04 October 2017
By Andrew Martin, The Enquirer Journal
The Union County Board of County Commissioners (BOCC) approved two separate economic development incentive grants during their Oct. 2 meeting for Goulston Technologies (Project Quantum) and authorized County Manager Cindy Coto to approve incentive grant agreements with the company, pending legal review.
The first “Step 3” Economic Development Incentive Grant approved was for an amount not to exceed $170,500 over a five-year period beginning in the fiscal year 2021. The second “Step 3” Economic Development Incentive Grant approved was for an amount not to exceed $825,000 over a five-year period beginning in the fiscal year 2023, according to the agenda.
Both grants have a grant factor of 2.75 percent.
Goulston Technologies (Project Quantum) requested the two grants to support a two-phased expansion with a potential total value of $35.7 million. The first phase is for a $6.2 million investment in a new building to house equipment and machinery at its North Johnson Street facility in Monroe. The second phase is for a $29.5 million investment for the purchase and installation of manufacturing process equipment in the previously mentioned building, according to the agenda.
Chris Platé, Executive Director of Economic Development, said Union County is in competition with other states, such as South Carolina and Tennessee, for the development.
Platé added that Goulston Technologies has been in Union County since 1969 and currently employees around 210 employees. He said the Phase 1 targeted start date is in 2018, and the Phase 2 targeted start date would be in 2020.
Based on the projected investment of the first grant ($170,500) in Union County, the current tax rate and assuming a consistent assessed value with no depreciation, Goulston Technologies will pay estimated ad valorem taxes on the new taxable investment in the amount of $242,110 over the five-year grant period.
The first grant was also based on Goulston Technologies hiring at least three full-time employees through the investment
Based on the projected investment of the second grant ($825,000) in Union County, the current tax rate and assuming a consistent assessed value with no depreciation, Goulston Technologies will pay estimated ad valorem taxes on the new taxable investment around $1.15 million over the five-year grant period.
The second grant was also based on Goulston Technologies hiring at least five full-time employees through the Investment.
Actual tax revenue for both grants can vary from year to year and will be based on the assessed value of the investment each year by the Union County Tax Administration Office, according to the agenda.
A cost-benefit analysis by the economic development staff found the total project has a 20.99 to 1.0 ratio over the first 10 years of the project. This will transition to a 6.09 to 1.0 ratio over the life of the project. In total, the two grants would cost Union County $995,500, but the grants could generate approximately $1.4 million over the two five-year grant periods, according to the agenda.
A public hearing was scheduled before the Commissioners voted on the two grants. There were no speakers present during the meeting.
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