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 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