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File #: 15-17120    Version: 1 Name:
Type: Public Hearing Item Status: Agenda Ready
File created: 1/3/2022 In control: City Council Business Meeting
On agenda: 1/24/2022 Final action:
Title: Public Hearing for Arrival Automotive USA Inc. Business Investment Grant

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