6164  The Smithfield" Town Council meti ins special session on Monday, May 10, 2021 at11:00 ami int the gymnasium  oft the Smithfield Recreation: and Aquatics Center. Mayor M. Andy Moore presided.  Note: This was a special) joint meeting with the. Johnston County Board of Commissioner  Councilmen Present: John. A. Dunn, Mayor Pro-Tem David Stevens, District2 Dr. David Barbour, District4 4 Stephen Rabil, At-Large Roger Wood, At-Large Also Present Bob Spence, Town Attorney  Councilmen Absent Marlon! Lee, District1 Travis Scott, District3  Administrative Staff Present Michael Scott, Townl Manager Timl Kerigan, Human Resources/PIO Shannan Parrish, Town Clerk  WELCOME CALLTO ORDER  Mayor Moore welcomed dignitaries in attendance.  Mayor Moore calledt the meeting to order at 11:01 am. Mayor Moores statedt this was al historic dayi int the Town of Smithfield and Johnston County. With the addition of an Amazon facility to the Town, it would have an immediate impact onj job creation and growth. He expressed his appreciation to everyone who assisted in  this endeavor. He welcomed. Amazon tot the Smithfield Community.  INVOCATION PUBLIC HEARING  Thei invocation was given by Councilman Barbour followed by the Pledge of Allegiance.  Mayor Moore opened the public hearing at approximately 11:07am  Johnston County Economic Development Director Chris Johnson informed the members oft the Town Council and the Johnston County Board of Commissioner that this economic development package would have an impact for generation. This company could move the Town of Smithfield to the forefront of growth and opportunity, which the Town! has nots seen since companies like Sylvania, Burlington! Mills and Field Crest Mills werei inb business. Mr. Johnson explainedt that witht the $100 millioni investment, Amazon would create 500j jobs with salaries of $15 per hour and an excellent benefits package. This economic development incentive grant comes atr nor risk tot the taxpayers of Smithfield of. Johnston County. The incentives come from the company's investment. The grant equates to a percentage oft taxes Amazon will pay on its $100 million investment. If benchmarks outlined int the agreement arer notr met, noi incentives willl bep paid. Duringt the grant period, Amazon will be the second largest taxpayer in the Town of Smithfield. And during this grant period, the Town of Smithfield willr review $1.4r millioni int tax revenue. Inf five years, Amazon willl bet thel largestt taxpayer int the Town of Smithfield. Mr. Johnson stated the West Smithfield Business Park will be voluntarily annexed into the Town of Smithfield and beforet the facility is completed, the Samet Corporation will already have invested $2 million. This project has been vetted and approved by the. Johnston County Economic Development Committee and ane economic development impact study has been completed by Dr. Michael Walden of North Carolina State University. Mr. Johnson requested the Town Council to consider approving the economic development Sam Blatt Amazon's Economic Development Manager expressed his appreciation tot the Town Council and the Johnston County Board of Commissioners. He stated Amazon was making a large investment in the Jennifer Slusser Johnston County Attorney addressed the Town Council and the Johnston County Board of Commissioners on the proposed economic development incentive package. Ms. Slusser explained that in order to be able to offer economic development incentives, the company must have a capital investment of real and personal property. The company must also be ablet to createj jobs. Thei investment ofr real and personal property is proposed to be completed by December 31, 2022. The company will create 500 new jobs by December: 31, 2023. Shet further explained thatt this was al highly competitive project with many potential sites. Ms. Slusser stateda ane economici impact analysis had been conducted by Dr. Michael Walden of! North Carolina State University. He concluded that Amazony wouldh havea a $97 million outputt tot the. Johnston County economy. She stated that all the grants proposed under the agreement would never be more than the property taxes paid by Amazon. Amazon would have to make the capital investment and create the jobs before any grant funds were paid by the Town ort the County. The granti incentive percentage are as follows:  incentive package for Amazon.  community, but they also wanted to be community partners.  Real Property Tax Year Grant % Year1 1 90% Year2 90% Year 3 90% Year4 4 80% Year 5 70% Year6 60% Year7 50%  Personal Property Tax Year Grant % Year1 50% Year2 50% Year 3 50% Year 4 50% Year5 50% Year6 Year7  0% 0%    6165  Ms. Slusser explained the first grant payment would be made in 2024. She stated the draft agreement before the boards was almosto complete. She statedt the revisions were not materially ori formally inconsistent with the Town Attorney Bob Spence stated this incentive plan was consistent with the NC General Statute. The incentives are in the form oft tax rebates based on real and personal property andj job creation. Mr. Spence Mayor Moore asked ifthere was anyone in attendance that wished tos speak ont the matter. David. Johnson of 39 Sassafras Lane Clayton, NC welcomed. Amazon to the community. He stated this was great opportunity for the county and the town. He requested the Town and the County to be just as eagert to assiste existing business owners with their needs and problems ast they arise int the community. Dr. David. Johnson of 166 McLemore Roads stated that as the President of Johnston Community College, the college was ready tos support Amazon and its needs. He welcomed. Amazon tot the community. Councilman Barbour statedt the new Amazon facility would be located in District 4 which he represents. He statedt the community was excited and eager to welcome. Amazon. He expressed his appreciation to Amazon  draft agreement.  statedt this project createda as substantial investment.  fori investing int the Town.  Mayor Moore closedt the Public Hearing ata approximately 11:32 am  Mayor Pro- Tem Dunn made a motion, seconded by Councilman Barbour, to approve Resolution No. 679 (07-2021) authorizing incentives for economic development. Unanimously approved.  