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HomeMy WebLinkAboutAgenda - 12-07-2020; 8-h - Proposed One-Year Extension to ABB’s Inc.’s Incentive Performance Agreement Concerning the Company’s Employment & Investment Target Dates 1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: December 7, 2020 Action Agenda Item No. 8-h SUBJECT: Proposed One-Year Extension to ABB's Inc.'s Incentive Performance Agreement Concerning the Company's Employment & Investment Target Dates DEPARTMENT: Economic Development, Manager's Office, Attorney's Office ATTACHMENT(S): INFORMATION CONTACT: 1. Performance Agreement — Orange County & ABB, Inc.(signed Aug. 2019) Steve Brantley, Director, Economic 2. Abstract for Orange County's Public Development Dept., (919) 245-2326 Hearing for Incentives for ABB, Inc. (dated July 23, 2019) 3. Orange County Media Release, (dated July 10, 2019) PURPOSE: Consider a request from ABB, Inc. for the Board to approve a waiver to the current Performance Agreement's Section 6. B (Delay of Inducement Package Initiation), and approve a 1-year extension in the company's contractual requirement to achieve overall employment hiring and investment goals over the first 5 years. BACKGROUND: On July 10, 2019, North Carolina Governor Roy Cooper, Orange County and the City of Mebane jointly announced a decision by ABB, Inc. to make a major industrial expansion at the firm's Orange County factory. At that event, the company committed to adding 403 new manufacturing jobs, with an average salary of $70,789 with benefits, and investing $39.9 million to build 200,000 sq. ft. onto the current facility. ABB chose to expand here following their multi- state analysis of several competing locations, and due to financial incentive offers by the State of North Carolina, Orange County and the City of Mebane. Orange County's $972,722 incentive was subsequently approved by the Board of Commissioners on July 23, 2019 following a required public hearing. The Performance Agreement was signed shortly thereafter. ABB is Orange County's #1 largest private employer, with nearly 600 current associates, and has the highest average salary of all Orange County manufacturing industries. With the addition of 403 new employees, the firm will retain its' top private employer position in the County. Orange County's Performance Agreement with ABB, Inc. (see Attachment a) requires the company to (1) add new 403 employee positions, and (2) complete a $39.9 million investment by the end of the first 5 years. These two targets are to be achieved between an assumed 2 commencement date of no later than June 30, 2020, and by or before the Dec. 31, 2024 termination date. The Performance Agreement's Section 6. B (Delay of Inducement Package Initiation) has language that gives ABB, Inc. the option to request an extension of up to a one- year as a result of an unforeseen delay, if needed, in order to meet required employment and investment goals. However, the contract's provision requires the Company to first submit a written request to the County by no later than June 30, 2020 (a date that has since passed). Due to 2020's COVID pandemic, many businesses across the State have experienced an unexpected and significant negative impact on their business activity, growth plans and employment during the current year. While ABB was able to substantially complete construction of its' new 200,000 sq. ft. factory addition, the firm's employment effort to add new 403 positions became stalled. Then in mid-2020, the North Carolina Department of Commerce announced a COVID-related financial remedy to ABB and similar businesses experiencing interrupted employment goals tied to State incentive goals. On June 30, 2020 the State contacted all corporate and industrial recipients of North Carolina's special recruitment incentives, to include ABB, and offered a special one-year extension to allow each of those firms one additional year of eligibility to meet the State's required employment and investment targets. The State's June 30, 2020 COVID relief measure sought to compensate businesses such as ABB for this year's unanticipated shut downs, and employment disruptions caused by the COVID pandemic. ABB, Inc. received the State's extension notice on June 30, 2020, and accepted that offer on August 26, 2020 regarding ABB's $4.3 million "Jobs Development Investment Grant" State incentive. Consequently, ABB missed the County's June 30, 2020 notification deadline, (as outlined in the Performance Agreement, Section 6. B), to submit a written request to the County to receive a one-year delay in the incentive schedule. ABB's timing to learn about, and receive a one-year extension on their State incentive created an unexpected 12-month mismatch with respect to Orange County's (and Mebane's) original local incentive agreements governing annual employment and investment target dates. As a result, the company contacted Orange County (and the City of Mebane) in early September, and asked for similar consideration with our local financial incentive agreement. REQUESTED ACTION: ABB, Inc. believes the unexpected consequences of the COVID pandemic that delayed their employment hiring schedule, plus the timing of the State's June 30 relief notice to extend North Carolina's incentive-related employment target dates, warrant Orange County's consideration to likewise align our existing Performance Agreement target dates for an additional year for ABB's employment and investment goals. The County Attorney advises that the Board of Commissioners may consider ABB's request by either (1) waiving the Performance Agreement's Section 6. B (Delay of Inducement Package Initiation) concerning the Agreement's now-expired June 30, 2020 notification deadline, or, (2) by amending the Agreement to establish new dates. The Agreement between the County and ABB currently requires the company to meet's its 403 employment target by December 31, 2024, and complete the $39.9 million total taxable investment by January 1, 2025. The Board's waiver of Section 6. B, if approved, would extend the Performance Agreement's termination date to January 1, 2026 and accommodate ABB's request. The City of Mebane has verbally informed ABB that it will grant a one-year extension on their joint $997,500 incentive agreement. 3 FINANCIAL IMPACT: There is no financial impact to the County associated with extending the start date of the 5-year incentive contract with ABB, since the County's Performance Agreement was previously approved by the Board on July 23, 2019 following a public hearing. SOCIAL JUSTICE IMPACT: The following Orange County Social Justice Goal is applicable to this item: • GOAL: ENSURE ECONOMIC SELF-SUFFICIENCY The creation and preservation of infrastructure, policies, programs and funding necessary for residents to provide shelter, food, clothing and medical care for themselves and their dependents. ENVIRONMENTAL IMPACT: There is no environmental impact associated with this agenda item. RECOMMENDATION(S): The Manager recommends that the Board receive and review the County's original Performance Agreement with ABB, Inc., waive Section "6 B" (Delay of Inducement Package Initiation) in the Performance Agreement, authorize the Company to receive one-year extension to enable a new January 1, 2026 termination date in the incentive contract, and authorize the Chair to sign an amendment to the Performance Agreement granting the waiver and authorizing the one-year extension. 