Title
Public Hearing for InterContinental Capital Group Business Investment Grant
Action
Action:
Conduct a public hearing regarding approval of a City of Charlotte Business Investment Grant to InterContinental Capital Group.
Body
Staff Resource(s):
Tracy Dodson, City Manager’s Office
Frances West, Economic Development
Explanation
§ On December 22, 2020, InterContinental Capital Group announced it would expand its existing operations in Charlotte.
§ This action is requesting a public hearing be conducted regarding City Council approval of a not to exceed Business Investment Grant (BIG) of $109,661 over seven years.
- During the week of November 2nd, City Council indicated their intent to approve this Business Investment Grant during council discussions.
§ InterContinental Capital Group has committed to a capital investment of $5,844,450, and creation of 500 jobs to be hired over five-years with an average wage of $87,500.
§ In addition to the 500 new jobs, 120 current positions will be retained for the term of the grant.
§ In addition to the Business Investment Grant, the State of North Carolina also approved a Job Development Investment Grant in the amount of $7,694,250 and $650,000 in community college training funds.
§ In compliance with 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 January 26, 2021, at 11:59 p.m. Any additional comments received will be provided to Council.
§ On February 8, 2021, City Council will be asked to approve the BIG to InterContinental Capital Group.
Background
§ InterContinental Capital Group is a direct lending mortgage bank that specializes in home financing and residential properties.
§ Headquartered in Melville, New York, the startup was founded in 2005 and offers a home financing process that utilizes the latest technologies to ensure customers have a personalized experience.
§ The company employs approximately 120 people in its current Charlotte office located in the Montford area.
§ InterContinental Capital Group has a robust internal training academy that upskills new employees into careers and retain top performers by offering six to 18 months of paid training towards national license in mortgage lending.
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 InterContinental Capital Group must be paid before a grant payment is made.
- If InterContinental Capital Group removes the investment from Charlotte during the grant term, it shall pay back 100 percent of the investment grant paid to date.
- If InterContinental Capital Group moves the investment from Charlotte within seven 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 years of the end of the BIP Term - 10 percent of grant payments
Fiscal Note
Funding: Business Investment Grant