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File #: 15-24178    Version: 1 Name:
Type: Public Hearing Item Status: Agenda Ready
File created: 3/5/2025 In control: City Council Business Meeting
On agenda: 3/24/2025 Final action:
Title: Public Hearing for DetraPel, Inc. Business Investment Grant

Title

Public Hearing for DetraPel, Inc. Business Investment Grant

 

Action

Action:

A.                     Conduct a public hearing regarding approval of a City of Charlotte Business Investment Grant to DetraPel, Inc., and

 

B.                     Approve the city’s Business Investment Grant to DetraPel, Inc. for a total amount not to exceed $22,843 over three years.

 

Body

Staff Resource(s):

Alyson Craig, City Manager’s Office

Matt Dufore, Economic Development

 

Explanation

§                     On February 11, 2025, DetraPel, Inc. announced it would relocate its headquarters to Charlotte.

§                     On January 13, 2025, City Council, in closed session, indicated their intent to approve this Business Investment Grant (BIG).

§                     DetraPel, Inc. has committed to a capital investment of $3,500,000 and creation of 35 jobs to be hired with an average wage of $71,794.

§                     In addition to the City of Charlotte BIG, Mecklenburg County Board of County Commissioners approved a BIG in the amount of $33,536.

 

Background

§                     DetraPel, Inc. is a clean-tech advanced materials manufacturer that specializes in synthesizing and creating protective coatings free of PFAS.

§                     DetraPel, Inc. will relocate seven employees.

§                     Nearly 70 percent of DetraPel’s domestic business is concentrated in the Southeast.

 

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 DetraPel, Inc. must be paid before grant payment is made.

§                     If DetraPel, Inc. removes the investment from Charlotte during the grant term, it shall pay back 100 percent of the investment grant paid to date.

§                     If DetraPel, Inc. 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