HomeMy WebLinkAboutAgenda 12-09-2025; 5-a - Public Hearing Regarding a Proposed Economic Development Recruitment Incentive and Performance Agreement Between Orange County and CITEL America, Inc. (Project Rooster) 1
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: December 9, 2025
Action Agenda
Item No. 5-a
SUBJECT: Public Hearing Regarding a Proposed Economic Development Recruitment
Incentive and Performance Agreement Between Orange County and CITEL
America, Inc. (Project Rooster)
DEPARTMENT: Manager's Office
Attorney's Office
Economic Development Office
ATTACHMENT(S): INFORMATION CONTACT:
1. Proposed Performance Incentive Travis Myren, County Manager, (919)
Agreement 245-2308
2. PowerPoint Presentation John Roberts, County Attorney, (919)
3. Public Hearing Notice 245-2318
Steve Brantley, Director, Economic
Development, (919) 245-2326
PURPOSE: To:
(1) Receive information and hold a public hearing on the issuance of a performance-based
agreement by the County to a private development company; and
(2) Consider approval of the proposed five-year performance-based agreement, with claw-
back provisions, for the manufacturing facility recruitment of CITEL America, Inc.
BACKGROUND: Local and state governments 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, and 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.
Company Background:
CITEL America, Inc. is a privately owned French manufacturer of electrical Surge Protection
Devices (SPDs) that protect electronic and electric equipment from transient overvoltages caused
by lightning strikes, switching events, and electromagnetic interferences. The company was
formed in Paris, France in 1937 and expanded to the United States in 1985.
2
CITEL has eight (8) international offices and research and development sites, as well as a large
network of international distributors and partners providing support directly in the communities
they are serving.
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New Delhi
Thailand
Bangkok
CITEL is the only SPD manufacturer that produces its own Gas Discharge Tubes (GDTs). In
addition to GDTs, the company develops many of its critical surge components internally including
thermally protected varistors and high-energy varistor assemblies, giving the company extensive
knowledge of every minute detail of the parts that form an SPD. These components have a long
history of reliable performance and thanks to many patents, CITEL products are accepted as the
industry standard by many leading international companies.
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Project Description:
The Board is requested to consider an inducement incentive for the international industrial
prospect CITEL, a French-owned manufacturer and research & development firm for electrical
surge protection devices. This project involves the relocation of the company's United States
operation from Florida to Orange County.
• CITEL desires to relocate the current United States office and manufacturing footprint out
of Florida. This is driven by an increase in extreme weather events in Florida, and the
associated increase in costs. Proximity to the RDU Airport is also preferred, driven by direct
flights to Paris.
• An Orange County site would house both office and manufacturing operations and serve
as the new United States headquarters for the company.
• Project encompasses $15,250,000 million in total capital investment (forecast to occur in
2026 - 2030).
• 79 total jobs, with 38 new jobs to be created between 2025 — 2029 at an average annual
wage of $83,611 or approximately $40.20 per hour. It should be noted that 41 positions
currently based at the Florida location would be offered a transfer position to North
Carolina. The total number of employees to migrate and accept this offer is yet to be
determined.
• Competing sites are in Florida, South Carolina, Washington, and Texas. CITEL has
considered locations across the southeast that provide strong logistics, access to
workforce, high quality of life for employees, direct access to Paris and reasonable real
estate costs. Driving factors include overall operating costs and quality of life.
• Orange County's site is the former 80,596 square foot "Mid-Atlantic STIHL, Inc." building
located at 315 Executive Ct., Hillsborough, NC in the Meadowlands Business Park.
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Basis to Calculate the Value of Orange County Performance-Based Incentives
1) INVESTMENT — The Orange County incentive is based only on the $6,000,000 personal
property investment, and on the estimated $500,000 to $1,000,000 in net new real property
investment for upfit improvements to be made to the existing building.
Real Property:
Up to $9.25 million for an existing building, which includes CITEL making up to $1,000,000 in new
building upfit improvements. The value of the existing building is not included in the County's
incentive calculation.
Personal Property:
$6,000,000 in new taxable machinery and equipment investment.
$9,250,000 $0 $0 $0 $0 $9,250,000
$2,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $6,000,000
$11,250,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $15,250,000
2) EMPLOYMENT — CITEL 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 2029, the company will create 79 new
positions with an average salary of $83,611 per year.
