Title
Public Hearing for Arrival Automotive USA Inc. Business Investment Grant
Action
Action:
A. Conduct a public hearing regarding approval of a City of Charlotte Business Investment Grant to Arrival Automotive USA Inc., and
B. Approve the City’s share of a Business Investment Grant to Arrival Automotive USA Inc. for a not to exceed amount of $143,800 over five years.
Body
Staff Resource(s):
Tracy Dodson, City Manager’s Office
Alyssa Brown, Economic Development
Explanation
§ On December 6, 2021, Arrival Automotive USA Inc. (Arrival) announced it would expand its existing operations in Charlotte.
§ During the weeks of September 27, 2021 and October 4, 2021, City Council indicated their intent to approve this Business Investment Grant (BIG).
§ Arrival has committed to a capital investment of $11,500,000 and creation of 110 jobs to be hired over five years with an average wage of $54,700.
§ In addition to the City’s BIG, the Mecklenburg County Board of County Commissioners will vote to approve a BIG in the amount of $250,677 on February 1, 2022.
Background
§ Arrival is a global electric vehicle company headquartered in London, United Kingdom focused on creating zero emission, sustainable transportation solutions.
§ On December 9, 2020, Arrival announced its North American headquarters in Charlotte with an investment of $3,000,000 and 150 jobs.
§ On March 17, 2021, Arrival announced the opening of its first electric van microfactory in West Charlotte with an investment of $41,200,000 and 281 jobs.
§ On May 10, 2021, City Council approved a BIG to Arrival for a not to exceed amount of $657,094 over seven years.
§ Arrival’s new Charlotte investment will be the first microfactory in the U.S. to assemble battery modules.
§ Arrival also signed a Memorandum of Understanding with the City of Charlotte to collaborate on strategies to achieve the Strategic Energy Action Plan.
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 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 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