TO: Mayor and Members of City Council
THRU: Douglas J. Hewett, City Manager ICMA-CM
FROM: Robert M. VanGeons, CEcD, Fayetteville Cumberland Economic
Development Corporation (FCEDC)
Cynthia Blot, Economic & Community Development Director
DATE: June 11, 2018
RE:
Title
June 11, 2018 Public Hearing & Consideration of Incentives for Project Intelligence
end
COUNCIL DISTRICT(S):
Council District(s)
All
b
Relationship To Strategic Plan:
Goal 2: Diverse and Viable Economy
Executive Summary:
The City Council is required to set a public hearing to consider incentives for Project Intelligence. If we are successful in securing this project, the company would retain 40 existing jobs through December 31, 2022 and create 178 new jobs by December 31, 2020, with 208 jobs projected by 2023.
The company offers a competitive average annual salary of $64,300, as well as a comprehensive benefits package. The company would make a significant investment in real estate and equipment of approximately $1,200,000, with projected future investment to exceed $5,000,000.
Fayetteville Cumberland Economic Development Corporation (FCEDC) is requesting that the City of Fayetteville consider a local incentive grant, not to exceed $89,000 and to be paid based on successful job creation.
Background:
This is an existing company in Fayetteville that specializes in management consulting and engineering services. The expanded operations would initially be located in an existing building.
In addition to requesting assistance from the City, FCEDC is working with Cumberland County and the State of North Carolina. At their June 4th meeting, the Cumberland County Commissioners approved their incentive offer. The State of North Carolina is currently considering the project for possible financial support. The company will not make a final decision until this process is completed. As required, public notice for this hearing was published in the Fayetteville Observer on May 31, 2018 (see attached).
Issues/Analysis:
The proposed project would:
- Initially add 178 new jobs, with future growth to 208 Full-time employees
- Retain 40 existing jobs
- Pay an Average Wage of $64,300
- Provide a comprehensive benefit package
- Initially invest approximately $1.2 million in real estate and equipment.
- Projected future investment to exceed $5 million
Budget Impact:
As part of an incentive agreement, the Company would be required to create the jobs prior to receiving the grant. Over the life of the grant, the City would expend $89,000. The City would benefit from $5 million of new taxable investment and $13.37 million of annual payroll, once the project is fully implemented. This project is competitive in nature, as the Company has substantial operations in other states. With your support, we hope to reinforce and dramatically expand their operations here in Fayetteville.
Options:
Option 1 - Hold a Public Hearing and Approve Incentives for Project Intelligence
Option 2 - Hold Public Hearing and Deny Incentives for Project Intelligence and provide direction to the City Manager
Recommended Action:
FCEDC respectfully requests that you hold a public hearing for "Project Intelligence", and following the public hearing, consider approval of a local incentive grant, in an amount not to exceed $89,000.
Attachments:
Public Ad for Hearing