Title
Public Hearing for Groninger USA, LLC Business Investment Grant
Action
Action:
A. Conduct a public hearing regarding approval of a City of Charlotte Business Investment Grant to Groninger USA, LLC, and
B. Approve the city's Business Investment Grant to Groninger USA, LLC for a total amount not to exceed $171,936 over five years.
Body
Staff Resource(s):
Alyson Craig, City Manager's Office
Matt Dufore, Economic Development
Explanation
* On January 15, 2025, Groninger USA, LLC announced it would expand its advanced manufacturing operations in Charlotte.
* On October 28, 2024, City Council, in closed session, indicated their intent to approve this Business Investment Grant (BIG).
* Groninger USA, LLC has committed to a capital investment of $15,140,000 and creation of 60 jobs to be hired with an average wage of $74,578.
* In addition to the City of Charlotte BIG, Mecklenburg County Board of County Commissioners approved a BIG in the amount of $168,353.
Background
* Groninger USA, LLC is a leading international manufacturer of filling and closing machines for the pharmaceutical, healthcare, and cosmetics industries.
* Today, Groninger USA, LLC has 112 fulltime employees.
* Groninger USA, LLC relocated its U.S. operations from New Jersey to Charlotte in 2007.
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 Groninger USA, LLC must be paid before grant payment is made.
* If Groninger USA, LLC removes the investment from Charlotte during the grant term, it shall pay back 100 percent of the investment grant paid to date.
* If Groninger USA, 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 pe...
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