6
New Full-
Time Jobs or= 3 43 11 11 11wRL 79
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The proposed inducement payment will be in the form of a performance-based grant payable in
up to five (5) installments over a five-year period at an amount equal to 75% of CITEL' s projected
net increase in real and personal property tax valuation over the five-year investment period as
outlined in the chart above for 2026 — 2030. It ensures that annual tax revenues from the project's
additional investment, net of annual incentive payments, remain positive in all years of the
incentive agreement.
frange County Revenue Projections
$17,553 $22,660 $27,255 $31,392 $35,050 $133,910
Tax
Incentive -$13,165 -$16,995 -$20,442 -$23,544 -$26,288 -$100,433
Payment
Annual
Net $4,388 $5,665 $6,814 $7,848 $8,763 $33,478
OrangeRevenue
New Property Tax Revenu $263,313
Incentive Payment -$100,433
Total $162,880
Additional Partner Participation
(1) The State of North Carolina has offered CITEL the following incentive programs to
encourage the company to locate the manufacturing facility in Orange County, instead of
choosing competing locations in other states, and, subject to approval of local County
government incentives.
State of North Carolina— Incentives 0i
State Tax Exemption on Machinery & Equipment Purchases $270,000
One North Carolina Fund $50,000
N.C. Community College System's Customized Training Value $118,500
Work Opportunity Tax Credit (WOTC) $52,800
Federal Bonding Program $90,000
Job Ready Grants $10,000
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(2) Capital Area Workforce Development (CAWD) has offered:
- Employment Recruitment and Screening Services
- Partnership with local agencies and institutions of higher learning
- On-The-Job Training reimbursement
- Incumbent Worker Training grant ($10,000)
FINANCIAL IMPACT: The financial impact encompasses a performance-based grant calculated
at 75% of actual net-new business and real property tax investment valuation for 5 years. The
purchase of the former Mid-Atlantic STIHL, Inc. building (Orange County 2025 Tax Value of
$8,108,800) that is already taxed by Orange County, is not included in the calculation. Only the
net-new investment in personal property (machinery & equipment), and approximately $750,000
in additional real property (for improvements to the existing building to be purchased) is proposed
to receive an incentive. The estimated five-year incentive total is $100,433. During the first ten
(10) years of operation, CITEL's investment is estimated to create up to $263,313 in total gross
property tax valuation, and $162,800 in net valuation in the County.
ALIGNMENT WITH STRATEGIC PLAN: This item supports:
• GOAL 6: DIVERSE AND VIBRANT ECONOMY
OBJECTIVE 6. Provide workforce and business development resources to enhance the
skills of residents of the County.
RECOMMENDATION(S): The Manager recommends that the Board:
(1) Receive the proposal to consider entering a Performance Agreement for the purpose of
incentivizing CITEL's investment in Orange County;
(2) Conduct the Public Hearing and receive public comments;
(3) Close the Public Hearing; and
(4) Approve the performance-based incentive agreement between Orange County and CITEL
America, Inc., subject to final review by the County Attorney, authorize the Chair to sign
the Performance Agreement on behalf of the County, and authorize the County Manager
to sign any contract amendments up to the maximum performance incentive amount of
$100,433.
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Attachment 1
STATE OF NORTH CAROLINA
ORANGE COUNTY
PERFORMANCE AGREEMENT BETWEEN ORANGE COUNTY,NORTH CAROLINA,
AND CITEL AMERICA,INC.
This Performance Agreement("Agreement")made and entered into this the day of 92025
(the"Effective Date")by and between Orange County, a body politic existing under the laws of the
State of North Carolina("County") and CITEL America, Inc., a subsidiary of CITEL, a multinational
corporation, with facilities to be located in Hillsborough, Orange County,North Carolina("Company"),
for the purpose of incentivizing Company's investment in Orange County. The County and Company
may be referred to as Party or Parties.
Company's ultimate parent is a multinational corporation situated and doing business in Paris, France.
The Company intends to establish the USA headquarters, office and electrical products manufacturing
facility in Orange County. 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(as hereinafter defined)in Orange County. Accordingly,the term
"Company"as used in this Agreement refers to the Company and any of its Affiliates conducting
business at the 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 has offered a separate inducement package 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,the Company has agreed to meet and continue meeting the minimum investment and
employment requirements as hereinafter set forth; 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:
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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.
B. "Baseline Employment." The number of employees, none (0), employed by Company
as of the Effective Date.
C. "Baseline Valuation." The then-current assessed valuation of the Subject Property as
assessed by the Orange County Tax Administrator for the most recent County
revaluation prior to the Commencement Date.
