City approves tax incentive grant request for local company seeking expansion
Published 12:00 am Friday, November 6, 2020
By Natalie Anderson
SALISBURY — City council members on Thursday approved a level one tax incentive request and matching funds for a local business eyeing expansion in Salisbury.
City council members heard a presentation regarding “Project Hero,” which is a local company of 40-50 employees looking to expand and create 30 new full-time jobs over the next four years and invest $1.55 million in new equipment.
Tennessee is also being eyed, but Rowan Economic Development Commission Vice President Scott Shelton told city council members on Tuesday that the company would rather stay here if possible.
No one spoke during the public comment period on Tuesday regarding the grant request, and no one submitted comments to City Clerk Kelly Baker prior to Thursday’s reconvening to approve the request.
City council members approved the level one grant, which requires a minimum taxable investment of $5 million, with 75% of paid taxes returned as a grant.
Additionally, council members approved a 5% match from the city for a $120,000 building reuse grant the company is seeking from the state. The city has to file the request on the city’s behalf, and the match would be fulfilled with the grant awarded to the company, Shelton said.
The city will also submit an $80,000 One NC Grant request to the state on the company’s behalf.
Shelton said on Tuesday that the company would make a final decision by mid-December. Most of these improvements would be implemented by the end of 2021.
The Rowan County Board of Commissioners will hold a public hearing on this same project on Nov. 12 as they consider their own level one grant contribution, which Shelton estimates to be a little more than $38,000.
The current projection from the EDC shows that during the five incentivized years, the city would collect $55,915 in revenue and provide incentive grants totaling $41,935. The city would then retain $13,980 of revenue during the incentive term. Looking at a 10-year horizon, the EDC estimates the city would collect $69,891 in revenue total, with $11,183 in annual tax revenue after the incentive period concludes.
Upon closing his presentation to city council on Tuesday, Shelton said the agreement would be a win-win for the company and the city as it will support a valued existing customer.
Council members also added a closed session to the agenda before approving the incentive grant. No action was taken after the nearly two-hour long meeting.
Contact reporter Natalie Anderson at 704-797-4246.