Title
Public Hearing for Solve Industrial Motion Group Business Investment Grant
Action
Action:
A. Conduct a public hearing regarding approval of a City of Charlotte Business Investment Grant to Solve Industrial Motion Group, and
B. Approve the city’s share of a Business Investment Grant to Solve Industrial Motion Group for a not to exceed amount of $725,981 over seven years.
Body
Staff Resource(s):
Tracy Dodson, City Manager’s Office
Alyssa Brown, Economic Development
Explanation
§ On October 11, 2022, Solve Industrial Motion Group (Solve Industrial) announced it is expanding its operations in Charlotte to include a new distribution and headquarters facility.
§ During the week of July 18, 2022, City Council indicated its intent to approve this Business Investment Grant.
§ Solve Industrial has committed to a capital investment of $34,850,000, the creation of 60 jobs to be hired over five-years with an average wage of $74,500, and to retain 51 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 $515,782, and
- The State of North Carolina approved a On the Job Training Grant in the amount of $60,000.
Background
§ Solve Industrial is a manufacturer and distributor of power transmission products and industrial-grade bearings.
§ The company has operated in Charlotte since the early 1990s.
§ The newly constructed headquarters and distribution facility will house warehousing and distribution functions in addition to sales, marketing, and other corporate functions.
§ The company will temporarily lease space in the Ayrsley development while the new building is constructed.
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 Solve Industrial must be paid before a grant payment is made.
- If Solve Industrial removes the investment from Charlotte during the grant term, it shall pay back 100 percent of the investment grant paid to date.
- If Solve Industrial 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
Attachments