4 Attachment 1 STATE OF NORTH CAROLINA ORANGE COUNTY PERFORMANCE AGREEMENT BETWEEN ORANGE COUNTY, NORTH CAROLINA, AND ABB, INCORPORATED This Performance Agreement("Agreement")made and entered into this the day of , 2019 by and between Orange County, a body politic existing under the laws of the State of North Carolina ("County") and ABB, Inc., a multinational corporation, with facilities to be located in Mebane, Orange County,North Carolina("Company"), for the purpose of incentivizing Company's investment in Orange County. Company is a multinational corporation situated and headquartered in Zurich, Switzerland,with North American headquarters in Cary,NC. Company's Facility shall expand their existing electrical components manufacturing. Company represents it is duly authorized to conduct business in North Carolina. It is understood that the levels of performance required by this Agreement are to be met by Company as a whole at its Facility in Orange County. Accordingly, the term"Company"as used in this Agreement refers to the entire group at such Facility. WITNESSETH THAT WHEREAS,the County has offered to the Company an inducement package as hereinafter set forth; and WHEREAS,the State of North Carolina and the City of Mebane,North Carolina have offered separate inducement packages to the Company; and WHEREAS, Pursuant to G.S. Section 153A-449, 158-7.1, and 158-7.2, as construed by the North Carolina Supreme Court in its opinion in Maready v. The City of Winston-Salem, et al, 342 N.C. 708 (1996), and other judicial authority,the County may enter into an agreement with the Company in connection therewith; and WHEREAS,the County finds that awarding the Company a grant based on its Total Taxable Investment will increase the taxable property base for the County and help create new jobs in the County at the agreed average annual salary, all of which will result in an added and valued benefit to the taxpayers of the County; and WHEREAS,but for the offer of an inducement package the Company would not be locating its manufacturing facility within Orange County. NOW, THEREFORE,the parties hereto in consideration of these mutual covenants and agreements passing from each to the other do hereby agree as follows: 1. DEFINITIONS. As used in this Agreement the terms below will have the following meanings: A. "Affiliate." A company that the Company controls, controls the Company, or is under common control with the Company. 5 B. "Baseline Employment." Number of employees, , employed by Company as of the date of execution of this Agreement. C. "Baseline Valuation." Current assessed valuation of the Subject Property as assessed by the Orange County Tax Administrator prior to the investment contemplated in this Agreement. Upon revaluation by the County the Baseline Valuation shall be adjusted as determined by the Orange County Tax Administrator. D. "Commencement Date." The date in which the Company begins actual production operations at the Subject Property, after having obtained applicable governmental approvals, certificates of zoning compliance, and certificates of occupancy. Unless delayed by causes beyond the control of the Company,the Commencement Date is anticipated to be no later than December 31,2020. E. "Company." ABB, Inc. and includes its affiliates, successors, and assigns. F. "Eligible Property." Includes (a)the Subject Property(as defined in Exhibit D,Legal Description of Real Property), other real property in the County, and all improvements the Company or an Affiliate of the Company constructs or installs, or causes to be constructed or installed, at the Subject Property or such other real property, including all buildings,building systems, and building improvements, and(b) all personal property (as defined in Exhibit C, Personal Property)the Company or an Affiliate of the Company purchases or leases and installs, at or relocates to,the Facility or such other real property. Does not include property valued for the Baseline Valuation. G. "Grant."An economic incentive grant to the County pursuant to Section 2 of this Agreement. H. "Inducement Grant." An economic development grant provided to Company for the purpose of securing the Company's location of its manufacturing facility in Orange County,North Carolina. I. "Minimum Taxable Investment." The aggregate Qualifying Expenditures made by the Company that Company anticipates will be made annually as reflected in Exhibit B and verified by the Orange County Tax Assessor and which will be used for calculating the annual Inducement Grant payment. J. "Orange County Facility"or"Facility." The Company constructed and/or owned primary and secondary structures,utilities, and operations and service areas situated on the Subject Property in Mebane, Orange County,North Carolina in and on which Company conducts its business and/or operations. K. "Person." Any individual,partnership,trust, estate, association, limited liability company, corporation, custodian,nominee, governmental instrumentality or agency, body politic or any other entity in its own or any representative capacity. L. "Personal Property." All personal property the Company or an Affiliate owns or leases located at the Facility, including all(a)machinery and equipment, (b) furniture, furnishings, and fixtures, (c)property that is capitalized for federal or state income tax Page 2 of 19 6 purposes, (d) all additions to any of the foregoing, and all replacements of any of the foregoing in excess of$100,000. M. "Qualifying Expenditure." All expenditures the Company, an Affiliate, or lessor to the Company or an Affiliate makes for Eligible Property which is subject to Tax in the County, and is not subject to an exemption or exclusion from Tax, that the Company uses. N. "State." The State of North Carolina. O. "Subject Property." The property on which Company constructs and/or operates the Orange County Facility. P. "Tax"or"Taxes." Ad valorem property tax levied on real and personal property located in the Count y pursuant to Article 25, Chapter 105 of the North Carolina General Statutes or any successor statute relating to ad valorem property tax the County levies on property. Q. "Term"or"Full Term." The duration of this Agreement meaning_August_, 2019 through and including January 31, 2025. R. "Total Taxable Investment." The taxable value of all Qualifying Expenditures made by Company in and to its Orange County Facility as of January 31, 2025. 2. INDUSTRIAL INVESTMENT AND EMPLOYMENT AGREEMENT A. INVESTMENT 1. The Company anticipates it shall, during the term of this Agreement, directly invest a Minimum Taxable Investment annually in accordance with the investment plan attached as Exhibit B in addition to 2019 assessments in real and taxable business personal property as described in Exhibit C and Exhibit D. If the Company does not make the Total Taxable Investment by on or before January 31, 2025 (and as may be extended below),the amount of the Inducement Grants will be adjusted as provided in Subsection 2A3. 2. The Company shall achieve the Total Taxable Investment by January 31, 2025. 