§ 17-1. Economic development investment policy.

The Town of Tarboro encourages and supports, within the limitations of the North Carolina General Statutes and financial constraints of the town, the development of the industrial base of the town. Though assistance is normally provided through the provision of infrastructure, such assistance may also be provided through land development, site preparation, building preparation and other means authorized in GS 158-7.1. Consideration in providing infrastructure funding or other direct assistance will be provided only upon the following terms and assurances:

(1)

Prior to the town's agreement to participate in any industrial development project, it must be established that:

a.

Within ten (10) years from the date the town and the applicant enter into the agreement specified in paragraph (10), the applicant's investment will increase the town's property tax base by at least five million dollars ($5,000,000.00); and

b.

Any expenditure incurred by the town for infrastructure improvements that primarily benefit the applicant or for direct contributions to the applicant will, within ten years of the date of such expenditure, be recouped by the town by ad valorem tax revenue increases resulting from increases in the assessed valuation of the applicant's real and personal property caused by the applicant's investment. The calculation determining the assurance will be based on the then current year tax levy computed at one hundred (100) percent.

(2)

Estimates of valuation of property enhancement must be based on an architect's estimate, contracted construction/development costs, and/or development contracts in hand if third parties are involved. Other forms of proving the level of financial commitment may be considered on an individual basis.

(3)

All direct assistance to the applicant by the town will be paid in annual installments over a ten-year period and will be prorated based on the amount of each year's taxable property valuation. The annual installment amount shall be limited to fifty (50) percent of the amount of the annual tax revenue. The installment will not be paid until the current year's tax bill has been paid.

(4)

Actual tax valuations as set by the Edgecombe County Tax Assessor will be used to determine if and when the five million dollars ($5,000,000.00) investment has been reached. Because the taxable valuation of personal property is depreciated over its useful life, the valuation of any personal property used to satisfy the five million dollars ($5,000,000.00) minimum investment requirement must be sufficient in amount to offset the effect of depreciation. At the end of the ten-year period, the combined additional real property value and depreciated personal property value must total at least five million dollars ($5,000,000.00).

(5)

Projects will be evaluated on no more than ten-year projections. Increased tax revenues beyond the initial ten (10) years will enhance the project's desirability but will not qualify the project for town funding.

(6)

The facilities of applicants must be located within the corporate limits of the Town of Tarboro or the owner must agree to petition for annexation.

(7)

Conveyance of land by the town must be valued at an amount equal to the fair market value of the property conveyed.

(8)

Projects must not be deemed harmful to the environment, require excessive use of water and sewer, create harmful emissions, or be potentially harmful to the surrounding neighborhood as determined by the Town Council of the Town of Tarboro.

(9)

Applicants shall, on their corporate letterhead, detail the parameters of the request including what the general nature of the manufacturing or industrial process will be, where the site (or sites) is (are) located, how much the real estate and tangible personal property value shall initially represent, and when the facility operation shall begin. Projected daily use of municipal water, anticipated quality and quantity of wastewater, level of electric Kwh usage and electric Kw demand will be provided. The applicant will also indicate that new jobs to be offered will meet average wage levels as set forth in the state enabling laws. The applicant letter, from a corporate official, will be addressed to the Town Manager of the Town of Tarboro.

(10)

Investment by the town under this policy shall take place only pursuant to a written agreement between the town and the applicant that sets forth the mutual obligations of the parties, establishes a time frame for performance, and spells out the consequences of a failure of performance.

(Ord. No. 97-16, § 1, 10-13-97; Ord. No. 98-2, § 1, 1-29-98; Ord. No. 11-07, § 1, 6-13-11)