5471  The Smithfield Town Council met in special session on Tuesday, January 2, 2017 at 10:00 am. in the Johnston County Board of Commissioners' Meeting Room, Johnston County Courthouse located at 207 E. Johnston Street, Smithfield, NC 27577, Mayor M. Andy Moore presided.  Councilmen Present: Emery Ashley, Mayor Pro-Tem Marlon Lee, District1 David Stevens, District2 Travis Scott, District3 Dr. David Barbour, District4 John A. Dunn, At-Large Stephen Rabil, At-Large  Administrative Staff Present Michael Scott, Town! Manager TimH Kerigan, Economic Development Liaison Shannan Parrish, Town Clerk Stephen' Wensman, PlanningDirector  This meeting was held in concurrence with the. Johnston County Board of Commissioners  Mayor Moore calledt the meeting to order at 10:10 am.  Approval of Agenda: Public Hearing:  Councilman. Ashley made a motion, seconded by Councilman Rabil, to approve the agenda as 1. Economic Development Incentive NCGS 158-7.1 (a): Penn Compression Moulding requested an economic development incentive grant to assist with the expansion  submitted. Unanimously approved.  ofi its production facility in the Town of Smithfield  Councilman Lee made a motion, seconded by Mayor Pro-Tem Scott, to opent the Public Johnston County Economic Development Director Chris Johnson addressed the Johnston County Board of Commissioners and the Smithfield Town Council on economic development incentives for the expansion of Penn Compression Moulding. Mr. Johnson explained the project consisted of a new manufacturing facility of approximately 30,000 square feet for molding of thermoset composites compounds, with full support including finishing, subassembly, and tooling. The project will be developed on the company's existing property located 309 Component Drive int the Town of Smithfield, Johnston County, North Carolina with at total investment of $2.5 million. The The company has proposed the expansion in Smithfield in exchange for certain economic incentives int the form of annual cash grants paid from General Town funds over the next three years. The Town of Smithfield believes this project will help stimulate the local economy, resulti in new taxable capital investments in real and personal property, and the creation by the company ofas substantial number of new, permanent] jobs int the Town. Itis the preliminary intention oft the Town Council to approve the grant of these incentives to the company in exchange for the company's commitments to (1) operate the expanded facilities, (2) create thirty new, permanent full-time jobs and (3) invest $2.5 million in net taxable real and business personal property additions that will return property tax revenues substantially in excess of the Town's investment. The cash grants are contingent upon, among other things, the company's entry into a local economic development agreement with the Town containing the obligations and agreements of Town of Smithfield Economic Development Liaison Tim Kerigan expressed his appreciation to Mr. Kerigan explained that the incentives for investment in business property improvements are cash payments for 3 years equivalent to $2.85 per $1,000 in assessed value of business property on. January 1 of the year immediately preceding Grant Year 1 and incentives for investment in real property improvements are cash payments for 3 years equivalent to $2.85 per $1,000 in assessed value ofi improvements on. January 1oft they yeari immediately preceding Grant Year1. Mr. Daniel Leslie, owner of Pen Compression Moulding, statedt this was the biggest investment of the company. He expressed his appreciation to Johnston County and to the Town of Smithfield Mayor Moore asked if there were any comments from those in attendance that would like to Councilman Dunn made a motion, seconded by Councilman Rabil, to close the Public  Hearing. Unanimously approved.  company expects the project tor require the creation of 30 net newj jobs.  thec company and the Town.  Johnston County for the partnership opportunity.  fort their support ont this expansion. speak ont the matter. There were none.  Hearing. Unanimously approved.    5472  Councilman Ashley made a motion, seconded by Councilman Rabil, to approve Resolution # 614 (01-2018) authorizing incentives for economic development.  Unanimously approved.  RESOLUTION#614 (01-2018) TOWN OF SMITHFIELD TOWN COUNCIL  AUTHORIZING INCENTIVES FOR ECONOMIC DEVELOPMENT  WHEREAS, Penn Compression Moulding, Inc. (the Company) has planned to expand its industrial and commercial operations (Facility) in the Town of Smithfield in exchange for the grant by the Town of certain economic incentives set forth below and in the Project 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 plants within the Town of Smithfield and other purposes which will increaset the population, taxable property and business prospects oft the Town; and WHEREAS, the Town Council has determined that granting the Incentives in exchange for the commitment of the Company to expand and operate the Facility in the Town of Smithfield would be beneficial to the Town's efforts to increase economic opportunities for its residents, its population, ad valorem tax revenues, sales tax revenues, and business prospects in general, including the creation ofa a substantial number ofj jobs; and WHEREAS, the Town 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 of the Company to locate and operate the Facility in the Town of Smithfield on terms not materially inconsistent with the NOW THEREFORE, I, M. Andy Moore, Mayor of the Town of Smithfield along with the Authorize the Mayor and, alternatively, the Town Manager, to enter into an economic development agreement on behalf of the Town of Smithfield for the Town to grant Incentives on terms not materially inconsistent with the Summary in exchange for the commitment by the Company to (1) invest $2.5 Million Dollars ($2,500,000) in real and personal property for the construction and outfitting of the Facility, (2) employ approximately 30 newi full-time workers to operate the Facility, and (3) operate the Facility and employ that number of full-time workers to do so for at term not less than three (3)  Summary attached tot this resolution (the Incentives);  Project Summary attached tot this resolution (the Summary);  Members oft the Smithfield Town Council:  years.  Adopted thist the 2md day of. January, 2018.  PROJECT: SUMMARY COMPANY- - TOWN OF SMITHFIELD January 2018 Schedule: Grant Year 2-2021 Grant Year 3- 2022 Thel Project  Grant Year1-2020  The Project consists of a new manufacturing facility of approximately 30,000 square feet for molding of thermoset composites compounds, with full support including finishing, subassembly, and tooling. The Project will be developed on the company's existing property located 309 Component Drivei int the Town of Smithfield, Johnston County, North Carolina with a total investment of $2.5 million. The company expects the project to 30 net new full-time employees hired for the Project with an entry level salary of $25,000 Retention of those facility improvements, business property and net new jobs counts Payment and performance of incentives by The Town of Smithfield are conditional on Company not being in default ofa any obligation to Town, including the taxes and contracts  require the creation of 30 net newj jobs.  Investment by Company with benefits through Grant' Year3  Net New Capital Investment for the Project of $2.5r million  Other Incentives for Completion and Operation of Investment by Company    5473  Company to begin itsr receipt ofr monetary incentives in Grant Year 1.  Incentives for investment in business property improvements are cash payments for 3 years equivalent to $2.85 per $1,000 in assessed value of business property on. January Incentives for investment in real property improvements are cash payments for 3 years equivalent to $2.85 per $1,000 in assessed value of improvements on January 1oft the Incentives fori investment in business property and real property will be adjusted for then-current economict trends int the Town of Smithfield, correlated dollar for dollar to changes in the Town's ad  1of the yeari immediately preceding Grant Year1 year immediately preceding Grant Year1  valoremt taxr rate.  Adjourn:  Councilman Dunn made a motion, seconded by Councilman Ashley, to adjourn the Special  Meeting. Unanimously approved. The meeting adjourned ata approximately 10:17 am.  Mayor  ATTEST:  nouaons  o RIL  GAS  ShahmanE_Parish, Town Clerk