Title
Public Hearing for RXO Corporate Solutions LLC Business Investment Grant
Action
Action:
A. Conduct a public hearing regarding approval of a City of Charlotte Business Investment Grant to RXO Corporate Solutions LLC, and
B. Approve the city’s Business Investment Grant to RXO Corporate Solutions LLC for a total amount not to exceed $166,874 over seven years.
Body
Staff Resource(s):
Alyson Craig, City Manager’s Office
Matt Dufore, Economic Development
Explanation
§ On November 26, 2024, RXO Corporate Solutions LLC announced it would expand its headquarters operations in Charlotte.
§ On June 24, 2024, City Council, in closed session, indicated their intent to approve this Business Investment Grant (BIG).
§ RXO Corporate Solutions LLC has committed to a capital investment of $13,700,000 and creation of 216 jobs to be hired with an average wage of $88,958.
§ In addition to the City of Charlotte BIG, Mecklenburg County Board of County Commissioners approved a BIG in the amount of $223,411.
§ In addition to the BIGs, the State of North Carolina approved a Jobs Development Investment Grant of up to $1,914,750.
Background
§ Utilizing technology, industry knowledge, and customer relationships, RXO Corporate Solutions LLC has built the world's largest network of independent carriers, enabling them to match shippers' transportation needs with carriers looking to haul freight via ocean, air, and truck.
§ Today, RXO Corporate Solutions LLC has a statewide team of 759 fulltime employees.
§ RXO Corporate Solutions LLC has been operating in Charlotte since 2021.
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 RXO Corporate Solutions LLC must be paid before grant payment is made.
§ If RXO Corporate Solutions LLC removes the investment from Charlotte during the grant term, it shall pay back 100 percent of the investment grant paid to date.
§ If RXO Corporate Solutions 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;
- 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; and
- Within seven to ten years of the end of the BIP term: 10 percent of grant payments.
Fiscal Note
Funding: Business Investment Grant