The county will move a step closer to finalizing its incentive agreement with Japanese clutch parts manufacturer FCC at its meeting tonight during which members of the public are invited to comment on the arrangement.
Designed to lure FCC’s $57.6 million expansion project to the county, the incentive agreement will see FCC get back all but 10 percent of its paid property taxes in year one. This arrangement will continue for six years, with the rate of incentive decreasing by 10 percent each year (80 percent year two, 70 percent year three, etc.).
“These agreements are necessary when you’re recruiting investments like this,” said Greg Icard, economic developer for the county. “What we try to do are win-win situations, and this is an example. It’s just part of what you have to do.”
FCC’s expansion into the county’s spec building is expected to bring 66 new jobs to the county. That estimate includes jobs created by additional investment in its current Laurel Hill facility.
The incentive agreement is dependent on FCC meeting its jobs and investment pledge to the county. Because North Carolina does not allow for direct abatement of taxes, FCC must first pay their taxes and then have them returned in an incentive grant by the county.
While the value of FCC’s buildings will not decrease, the equipment purchased during the expansion will depreciate, meaning that the taxable property value will decrease over the life of the agreement.
In year one it is possible that FCC will see more than a half million in taxes returned via the incentive grant.
The Scotland County Board of Commissioners will meet at 7 p.m. tonight at the AB Gibson Education Center on Main Street in Laurinburg.