HomeMy WebLinkAboutOTHER-2025-107-Performance Agreement Between Orange County and Citel America MI 12 � 9695 107 ; ioqlq Jay
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 52025
(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 153A449 , 15 & 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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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 .
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 101 ) 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 I
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 .
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 .13 . shall entitle the County to snake 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 15 &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 . 13 . , 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
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
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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 I I . A .
of this Agreement upon thirty (30) days written notice to the County .
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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
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,
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 as set
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 snake 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
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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 301h day of June of the year in which the final financial inducement
installment is made . F
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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) .
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 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 I
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 .
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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 .
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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 .
AGREEMENT REVIIEWED AND ACCEPTED BY :
President Attest :
CITEL America, Inc .
G�i/32i1Q
Chaff ' Attest : L4 Jensen
Orange County Board of Commissioners Clerk to the Board
Orange County Commmissioners
This instrument has been pre-audited in the manner required by the Local Government Budget and
Fiscal Control Act ,
Chief Financial Officer j
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EXHIBIT A - PROJECT OVERVIEW
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 .
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 i
Agreement
(June 30 , 2031 )
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EXHIBIT C - INVESTMENT GOAL
Year Ended 2026 2027 2028 2029 2030
Dec . 31
Real Property $95250 , 000 $ 0 $ 0 $ 0 $ 0
Personal $2, 0005000 $ 150003000 $ 1 , 000 , 000 $ 1 , 000, 000 $ 1005000
Property
Total Annual $ 115250 , 000 $ 1 , 000, 000 $ 1 , 000 , 000 $ 1500000 $ 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 - $ 1552505000900
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 , 1085800 . 00
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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
EXHIBIT F - PROPOSED ORANGE COUNTY INCENTIVE
Proiect Rooster
515,250,000 NMI
50,6383
79 75% ! of new property tax for 5 years
583,611 30% f .. -_
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Aeal $750,C00 $ 750000 $7504000 5750,C00 -�
- _ _ -. $750,C00 5750,000 � $750,000 $750060 $75D,060 $750,000
$750,000 5750,OOD .
Pers Prop Yr 1 - - - --
$2,GG0,6C0 $1,360,000 $ 1 fi20,d00 $` $729,dD0 ' _ 5956,594 5860,934 $774,841 $697357 52,OCfl,GGO
Pers Prop Yr 2 .. . $D S1,GC0,C00 $900,000 $ 5SIO,0G0 $ $72942d0 .
Pers Prop Yr 3 -$0 $� 51060,OJ0 $540,490 $531,441 $473297 . $430,467 $ 387,420 $1,6D6,QD0 ;
_ $9C0,600 $800,C00 '
Pecs Prop Yr 4 j $p Sp -...._ __- _- $6CO3CR'iD 55Go,D6D $4GO,G00 $360,C00 52(30,6W $1,66-,C00
$0 51,dC0,000 $400,G6D
$8d0 ODO $700,C00 �
Pen Pm Yr 6 __. _-_ _ $6d0,C00 55CO,OGO - $4DD,dd(% $300,DD0 $1,606,d6D
$0 $0 _ __. _ -
$O $0 $ I,O�,G60 59Co,6C0 5800,000 : $7d6,G60 $EC�O,GCO $SdD,660 $4OD,OCO $1,OOO,D60
Pers Prop YrS �. $0 $D $
0 50 _. - _ '..
Pers Pro Yr 7
p
P $0 $0 $0
$0
Tax Value $2,750,6C0 53,550,G00 $4,270,000 $4,918pom 55,491,260 $4,937,O8D - 0 9 . 5 8 _ - - _- -$4,503,372 $4,038,035 $3, 395 ,233 53,155, 303 $2,734, 777 $6,750,000
Property lax $0 $ 17,553 $22,660 527,255 $31, 392 535050 $31,833 528,745 $25,775 $22,910 $200140 $263,313 '.
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Incentives $0 -$ 131165 -$160995 -520.442 -523,544 -526,283 $0 - - SO $0 $0 -5100,43 f
Annual Net 50 - - $7�43 $8,763 - - _
$4�38 55,665 $6,814 $31,333 $94,055 $ $ 25*770 $$22740 $$ 20, 140 $162,830
525,775 $22,910 $ 20,140
Cash Flow j $6 $4®88 510.053 $ 16,867 524,715 533,478 $654310
$160,000
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5160,CC0 -
- 5140,CC0
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$1dn,D00
540JUD
,s.
MIN
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Yr1 (2025 ) Yr 2 (2026 ) Yr3 (2027 ) Yr4 (2029 ) Yr5 (2029 ) Yr6 (2030) Yr7 (2031) Yr9 (2032 Yr9 (20331 Yr10 (20341 Yr31 (203%
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� Annual llet ® Cash fioF�
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'$8,5000000 of the proposed investment is for Real Property that is already taxed by the county and not included in this calculation.
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