Title
Public Hearing for Robinhood Markets, Inc. Business Investment Grant
Action
Action:
Conduct a public hearing regarding approval of a City of Charlotte Business Investment Grant to Robinhood Markets, Inc.
Body
Staff Resource(s):
Tracy Dodson, City Manager’s Office
Frances West, Economic Development
Explanation
§ On March 30, 2021, Robinhood Markets, Inc. (Robinhood) announced it would locate a customer experience and account operations center 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 $157,726 over five years.
- During the week of February 22nd, City Council indicated its intent to approve this BIG during Council discussions.
§ Robinhood has committed to a capital investment of $11,780,000 and creation of 389 jobs to be hired over five years with an average wage of $76,450.
§ In addition to the BIG, the State of North Carolina also approved a Job Development Investment Grant in the amount of $3,006,000 and $544,600 in community college training funds.
§ In compliance with North Carolina General Statute 166A-19.24. Remote meetings during certain declarations of emergency, written comments on the public hearing topic will be accepted by the City Clerk’s Office through June 15, 2021, at 11:59 p.m. Any additional comments received will be provided to Council.
§ On June 28, 2021, City Council will be asked to approve the BIG to Robinhood.
Background
§ Robinhood is a fintech company founded in 2013 and headquartered in Menlo Park, CA with a mission to democratize finance for all.
§ The company provides financial products and services for clients including the purchase and sale of equities, options, and cryptocurrencies to retail investors via commission-free trading.
§ Robinhood’s new Charlotte office will include customer support and account operations to accelerate their growth and meet customer needs.
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 Robinhood must be paid before a grant payment is made.
- If Robinhood removes the investment from Charlotte during the grant term, it shall pay back 100 percent of the investment grant paid to date.
- If Robinhood moves the investment from Charlotte within five 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, and
§ Within five years of the end of the BIP Term - 30 percent of grant payments.
Fiscal Note
Funding: Business Investment Grant