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HomeMy WebLinkAboutAgenda - 05-16-1995 - VII-A •e 1 r ORANGE COUNTY BOARD OF CONMUSSIONERS Action Agenda Item Abstract Meeting Date: May 16, 1995 VII-A Subject: Utility Extension Reimbursement Department: Economic Development Public Hearing X Yes No Attachments: Information Contact: -Letter from Armstrong Ted Abernathy(Extension 2325) -Utility Extension Fund Procedures Telephone Numbers: Hillsborough 732-8181 Durham 688-7331 Mebane 227-2031 Chapel Hill 967-9251/968-4501 Purpose: To conduct a public hearing to consider utilizing the current Water and Sewer Policy and Utility Extension Fund to re-imburse Armstrong World Industries, Inc. for improvements to the water system serving the industrial area on Oakwood Street Extension. The improvement increases water pressure for fire protection and will allow Armstrong to purchase and expand a currently vacant building. Background: Armstrong World Industries, a company that manufactures foam insulation for pipe, has proposed buying a building near Mebane vacated by Greenwich NOS/Chock Full o'Nuts in Fall 1994. Phase I is proposed to be the,purchase and renovation of this building. No process water is used in this manufacturing process, except for recycling coolant water. Air emissions are permitted through the NC Dept of Environment, Health and Natural Resources. Employment at opening is projected to be 50-60 people,with end-of-first-year employment projected to be 110. Except for some management personnel, all employees would be hired locally. Armstrong has expressed interest in hiring those laid off by Greenwich Mills, and considering Orange County JOBS referrals. Net taxbase increase for the $8 million project is expected to be$5,448,434; annual net tax revenue increase; $48,219; five year net tax revenue$241,093. Future phases of the project will bring employment up to 125;buildings on the 20 acres of vacant adjacent land may also occur. The company has requested Orange County use its Utility Continued to Page 2 2 Page 2 Utility Extension Reimbursement March 21,1995 BOCC Meeting Extension Fund to upgrade the water pressure in the area for fire protection. This would require a water pressure pump station on a 12 inch water line from the Mebane system. The cost of such an improvement would be approximately $100,000 and will improve public safety for many businesses in the area. Recommendation: The Manager recommends that the Board of County Commissioners conduct the public hearing; and allocate a portion of the Utility Extension Fund during the next two fiscal years to reimburse Armstrong for the construction and engineering costs of the line improvements. Reimbursement during fiscal years 1995-96 would be $50,000 with the balance reimbursed in fiscal year 1996-97. Total reimbursement would not exceed $100,000. Based on the current Policy, Orange County has the option to contribute funds for projects that have a five- year payback in increased tax revenues. In this case, payback would occur in approximately 25 months. J ' (#�mstrong May 3, 1995 Chairman Moses Carey Orange County Commissioners P. 0. Box 8181 Hillsborough, NC 27278 Dear Chairman Carey: Armstrong World Industries, Inc. , is interested in locating a plant in Orange County near Mebane and is currently evaluating the feasibility of the building previously occupied by Chock Full O'Nuts on Oakwood Street Extension. The proposed plant would manufacture film pipe insulation. In addition, this facility would employ approximately 100-110 employees by the end of our first year of operation. The Company's investment at this location would be in excess of $8 million. In an effort to improve the utility services to the facility, Duke Power has offered to replace existing electrical transformers and discuss with us an "incentive rate" for power. Public Service Company of North Carolina has also offered to extend a larger gas line supply line to the plant, if necessary. In order for us to meet our insurance requirements in regard to sprinkler coverage, we are requesting that Orange County fund a water booster pump or water pressure station to help us meet our required fire protection standards. Estimated costs for a water booster pump range from $75,000-$100,000. Mr. Chairman, we thank you for considering our request and hope that you will act favorably on it. For your information, I have enclosed our 1994 Annual Report for Armstrong World Industries. If you have any additional questions, please contact me at 717/396-3211. Sincerely, E. Gary Nentwig Manager Real Estate Department CAB Enclosures Armstrong World Industries, Inc. PO. Box 3001 Lancaster Pennsylvania 17604 717-397-0611 ���'o✓� �� Eve ��/ l 12-21-93 4 , UTILITY EXTENSION FUND PROCEDURES Staff will review initial requests. Any recommendations for County participation should conform with existing Eater and Sewer Policy requiring maximum 5- year payback in increased property taxes. Five years is a maximum and staff is encouraged to limit County participation in any individual project so that more projects can be considered. A project must also be evaluated based on Goal 4, Section of the Policy that states: 1. The project must be assured of having the proper zoning at the proposed site; and 2. The project must improve job opportunities available to Orange County citizens, especially for women and minorities; and 3 . The project must provide jobs with wage scales in compliance with Orange County standards adopted from time-to-time; and 4 . The project must have a positive fiscal impact upon Orange County government (The cost of services to be provided by Orange County to the project must be less than the local taxes and other revenues paid to the County generated by the project. ) . A fiscal impact analysis shall be prepared by the applicant and verified by Orange county and using a model provided by Orange County. Once a request is made, the staff will present it to the EDC for a recommendation and then to the Board of County Commissioners for a decision to proceed or not. Reimbursements should be considered for construction and engineering costs. _ County funds should be used as repayment only after projects are finished and the County Engineer has insured substantial completion and compliance to County standards. Staff should consider need, job creation, wage levels, long- term repayment, long-term stability and any other criteria established by the Board of County Commissioners before making recommendations. The staff shall provide an annual review of projects funded and their status and impact to the EDC Board. i F