman Mallory asked the breakdown of the clients, such as corporate or individuals. Hepler said 80% are school students from 5th grade to 12th grade and even some college age students. The other 20% are adults from non-profit organizations or corporate clients. Commissioner Houpe asked the timeframe for the project. Hepler said the project will have to go out to bid, open for 30 days and then at the discretion of the bid process. The goal is to be open by March. Jones said funds are already set aside in Recreation’s budget. Vice Chairman Bowles said the Ropes Course was in south Iredell because of grants of land but in the event of the sale of the old ropes course property, money should be sewn back into the community in the southern end. Commissioner Norman said the money should go to Recreation in general because the Ropes Course originally came from North Iredell. This item was placed on the consent agenda. Request for approval of a Duke Energy Easement at South Iredell High School: Deputy County Manager Susan Robertson said ISS is preparing for a utility extension by Duke Energy to install a three phase electrical line for the well and irrigation system at the new ball fields at SIHS. The property is currently titled to Iredell County because it was used as collateral for the 2008 COPS. This item was placed on the consent agenda. Request from Administration for review and approval of a revised Tax Incentive Grant Policy: County Manager Beth Jones said times and projects have changed significantly. In order to be competitive the industrial incentive program needed updating. The previous policy did not consider the creativity that many businesses were asking. Corporate headquarters were not 6 August 7, 2018 treated any differently than industry. The new policy gives the board a little more discretion, flexibility and more diverse qualifiers are built in. Commissioner Houpe said many citizens do not understand the incentive program and suggested that someone read out loud the description of the policy during the regular meeting. Commissioner Norman asked to clarify what the citizens do not understand. Commissioner Houpe said they don’t understand the anonymity of businesses. They assume these companies would locate here anyway and they assume this Board is giving away tax dollars unnecessarily. They don’t understand the competitiveness. Jones said one important thing to point out is that when a company makes an investment and it hits the tax books, that’s when it is realized. The Board is not taking money from the pockets of tax payers. Economic Development Director Russ Rogerson said there is a great diverse environment in Iredell County which needs the flexibility to cover the breadth of that diversity. This item will be discussed and voted on during the 7:00 meeting. Request from the North Carolina Association of County Commissioners (NCACC) to submit legislative goals for the 2019-2020 biennium: County Manager Beth Jones said the deadline for submitting goals is September 21, 2018. Information will be sent to Department Directors requesting feedback. Chairman Mallory said this cannot be small nit-picky things. Jones said items submitted will be filtered to the top major issues. Commissioner McNeely said the Board will need to narrow items down to the top five. Jones asked for board members to submit their own individual goals as well. Chairman Mallory said the school calendar was not considered last time and should be resubmitted again. This item was for information only and will be discussed again later. Commissioner McNeely will be attending the Legislative Goals Conference in January as he is a member of the steering committee. Request from the Clerk to the Board for approval of minutes from the meeting on July 17, 2018: There were no corrections or comments. This item was placed on the consent agenda. UNFINISHED BUSINESS Commissioner Houpe said there was a discussion in early 2017 about fees that are paid to ISS for recreational use of facilities. Currently the County pays $25,000 annually for utilities which is the same amount since 1994. However, ISS will be sending a formal request to the County Manager to increase this fee to $50,000. Vice Chairman Bowles asked about the actual cost of using the facilities. 7 August 7, 2018 Commissioner Houpe said a report is being created and will be submitted to the County Manager. Jones said there was no request for an increase during the budget session. Commissioner Norman said this should have been mentioned at budget time and should be put on hold until the next budget session. COUNTY MANAGER’S REPORT County Manager Beth Jones will report about the promotion of Susan Robertson. Also, a dedication plaque is being created for the Public Safety Complex. A draft has been sent to each board member and Commissioner Houpe suggested to include a statement on the plaque to show appreciation to the tax payers, such as, “Made possible by the tax payers of Iredell County” or something similar. This statement could be placed on all such projects. Also, all Commissioners, current and past, that have been involved with the projects will be on the plaque as well. Chairman Mallory suggested to include the Project Manager’s name. Jones will send a final draft as soon as possible. CLOSED SESSION Chairman Mallory moved the Board into closed session at 6:10 PM for Economic Development pursuant to G.S. 143-318.11 (a) (4). The Board moved from closed session immediately into the 7:00 regular meeting. IREDELL COUNTY BOARD OF COMMISSIONERS REGULAR MINUTES August 7, 2018 The Iredell County Board of Commissioners met in regular session on Tuesday, August 7, 2018, at 7:00 PM, in the