3. If total increase of taxable investment falls below the Minimum Taxable Investment levels, due to failure to meet the investment goals set forth in Exhibit B or removal of equipment, as assessed by the Orange County Tax Assessor, the amount of the following annual Inducement Grant installment payment will be reduced by a pro-rata percentage of the shortfall. The Baseline Valuation shall be excluded from calculations to determine whether the investment goals have been met. B. EMPLOYMENT 1. On or before December 31,2024, at least 403 persons will be employed in full-time positions at the Facility("Jobs Minimum"). The number of full-time positions shall be evidenced by one or more Quarterly Tax and Wage Reports (Form NCUI 101) filed with the N.C. Employment Security Commission. Page 3 of 19 7 2. During the Term and at the expiration of this Agreement,the Company, and its Affiliates, shall employ, at the Facility in Orange County,new full time equivalent employees in accordance with Exhibit A. Employees counted toward the total numbers reflected in Exhibit A shall include only new employees of the Company employed and located at Company's Facility in Orange County,North Carolina provided such employees are employed in Orange County on a full time basis and are eligible to participate in Company sponsored health insurance programs. For purposes of this section"full time equivalent employees" shall be defined as actively employed individuals and shall not include vacant positions for which the Company is actively or otherwise recruiting and shall not include positions counted toward the Baseline Employment. It is understood that vacancies occur and that when such occur the Company will immediately, or as soon as is reasonably possible thereafter, fill said vacancies. The average wage of the 403 new full time equivalent employees shall be, as of the last day of this Agreement, at the annual rate of Seventy Thousand Seven Hundred Eighty-Nine dollars ($70,789.00). C. DEVELOPMENT GRANT PARTICIPATION: Where applicable,the Company agrees to partner, through the commitment to create new jobs,with Orange County and other applicable agencies to apply for development grants that will improve and/or add water, sewer, road or other necessary infrastructure in order to facilitate the successful completion of this project. The Company agrees to meet with program representatives, and to participate in the grant request process as necessary to secure the required funding. D. GUARANTEED MINIMUM LEVEL OF PERFORMANCE: The Company agrees that its minimum level of performance pursuant to this Agreement shall be as set out in this Section 2. Furthermore, Company agrees that failure to meet the minimum level of new employment as reflected in Section 2B shall entitle the County to make reductions in inducement installments paid to the Company in an amount of Five Hundred dollars ($500.00)per employee not hired as reflected in Exhibit A. Company further agrees that failure to meet the minimum level of direct investment as reflected in Section 2A shall entitle County to make pro rata reductions in inducement installments paid to the Company as set out in Section 3. It is agreed and understood by the parties hereto that the failure of the Company to meet the level of performance with respect to minimum level of investment or minimum level of new employment as specified herein shall not be considered a breach of this Agreement. E. STATUTORY COMPLIANCE: The Company understands that the County's participation is contingent upon authority found in North Carolina General Statute 158-7.1 and other relevant North Carolina General Statutes and that should such statutory authority be withdrawn by the North Carolina General Assembly County may terminate this Agreement without penalty to County and without further compliance with this Agreement. 3. INDUCEMENT PACKAGE A. COUNTY INDUCEMENT GRANT: Subject to the limitations set out herein the County, upon execution of this Agreement, shall provide to the Company an Inducement Grant to offset Facility development, expansion, and acquisition costs in an amount estimated at Nine Hundred Seventy-Two Thousand Seven Hundred Twenty-Two Dollars ($972,722.00)payable in five installments . The estimated annual amount of each year's grant payment is shown in Exhibit B. Page 4 of 19 8 The first installment shall occur on January3 1, 2020 upon receipt of proof, as described in Section 5 of this Agreement, that the minimum employment and investment numbers referenced in Section 2 of this Agreement have been met and proof that all outstanding local property taxes on the real and business personal property owned by the Company and located within Orange County, for which a bill for such taxes has been issued to the Company, have been paid. Subsequent annual installments will occur during the month of January for the term of this Agreement with the final installment occurring in January 2024. No installment shall be required to be paid until such time as County receives proof of the payment of all outstanding property taxes and verification of employment and investment levels has been submitted to the County. Subject to Section 3C the final Inducement Grant amount shall be determined based on the Company's Total Taxable Investment at the time of the final inducement installment and according to the formula in 3B. B. TOTAL COUNTY COMMITMENT: The maximum amount of the Inducement Grant payment is based on the Total Taxable Investment by Company in an amount of Thirty-Nine Million Nine Hundred Thousand Dollars ($39,900,000.00). The Inducement Grant payments shall be calculated based on the Company's Minimum Taxable Investment for the time period preceding the current Inducement Grant payment. County shall adjust the Inducement Grant payment amount according to the following formula: Amount of investment divided by 100 multiplied by the current ad valorem tax rate (currently $0.8679 per$100 of valuation) multiplied by 0.75 (percentage of inducement) multiplied by 5 (number of years). Utilizing this formula, and an estimate of depreciation as outlined in Exhibit B, a taxable investment currently estimated at Thirty-Nine Million Nine Hundred Thousand Dollars ($39,900,000.00)would result in an Inducement Grant in the amount of Nine Hundred Seventy-Two Thousand Seven Hundred Twenty-Two Dollars ($972,722.00)payable in 5 installments. Subject to 3C below, in the event the amount of taxable investment increases or decreases,the amount of inducement shall increase or decrease based on the formula specified herein, however the total amount of inducement shall not exceed Nine Hundred Seventy-Two Thousand Seven Hundred Twenty- Two Dollars ($972,722.00). Further,this example assumes a static Total Taxable Investment of Thirty-Nine Million Nine Hundred Thousand Dollars ($39,900,000.00)throughout the 5 year term. The formula specified herein shall be applied to the taxable investment annually during the term to determine the actual amount of the 5 inducement installments. C. MAXIMUM COUNTY COMMITMENT: The Inducement Grant SHALL NOT EXCEED Nine Hundred Seventy-Two Thousand Seven Hundred Twenty-Two Dollars ($972,722.00). This is the maximum allowable inducement amount based on an estimated Total Taxable Investment by the Company of Thirty-Nine Million Nine Hundred Thousand Dollars ($39,900,000.00). This maximum amount may be reduced based on lower than anticipated investment by the Company. 