Title
Public Hearing for HSP US, LLC Business Investment Grant
Action
Action:
A. Conduct a public hearing regarding approval of a City of Charlotte Business Investment Grant to HSP US, LLC, and
B. Approve the city’s Business Investment Grant to HSP US, LLC for a total not to exceed amount of $377,162 over five years.
Body
Staff Resource(s):
Shahid Rana, Economic Development
Matt Dufore, Economic Development
Explanation
§ On May 9, 2025, HSP US, LLC announced it would open its manufacturing plant in Charlotte.
§ This action is requesting a public hearing be conducted regarding City Council approval of a Business Investment Grant (BIG) of $377,162 over five years.
§ On March 24, 2025, City Council, in closed session, indicated their intent to approve this BIG.
§ HSP US, LLC has committed to a capital investment of $37,349,000 and creation of 74 jobs to be hired with an average wage of $77,315.
§ In addition to the City of Charlotte BIG, Mecklenburg County Board of County Commissioners approved a BIG in the amount of $505,699.
Background
§ HSP US, LLC is a leading technology company specializing in the design and manufacturing of high-voltage products.
§ HSP US, LLC is the U.S. subsidiary of German-based Trench Group which was formed as an independent entity out of Siemens Energy in 2024.
§ This will be their first U.S.-based manufacturing plant.
Business Investment Grant
§ Actual grant payments are based on the value of the investment as appraised by the Mecklenburg County Tax Office.
§ Property taxes due from HSP US, LLC must be paid before grant payment is made.
§ If HSP US, LLC removes the investment from Charlotte during the grant term, it shall pay back 100 percent of the investment grant paid to date.
§ If HSP US, LLC moves the investment from Charlotte within ten 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; and
- Within five years of the end of the BIP term: 30 percent of grant payments.
Fiscal Note
Funding: Business Investment Grant