Iredell County Government Center (Commissioners’ Meeting Room), 200 South Center Street, Statesville, NC. Board Members Present Chairman James B. Mallory III Vice Chairman Tommy Bowles Gene Houpe Jeff McNeely Marvin Norman Staff present: County Manager Beth Jones, County Attorney Lisa Valdez, Deputy County Manager Susan Robertson, Finance Director Debra Alford, and Clerk to the Board Retha Gaither. CALL TO ORDER by Chairman Mallory. INVOCATION: Chairman James Mallory asked everyone to bow their heads for a moment of silence. PLEDGE OF ALLEGIANCE led by Chairman Mallory. ADJUSTMENTS TO THE AGENDA 8 August 7, 2018 County Manager Beth Jones made the following adjustment to the agenda: Move: Administrative Matters – Item VIII.7, Request to review and approve a revised Tax Incentive Grant Policy, will be moved to be considered following the Appointment Before the Board and before the Public Hearings. MOTION by Commissioner Houpe to approve the agenda as adjusted. VOTING: Ayes – 5; Nays – 0 PRESENTATION OF SPECIAL RECOGNITIONS & AWARDS Presentation of an American Heart Association Award to Iredell County EMS: Amy Craver, Heart and Vascular Outreach from Wake Forest Baptist Health, stated with pleasure, that the Iredell County EMS has earned the highest award possible for STEMI-care. STEMI is known as St-elevation myocardial infarction which is the most severe type of heart-attack. Iredell County has an EMS agency that can provide the best care of those patients. This is evident by the nationally recognized Mission Lifeline Gold Plus award from the American Heart Association. EMS Director Blair Richey accepted the award and stated that credit is due to staff who has performed at the same high level of standards for several years. EMS staff received the Gold award last year and continued to maintain excellence in care for citizens. Also, this award is not possible without cooperation from area hospitals, in-home facilities, and other support agencies. APPOINTMENTS BEFORE THE BOARD Request from Superintendent Brady Johnson to present the blueprint for Workforce Development in Iredell County: Chairman Mallory said about a year ago, this Board received word from the Economic Development team about the challenges of recruiting industry based on available workforce. It became evident to have a collaborative coordinated effort between the school systems, the economic development community, businesses, government, and non-profits to provide long term work force needs. Iredell Statesville Schools representative Todd Williams recognized others in attendance; Board of Education Chairman Martin Page and Deputy Superintendent Melany Taylor, MGSD CT Director Julie Blocker; VP for Instruction at Mitchell Community College Dr. Camille Reese, Chamber of Commerce Kristy Pfeufer, Interim Chamber CEO David Meacham, Chamber Board Chair Jeff Smith, Economic Development Jessica Stewart and MGSD Superintendent Dr. Steve Mauney. Williams continued with a power point presentation showing the blueprint for grades 6 – 14 to ensure there is a qualified workforce for the future. Williams presented to the Board an ACT Work Ready Community Award that was given to Iredell County in December of 2016. Chairman Mallory asked what process is in place to ensure that each and every young person in school has a plan. There are programs that touch the college bound group and programs for exceptional children but it’s the group in between that needs to be reached. This can’t be left to the guidance counselors and it can’t be a one-time event. Williams said that is a hard question but awareness is critical. Counselors, teachers, and coaches are mentoring these students. 9 August 7, 2018 Chairman Mallory said teachers reach out and touch every single child every day. This should be part of the curriculum for every child to have some awareness and choices. Guidance counselors have to be aware and be a resource to the teachers. Unless there is a demonstrable, inspectable deliverable for every single student, then there will be a perpetuation of a certain number of people that go through the system and come out without a job. Expectations are that every single child, bar none, is engaged and that an adult is accountable for that person’s plan. The focus should be on the kids of this county being able to provide local businesses with a top flight workforce. Commissioner Houpe said that, in order for these programs to be successful, is to continue to expose and inform the community. Communication is vital. These programs are essential to recruiting industry. Houpe expressed appreciation for everything the schools and businesses are doing. Chairman Mallory said the business community is doing a great job but these programs can’t be demonstrated once a year on career day, it has to be baked in. The business community needs to be involved more and share with teachers more information about the multiple opportunities available today. There is no end point, it requires constant product improvement. Mallory expressed appreciation to the group for their initiative to begin this long journey. ADMINISTRATIVE MATTERS Request from administration for review and approval of a revised Tax Incentive Grant Policy: Chairman Mallory said this policy will help Iredell County to be competitive with neighboring counties, neighboring states, and even other countries, to be able to attract the very best employers. The incentive process has previously been focused on industrial clients or expansion projects and doesn’t fit the potential businesses of today. Economic Development Director Russ Rogerson said economic development has changed dramatically over the last 25 years and policies