4. EXPANSION OPPORTUNITY Participation in this Agreement shall not exclude the Company from consideration for additional inducements from the County either during or upon completion of this Agreement. Future projects shall be considered on a case-by-case basis and induced at the discretion of the County based on new taxable investment and job creation in excess of the minimum levels outlined in Section 2 above. Any such agreement shall require a separate"Performance Agreement"which shall conform to all relevant North Carolina Statutes and/or Orange County Ordinances,Policies or Resolutions, shall be in writing, and shall be mutually agreed upon by the Parties. Page 5 of 19 9 5. PROOF AND CERTIFICATION The officials of the parties to this Agreement shall furnish the necessary reports and certificates to verify that each party's respective goals are met. Acceptable forms of proof for taxable investment shall be the records of the County Tax Administrator. Acceptable forms of proof of payment of taxes shall be in the form of cancelled checks, and receipts of payment from the County Tax Administrator. Acceptable forms of proof for employment numbers shall be in the form of a notarized statement from a North Carolina licensed Certified Public Accountant and shall be verified by the North Carolina Employment Security Commission. Until that date which is one (1)year following the date of the final Incentive Grant payment,the Company shall allow representatives of the County to enter the Facility during normal business hours upon forty-eight(48)hours prior notice for the purpose of confirming that the claimed investment and employment goals have been met. Company will not be held liable for injuries to representatives of the County while at the Facility. 6. REMEDY A. INDUCEMENT PACKAGE: If the County does not meet and maintain the terms set forth in the inducement package,the Company has the option to the rights set forth in Section 11A of this Agreement upon thirty (30) days written notice to the County. B. DELAY OF INDUCEMENT PACKAGE INITIATION: If the Company believes that it will not meet employment and investment goals that are to be met pursuant to this Agreement by June 30, 2020,the onset of this Agreement may be delayed up to one(1)year, at the option of the Company. Written notification of the exercise of this option to delay onset must be received by the County no later than June 30, 2020. In that event this Agreement shall initiate no later than June 30,2021 and shall expire no later than January 31, 2025. In the event the employment and investment goals are not met due to causes beyond the control of the Company, the period in which such employment and investment goals are to be met may, upon written notice to, and agreement by the County, be tolled by the period of such delay, up to one (1)year, caused by such causes beyond the control of the Company (for purposes of this Section 6B causes beyond the control of the Company are limited to delay in completion of public works construction such as access road,utilities, water, and sewer lines). Notwithstanding anything else herein the Commencement Date shall not be beyond June 30, 2022. If Company cannot meet this this Agreement shall terminate automatically without fault or further obligation to County. Company shall remain free to negotiate a new incentive agreement with County based on new terms and timelines. C. INVESTMENT AND EMPLOYMENT PACKAGE: If the Company does not meet and maintain either the investment or employment goals within the annual timetable set forth in this Agreement, and does not opt to delay the onset of this Agreement as described above,then the county will reduce the annual installment payment as set forth in Section 2D of this Agreement until such time as the Company once again meets both the investment and employment goals. Reduction shall be computed based on the percentage of the goal not met. In order to qualify for the full reimbursement, including recovery of any prior reductions,both investment and employment must meet or exceed the minimum standards outlined above prior to the natural termination of this Agreement. Page 6 of 19 10 7. SEVERABILITY If any term or provision of this Agreement is held to be illegal, invalid, or unenforceable, the legality, validity, or enforceability of the remaining terms, or provisions of this Agreement shall not be affected thereby; and in lieu of such illegal, invalid or unenforceable term or provision, there shall be added by mutually agreed upon written amendment to this Agreement, a legal, valid, or enforceable term or provision, as similar as possible to the term or provision declared illegal, invalid, or unenforceable. 8. COMPLIANCE WITH THE LOCAL GOVERNMENT BUDGET AND FISCAL CONTROL ACT OF NORTH CAROLINA GENERAL STATUTES All appropriations and expenditures pursuant to this Agreement shall be subject to the provisions of the Local Government Budget and Fiscal Control Act of the North Carolina General Statutes for cities and counties and shall be listed in the annual report submitted to the Local Government Commission by the County. 9. GOVERNING LAWS,DISPUTE RESOLUTION, & FORUM This Agreement shall be governed and construed by the Laws of the State of North Carolina. Any action brought to enforce or contest any term or provision of this Agreement shall be brought in the North Carolina General Court of Justice sitting in Orange County,North Carolina. The Parties hereto stipulate to the jurisdiction of said court. It is agreed by the parties that no other court shall have jurisdiction or venue with respect to any claims, complaints, suits, or actions. Binding arbitration may not be initiated by either party,however, the parties may agree to nonbinding mediation of any dispute prior to the bringing of a claim, complaint, suit or action. 10. INDEMNIFICATION The Company hereby agrees to indemnify, protect and save the County and its officers, directors, and employees harmless from all liability, obligations, losses, claims, damages, actions, suits,proceedings, costs and expenses, including reasonable attorneys' fees, arising out of, connected with, or resulting directly or indirectly from the business, construction, maintenance, or operations of the Company or the Facility or the transactions contemplated by or relating to this Agreement, including without limitation,the possession, condition, construction or use thereof, insofar as such matters relate to events subject to the control of the Company and not the County. The indemnification arising under this Article shall survive the Agreement's termination. 