On April 25, 2017, the Board approved economic development incentives totaling up to $1.525 million for idX-Baltimore, Inc. in association with the company’s purchase of and relocation to the former GM plant in Spotsylvania County. The company must meet certain performance criteria relating to investment in improvements to and equipping of the facility and the creation of 150 full-time jobs to be fully eligible for the incentives.
$875,000 of the $1.525 million incentives will be used at the outset of the grant award period with the remaining $650,000 to be paid over the course of up to 10 years. The incentives are summarized as follows:
$875,000 in Up-Front Grants -
- $400,000 grant to the company from the Commonwealth’s Development Opportunity Fund. This grant was awarded by the State to the County and EDA for pass-through to the company for the purpose of inducing the company to purchase, improve, equip and operate the facility in Spotsylvania.
- $300,000 relocation grant for reimbursement of a portion of the purchase price of the plant. This grant is provided as part of the $400,000 local match to the Commonwealth’s Development Opportunity Fund grant.
- $100,000 infrastructure incentive grant for costs related to infrastructure improvements at the facility to include demolition, construction, renovation, and up-fitting. This grant is provided as part of the $400,000 local match to the Commonwealth’s Development Opportunity Fund grant.
- $75,000 grant to the company equal to any permit fees paid by the company to the County related to the facility through June 30, 2018.
$650,000 to be Paid over 10 Years –
- An up to $400,000 jobs grant equal to a maximum of $40,000 per year for each year during the incentives period for which the company meets certain performance criteria related to new jobs.
- An up to $250,000 grant to the company equal to 50% of the tangible personal property taxes and 50% of the machinery and tools taxes paid for the facility and associated equipment over a ten year period.
Attached are two budget amendments and appropriations:
FY 2017 Amendments –
The $875,000 in up-front grants needs to be budgeted in FY 2017 since the Commonwealth’s Development Opportunity Fund and local matching grant will be fully paid out in FY 2017. There is potential for a portion of the permit incentives grant to be paid out in FY 2017, as well. We have already received the $400,000 grant from the State and need to budget for it as part of this adjustment. It is recommended that funding for the $400,000 local match and $75,000 permit incentives be shifted from the $3.75 million that was previously budgeted and set aside when the County’s was considering purchase of the GM plant.
FY 2018 Amendments –
$40,000 of the $400,000 jobs incentive grant is expected to be paid out during the course of FY 2018. It is recommended that this $40,000 be shifted from the $3.75 million that was previously budgeted and set aside when the County was considering purchase of the GM plant.
The $250,000 in long-term tax-based grants will be paid on an annual basis and will be included in future budgets for up to the next 10 years. Since it is anticipated that the first tax-based grant to idX will be paid in FY 2018, the attached FY 2018 budget adjustment includes an assumed increase in personal property taxes to match to the assumed FY 2018 tax-based grant payout ($25,000). No budget adjustment and appropriation is necessary for the out-years portion of the long-term tax-based incentive grant at this time.
Public Hearing will be scheduled for August 8, 2017 Board Meeting.