have to change with the times. The types of projects, the competition, the whole process of what companies need has changed. This new policy will go a long way in meeting those needs. Jones said this policy has been under construction for quite some time with the help of this Board, the Economic Development Task Force, Mr. Rogerson and staff. This policy was created to give good guidelines but also some discretion to meet the demands of today’s market. The requirements and thresholds are still included but consideration has been given for such things as corporate headquarters. Commissioner Houpe asked to clarify that no incentive will be awarded if the applicant owes fees or taxes to Iredell County. Rogerson said that is correct. It is a performance based incentive that is a grant back of increased taxes created by the project itself. Commissioner McNeely said staff has been working on this policy for quite some time and the most important thing is to be flexible. Iredell County is competing with other counties and states. Many citizens have commented about ‘giving away money’ but that is not the case. This is money that the County did not have until the company came here. The County will receive 25% of the tax the company creates, plus jobs and future taxes. Without these companies, businesses, 10 August 7, 2018 manufacturing, and corporate headquarters, there would be no way to hold the tax rate as low as it is. Commissioner Houpe said the privacy and anonymity of these companies is vital. Citizens need to understand the Board does due diligence and vet these companies to protect the tax payers but privacy is important. Rogerson said the privacy has to do with market competitiveness and the impact on employees. Until a decision is officially finalized they usually do not want the company name released. Incentives are usually the last piece of the decision. Commissioner Norman said this process didn’t just now start, it’s been going for over 16 years. Iredell County has to compete in order to have jobs. MOTION by Commissioner McNeely to adopt the economic incentive policy with the change of the one word from “up” to “greater.” (Under Requirements, #2) VOTING: Ayes – 5; Nays – 0 * * * * * INDUSTRIAL DEVELOPMENT INCENTIVE PROGRAM (IDIP) IREDELL COUNTY Edited/Revised 7/25/2018 Purpose The purpose of the program is to broaden and diversify the development of new business and industry in Iredell County and to support the expansion of existing business and industry creating and/or retaining job opportunities for the citizens of Iredell County to promote the economic growth and welfare of the County. The program is adopted with the intent of complementing any incentive program that may be adopted by a municipality within Iredell County or by the State of North Carolina. The County encourages and supports the development of both new and expansion projects that develop the busin ess and industrial base of the County. Assistance may be provided through direct grants, infrastructure development, land acquisition, building and site preparation, or other means authorized under North Carolina General Statutes. There is no vested "right" to any assistance under this policy. Before the County will participate in any economic development project, it must be established that the increase in ad valorem taxes on real and personal property resulting from the project will, in the three (3) to five (5) years following essential completion of the project, equal or exceed the amount of funds provided by the County. The latest assessed value of the property as determined by the Iredell County Tax Assessor will be deducted in calculating the real pro perty basis. Notwithstanding other guidelines and requirements set forth below, assistance shall be limited to property developed within the boundaries of Iredell County and to new and existing businesses and industries locating to or expanding within Iredell County. Developer Incentive Consideration in providing infrastructure funding or other direct assistance will be provided only upon the assurance that the pay back in increased real property ad valorem tax revenues occurs within three (3) years. The ca lculations used to determine the incentive will be based on the current year tax levy computed at 100 percent collection. a) Estimates of valuation of property enhancement must be based on architect’s estimates, contracted construction, development costs, or development contracts in hand if third parties are involved. Other forms of proving the level of financial commitment may be considered on an individual basis. b) Increased tax revenues beyond the initial three (3) years will enhance the project desirability, but will not qualify for County funding. 11 August 7, 2018 c) Incentives for speculative buildings will be awarded based on the investment schedule provided in this policy. Capital Investment Projects Capital investment projects require the creation of jobs and an investment in buildings and equipment within the initial investment categories below which result in an increase to Iredell County’s tax base. These investments are intended to support the expansion of current industry as well as any new industry in Iredell County. The following business types (as defined by Standard Industrial Classification (S.I.C.) codes used by the State of North Carolina) are eligible for an economic development incentive subject to funding availability: manufacturing and assembly; processing; warehousing and distribution; data and information processing; and administrative headquarters. This policy does not provide incentives for retail, commercial or residential projects. Company