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 31,2026.
E. "Company." CITEL America, Inc., its Affiliates, successors, and assigns.
F. "Eligible Property." Includes (a) the Subject Property, together with other real property
in the County owned by Company("Additional Property"), 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 any Additional Property, including all
buildings,building systems, and building improvements, the estimated value of which is
described in Exhibit C, and(b) all Personal Property the Company or an Affiliate of the
Company purchases or leases and installs at, or relocates to,the Subject Property or any
Additional Property, the estimated value of which is described in Exhibit C. Does not
include property valued for the Baseline Valuation as noted in Exhibit D,Description of
Existing Real Property and Exhibit E,Description of Existing Personal Property.
G. "Inducement Grant." An economic development grant provided to Company for the
purpose of securing the Company's commitment to locate its manufacturing facility and
USA headquarters in Orange County,North Carolina.
H. "Minimum Taxable Investment." The aggregate Qualifying Expenditures made by the
Company that Company anticipates will be made annually as reflected in Exhibit C and
verified by the Orange County Tax Assessor and which will be used for calculating the
annual Inducement Grant payment.
I. "Orange County Facility"or"Facility." The Subject Property and the improvements
now or hereafter located on the Subject Property or any Additional Property, including,
without limitation, the Company-constructed or owned primary and secondary
structures,utilities, and operations and service areas located in Hillsborough, Orange
County,North Carolina in and on which Company conducts its business or operations.
J. "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.
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K. "Personal Property." All business personal property, other than real 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 purposes, and(d) any and all additions or
replacements of any of the foregoing in excess of$100,000.
L. "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 which is not otherwise subject to an exemption or exclusion from Tax, that
the Company uses.
M. "State." The State of North Carolina.
N. "Subject Property." The property on which the Company operates the Orange County
facility having Parcel Identifier Number 9873891841.
O. "Tax"or"Taxes." Ad valorem property tax levied on real and Personal Property
located in the County 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.
P. "Term"or"Full Term." The duration of this Agreement commencing as of the Effective
Date and through and including June 30, 2031.
Q. "Total Taxable Investment." The taxable value of all Qualifying Expenditures made by
Company in and to its Orange County Facility as of December 31, 2030.
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 C in addition to the amount of the 2025 assessments in real and taxable
Personal Property attributable to the existing Facility as described in Exhibit D and
Exhibit E. If the Company does not make the Total Taxable Investment on or before
December 31, 2030 (and as may be extended below), the total amount of the
Inducement Grants will be adjusted as provided in Subsection 2.A.3.
2. The Company shall invest the Total Taxable Investment by December 31, 2030.
3. If the total increase of taxable investment falls below the Minimum Taxable Investment
levels, due to failure to meet the investment goals set forth in Exhibit C 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;provided,however,the foregoing shall not be deemed to limit the total
amount of the Inducement Grant available to the Company and so long as as any
shortfall in Minimum Taxable Investment in any given year is invested in a subsequent
year, Company shall be entitled to recoup any prior reductions in the payment of the
Incentive Grant so long as the Total Taxable Investment occurs on or before December
31, 2030. The baseline for measuring whether the investment goals have been met(i.e.
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the 2025 tax assessments) shall be adjusted prior to the Commencement Date(1)
upward, if there is an increase in the assessment of the Company's real property and(2)
downward,to reflect the natural decline in the value of the Company's personal property
(existing in 2025 and acquired thereafter in the course of the new investment) as
measured by the depreciation of such property in accordance with generally accepted
accounting principles.
B. EMPLOYMENT
1. On or before December 31,2029 at least 79 net new positions filled with full-time
equivalent employees will be created at the Facility as reflected in Exhibit B. The
number of full-time positions shall be evidenced by one or more Quarterly Tax and
Wage Reports (Form NCUI 10 1) filed with the N.C. Employment Security
Commission. Net new positions means positions added above and beyond Baseline
Employment. If 90%of the net new positions are not achieved on or before December
31, 2029 (or as extended as provided below),the amount of the Grants will be adjusted
as provided in Section 2.D. and Section 6.
