Charlotte-Mecklenburg Business Investment Program

Transcription

1 Charlotte-Mecklenburg Business Investment Program What is the Business Investment Program (BIP)? The Business Investment Program (BIP) seeks to encourage the creation, retention and/or expansion of new or existing businesses and jobs in identified Investment Zones within the community. The program provides grants to companies based upon the amount of property tax generated by the private business investment made. The program aligns itself with local Smart Growth, Transit, and the Business Corridor Revitalization Strategic Plans. Criteria for Evaluating Projects In making a recommendation for grant approval, the City will consider whether there is demonstrated competition from other cities and whether the company s planned relocation or expansion is a realistic choice given the company s product and market. Criteria will include a certification by company executives that the relocation or expansion is contingent upon receiving local incentives. Grant recipients will be encouraged to hire residents of Mecklenburg County and to use local small, minority and women owned businesses when such goods or services can be obtained at competitive prices. Eligible Business Growth Clusters Companies from the identified business growth clusters that are relocating or expanding to or within the program s geography may be eligible for participation in the program See Attachment I for a list of eligible business growth clusters. Eligible Geography Companies locating in the adopted Business Investment Zone (see Attachment II) will be eligible for participation in the program. The adopted zone includes the following areas: Center City Business Corridor Revitalization Geography Transit Station Areas 1 Arrowood-Westinghouse Industrial Area 2 University Research Park Coliseum/Tyvola Road Area Additional locations that are consistent with adopted land use policies and plans may also be considered, as well as projects that meet the program s definition of a Large Economic Impact Project as defined below. Grants may also be considered for projects that convert or adaptively reuse vacant Big Box retail sites, whether inside or outside the development zone, provided that the planned use is consistent with adopted plans for that area. 1 If an adopted Station Area Plan does not exist, the development zones will extend ¼ mile from transit stations identified in the Major Investment Study. 2 Transportation/Distribution and Manufacturing projects only. Revised December 2012

2 Program Guidelines and Requirements Investment $3 million Investment is broadly defined as improvements to land and/or buildings, or the purchase or lease of new equipment, or buildings constructed for the qualifying company. Where circumstances warrant, however, Grant calculations may give consideration to the value of leasehold improvements in existing buildings when it can be reasonably demonstrated that the lease will cause additional investment to replace the leased space, or that the lease results in a higher value for the building. Job Creation 20 new jobs; however, manufacturers creating less than 20 new jobs, but at least 10 may be considered for the program with a minimum investment of $6 million within the Investment Zone. Wage Rate Grant recipients must pay an average wage rate for all employees at the investment site equal to or greater than 100% of the average annual wage rate for the Charlotte-Gastonia-Rock Hill M.S.A. Should the projected annual average wage rate be less than the M.S.A. average, the City and County may consider the industry-specific annual average wage rate in making a determination regarding eligibility. The required average annual wage rate may be lowered by up to 20% for those companies that pledge to employ Work First participants and/or residents of the development zone itself in 25% or more of the new job positions. Terms and Amounts Grants last for three years and are based upon 90% of new property taxes generated by the investment. Existing businesses within Mecklenburg County are eligible for an additional two year term. Clawback Provisions Required investment and employment standards will be set forth in a contractual agreement between the City, County and Grantee. These standards must be maintained throughout the term of the Grant in order for payments to continue. Failure to maintain these levels during the Grant term will result in suspension of Grant payments until such time as the levels are once again met and maintained. Grant recipients that relocate outside of Charlotte during the term of the Grant or within 3 years after receipt of the final Grant installment will be required to repay a proportional amount of the Grant. 3 All wages are defined by the U.S. Bureau of Labor Statistics Area Occupational Employment and Wage Estimates. 2

3 Large Economic Impact Projects Investment $30 million Investment is broadly defined as improvements to land and/or buildings, or the purchase or lease of new equipment, or buildings constructed for the qualifying company. Where circumstances warrant, however, Grant calculations may give consideration to the value of leasehold improvements in existing buildings when it can be reasonably demonstrated that the lease will cause additional investment to replace the leased space, or that the lease results in a higher value for the building. Job Creation 150 new jobs; however, some projects may create fewer jobs yet more investment, or higher paying jobs with less investment, or a higher number of jobs with lower average wages, etc. For this reason, such projects could still be considered as a large economic impact project. Wage Rate Grant recipients must pay an average wage rate for all employees at the investment site equal to or greater than 125% of the average annual wage rate for the Charlotte-Gastonia-Rock Hill M.S.A. 3 Should the projected annual average wage rate be less than 125% the M.S.A. average, the City and County may consider the industry-specific annual average wage rate in making a determination regarding eligibility. The required average annual wage rate may be lowered by up to 20% for those companies that pledge to employ Work First participants and/or residents of the development zone itself in 25% or more of the new job positions. Terms and Amounts Grants last for five years and are based upon either 50% or 90% of new property taxes generated by the investment, dependent upon whether the project locates in the investment zone. Existing businesses within Mecklenburg County are eligible for an additional two year term. Clawback Provisions Same provisions as general programs guideline; however, clawback term will be five years instead of three. Major Headquarters Projects Major Headquarters Projects are defined as a corporate, divisional or regional headquarters of a Fortune 1000 company with an annual average wage that exceeds 200% of the regional average wage 3, (currently $89,200). Grants for such projects will be considered on an individual basis. 3 All wages are defined by the U.S. Bureau of Labor Statistics Area Occupational Employment and Wage Estimates. 3

