Title
Public Hearing H-T-L perma USA LP Business Investment Grant
Action
Action:
A. Conduct a public hearing regarding approval of a Business Investment Grant to H-T-L perma USA LP, and
B. Approve the City’s share of a Business Investment Grant to H-T-L perma USA LP for a not to exceed amount of $111,931 over five years.
Body
Staff Resource(s):
Tracy Dodson, City Manager’s Office
Alyssa Brown, Economic Development
Explanation
§ On June 2, 2022, H-T-L perma USA LP (H-T-L perma) announced it would expand its existing headquarters and production operations in Charlotte.
§ During the week of November 8th, 2021, City Council, in Closed Session, indicated their intent to approve this Business Investment Grant (BIG).
§ H-T-L perma has committed to a capital investment of $7,450,000 and creation of 24 jobs to be hired over five-years with an average wage of $54,688.
§ In addition to the 24 new jobs, the company’s 58 current positions will be retained for the term of the grant.
§ Mecklenburg County Board of County Commissioners approved a BIG in the amount of $110,201 on November 16, 2021.
§ The State of North Carolina also approved an On the Job Training Grant in the amount of $100,000 and $33,600 in community college training funds.
Background
§ H-T-L perma is an advanced manufacturing company that offers single-point automatic lubrication.
§ H-T-L perma is an international company that has development and production facilities in Germany.
§ The Americas’ headquarters was established in Charlotte in 1995 and offers innovative and creative lubrication solutions to electric motors, conveyors, fans, and pumps.
§ The company’s current headquarters and production facility is located in Southwest Charlotte in Council District 3.
§ H-T-L perma has a robust internal six- to 24-month training and mentorship academy that upskills employees through basic, intermediate, and advanced training.
§ The new office and production facility will allow the company to increase their production capacity and footprint in North and South America.
§ H-T-L perma is an Eco-friendly company with Go Green Initiatives across the organization and products. The new facility will be a green field facility with solar panels.
Next Steps
§ 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 H-T-L perma must be paid before a grant payment is made.
- If H-T-L perma removes the investment from Charlotte during the grant term, it shall pay back 100 percent of the investment grant paid to date.
- If H-T-L perma 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