11. TERMINATION A. COMPANY: Upon Company's meeting its Employment and Investment obligations asset out in Section 2 above and upon Company's certification to such and certification of the payment of all real and personal property taxes, as set out in Section 5 above, then upon the occurrence of any of the following events, the Company shall have the option of terminating this Agreement: Failure of the County, to provide the initial inducement installment as provided in Section 3 of this Agreement; or, under the same circumstances, failure of the County to make future inducement installments, as provided for in Section 3 of this Page 7 of 19 11 Agreement. Should the Company exercise its option to terminate this Agreement,pursuant to this Section for failure by the County,the Company shall be entitled to retain all funds paid to or for the benefit of the Company pursuant to this Agreement. On the other hand, should the Company terminate this Agreement for any reason other than the default by the County to provide for any inducement installment to the Company, the Company shall repay to the County all funds paid to or for the benefit of the Company pursuant to this Agreement. Thereafter,the County shall have no further obligation to make inducement installments annually or otherwise. Any such termination of this Agreement by the Company shall be in writing and shall meet notice requirements as set out herein. B. COUNTY: The County shall have the option of terminating this Agreement upon any Abandonment of Operations by the Company,without penalty or further obligation to the County, which option shall be executed by giving written notice to the Company. Abandonment of Operations shall be defined as a period in excess of eight(8)weeks during which the Company's level of Full Time Equivalent Employees or Direct Investment goes below thirty percent(30%) of the guaranteed minimum levels of performance commitments for either Full Time Equivalent Employees or Direct Investment as reflected in Section 2 above. Notwithstanding the foregoing, if the aforesaid decline in the number of full time equivalent employees or the Company's failure to make the required direct investments is attributable to an overall national economic decline (as such may be recognized by the United States Bureau of Labor Statistics),this shall not be deemed an abandonment of operations entitling the County to terminate this Agreement, and the Company shall not be deemed in default. In such event,the Company's and the County's obligations shall be suspended for one year and resume thereafter. If after one year the aforesaid decline continues the County may declare an Abandonment of Operations and proceed as set forth herein. C. NATURAL: In any event, the above terms notwithstanding, this Agreement shall terminate upon the 3Pt day of January of the year in which the final financial inducement installment is made. 12. LIMITATION OF COUNTY'S OBLIGATION NO PROVISION OF THIS AGREEMENT SHALL BE CONSTRUED OR INTERPRETED AS CREATING A PLEDGE OF THE FAITH AND CREDIT OF THE COUNTY WITHIN THE MEANING OF ANY CONSTITUTIONAL DEBT LIMITATION. NO PROVISION OF THIS AGREEMENT SHALL BE CONSTRUED OR INTERPRETED AS DELEGATING GOVERNMENTAL POWERS NOR AS A DONATION OR A LENDING OF THE CREDIT OF THE COUNTY WITHIN THE MEANING OF THE STATE CONSTITUTION. THIS AGREEMENT SHALL NOT DIRECTLY OR INDIRECTLY OR CONTINGENTLY OBLIGATE THE COUNTY TO MAKE ANY PAYMENTS BEYOND THOSE APPROPRIATED IN THE COUNTY'S SOLE DISCRETION FOR ANY FISCAL YEAR IN WHICH THIS AGREEMENT SHALL BE IN EFFECT. NO PROVISION OF THIS AGREEMENT SHALL BE CONSTRUED TO PLEDGE OR TO CREATE A LIEN ON ANY CLASS OR SOURCE OF THE COUNTY'S MONEYS,NOR SHALL ANY PROVISION OF THE AGREEMENT RESTRICT TO ANY EXTENT PROHIBITED BY LAW,ANY ACTION OR RIGHT OF ACTION Page 8 of 19 12 ON THE PART OF ANY FUTURE COUNTY GOVERNING BODY. TO THE EXTENT OF ANY CONFLICT BETWEEN THIS ARTICLE AND ANY OTHER PROVISION OF THIS AGREEMENT, THIS ARTICLE SHALL TAKE PRIORITY. 13. LIABILITY OF PUBLIC OFFICERS No officer, agent or employee of the County or the Company shall be subject to any personal liability or accountability by reason of the execution of this Agreement or any other documents related to the transactions contemplated hereby. Such officers, agents, or employees shall be deemed to execute such documents in their official capacities only, and not in their individual capacities. This Section shall not relieve any such officer, agent or employee from the performance of any official duty provided by law. 14. MISCELLANEOUS A. ENTIRE AGREEMENT: This Agreement, including all exhibits attached, constitutes the entire contract between the parties, and this Agreement shall not be amended except in writing signed by the Parties. B. BINDING EFFECT: Subject to the specific provisions of this Agreement, this Agreement shall be binding upon and inure to the benefit of and be enforceable by the Parties and their respective successors and assigns. C. TIME: Time is of the essence in this Agreement and each and all of its provisions. D. CONSTRUCTION: Nothing in this Agreement shall be construed to the effect that the County has any right to influence the Company's business decisions or to receive business information from the Company(except as expressly provided in Section 2B and Section 5 hereof). E. SIGNATURES: This Agreement together with any amendments or modifications may be executed electronically. All electronic signatures affixed hereto evidence the intent of the Parties to comply with Article I IA and Article 40 of North Carolina General Statute Chapter 66. F. AUTHORITY: The parties and each person executing this Agreement on behalf thereof represent and warrant that they have the full right and authority to enter into this Agreement, which is binding, and to sign on behalf of the party indicated, and are acting on behalf of themselves, the constituent members and the successors and assigns of each of them. The parties shall reasonably assist one another and cooperate in the defense(should any defense ever be necessary) of this Agreement and/or the incentives granted hereunder, so as to support and in no way undercut the same. G. FORCE MAJEURE: Subject to the provisions of Section 6 neither party shall be liable towards the other party for non-compliance with its contractual obligations hereunder, if and to the extent such non-compliance is directly attributable to events of force majeure. Events of force majeure are events or causes which are not under a party's reasonable control and render the execution of a parry's obligations impossible. Each party shall forthwith inform the other Page 9 of 19 13 parties of the occurrence of a force majeure event preventing such party from complying with its contractual obligations. Force Majeure does not include failure of the Company to secure permitting necessary for the project to proceed. 15. COMPLIANCE WITH LAW A. NON-DISCRIMINATION: Company shall at all times remain in compliance with all applicable local, state, and federal laws,rules, and regulations including but not limited to all state and federal anti-discrimination laws,policies,rules, and regulations and the Orange County Non-Discrimination Policy. Company shall not discriminate against any person based on age, race, ethnicity, color,national origin,religion, creed, sex, gender, gender identity, gender expression, marital status, familial status, source of income, disability,political affiliation, veteran status, and disabled veteran status. Any violation of this requirement is a breach of this Agreement and County may immediately terminate this Agreement without further obligation on the part of the County. This section is not intended to limit and does not limit the definition of breach to discrimination. B. E-VERIFY, ISRAEL BOYCOTT,AND IRAN DIVESTMENT: By executing this Agreement Company affirms that Company, and any North Carolina Affiliates of Company, is and shall remain in compliance with Article 2 of Chapter 64 of the North Carolina General Statutes. By executing this Agreement Company certifies that Company, and any North Carolina Affiliates of Company,have not been identified, and have not utilized the services of any agent or subcontractor, on the list created by the North Carolina State Treasurer pursuant to Articles 6E and 6G of Chapter 147 of the North Carolina General Statutes. 