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File #: 15-15514    Version: 1 Name:
Type: Business Item Status: Agenda Ready
File created: 3/30/2021 In control: City Council Business Meeting
On agenda: 5/10/2021 Final action:
Title: Business Investment Grant for Arrival Automotive USA Inc.
Title
Business Investment Grant for Arrival Automotive USA Inc.

Action
Action:
Approve the city's Business Investment Grant to Arrival Automotive USA Inc. for a not to exceed amount of $657,094 over seven years.

Body
Staff Resource(s):
Tracy Dodson, City Manager's Office
Frances West, Economic Development

Explanation
* Arrival Automotive USA Inc. (Arrival) is a global electric vehicle company headquartered in London focused on creating zero emission, sustainable transportation solutions.
* On March 17, 2021, Arrival announced it would expand its existing operations in Charlotte to include their first U.S. electric van microfactory in West Charlotte.
* Arrival has committed to a capital investment of $41,200,000 and creation of 281 jobs to be hired over two years with an average wage of $42,171.
* This action is requesting City Council approval of a not to exceed Business Investment Grant (BIG) of $657,094 over seven years.
* During the week of February 22, 2021, City Council indicated their intent to approve this Business Investment Grant during council discussions.
* On March 2, 2021, the Mecklenburg County Board of Commissioners, in closed session, indicated its intent to approve a Business Investment Grant with a maximum value of $906,824 over five years.
* In addition to the city and county BIGs, the State of North Carolina dedicated $1,200 to $1,400 per eligible employee in community college training funds.
* On April 26, 2021, a public hearing was held on the BIG for Arrival. No comments were received from the public.

Explanation
* 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 Arrival must be paid before a grant payment is made.
* If Arrival removes the investment from Charlotte during the grant term, it shall pay back 100 percent of the investment grant paid to date.
* If Arrival moves the inve...

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