Title
Public Hearing for Albemarle Corporation Business Investment Grant
Action
Action:
A. Conduct a public hearing regarding approval of a City of Charlotte Business Investment Grant to Albemarle Corporation, and
B. Approve the City’s share of a Business Investment Grant to Albemarle Corporation for a not to exceed amount of $7,239,818 over 12 years.
Body
Staff Resource(s):
Tracy Dodson, City Manager’s Office
Alyssa Brown, Economic Development
Explanation
§ On December 13, 2022, Albemarle Corporation announced it would locate an advanced lithium technology center in Charlotte.
§ On November 28th, 2022, City Council indicated their intent to approve this Business Investment Grant during council discussions.
§ Albemarle Corporation has committed to a capital investment of $200,000,000 and creation of 200 jobs to be hired with an average wage of $87,381.
§ In addition to the City of Charlotte Business Investment Grant:
- Mecklenburg County Board of County Commissioners approved a Business Investment Grant in the amount of $4,201,706, and
- The State of North Carolina approved a Jobs Development Investment Grant of up to $1,239,000 for a term of 12 years and $410,000 in community college training funds.
Background
§ Albemarle Corporation is a Fortune 500 leading chemical manufacturer.
§ The company relocated its headquarters to Charlotte in 2015 where it currently employs 463 people.
§ On September 28, 2015, City Council approved a Business Investment Grant for Albemarle Corporation in the amount of $75,711 for a term of three years. This grant has been paid out.
§ The company has purchased the site at 6800 Solectron Drive in Council District 2 for the new advanced materials facility.
§ This new center will house research on novel materials, advanced process development, and advance lithium products.
Business Investment Grant
§ The general terms and conditions of this grant include:
- Actual grant payments are based on the value of the investment as appraised by the Mecklenburg County Tax Office.
- Property taxes due from Albemarle Corporation must be paid before a grant payment is made.
- If Albemarle Corporation removes the investment from Charlotte during the grant term, it shall pay back 100 percent of the investment grant paid to date.
- If Albemarle Corporation moves the investment from Charlotte within twelve 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 percent of grant payments
§ Within two years of the end of the BIP Term - 75 percent of grant payments
§ Within three years of the end of the BIP Term - 60 percent of grant payments
§ Within four years of the end of the BIP Term - 45 percent of grant payments
§ Within five years of the end of the BIP Term - 30 percent of grant payments
§ Within six years of the end of the BIP Term - 20 percent of grant payments
§ Within seven to twelve years of the end of the BIP Term - 10 percent of grant payments
Fiscal Note
Funding: Business Investment Grant