16.NOTICES Any notices pursuant to and/or required by this Agreement shall be in writing and shall be delivered via United States Mail, certified,return receipt requested: If to Orange County; If to , Inc.; County Manager 200 South Cameron Street Hillsborough,NC 27278 Any addressee may designate additional or different addresses for communications by notice given under this Section to the other Party. Page 10 of 19 14 AGREEMENT REVIEWED AND ACCEPTED BY: President Attest: Inc. Chair Attest: Clerk to the Board Orange County Board of Commissioners Orange County Commissioners This instrument has been pre-audited in the manner required by the Local Government Budget and Fiscal Control Act. Chief Financial Officer Approved as to form and legal sufficiency. Office of the County Attorney Page 11 of 19 15 EXHIBIT A - PROJECT SUMMARY FORM FOR STATE OF NORTH CAROLINA INCENTIVE REVIEW PROJECT SUMMARY FORM ABB,Inc. Average Wages Avg-Annual New Jobs By Year 3-Year 5-Year Wage of ALL Minimum 403 New Avg.Annual 2020 2021 2022 2023 2024 TOTAL Tf_:TAL Jabs Wage of Jobs 104 274 8 8 386 403 $70,789 $70,789 New Investment By Year 3-Year 5-Year 2019 2020 2021 2022 2i 2:, TOTAL TOTAL Real Property $5,000,000 $16,600,000 $2,700,000 $0 =_ $24,300,000 $24,300,000 Tangible Personal Property $200,000 $10,200,000 S5,200,000 $0 S $15.600,000 $15.600.000 Total Investment 1 $5,200,0001 $26,800,000 S7,900,0001 1 $3 9.900.0 0 01 539,9009000 EXHIBIT B - PROPOSED ORANGE COUNTY INCENTIVE COMPANY $39,900,000 TAX RATE qP $0.8679 JOBS 403 INCENTPIE 75% of new property tax for 5 years AVERAGE WAGE $70,789 DEPRECIATION RATE 10% Real $5,000,000 $21,600,000 $24,300,000 $24,300,000 $24,300,000 $24,300,000 $24,300,000 $24,300,000 $24,300,000 $24,300,000 $24,300,000 $24,300,000 Pers Prop Yr 1 $200,000 $180,000 $162,000 $145,800 $131,220 $118,098 $106,288 $95,659 $86,093 $77,484 $69,736 $200,000 Pers Prop Yr 2 $0 $10,200,000 $9,180,000 $8,262,000 $7,435,800 $6,692,220 $6,022,998 $5,420,698 $4,878,628 $4,390,766 $3,951,699 $10,200,000 Pers Prop Yr 3 $0 $0 $5,200,000 $4,680,000 $4,160,000 $3,640,000 $3,120,000 $2,600,000 $2,080,000 $1,560,000 $1,040,000 $5,200,000 Pers Prop Yr 4 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Pers Prop Yr 5 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Pers Prop Yr 6 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Pers Prop Yr 7 $0 $0 $0 $0 $0 $0 $0 �-o $0 $0 $0 Tax Value $5,200,000 $31,990,000 $38,842,000 $37,387,800 $36,027,020 $34,750,318 $33,549,296 $32,416,358 $31,34-4,722 $30,329,250 $29,361,425 $39,900,000 i (2029) Total Property Tax $0 $45,_3_ $277,554 $337.110 $324,489 $312,679 5301,598 $291,174 $281,342 .5272,041 $263,219 $2,706,336 Incentives $0 -533,848 -52C8,166 -$252,832 -$243,367 -$234,509 $0 $0 $0 $0 $0 -$972,722 Annual Net $0 5",286 569,389 584,277 $91,122 $79,170 $301,598 $291,174 $291,342 $272,041 $263,219 $1,733,614 Cash Flow $C 5",283 580,67' S'64,949 5246,07' 5324,24' S625,839 59'7.C'6 5','98,354 5',47C,695 5',733,E'4 $2,000,000 51,s00,000 16 EXHIBIT C - BUSINESS PERSONAL PROPERTY Parcel Identification Number 9834088521 Address 6801 Industrial Drive, Mebane,NC 27302 2019 Orange County Personal Property Value $7,192,268 17 EXHIBIT D - DESCRIPTION OF REAL PROPERTY Parcel Identification Number 9834088521 Address 6801 Industrial Drive, Mebane,NC 27302 Acreage 100.75 Building Size 400,000 SF 2019 Orange County Real Property Value $12,889,300 18 2017i0270ed212059 DEED Bk:R88383 Py:392 FILED f r0i l�,lo � p tls�10�,uy�00n0 ht�tiral Esli% y000 Prepared by: Richard J. Archie WHITE & ALLEN, P.A. Mail to: Melissa Meyrowitz Weil, Gotshal & Manges LLP 767 Fifth Avenue, New York, NY 10153 Property wasYwas not Grantors primary residence NORTH CAROLINA SPECIAL WARRANTY DEED Orange Excise Tax: Exempt, pursuant to NC statute §105-228.29 Parcel No.: 9834087459 (Tract 1) and 983418559�8 (Tract 2) T�-- THIS DEED, made this 27th day of June, 2017, effective as of August 1, 2017 ("Effective Date"), by GENERAL ELECTRIC COMPANY, whose address is 1 River Road, Schenectady, New York 12345, Grantor; to INDUSTRIAL CONNECTIONS & SOLUTIONS LLC, whose address is 4200 Wildwood Parkway, Atlanta, GA 30339, Grantee; W I T N E S S E T H: That Grantor, for a valuable consideration paid by Grantee, the receipt of which is hereby acknowledged, has sold, and by these presents, does, as of the Effective Date, grant, bargain, sell and convey unto Grantee, his/her/their heirs and assigns, that parcel of land lying and being in MEBANE/ORANGE County, North lwmgpaog�ulannosen3 WEIL1991720441g1a7&011.Pf07 Submitted electrvnlcaSlyy by "Kennon Craver, PLLC" in corplf ante wl[h Notth CA Pali na statutes Bove rnf M1g re ro rda hie documents and bhe [e Prs of the subnitter agreements h the orange County Register of needs. 19 ����������I����Il�lllllllllllllll� IlgE5B3 393 l!5 Carolina, and more particularly described on Exhibit A attached hereto and incorporated herein by reference. This property was conveyed to Grantor by Deed recorded in the above named County Registry in Book 226, Page 731; nook 228; Page 829; Book 228, Page 1031; Book 232, Page 586: Book 232, Page 550; and Book 241, Page 1432. TO HAVE AND TO HOLD the aforesaid parcel of land and all privileges and appurtenances thereto belonging to the Grantee in fee simple. And the Grantor covenants with the Grantee that Grantor has done nothing to impair such title as Grantor received, and Grantor will warrant and defend the title against the lawful claims of all persons claiming by, under or through Grantor, subject to taxes and other assessments, reservations in patents and all easements, rights-of-way, encumbrances, liens, covenants, conditions, restrictions, obligations and liabilities, and such additional exceptions as may be hereinafter stated. Title to the property hereinabove described is subject to the following additional exceptions: None. The designation Grantor and Grantee as used herein shall include said parties, their heirs, successors and assigns, and shall, include singular, plural, masculine, feminine or neuter as ])D0 4"327J76MVk] WML.iKI?2041%9W? f M01 20 xg6aea aeo a�5 required by context. Grantor makes no other representations or warranties of any kind or nature, statutory express or implied. [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] j100M-OOV3711 766QW1] 3 wEx:tiee,l77usnirare7o.o7w 21 II���������I���VIIIIIV I I IIIIIII ViII W IN WITNESS WHEREOF,Grantor has duly executed the foregoing as of the day and year first above written GENERAL ELECTRIC COMPANY, a New York corporation Hy: Name:Au ngapore Title:Authorized Signatory ACKNOWLEDGMENT STATE OF CONNECTtCt1T } }SS.: COUNTY OF TO, } On the ...)7 day of nn 3 ,2017,before me,the undemlgned,personally appeared Aun Singapore, who acknowledged himerself selflh to he the Authorized Signatory of General Electric Company,a corporetlon,and that he/she,as such Authorized Signatory,belog authorized so to do,executed the foregoing instruments for the purposes therein contained by signing the name of the corporatlon by hlmsel}lherself as Aulhorized Signatory. In witness whereof I hereunto set my hand, kiruii,rr,, [n 1?pIA t g Notary Public r: ¢. ssidi��ty Data Commission Expires: OIA�} t eCNNkCS�C [Signature Page twgww Varra my Deed(Me ba me,North Gams trio)] 22 xHE iSIT A lying and being more ps rticutarly desodbed as tdlowsr TRACT 1" �4 qto� BEING all of that tract of land,containing 98.753 acres,more or less.Labeled as'Sewer Easement Plat Property of General Electric Cc.'and Shown on That plat dated July 13,2011 by Jeffrey P.Williams,Pf.S, and recorded in Plat Book 