4 ATTACHMENT I ELIGIBLE BUSINESS CLUSTERS Manufacturing Automotive/Transportation Equipment Energy Medical Devices Plastics Metalworking Industrial Machinery Defense & National Security Aerospace Consumer Products and Food Processing Research & Development Facilities Headquarters Corporate, Divisional & Regional Transportation/Distribution (Logistics) Truck transportation Support activities for transportation Warehousing and storage Financial, Insurance & Professional Services Financial investment & related activity Credit intermediation & related activity Insurance carriers & related activity Funds, trusts & other financial vehicles Professional & technical services Software development Back Office Operations o Excludes: Law Firms or Accounting Firms, or other professional service companies that predominantly serve the Charlotte region. Emerging Technologies/Industries Opto-Electronics Fuel Cells/Alternative Energy Bio-Informatics Film/Video Production Facilities Industries which create synergy with programs of focus at the Charlotte Research Institute or local colleges and universities. 4

5 S I-77 Hwy N I-77 Hwy Attachment II Business Investment Zone 1 McCoy Rd Vance Rd Ext Hambright Rd A Hucks Rd Ext lexanderana Rd Old Statesville R d E I-485 Inner Hwy Metromont Pkwy Hucks Rd Eastfield Rd Bro wne Rd R Hucks Rd Relocation idge Rd Ext Dearmon Rd Loganville Dr Hucks Rd idge Rd Prosperity R Prosp erity C hurch R d Ridge Rd Johnston-Oehler Rd Mallard Creek Rd Odell School Rd E I-485 Inner Hwy Miles Rozzelles Ferry Rd Brookshire Blvd Mt Holly-Hun tersville Rd Oakdale Rd W I-485 Outer Hwy Fred D Alexander Blvd Sunset Rd Lakeview Rd Statesville Rd W WT H arris Blvd Pete Brown R d W Sugar Creek Rd W Mallard Creek Church Rd N Tryon St E I-485 Outer Hwy Salome Church Rd S I-485 Inner Hwy Garden Pkwy C arow Belmeade Dr Moores Chapel R d Dixie River Rd Shopton Rd West inds Blvd Mt Holly Rd Steele Creek Rd N I-85 Hwy S I-85 Hwy Sam Wilson Rd Old Dowd Rd Garrison Rd S I-485 Outer Hwy N I-485 Inner Hwy Wallace Neel Rd West Blvd Brown-Grier Rd Westinghouse Blvd x Douglas Dr Sandy Porter Rd Tuckaseegee Rd Little Rock Rd Bellhave n Blvd Shopto n Rd Boyer St Josh Birmingham Pkwy Pine Oaks Dr Mount Holly Rd York mont Rd Beam Rd Todd ville Rd Morris Field Dr West Blvd W Tyvola Rd W Arrowood Rd Hovis Rd Alleghany St Ashley Rd Billy Graham Pkwy New Archdale Dr Freedom Dr Wilkinson Blvd Peachtree Rd Auten Rd Clanton Rd S Tryon St South Blvd N Hoskins Rd Remount Rd Beatties Ford Rd Tyvola Rd Arc hda le D r East Blvd Kenilworth Ave E Woodlawn Rd E Morehead St S Kings Dr Selwyn Ave Sharon Rd Statesville Ave Cindy Ln Atando Ave Queens Rd Gibbon Rd N Davidson St Hawthorne Ln Providence Rd The Plaza Central Ave Randolph Rd Fairview Rd E 7th St C olony Rd N Graham St Sharon View Rd Nevin Rd E 36th St Mathe s on Ave N Wendo ver Rd Eastway Dr Edgewood Rd Old Steele Creek Rd Rozzelles Ferry Rd G S Hoskins Rd le nwood Dr E Arrowood Rd E Hebron St Chesapeake Dr Tuckaseegee Rd W Woodlawn Rd Thrift Rd W Morehead St Griers Grove Rd Scaleybark Rd W 4th St Ext S Mint St Oaklawn Ave W Brookshire Frwy W 5th St W John Belk Frwy Scott Ave Park South Dr E John Belk Fr wy Dalton Ave W 12th St Runnym e E 4th St Sharon Ln City Blvd IB M Dr N Sharon Amity Rd Rama Rd Shamrock Dr Sardis Rd Mi l ton R d Monr oe Rd Sardis Rd North University City Blvd Old Concord Rd Albemarle Rd Gr E WT Harris Blvd Hickory Grove Rd Idlewild Rd ier Rd E Independence Blvd Lawyers Rd Nations Ford Rd W I-485 I ner Hwy Dow ns Rd Main St Park Rd Johnston Rd G le neagles Rd Quail Hollow Rd S Caswell Rd de Ln Seigle Ave W 30th St Ware Ave Parkwood Ave S Sharon Amity Rd Briar Creek Rd Morris Estate Dr E Sugar Creek R d Neal Rd N US Hwy 29 Bypass Kilborne Dr Shopping Center Dr Conference Dr Margaret W allace Rd E Mallard Creek Church Rd E Robin son Ch urch Rd Mission H N o rtheast Pkwy Rocky River Rd ills Rd Margaret Wallace Rd Idlewild Rd North east P k wy N Polk St S Polk St Pineville Rd Sharon Rd West E I-485 Outer Hwy Carmel Rd Elm Ln Rea Rd Pineville-Matthews Rd Old Providence Rd Alexander Rd Weddington Rd Matthews Township Pkwy W John St Business Investment Zone S Trade St W I-485 Inner Hwy Pleasant P McKee Rd E Matthews St lains Rd E John St Transit Stations: 1/4 Mile Buffer City of Charlotte McKee Rd Ext Neighborhood & Business Services, December 3, 2012