2. During the first year of operation following the year in which the Commencement Date
occurs, Company and County agree Company shall hire 3 new full time employees at the
Facility. During the second year of operation the Company shall hire an additional 43
new full time employees at the Facility for an aggregate total of 46 new full time
employees at the Facility. During the third year of operation the Company shall hire at a
minimum an additional 11 new full time employees for an aggregate total of 57 new full
time employees at the Facility. During the fourth year of operation the Company shall
hire an additional 11 new full time employees for an aggregate total of 68 new full time
employees at the Facility. During the fifth year an additional 11 new full time
employees shall be hired for a final and ongoing aggregate 79 full time employees at the
facility. At the expiration of this Agreement,the Company shall employ, at the Facility
in Orange County, at least the equivalent of 79 new full time employees in accordance
with Exhibit B.
3. Employees counted toward this total shall include only new employees of the Company
in the State of North Carolina employed and located at Company's Facility in Orange
County above and beyond Baseline Employment,provided such employees are
employed in Orange County on a full time basis. Employees of the Company will be
eligible to participate in Company sponsored health insurance and retirement programs.
For purposes of this section"new full time employees" shall be defined as actively
employed individuals and shall not include employees or positions counted for Baseline
Employment or vacant positions for which the Company is actively or otherwise
recruiting 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 79 new full time employees shall be, as of the last day of this
Agreement, at the annual rate of$83,611.00.
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 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.
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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 2.B. 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 B. Company further agrees that failure to meet the minimum level of direct
investment as reflected in Section 2.A. 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,the County may terminate this Agreement without penalty to
County and without County's further compliance with this Agreement. If a court having lawful
jurisdiction determines the inducement grant itself is illegal, invalid, or unenforceable this
Agreement shall immediately terminate without further obligation to the Parties except that the
amount of any portion of the inducement grant already paid by the County shall be reimbursed
to the County by the Company.
3. INDUCEMENT PACKAGE
A. COUNTY INDUCEMENT GRANT: 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 up to and not to exceed One Hundred Thousand Four Hundred
Thirty Three Dollars ($100,433.00). This Inducement Grant shall be payable in up to five
installments over a five-year period(the "Inducement Grant Period"). The Inducement Grant,
including each individual installment thereof, represents approximately seventy-five percent
(75.0%) of the actual property tax for real and Personal Property taxes attributable to the amount
of the Total Taxable Investment due and paid in each year of the Inducement Grant Period,up to
the maximum not to exceed amount. The estimated annual amount of each year's grant payment
is shown in Exhibit F for years two (2026) through six(2030). Subject to Section 6.B.,below, or
delays caused by an event of Force Majeure, the first and second installments of the Incentive
Grant shall occur no later than June 30 of the 2027 and 2028 calendar years respectively,upon
receipt of proof reasonably satisfactory to the County, as described in Section 5 of this
Agreement, that the investment numbers referenced in Section 2 of this Agreement have been
met and that all local property taxes on the real and Personal Property owned by the Company
and located within Orange County have been fully paid. Subsequent annual installments are
anticipated to occur during the month of January for the term of this Agreement upon receipt of
proof reasonably satisfactory to the County that the minimum employment and investment
numbers have been met and that all local property taxes on the real and Personal Property owned
by the Company and located within Orange County have been paid in full. Should the Company
meet the investment goals before all job creation has been completed, the County will withhold
$500.00 per job that may remain to be created by December 31, 2029 and will pay out the final
amount upon proof satisfactory to the County of the job creation according to the job schedule
outlined in Exhibit B.,with the final installment occurring by June 30,2031. No installment
shall be required to be paid until such time as the County receives proof of the payment of all
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property taxes and verification of employment and investment levels have been submitted to the
County.
B. TOTAL COUNTY COMMITMENT: The total County commitment for the Inducement
Grant outlined in Section 3.A. shall not exceed One Hundred Thousand Four Hundred
Thirty Three Dollars ($100,433.00).
4. EXPANSION OPPORTUNITY
Participation in this Agreement shall not exclude the Company from consideration for additional
inducements from the County either during or after the Term 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 Orange County Ordinances,Policies or
Resolutions, shall be in writing, and shall be mutually agreed upon by the Parties.
5. PROOF AND CERTIFICATION
The officials of the Company shall furnish the necessary reports and certificates to verify that
the goals set out in this Agreement are met. Once the Company maintains its investment and
employment goals for one year following the conclusion of the term of this Agreement it will no
longer need to furnish these reports to the County.
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 or Finance Officer.
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 written notice for the purpose of confirming that the
claimed investment and employment goals have been met and maintained.
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 11.A.