headquarters and regional offices not qualifying on the capital in vestment amount, but creating administrative, professional level jobs paying 120% or more of the County Average Wage, may be approved for an incentive at the discretion of the Iredell County Board of Commissioners. The incentive amount shall be a maximum of 75% of the actual increase in property taxes generated by the project for a period of three to five years. The Total Economic Development Incentive awarded to a company may be adjusted at the discretion of the Board of Commissioners. The total economic development incentive awarded may be paid annually as it is earned, may be divided by the Eligible Number of Years and paid on annual basis, may be paid in a lump sum, or may be paid in other installments as deemed appropriate and at the discretion of Board of Commissioners Projects producing over $50 Million in new or expanded investment or the creation of more than 1,000 jobs paying the County average wage may be given special consideration for additional investment participation by Iredell County. Alternative Payment for Infrastructure On a case-by-case basis, the Board of Commissioners may opt to provide funding for infrastructure development, site work, etc., to a company at the beginning of a project, rather than through the incentive schedule. This may be done at the discretion of the Board of Commissioners and may reduce or preclude the incentive by an amount equal to the initial grant. No additional incentive will be paid to a company until the incentive earned on assessed value resu lting from investment exceeds the incentive amount advanced at the beginning of the project. The Board of Commissioners may participate in other development incentives as allowable by State Law such as TIG (Tax Increment Grant), Special Assessment Increment Bonds, etc. These and other incentive vehicles created by State Law will be considered on a case by case basis. Requirements Projects must meet one or more of the following criteria to be eligible for consideration for an incentive package:  Capital investment of at least $3 million for new companies  Capital investment of at least $1 million for existing companies (3 yrs.)  Full consideration will be given to companies that create quality jobs that include pay at or higher than the county's average wage (Average wage is determined by dividing total location payroll by the total number of employees)  The project meets all environmental laws and regulations of the State of North Carolina. County funds may be used in a manner consistent with GS 158-7.1 The parameters defining the level of the incentive award will be as follows: 1. An amount equal to 75% of the increased real and personal property tax value created by the capital investment may be used for incentive payments for a period of up to 10 years. 2. The standard incentive for projects with capital investment of $3 million or greater is 5 years. 3. Investments of $1 to $2.9 million are eligible for incentives up to 3 years. 4. Incentive agreements may be extended based upon meeting some or all of the following:  Wages at the county average wage (1 year additional)  Wages at 120% of county average wage (1 to 3 years additional) 12 August 7, 2018  Investment of more than $25 million (1 year additional)  Investment of more than $50 million (1 – 2 years additional)  Investment of more than $100 million and/or pay more than 120% of county average wage (up to 5 years additional) Application Process The following procedure will be used by industry in requesting industrial development incentive awards: 1. Company must submit a letter to the EDC along with an estimate of project investment and jobs. They must receive a favorable recommendation from the Iredell County Economic Development Corporation. 2. Must be willing to appear before the public at a hearing for the purpose of rec eiving input on the proposed incentive. 3. Must receive favorable vote from the Board of Commissioners following the public hearing. 4. Must be willing to enter into a formal agreement with the County within 180 days of approval to stipulate the commitment of the industry to the County. 5. Must be willing to reimburse the County if at any time a court of last appeal determines that incentive payments are in violation of the constitution or the l law. Adopted by the Iredell County Board of Commissioners on December 2, 1997. Revised and approved by the Iredell County Board of Commissioners on October 17, 2000. Revised and approved by the Iredell County Board of Commissioners in June, 2007. Revised and approved by the Iredell County Board of Commissioners August 7, 2018. * * * * * PUBLIC HEARINGS Public hearing for the consideration of an economic development incentive for Project G: Economic Development Director Russ Rogerson said Project G plans to build a 500,000 square foot speculative building off Murdock Road in Troutman. The building will be located within close distance to I-77, Exit 45. The company name is KB Godley II, LLC and owns about 140 acres of heavy industrial in Troutman. A Phase II could grow the building to one million square feet. Project G is a speculative building which means it will be under construction or completed before a tenant is identified. The building construction cost is budgeted at $25 million for the 500,000 sq. ft. building. Spec buildings are huge attraction tools. This project is different because it is a private company owner completely financing the $25 million investment. There is nothing like this building in Iredell today. The owner is taking on the full risk but asks for an incentive that will be passed on to the tenant once they have