TOWN OF SMITHFIELD RESOLUTION NO. 679 (07-2021)  AUTHORIZING INCENTIVES FOR ECONOMIC DEVELOPMENT  WHEREAS, AMAZON.COM SERVICESI LLC ("the Company)proposes tol locate ar newr multi- purpose warehouse/distibution facility (the "Facility") on the parcel located at or near the Town of Smithfield in. Johnston County, North Carolina more particularly described as being all oft that 169.674 acre, Tract1 1 and that 23.353 acre Tract 2 shown on al Recombination Plat for Samet Corporation by RWK, PA recorded 4/28/2021 in Plat Book 93, Page 241 of the WHEREAS, the Company will locate the Facility on the Project Site and, in connection therewith, construct or cause to be constructed and up-fit improvements comprising the Facility andi install ord causet to bei installed ont the Project Sitei industrial machinery, equipment, and other real and personal property improvements subject to ad valorem taxation by Johnston County and the Town of Smithfield, by including construction and expansion ofr new buildings and otherr real property improvements, as well as installation ofr new manufacturing WHEREAS, an economic impact review containing a fiscal analysis of the proposed Expansion prepared for the Johnston County Economic Development Commission in May 2021 indicates that atf full buildout the proposed project would resulti in as substantial increase in direct property tax revenues for the County and Town and the direct and indirect creation WHEREAS, North Carolina General Statute 158.7.1(a) authorizes the Town to make appropriations to aid and encourage the location of manufacturing enterprises, industrial and commercial facilities within the Town and other purposes which will increase the population, taxable property, employment, industrial output or business prospects oft the Town; and WHEREAS, the Council has determined that granting incentives (the Incentives) to the Company in exchange for the commitment oft the Company tol locate and operate the Facility at the Project Site in. Johnston County would be beneficial to the Town's efforts toi increase economic opportunities fori its residents, its population, ad valorem tax revenues and sales tax revenues, and enhance and improve business prospects in general, including the creation of WHEREAS, the Council has received and reviewed a proposed Economic Development Agreement between the Town and the Company providing for the Town's granting the Incentives to the Company in consideration of the Company's commitments set forth there (the Agreement), and a copy ofwhichi is attached hereto as Exhibit A: and incorporated herein WHEREAS, the Council has, pursuant to the notice and hearing requirements of North Carolina General Statute 158-7.1, held a public hearing to consider whether to grant the Incentives in exchange for the commitment oft the Company tol locate and operate the Facility Whereas, the Company has agreed to petition to annex the Project Site into the corporate limits ofthel Town of Smithfield by satellite annexation and consent tot the same until annexed as allt terms oft the Agreement are subject to a condition precedent oft the annexation.  Johnston County Registry (the Project Site"); and  equipment att the Facility; and  ofas substantial number ofr newj jobs; and  asubstantial number ofj jobs; and  byr reference; and  att the Project Sitei in Smithfield.  NOW, THEREFORE, the Council:    6166  1. Determines and concludes (a) that granting the Incentives in exchange for the commitment oft the Company to proceed with the development and buildout oft the Facility att the Project Site in the Town would be beneficial to the Town's efforts to increase overalle economic opportunities for, andi improve the general welfare of, its residents andi increase ad valorem tax revenues, sales tax revenues and business prospects ing general and resulti in the creation ofas substantial number ofr new jobs int the County and Town, and (b) thatt the benefits described above accruing to the Town will outweigh the cost oft the Incentives granted hereunder, creating a net 2. Inc consideration oft the undertakings oft the Company set forthi int the Agreement and theb benefits derived byt the Town as described: above, the Town's granto ofl Incentives tot the Company as set forth int the Agreement is hereby approved, and the Town Manager, subject to compliance with any pre-audit requirements under the Local Government Budget and Fiscal Control Act, is hereby authorized to enteri into and execute the Agreement on behalf of the Town int the form set forth on Exhibit Aor with revisions ast the Town Manager, in consultation with the Town Attorney, shall findt to ber notr materially inconsistent with thef form oft the Agreement attached hereto 3. The Agreement shall be construed as a continuing contract in accordance with North Carolina General Statutes 153A-13 subject to the condition precedent that Company petitions to annex the Project Sitei into the corporate limits oft the Town of Smithfield by satellite annexation and consent to the same until annexed as all terms oft the Agreement are subject to a condition precedent of the annexation.  public benefit; and  and the intent and purpose thereof.  Mayor Moore recognized former Councilmembers! Emery Ashley, Perry Harris and Susan Lassiter, Mayor Moore stated Smithfield was severely impacted whent thet tobacco and textilei industries facede economic hardship and devastation. Industries that shaped the Town had to close their doors and people left the community to find other jobs. This facility will create immediate much needed job opportunity for residents of alls skilll levels atac competitive wage. He expressed his appreciation top private partners, state partners, county partners, thel landowners, Chris Johnson, Tim Kerigan, Michael Scotta and countless others that made this day areality. Mayor Moore stated Smithfield was fortunate tol have and outstanding institute of higher learning such as Johnston Community College, which stands ready top provide any specific training. The college has al long- standing record of producing graduates who possess the necessary skills to make a positive impact on  employers on day one. He again welcomed. Amazon tot the Town of Smithfield.  Adjourn  Being not further business, Mayor Moore adjourned the meeting at approximately 11:42 am.  OF SMITH I IEII PRL  fa M.AndyMoore,4 Mayor  ATTEST:  oiantlorid Shannan L. Parrish, Town Clerk