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
December 31, 2026, the onset of the Inducement Grant Period may be delayed up to one(1)
additional 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 December 31, 2026. In that event
this Agreement shall initiate no later than December 31, 2027 and shall expire no later than June
30, 2033. Notwithstanding anything else herein the Commencement Date shall not be
beyond December 31, 2027. If Company cannot meet these requirements this Agreement
14
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 2.1). of this Agreement
until such time as the Company once again meets both the investment and employment goals.
Reduction shall be computed, exclusively by the County,based on the percentage of the goal not
met. In order to qualify for the full Inducement Grant, 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.
7. SEVERABILITY
If a court having lawful jurisdiction determines any term or provision of this Agreement is
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 brought pursuant to this Agreement. 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(a)the Company's gross
negligence or intentional misconduct with regard to the business, construction, maintenance,
15
or operations of the Company or the Facility, or(b) the transactions contemplated by or
relating to this Agreement, insofar as such matters relate to events subject to the control of
the Company and not the County. It is the intent of this section that the Company will
indemnify the County to the maximum extent authorized by law, in such circumstances as
described in subsections (a) and (b) of this Section. The indemnification arising under this
Section 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
Agreement. Subject to Section 2.E., should the Company exercise its option to terminate this
Agreement,pursuant for failure by the County to provide inducement installments,the Company
shall be entitled to retain all funds paid to or for the benefit of the Company pursuant to this
Agreement. 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 ninety(90) days 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 National Bureau of
Economic Research), 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 30th day of June of the year in which the final financial inducement
installment is made.
16
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
North Carolina 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 any action
or right of action on the part of any future county governing body.
To the extent there is a conflict between this Section and any other provision of this
Agreement,this Section shall have 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.Neither Party may assign their rights,
responsibilities, or interest in this Agreement without the prior written consent of the other
Party,with such consent not being unreasonably withheld, conditioned, or delayed by either
Party.
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 2.A., 2.B., and Section
5 hereof).
17
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 11 A 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 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 Party's obligations impossible. Each Party shall forthwith inform the other
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 commence, continue, or proceed or any other
governmental regulatory action.
H.NO THIRD PARTY BENEFICIARIES: This Agreement shall be for the sole benefit of the
County and the Company and their respective successors and permitted assigns and is not
intended, and shall not be construed,to give any other person, company, or entity any legal or
equitable right,benefit, or remedy of any nature whatsoever by reason of this Agreement.
Nothing in this Agreement, expressed or implied, is intended to or shall constitute the creation of
a partnership or joint venture between the County and the Company.
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
(as defined in the Orange County Civil Rights Ordinance),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, 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.
18
16.NOTICES
Any notices pursuant to 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 CITEL America, Inc.;
County Manager
300 West Tryon Street
Hillsborough,NC 27278
Any addressee may designate additional or different addresses for communications by notice
given under this Section to the other Party.
19
AGREEMENT REVIEWED AND ACCEPTED BY:
President Attest:
CITEL America, Inc.
Chair Attest: Laura Jensen
Orange County Board of Commissioners Clerk to the Board
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
20
EXHIBIT A - PROJECT OVERVIEW
Jabandl wage information will be auaomaaiially pvyulated in this box based on you-re5p4an5es in the
Employment Proffle worksheet[see iii Ernploymenr Profile iab Mlow) Average Wages
urn
Htw.lnh9%Ely Yrrt 3-Y*4r 5-Y*4. a4a g.dual Nirern%Yayp q! #v%Annunti�pl
ALL 79 New Wage of
2025 2U6 2427 2028 2029 TOTAL TOTAL Jobs Jobs
3 43 11 1 11 11 67 79 $03.511 $83,611
Need Investment By Year 3-'Year 5-Yeas
2028 2027 2028 2029 20 0 TOTAL TOTAL
Real Property 5t3160(000 SCo SU $0 so '38,5i14j,UUU SNWIDW
Tangi*Personal fiopege 52,000.000 31,000,000 S1,00y� /
0y,00G 51,000.000 51,000,000 S4e.C���,y0�,�000 a$6~1300
ToW Investment 311016010W $1,00,00,
$1,00,000 3111OW1000
Source: North Carolina Department of Commerce Project Summary Form Submitted by Company for
Consideration of State Discretionary Incentives
Note: This five-year investment forecast was initially submitted by CITEL to the NC Department of
Commerce, showing investment figures estimated earlier in the year. CITEL later reported that it would
make an additional $500,000 to $1,000,000 capital investment in real property for the existing building
that it intends to purchase. As a result the Orange County Incentive Calculation added an additional mid-
point value of$750,000 to the overall investment total as outlined in Exhibit C.
