TITLE
Title
PUBLIC HEARING ON ECONOMIC DEVELOPMENT INCENTIVE GRANT TO QORVO, INC.
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SPONSOR
Sponsor
Marty K. Lawing
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BACKGROUND
Background
Qorvo, Inc. is evaluating site options to construct a new facility and hire additional new employees. Qorvo, Inc. is the company that resulted from the merger of RF Micro and TriQuint. In addition to a site in Oregon, a site adjacent to the company's existing Greensboro facilities is being considered for an investment of $25,000,000 and the creation of 100 new positions. The projected investment would include $19.5 million in new construction and $5.5 million in equipment and machinery or business personal property. The new jobs would have an average salary of $80,000 annually plus benefits.
Qorvo has requested a local incentives from the City of Greensboro and Guilford County in addition to assistance from the State of North Carolina. Based on the County's current incentive guidelines regarding the proposed capital investment the company would be eligible for an incentive grant up to $333,750 to be paid over a period of five years. This would be a performance based incentive based on the actual value of the investment as determined by the County Tax Department. The proposed $25 million investment would generate $190,000 in property tax revenue annually for the county. The incentive grant payments would be made after the payment of property taxes on the new investment.
Guilford County has approved four incentive grants for RF Micro dating back to 1999. In 1999 RF Micro made a $200,000,000 investment and added 800 new jobs and the county approved a $2,000,000 incentive. In 2003, the company committed to make a $39,700,000 investment and add 50 jobs and the county approved a $347,000 grant. In 2004 the county approved an incentive of $1,168,000 for a projected investment of $75,000,000 and 75 new jobs and in 2006 the county approved an $830,000 incentive grant for a proposed $80,000,000 investment and 300 jobs. In each case the actual investment by the company met or exceeded the initial projected capital investment.
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BUDGET IMPACT
Budget Impact
There would be no impact on the FY 2015-16 County Budget. If Qorvo selects the Greensboro site for the expansion, the property tax revenue in future budgets would be approximately $190,000 and the expenditure for the incentive grant payments would be approximately $66,750 annually if paid in equal installments over five years.
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REQUESTED ACTION
Requested Action
Conduct a public hearing on an Economic Development Incentive Grant Request from Qorvo, Inc.
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