109,Page 15,Office of the Register of Deeds of Orange County,North Carolina, being most of the property conveyed to Deed Book 228.Page 731.Office of the Register of Deeds of Orange County,North Carolina. TRACT 2 Being all of that tract of land,containing 4 acres,more or less,adjoining the lands of Albright,William Holman and Oldham and more paraoularly described in the deed recorded rn Bock 61.Page 47,Office of the Register of Deeds of Oranga County,North Carolina.See also Deed Book 236.Page 784 and Deed Book 241,Page 1432.Of rrce of the Register of Deeds of Orange County.North Carolina. f3060oo-oo032fr766X rI 5 23 Abstract from ATTACHMENT 2 7/23/19 BOCC Meeting ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: July 23, 2019 Action Agenda Item No. 1 SUBJECT: Public Hearing and Decision Regarding an Economic Development Recruitment Incentive for ABB, Inc. DEPARTMENT: Economic Development Department, Manager's Office, Attorney's Office ATTACHMENT(S): INFORMATION CONTACT: A. Performance Agreement between Steve Brantley, Economic Development Orange County & ABB, Inc. Director, (919) 245-2326 B. PowerPoint Brief Summary Travis Myren, Deputy County Manager, C. ABB, Inc. Detailed Project Overview (919) 245-2308 D. Public Hearing Notice E. Orange County News Release PURPOSE: To: 1) Conduct a public hearing on the issuance of a performance-based economic development incentive by the County to a private company; and 2) Consider approval of a proposed five-year performance-based incentive agreement, with claw-back provisions, for the recruitment of ABB, Inc.'s manufacturing facility expansion in Orange County. BACKGROUND: Local and state government in North Carolina have the goal to promote economic development by encouraging the location of new businesses and the expansion of existing businesses. This activity serves to diversify the local tax base, increase employment opportunities and introduce desired job skills and related benefits to a community for the benefit of its residents. The Local Government Act, North Carolina General Statute (NCGS) 158-7.1 outlines the requirements of public hearings, and NCGS 158-7.1(a) specifically addresses the requirement that economic development appropriations "must be determined by the governing body of the city or county to increase the population, taxable property, agriculture industries, employment, industrial output, or business prospects of the city or county". This public hearing has been scheduled in compliance. Project Description: ABB, Inc., with an existing 400,000 square foot manufacturing facility located in western Orange County, plans to invest $39.9 million to update the existing manufacturing facility and expand the Company's total facility size by an additional 200,000 square feet. ABB also plans to add 403 24 new jobs over the next 5 years of operation at this facility. These jobs will include production, maintenance, office, and management staff and have an average salary of$70,789 per year. The ABB, Inc. plant in Orange County ranks as the County's largest private employer, with nearly 600 current associates, who hold the highest average salaried manufacturing jobs in the County. The original plant was acquired in June 2018 from General Electric's Industrial Solutions division. Under ABB's new management, in mid-2019, the Company hired the Deloitte U.S. site selection consulting firm to assist in the evaluation of ABB expanding operations either at the Company's competing Senatobia, Mississippi location or at the Orange County, NC plant. This competitive site search, code named "Project Clear Blue Sky", evaluated consolidating operations into one U.S. hub for the manufacturing, engineering, & related electrical products of ABB's "Distribution Services" line. As part of the location evaluation, ABB considered financial inducement proposals from the State of North Carolina, Orange County and the City of Mebane. The proposed incentive will be performance-based with respect to the County's annual verification of ABB's targeted increases in (1) employment, wages & benefits, and, (2) new taxable real & personal property value over the next five years, as the Company expands its Mebane presence. Incentives would only be paid following confirmation of the Company's required annual growth measures. Basis to Calculate the Value of Orange County Performance-Based Incentives: (1) INVESTMENT — ABB will increase property valuation by at least $24,300,000 in real property and at least $15,600,000 in personal property, to total $39,900,000 over 5 years as detailed in the table below. If these real and personal property valuation targets are not achieved, the proposed annual incentive payment will be reduced proportionally. Investment i i Real Property $5,000,000 $16,600,000 $2,700,000 $24,300,000 Personal $200,000 $10,200,000 $5,200,000 $15,600,000 Property Total $5,200,000 $26,800,000 $7,900,000 $39,900,000 (2) EMPLOYMENT - ABB will add net new employment consistent with the job growth chart below. If annual job targets are not achieved, the annual incentive payment will be reduced by $500 per full time equivalent employee not hired. By year #5, the Company will create 403 new positions with an average salary of $70,789 per year. _ Employment Projections ` 1 st Year 2"d Year 31d Year 4t" Year 5t" Year 2020 2021 2022 2023 2024 New Full Time 104 274 8 8 9 Jobs The proposed inducement payment will be in the form of a performance-based grant paid over a five (5) year period at an amount equal to 75% of ABB's projected net increase in real & personal property tax valuation. This specific formula represents the County's current incentive policy that has been offered in the past to other industrial and commercial prospects. It ensures that annual tax revenues from this project's additional investment, net of annual incentive payments, remain positive in all years of the incentive agreement. 25 A company representative has been invited to attend tonight's meeting and will be available for comment and questions. 16 14yange County Revenue Projection Years 1 st Year 2nd Year 3rd Year 4t" Year 5t" Year TOTAL 2020 _ 2021 2022 2023 2024 New Property Tax $45,131 $277,554 $337,110 $324,489 $312,679 $1,296,963 Revenues i Incentive -$33,848 -$208,166 -$252,832 -$243,367 -$234,509 -$972,722 1 L Payments Annual Net Revenues $11,283 $69,289 $84,277 $81,122 $78,170 $324,241 Orange (110 Years) New Property Tax $2,706,336 Revenues Incentive Payments -$972,722 Annual Net Revenues $1,733,614 Additional Partners' Participation: The State of North Carolina's "Economic Investment Committee" approved the following State incentives for ABB, Inc. at the North Carolina Department of Commerce's July 10t" meeting. Immediately following this event, a public announcement was held at the State Capitol Building in Raleigh, which was led by North Carolina Governor Roy Cooper, and attended by representatives from ABB, Inc., Orange County and the City of Mebane. The public announcement addressed ABB's decision to expand the Company's existing facility located in Orange County, instead of the competing location in Mississippi, subject to approval of local government incentives. I State of North Carolina — Incentives Sales Tax Exemption on Machinery & Equipment $1,053,000 Jobs Development Investment Grant $4,369,500 Rural Division Building Reuse Grant *(forgivable loan $500,000 _ N.C. Community College System's Customized Training $644,800 *Note Regarding the State of N.C.'s "Rural Division Building Reuse Grant": Orange County will have a managerial role as the "grant administrator" for the State of North Carolina's "Rural Division Building Reuse Grant" offer to ABB, Inc. This program is intended to support the renovation or expansion of vacant buildings, or buildings occupied by a company operating in North Carolina for at least 12 months. The program, which must be administered by a local government entity, requires the local government to hold a Deed of Trust on the building. This can create a potential financial obligation on the local government in the event the Company does not perform as expected. As ABB incurs actual costs associated with the facility improvements it plans to make to the existing building, and creates new employment, the $500,000 State grant will be passed through the County to the Company. The grant is in the form 26 of a forgivable loan that is satisfied once ABB fulfills all investment and employment requirements. To eliminate any financial risk for the County, the pass-through funds will not be requested from the State until the Company meets all investment and employment criteria and satisfies any other program requirements. City of Mebane ABB's existing facility is currently located within the City of Mebane's Extraterritorial Jurisdiction (ETJ). The Company has agreed to annexation and the City of Mebane will consider the following additional incentives at the August 5, 2019 City Council meeting and public hearing. 1. City of Mebane Incentives Performance Based Incentive $997,500 Waiver of Development Fees $150,000 FINANCIAL IMPACT: The attached Performance Agreement between Orange County and ABB, Inc. outlines a total financial impact of up to $972,722 payable in five (5) annual installments. Actual annual payments will be based on the Company's investments that create new property tax value of at least $24,300,000 in Real Property, and at least $15,600,000 in new Personal Property, totaling a combined $39,900,000 in new taxable value. Annual incentive payments by the County will be paid from net new property tax revenues generated by ABB, Inc. and from available Article 46 funds. The Company will create at least Four Hundred Three (403) full-time jobs with an average annual salary of$70,789 per year at the Mebane facility. Other economic benefit multipliers to the County include enhanced job skills for those employees through advanced technical training to be provided by the Orange County campus of Durham Technical Community College. Construction employment for the new 200,000 square foot facility, and renovations to the existing 400,000 square foot facility, will also create many additional skilled trade jobs. SOCIAL JUSTICE IMPACT: The following Orange County Social Justice Goal is applicable to this item: • GOAL: ENSURE ECONOMIC SELF-SUFFICIENCY The creation and preservation of infrastructure, policies, programs and funding necessary for residents to provide shelter, food, clothing and medical care for themselves and their dependents. RECOMMENDATION(S): The Manager recommends that the Board: (1) Conduct the Public Hearing and receive public comments; (2) Close the Public Hearing; and (3) Approve the five-year performance-based economic development incentive agreement between Orange County and the Company, ABB, Inc., subject to final review by the County Attorney, and authorize the Chair to sign the agreement on behalf of the County. 27 Attachment 3 ORANGE COUNTY NORTH CA.ROLINA. Media Contact: Steve Brantley, Director Orange County Economic Development Department Phone: (919) 245-2326 FOR IMMEDIATE RELEASE ORANGE COUNTY & NORTH CAROLINA SUCCESSFULLY WIN MAJOR MANUFACTURING EXPANSION OF EXISTING COMPANY, ADDING SIGNIFICANT NEW JOBS TO COUNTY ORANGE COUNTY, NC (July 10, 2019) —The Orange County Board of Commissioners, County Manager's Office and the Economic Development Department are announcing the successful expansion of the current ABB, Inc. manufacturing facility located in Mebane, NC, contingent upon local incentive approvals. The Swiss-Swedish multinational company has selected their existing Orange County location to consolidate a significant portion of ABB's Distribution Services portfolio of products into one U. S. hub. ABB acquired the former GE Industrial Solutions' 400,000 sq. ft. facility in June 2018 to strengthen its position in electrification globally and expand their access to the North American market. This operation currently employs a workforce of over 500 individuals who assemble highly sophisticated electrical components. Over the next five years, the company will invest up to $39.9 million to build a new, state-of-the-art 200,000 sq. ft. manufacturing facility, and create 403 new jobs that will provide health and retirement benefits. These new positions will offer highly competitive salaries that are expected to average $70,789.00 a year. "We are excited to see ABB continue to grow and invest in their operations here in Orange County," said Board of Commissioners Chair Penny Rich. "As one of our largest manufacturing operations, we look forward to the excellent new employment opportunities this corporate expansion will bring to the residents of our community." The State of North Carolina, to include Governor Cooper's office and the North Carolina Department of Commerce, were key players in securing the expansion commitment from ABB. In addition, the City of Mebane has partnered with Orange County to support the growth of the Company, which is part of the County's overall vision to develop the 28 Buckhorn Economic Development District. The project recruitment also included close assistance provided by the Economic Development Partnership of North Carolina, and ABB's site selection consultant Deloitte. Orange County recognizes the State's role in winning this expansion, specifically Governor Roy Cooper, N. C. Department of Commerce Secretary Tony Copeland, and the NC Community Colleges System, and appreciates their support of our community. "A comprehensive set of incentive offers were used to encourage ABB, Inc. to bring the expansion to Orange County, including performance grants from the County and City of Mebane, State of N.C. incentives, and technical training assistance of ABB's new employees through the North Carolina Community Colleges System," said Orange County Manager Bonnie Hammersley. "ABB's decision to select Orange County is contingent upon the successful negotiation of these items with the State, County and City of Mebane. I am personally delighted to see this exciting new development." The County's proposed performance-based incentives to ABB, Inc. will be discussed and voted on at a Public Hearing of the County Commissioners, scheduled for July 23, 2019. About ABB, Inc. ABB, Inc. is a pioneering technology leader with a comprehensive offering for digital industries. With a history of innovation spanning more than 130 years, ABB is today a leader in digital industries with four customer-focused, globally leading businesses: Electrification, Industrial Automation, Motion, and Robotics & Discrete Automation, supported by its common ABB AbilityTm digital platform. ABB's market-leading Power Grids business will be divested to Hitachi in 2020. ABB operates in more than 100 countries with about 147,000 employees. ABB employs over 3000 across North Carolina, more than in any other state.