21
EXHIBIT B - EMPLOYMENT GOAL
December 31 Baseline New Employees to 90% of New Total Cumulative
Employees be Added Employee Target Employees
Added by Year
2025 0 3 3 3
2026 3 43 39 46
2027 46 11 10 57
2028 57 11 10 68
2029 68 11 10 79
Total at Natural 79 79 72 79
Termination of
Agreement
June 30, 2031
22
EXHIBIT C - INVESTMENT GOAL
Year Ended 2026 2027 2028 2029 2030
Dec. 31
Real Property $9,250,000 $0 $0 $0 $0
Personal $2,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000
Property
Total Annual $11,250,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000
Investment
The Orange County incentive is based only on the $6,000,000.00 personal property investment, and on
the estimated$500,000.00 to $1,000,000.00 in net new real property investment for upfit improvements
to be made to the existing building.
Real Property:
Up to $9.25 million for an existing building,which includes CITEL making up to $1,000,000 in new
buildng upfit improvements. The value of the existing building is not included in the County's incentive
calculation.
Personal Property:
$6,000,000.00 in new taxable machinery and equipment investment.
TOTAL INVESTMENT: $14,500,000.00 - $15,250,000.00
23
EXHIBIT D - DESCRIPTION OF EXISTING REAL PROPERTY
Parcel Identification Number 9873891841
Physical Address 315 Executive Court,Hillsborough NC 27278
Acreage 8.8
Existing Building Size 80,596 sq. ft.
2025 Orange County Real Property Value $8,108,800.00
24
EXHIBIT E -DESCRIPTION OF EXISTING PERSONAL PROPERTY
Parcel Identification Number 9873891841
Physical Address 315 Executive Court,Hillsborough NC 27278
2025 Orange County Personal Property Value $0.00
25
EXHIBIT F - PROPOSED ORANGE COUNTY INCENTIVE
Pra)ect Rooster
:COMPANY $15,250,000 TAX RATE $0.6383
JOBS 79 INCENTIVE 75% of new property tax for 5 years
AVERAGE WAGE $83,611 DEPRECIATION RATE 10%
(20 30) r t t t t (2035) Initial New,
Rea( $750,000 $750,000 $750.000 $750, $750,ODo $750,400 $750,000 $750,000 $754,000 $750,000 $750,000 $750,000
Pers Prop Yr 1 $2,000,ODD $1,800,900 $1,620,ODO $1,458,4cc $1,312,204 $1,180,984 $1,062,882 $956,594 $864,934 $774,841 $697,357 $2,466,000
Pers Prop Yr 2 $0 $110001040 $9441000 5810,0cc $729,000 $656,140 $594,490 $531,441 $478,297 5434,467 $387,424 $1,006,040
Pers Prop Yr 3 Sfl $0 $1,000,006 $900.rc- $800,0DO $700,000 $600,404 $540,0D0 $400.400 $300,406 $204,000 $1,04D,400
Pers Prop Yr4 $0 $0 $() $90010DO $8W'000 $700,ODO $600,000 $500,44o $400,000 53041000 $.11"1000.
Pers Prop Yr5 $0 $4 $c S� $1,060,000 $900,400 $800460 $700.444 5600,000 -115001000 $400,000 $1,000,060
Pers Prop Yr 6 $0 $0 $() cc $O. $0. $0 $0 $0 $0. $4 $0.
Pers Prop Yr 7 $0 $0 $£ _ $0 $0 $0 Si 5D 4LC1 SAO. - $'0.
Tax Yalue $2,750,0DO $3,554,400 $4,274,004 S4,9_S."' $5,491,200 $4,987,480 $4,503,372 $4,038,435 $3,589,231 $3155,308 $2,734,777 $6,754,400
'Financial Yr 1 i
r 16. r r r _120291 Yr G 170* t t r t ■ (2035) Total
Pmperty Tax $0 $17,553 $22,6641 $27,255 $21,392 $35,050 $31,833 $28,745 $25,775 $22,910 $20,140 $253,313
Incentives $0 -$13,165 -$16,995 -$20,442 -$23,544 -$26.288 $0 $0 $0 $0 $0 -$100,433
Annual Net $0 $4,388 $5,665 $6,814 $7,848 $8,763 $31,833 $28,745 $25,775 $22,910 520,144 $152,880
Cash Flow $0 $4,388 $10,053 $16,867 $24,71.5 $33,478 $65,310 $94,455 $119,830 $142,740 $162,884
$1a0,OD3
5150,ODD
$140,4DD
5124,0$0 -
5103,000
W,OD3
S60,OD0
$40,000
$24,0$0 . . ■ ■ ■
Yr 1(1025] Yr 2(2026) Yr3(2027) Yr4(2023) Yr5(2029) Yr6(2030) Yr72031) Yr8(2032 Yr 92033) Yr 10(2434) Yr 112035)
iiiiiiiii Ann.l Net -Cash Flew
r t r r r (20 30) r r t r t (2035)
3 43 111 11 11 O 0 4 O 6 0 Total 79
'$8,506,040 of the proposed Investment is for Real Property that is already taxed by the county and not Included in this calculation.