signed a lease. It is the intent to lease the building before construction is complete therefore the incentive request is designed to make it more price competitive. Providing incentives now will also show prospective companies that incentives are available if they locate in Troutman. If the building is completed without the incentive in place and no tenant, the companies wanting to lease the building will not be able to receive an incentive. The current (just adopted) policy covers spec buildings. Therefore, the request is for a tax back incentive to be granted for Project G for three years based on a minimum investment of $25 million. The three-year grant amount will not exceed $300,000. Further the incentive contract will require the owner transfer the incentive benefit directly to the tenant. Ms. Kathy Godley is the owner and owns other properties in Iredell County. Those entities owned by Ms. Godley have a total assessed value of more than $46 million and generate real and personal property taxes of a total of more than $580,000 per year. She is equivalent of a large employer in the community. She has been investing in Iredell County since 1996. Commissioner Houpe asked if this company meets all the qualifications of this policy. 13 August 7, 2018 Rogerson said yes. Chairman Mallory opened the public hearing. No one wished to speak and the public hearing was closed. Commissioner McNeely said that in Ms. Godley’s defense, she has been associated with another member of her family which has put her in a bad light. What one person does, another person may not have any say or participate with them. Ms. Godley has done a tremendous job in helping Iredell County grow. MOTION by Commissioner McNeely to approve an economic incentive up to $300,000 over a three-year period based on the company’s investment of $25 million and contingent upon a contract being executed within 180 days. VOTONG: Ayes – 5; Nays – 0 Public hearing for the consideration of an economic development incentive for Project Transformer: Economic Development Representative Chris Younger said Project Transformer plans to expand and update their existing manufacturing facility located in Statesville, NC. At this time the company does request to remain known as Project Transformer until a final decision has been made. They are a manufacturer wanting to add a new line of production. The project anticipates to create 22 new full time positions and generate $4.4 million in new tax investment. The project is expected to be completed by 2019. The request is for a tax back incentive for five years totaling up to $72,000. Chairman Mallory opened the public hearing. No wished to speak and the public hearing was closed. MOTION by Vice Chairman Bowles to approve an economic incentive of $72,000 over a five-year period based on the company’s investment of $4.4 million and contingent upon a contract being executed within 180 days. VOTING: Ayes – 5; Nays – 0 Public hearing for the consideration of an economic development incentive for Project Knox: Economic Development Director Russ Rogerson said Project Knox plans to expand an existing building for RV storage in Statesville. The company name is Fort Knox RV Storage and will locate at 224 Wilson Park Road, formally known as the Jansen Swimwear build ing. Project Knox is capable of housing a large amount of RV vehicles that would have a tax value estimated at more than $20 million annually. The project anticipates generating $3 million in new building investment this year and storing RV vehicles with a taxable value of more than $20 million. The request is for a tax grant back incentive to be granted to Project Knox for five years based on the minimum investment of $3 million and an additional five years on the building value if the RV storage is generating $20 million in taxable value to Iredell County for each of the next five years. The first five-year incentive has an estimated value at $58,200 as does the second five-year incentive if they qualify. Therefore, the total incentive value is $116,400. Commissioner Houpe asked if this meets the requirement and qualifications of the County’s policy. Rogerson said yes. 14 August 7, 2018 Commissioner McNeely feels this is very creative which is a good thing about the policy. Chairman Mallory opened the public hearing. No one wished to speak and the public hearing was closed. MOTION by Commissioner Norman to approve an economic incentive of $58,200 over a five-year period based on the company’s investment of $3 million and up to an additional $58,200 over an additional five-year period provided the company maintains a $20 million taxable storage inventory during the additional five-year period and contingent upon a contract bring executed within 180 days. VOTING: Ayes – 5; Nays – 0 Public hearing for the consideration of an economic development incentive to Project Boxes: Economic Development Director Russ Rogerson said Project Boxes has potential plans to locate a data center and manufacturing facility in Mooresville. At this time the company requests to remain known as Project Boxes until a final decision has been made. Project Boxes is a cloud based, co-location data center and manufacturer of patented protective equipment. They are considering locating their new facility at a Mooresville building along with the latest technology equipment with cloud based data storage and production line machinery/equipment. This project anticipates creating 44 full time positions paying slightly above the county average wage and generate an investment of $25 million to $175 million over a five-year period of time. The request is for a tax grant back incentive for Project