Title
Public Hearing for Siemens Energy Business Investment Grant
Action
Action:
A. Conduct a public hearing regarding approval of a City of Charlotte Business Investment Grant to Siemens Energy, and
B. Approve the city’s Business Investment Grant to Siemens Energy for a not to exceed amount of $2,785,221 over ten years.
Body
Staff Resource(s):
Tracy Dodson, City Manager’s Office
Matt Dufore, Economic Development
Explanation
§ On February 13, 2024, Siemens Energy announced it would expand its advanced manufacturing facility in Charlotte.
§ This action is requesting a public hearing be conducted regarding City Council approval of a Business Investment Grant (BIG) of $2,785,221 over ten years.
§ On January 8th, 2024, City Council, in closed session, indicated their intent to approve this BIG.
§ Siemens Energy has committed to a capital investment of $149,895,000 and creation of 475 jobs to be hired with an average wage of $82,052.
§ In addition to the City of Charlotte BIG, the Mecklenburg County Board of County Commissioners approved a BIG in the amount of $2,811,248.
§ In addition to the BIGs, the State of North Carolina approved a Jobs Development Investment Grant of up to $6,880,500.
Background
§ Siemens Energy has been a global leader in energy technology for over 150 years.
§ Today, Siemens Energy has a team of around 97,000 employees located in 90 countries.
§ Siemens Energy has been operating in the United States for more than 100 years and currently has 21 manufacturing and service facilities and upwards of 10,000 employees in the country.
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 Siemens Energy must be paid before grant payment is made.
§ If Siemens Energy removes the investment from Charlotte during the grant term, it shall pay back 100 percent of the investment grant paid to-date.
§ If Siemens Energy 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 the grant payments
- Within three years of the end of the BIP Term - 60 percent of the grant payments
- Within four years of the end of the BIP Term - 45 percent of the grant payments
- Within five years of the end of the BIP Term - 30 percent of the grant payments
- Within six years of the end of the BIP Term - 20 percent of the grant payments
- Within seven to ten years of the end of the BIP Term - 10 percent of the grant payments
Fiscal Note
Funding: Business Investment Grant