26
OR- -A-NGE COUNTY
NORTH CAROLINA
Proposed Financial Recruitment
Incentive for the Industry
CITEL America , Inc .
Public Hearing by Orange County Board of Commissioners
Southern Human Services Center - Chapel Hill, NC
December 9, 2025
1
27
About CITEL,
• Founded in 1937, CITEL is a private, family-owned French manufacturer
of industrial surge protection products with a wide global footprint.
• CITEL is headquartered in Paris, France. The USA operation was
established 1985, and the current U.S. footprint is in Miramar FL.
• CITEL's products offer protection for many installation types including
AC and DC power supply, telecommunication, radio, data centers, wind
turbines and more.
• CITEL is the leading manufacturer that exclusively produces both Surge
Protective Devices (SPDs) and Surge Protective Components (SPCs).
• CITEL has 8 international offices and R&D sites throughout the world.
ORANGE COUNTY
NORTH CAROLINA
CITEL Global Operations 28
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NORTH CAROLINA
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31
Project Description
• French-owned manufacturer and research & development company for
electrical surge protection devices
• 79 total jobs, with 38 new jobs created between 2025 — 2029
• Average annual wage of $83,611 or approximately $40.20 per hour
• $15,250,000 million in total capital investment (forecast to occur in 2026 -
2030)
• Competing sites are in Florida, South Carolina, Washington, Texas and
various communities in Durham and Wake County.
• North Carolina Governor Josh Stein met in Paris with the CITEL owners in
June 2025 during the State's European business recruiting mission.
ORANGE COUNTY
NORTH CAROLINA
32
Forecast of CITEL's New Job Creation
Hiring schedule for 79 full-time jobs, with health care, retirement and
related employee benefits
$83,611 annual salary, or, $40.20 per hour
NICK _9119:
3 43 11 11 11 79
ORANGE COUNTY
NORTH CAROLINA
7
33
Outline of State & Local Incentives
411 11 IMF
Sales Tax Exemption on Machinery & Equipment Purchases $270,000
One North Carolina Fund (discretionary performance grant) $50,000
N.C. Community College System's "Customized Training" $118,500
Job Ready Grants $10,000
Work Opportunity Tax Credit $52,800
Federal Bonding Program $90,000
Performance Based Incentive (as proposed) $100,433
. , cc
'AI
ORANGE COUNTY
NORTH CAROLINA
8
34
Forecast of CITEL's
Capital Investment Schedule
2026 ,Mi 2027 2028
Real_ $91250,000 $0 $0 $0 $0 $97250,000
• •
Personal
$2,000,000 $1 ,000,000 $1 ,000,000 $1 ,000,000 $1 ,000,000 $6,000,000
Property
• $1192509000 $1 ,000,000 $1 ,000,000 $1 ,0009000 $1 ,000,000 $15,250,000
The Orange County incentive is based only on the $6,000,000.00 personal property
investment, and on the estimated $500,000.00 to $1 ,000,000.00 in net new real property
investment for upfit improvements to be made to the existing building.
Real Property:
Up to $9.25 million for an existing building, which includes CITEL making up to $1 ,000,000 in
new building upfit improvements. The value of the existing building is not included in the
County's incentive calculation.
ert ORANGE COUNTY
Personal Pro
pert y NORTH CAROLINA
$6,000,000.00 in new taxable machinery and equipment investment.
35
Orange County's Performance-Based Incentive
• Performance-based grant is calculated at 75% of actual net-new business
and real property tax investment valuation, for 5 years. (Same incentive
formula as previously approved by the BOCC for ABB, Medline Industries,
and Morinaga).
