Title
Public Hearing for Bosch Rexroth Corporation Business Investment Grant
Action
Action:
A. Conduct a public hearing regarding approval of a City of Charlotte Business Investment Grant to Bosch Rexroth Corporation, and
B. Approve the city’s share of a Business Investment Grant to Bosch Rexroth Corporation for a not to exceed amount of $959,426 over seven years.
Body
Staff Resource(s):
Tracy Dodson, City Manager’s Office
Alyssa Brown, Economic Development
Explanation
§ On October 6, 2022, Bosch Rexroth 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 Business Investment Grant (BIG) of $959,426 over seven years.
- During the week of May 9, 2022, City Council indicated intent to approve this Business Investment Grant.
§ Bosch Rexroth has committed to a capital investment of $48,205,000, the creation of 24 jobs to be hired over five years with an average wage of $67,016, and to retain 260 current positions for the term of the grant.
§ In addition to the City of Charlotte Business Investment Grant:
- Mecklenburg County Board of County Commissioners approved a Business Investment Grant in the amount of $1,700,288.
- State of North Carolina approved an On the Job Grant in the amount of $100,000 and $193,300 in community college training funds.
Background
§ Bosch Rexroth is a manufacturer of linear motion and assembly technologies.
§ The company’s U.S. headquarters is in Charlotte and has operated a facility here for over 30 years.
§ The company is building a new facility on a brownfield site off Tyvola Road.
§ Their new building will feature high-tech capabilities for production and logistics with a customer showroom and headquarters and corporate functions.
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 Bosch-Rexroth must be paid before a grant payment is made.
- If Bosch Rexroth removes the investment from Charlotte during the grant term, it shall pay back 100 percent of the investment grant paid to date.
- If Bosch Rexroth 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