Boxes for seven years based on a minimum investment of $20 million with the incentive totaling up to no more than $3 million over that period of time. Commissioner Houpe asked if this meets the requirement and qualifications of the County’s policy. Rogerson said yes. Vice Chairman Bowles asked if this particular project is well suited for Mooresville because of the uniqueness of the facility. Rogerson said absolutely. It is a great re-use of a building that will be productive in the community. The data center is a large power user and there are very few buildings that have a 3 megawatt power capability instantaneously which was a big attraction tool for this company. The company is budgeting a very aggressive scale up. The initial investment will qualify for the incentive but they will continue to scale up throughout the five-year period. Jones clarified that the maximum incentive is $3 million with the minimum investment of $20 million. Chairman Mallory opened the public hearing. No one wished to speak and the public hearing was closed. MOTION by Commissioner Houpe to approve an economic incentive of up to $3 million max, over a seven-year period based on a minimum investment of $20 million and a maximum investment of $175 million and contingent upon a contract being executed within 180 days. VOTING: Ayes – 5; Nays – 0 15 August 7, 2018 Chairman Mallory commended the staff for all the great work they have been doing with so many inquiries and responses. ADMINISTRATIVE MATTERS County Manager Beth Jones summarized the following items for the consent agenda:  Request from Tax Administration to present the annual tax settlement for 2017 along with orders for collection.  Request from the Finance Department to approve budget amendment #7 to appropriate additional funding for Iredell Statesville Schools based on an updated average daily membership count and a corresponding increase to Mitchell Communit y College which totals $95,749.00 for both.  Request from Emergency Management to accept the Fiscal Year 2018 NC Tier II grant from the North Carolina Public Safety into approved budget amendment #8 to expend the $1000 on the local emergency planning committee.  Request from Emergency Management for a three-year agreement with Hyper-Reach which is the telephone notification system.  Request from the Parks and Recreation Department for formal approval to change the location of the Ropes Challenge Course project from SIHS campus to Jennings Park.  Request for approval of a Duke Energy easement at SIHS.  Request from the NCACC to submit legislative goals for the 2019/2020 biennium. This was for informational purposes with a submission deadline of September 21.  Request from the Clerk to the Board for approval of minutes from July 17, 2018. Commissioner McNeely asked to have a small discussion on the average daily allotment that the school system requested. They were emailed and they confirmed a number but then after the budget was passed they realized the number was incorrect. The Board has agree d to go ahead with this but in the future there needs to be a date set, before the budget, that the number is confirmed and final. This puts the Board in an awkward situation considering the budget request they made. Staff should choose a date for the final numbers prior to the budget. Chairman Mallory said this is not additional dollars but a reallocation of dollars for their capital. Commissioner McNeely said this came from debt service which is not where it really needs to come from. MOTION by Commissioner Norman to approve the consent agenda. VOTING: Ayes – 5; Nays – 0 ANNOUNCEMENT OF VACANCIES OCCURING ON BOARDS & COMMISSIONS (None) APPOINTMENTS TO BOARD AND COMMISSIONS (None) PUBLIC COMMENT PERIOD (None) UNFINISHED BUSINESS 16 August 7, 2018 Commissioner Houpe said the school systems will be submitting some updated information on facility uses by the Parks and Recreation programs for the Board’s consideration of a potential fee increase from $25,000 to $50,000 for utilities. NEW BUSINESS (None) COUNTY MANAGER’S REPORT County Manager Beth Jones shared information on the following items:  Staff is creating a dedication plaque for the public safety building. Commissioner Houpe recommended, and it was discussed by the Board, to add a statement at the bottom of all dedication plaques that states, ‘Made possible by the tax payers of Iredell County.’ It is appropriate to acknowledge and recognize the tax payers because it is their funds that provide these facilities.  The announcement that Susan Robertson has been appointed as Deputy County Manager. The Administrative Team is pleased to have her as part of the team in a different capacity. Robertson certainly has a servants’ heart, a wealth of knowledge, and is a wonderful asset to Iredell County. Chairman Mallory expressed appreciation to Robertson as she is an integral part of the team whose mind is like a steel trap. CLOSED SESSIONS Chairman Mallory said one closed session was held immediately following pre-agenda related to matters of economic development. There are no actions to be taken at this time. Chairman Mallory moved the Board into closed session for an Attorney-Client matter pursuant to G.S. 143-318.11 (a) (3) at 8:55 PM. The Board returned to open session at 9:35 PM with no actions needed from closed session. ADJOURN MOTION by Commissioner Norman to adjourn at 9:35 PM. The next regular meeting will be Tuesday, August 21, 2018, 5:00 PM, in the South Wing Conference Room, Government Center, 200 South Center Street, Statesville, NC. VOTING: Ayes – 5; Nays – 0 __________________________________ ___________________________________ Date Approved Retha C. Gaither, Clerk