• The purchase of the former Mid-Atlantic STIHL Inc. building that is already
taxed by Orange County, is not included in the calculation. Only the net-new
investment in personal property (machinery & equipment), and $500,000 to
$1 ,000,000 in additional real property (for improvements to the existing
building to be purchased) is proposed to receive an incentive.
• Estimated 5-year incentive total is $100,433
• During the first 10 years of operation, CITEL's investment is estimated to
create up to $263,313 in total gross property tax valuation, and $162,800 in
net valuation for the County.
ORANGE COUNTY
NORTH CAROLINA
10
36
Orange County's Performance-Based Incentive
Orange County • •
��r. Y ��.M ►rr_ �.�w�r ���rte,r. ■
New 0
Property
$17,553 $22,660 $27,255 $31 ,392 $35,050 $133,910
Tax
Revenue
Incentive -$139165 -$16,995 -$20,442 -$23,544 -$26,288 -$1009433
Payment
Annual Net $4,388 $5,665 $6,814 $7,848 $8,763 $339477
Revenue ,
Orange County • • 1
New Property - Revenues $263,313
PaymentsIncentive -$1001433
Total Net Revenues $162,880
ORANGE COUNTY
NORTH CAROLINA
11
37
Benefits of CITEL Locating in Orange County
• Creates 79 total full-time jobs, with benefits, to include 38 new full-time jobs to be
created locally (in addition to the 41 jobs that will be offered relocation from Florida) to be
created between 2025 — 2029, at an average annual wage of $83,611 or approximately
$40.20 per hour.
• Adds up to $6 million in new personal property investment (machinery and
equipment) and $500,000 to $1 ,000,000 in new real property investment (building upfit
improvements), to include the potential for solar panels.
• Occupies a commercial/industrial building that is currently vacant in Hillsborough's
Meadowlands business district.
• Proposed incentive is revenue positive for the first 5 years, netting 25% per year of the
forecasted net new property tax valuation.
• Increased diversification of the County's economy through adding another light industrial
manufacturer, and with international ties.
• Orange County would become the firm's chief center of operations in the USA.
ORANGE COUNTY
NORTH CAROLINA
38
Proposal for Orange County's Financial
Incentives for CITEL America, Inc.
Questions & Discussion
ORANGE COUNTY
NORTH CAROLINA
39
Attachment 3
PUBLICATION INSTRUCTION: Please publish the following notice in the Special Notice Section of the
Classified Advertisements on Wednesday,November 26, 2025. The County Seal should be placed above the
announcement.
cot
17 52
�s
pq
PUBLIC HEARING
Tuesday, December 9, 2025 —7:00 PM
Southern Human Services Center
2501 Homestead Road
Chapel Hill,NC 27514
NOTICE OF PUBLIC HEARING REGARDING PROPOSED ECONOMIC
DEVELOPMENT INCENTIVE AGREEMENT FOR PROJECT ROOSTER
Notice is hereby given that in accordance with North Carolina General Statute 158-7.1, the Board of
Commissioners of Orange County(the"Board")will hold a public hearing on Tuesday,December 9,
2025 at 7:00 PM at the Southern Human Services Center, 2501 Homestead Road, Chapel Hill, NC
27514. This public hearing concerns Orange County entering into an Economic Development
Incentive Agreement with Project Rooster to encourage the business to expand in Orange County for
a new light industrial operation.
The Board will consider the appropriation of County funds for the purpose of entering into an
Economic Development Incentive Performance Agreement with the Company in an amount not to
exceed One Hundred Thousand Four Hundred Thirty-Three Dollars ($100,433.00), payable in up to
five (5) annual installments over a five (5) year period. These funds will be used to encourage the
Company to select Orange County for their proposed manufacturing and assembly operation, and,
assist the Company with expenses related to up-fit of the existing building of interest. Recruitment of
Project Rooster to locate in Orange County will create immediate and long-term public benefits for
the County, to include bringing 79 total jobs (38 new full-time jobs to be created locally, plus 41
existing jobs to be offered relocation from another facility),with health care and related employment
benefits, and new capital investment of up to $15,250,000 to occur during the first five (5) years of
operation.
40
Anyone interested in the Economic Development Incentive Performance Agreement, or the nature
of Project Rooster may appear and be heard at the public hearing. Anyone who wishes to make
comments in writing prior to the public hearing may do so by submitting such comments to the
Board of Commissioners of Orange County, c/o Clerk to the Board of Commissioners, P.O. BOX
8181, Hillsborough,North Carolina 27278, or by emailing OCBOCC@orangecountync.gov