Title
Public Hearing for Centene Corporation Business Investment Grant
Action
Action:
Conduct a public hearing regarding approval of a Business Investment Grant to Centene Corporation.
Body
Staff Resource(s):
Tracy Dodson, Economic Development
Frances West, Economic Development
Explanation
§ On July 1, 2020, Centene Corporation announced its selection of Charlotte for its east coast headquarters and technology center, resulting in a capital investment of $1,034,900,790 and the creation of 3,237 jobs to be hired over 10 years with an average wage of $100,089.
§ This action is requesting a public hearing be conducted regarding City Council approval of a not to exceed Business Investment Grant (BIG) of $31,588,352 over 12 years. Mecklenburg County’s not to exceed amount is $26,023,000 over 10 years, bringing the combined not to exceed city and county grant estimated total to be $57,611,352.
- On June 22, 2020, City Council, in Closed Session, indicated its intent to approve a BIG to Centene Corporation.
- On June 23, 2020, the Mecklenburg County Board of Commissioners, in Closed Session, indicated its intent to approve a BIG to Centene Corporation.
§ In addition to the BIG, the State of North Carolina also approved a Job Development Investment Grant in the amount of $388,000,000 and $4,531,800 in community college training funds.
§ In compliance with NC G.S. § 166A-19.24 Remote meetings during certain declarations of emergency, written comments on the public hearing topic will be accepted by the Clerk’s Office through July 28, 2020, at 11:59 p.m. Any additional comments received will be provided to Council.
§ On August 10, 2020, City Council will be asked to approve the BIG to Centene Corporation.
Background
§ Centene Corporation is a leading multi-national healthcare enterprise that is committed to helping people live healthier lives through managing healthcare plans for over 23 million members.
§ Centene Corporation is headquartered in St. Louis and is number 42 on the Fortune 500 list.
§ Centene Corporation has operations in all 50 states and international markets, with over 69,000 employees.
§ Centene Corporation has received the following accolades:
- Fortune World’s Most Admired Companies List (2020),
- Fortune Companies that Changed the World (2019),
- Best Place to Work for Disability Inclusion (2019),
- Best Place to Work by Corporate Equality Index (2020), and
- Bloomberg Gender-Equality Index (2020).
Business Investment Grant
§ The general terms and conditions of this grant include:
- Actual grant payments are based on the value of the investment as appraised by the Mecklenburg County Tax Office.
- Property taxes due from Centene Corporation must be paid before a grant payment is made.
- If Centene Corporation removes the investment from Charlotte during the grant term, it shall pay back 100 percent of the investment grant paid to date.
- If Centene Corporation moves the investment from Charlotte within 12 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
§ Within seven to twelve years of the end of the BIP Term - 10 percent of grant payments
Fiscal Note
Funding: Business Investment Grant