Title
Snyder’s Lance Inc. Business Investment Grant
Action
Action:
A. Conduct a public hearing regarding approval of an economic development Business Investment Grant for Snyder’s Lance Inc.,
B. Approve the City’s share of a Business Investment Grant to Snyder’s Lance, Inc. for a total estimated amount of $631,166 over five years,
C. Approve a contract in the amount of $100,000 with the North Carolina Department of Commerce and Snyder’s Lance, Inc. from the One North Carolina Fund Grant, and
D. Adopt a budget ordinance appropriating $100,000 from the North Carolina Department of Commerce One North Carolina Fund Grant to Snyder’s Lance, Inc.
Body
Staff Resource(s):
Kevin Dick, Neighborhood & Business Services
Explanation
§ On November 28, 2016, the Snyder’s Lance Inc. will formally announce its selection of Charlotte for an investment of $38 million for the expansion of its manufacturing operations and headquarters, including the addition of a new brand operation.
- The expansion will create 130 new jobs. Other competitive locations considered were Stockton, California and Columbus, Georgia.
§ Staff is requesting City Council approve a Business Investment Grant estimated to be $631,166 over five years. The County’s share is estimated to be $1,075,500.
- On August 22, 2016, the City Council, in closed session, unanimously indicated its intent to approve a Business Investment Grant to Snyder’s Lance, Inc.
- On September 6, 2016, the Mecklenburg County Board of Commissioners, in closed session, indicated its intent to approve a Business Investment Grant to Snyder’s Lance, Inc. and will consider its portion of the grant at their December 6, 2016 meeting.
- Total City/County combined grant is estimated to be $1,706,666 over five years.
- In addition to the grant for the expansion, the state of North Carolina also approved a One North Carolina Fund Grant in the amount of $100,000 and $130,000 in community college training funds.
§ In addition to the $38 million capital investment, Snyder’s Lance has committed to:
- 130 new jobs over five years with an average annual wage of $45,000 (93% of the regional average wage).
§ 100 new production workers (engineers, mechanics, sanitation, warehouse, and machine operators) at the South Boulevard location.
§ 30 new employees for the Ballantyne corporate headquarters providing a total of 310 headquarters employees.
- 900 production employees to be retained for the term of the grant.
Background
§ Snyder’s Lance, Inc., headquartered in Charlotte, is one of the largest snack makers in the United States. The company manufactures and markets snack food throughout the world with manufacturing plants in Charlotte and nine other states.
§ Growth created by recent brand acquisition is requiring the expansion of manufacturing facilities and the modernizing of production machinery and equipment.
- There are currently 900 production employees located at the manufacturing plant located at 8600 South Boulevard and 280 at the corporate headquarters in Ballantyne.
- The manufacturing plant is located within 0.5 mile of the Sharon Road & I-485 Light Rail Station. Designated station areas are eligible for Business Investment Grants due to their promotion of higher density development and other amenities within a 0.5 mile walking distance to transit.
Business Investment Grant
§ The request meets the City Council-approved criteria for a five-year, 90% local expansion grant in an eligible location.
§ The general terms and conditions of this grant include:
- The company will be asked to coordinate job fairs and recruitment events for both temporary and permanent jobs with the City and County. Community organizations and residents will receive ample notice of these employment activities in addition to training opportunities with Goodwill Industries, the Urban League of Central Carolinas, and other City partners. This training will include career counseling, job readiness, intensive case management, computer and vocational training, as well as employment search and placement assistance.
- Actual grant payments are based on the value of the investment as appraised by the Mecklenburg County Tax Office.
- All property taxes due from Snyder’s Lance, Inc. must be paid before a grant payment is made.
- Property tax payments will be reimbursed in the calendar year that the investment is made and assessed for taxes by the Mecklenburg County Tax Office.
- If Snyder’s Lance Inc. removes the investment from Charlotte during the grant term, it shall pay back 100% of the investment grant paid to date.
- If Snyder’s Lance Inc. moves the investment from Charlotte within five years of the end of the Business Investment Program (BIP) grant term, a portion of the grant must be repaid as follows:
§ Within One Year of the end of the BIP Term - 90% of grant payments
§ Within Two Years of the end of the BIP Term - 75% of grant payments
§ Within Three Years of the end of the BIP Term - 60% of grant payments
§ Within Four Years of the end of the BIP Term - 45% of grant payments
§ Within Five Years of the end of the BIP Term - 30% of grant payments
Fiscal Note
Funding: Business Investment Grant
Attachments
Attachment
Budget Ordinance