The Town of Cary published, albeit briefly, a document spelling out details of a job recruitment proposal that could lead to the addition of 1,237 information technology jobs from an “international information technology and engineering services firm.” For those interested in how economic recruitment works, this is interesting reading. The package includes $17 million in state tax credits and a $123,700 matching grant from Cary for a state One North Carolina Fund grant.

The News & Observer first spotted the “staff report” that calls for a public hearing to discuss the grant proposal. The report disappeared quickly. However, WRAL acquired the report.

Gov. Pat McCrory is scheduled to make an economic development announcement Wednesday afternoon at the Greater Raleigh Chamber of Commerce. Could it be about the Cary project?

We’ll know soon enough.

Given how secretive negotiations are about economic recruitment, however, it’s intriguing to get a look at how towns and governments handle the sausage-making of landing jobs.

Here is the “staff report” in its entirety:

STAFF REPORT

Town Council, July 17, 2014

Public Hearing and Economic Development Incentive (TM15-001)

Consideration of a $123,700 economic development grant agreement and entering into an economic development incentive grant agreement with the State of North Carolina and into a corresponding grant agreement with Company and a Town incentive grant agreement with Company

Speaker: Ms. Lana Hygh

From: Benjamin T. Shivar, Town Manager

Prepared by: Lana Hygh, Assistant to the Town Manager

Approved by: Benjamin T. Shivar, Town Manager

Approved by: Michael J. Bajorek, Deputy Town Manager

Executive Summary: The Cary Town Council will hold a public hearing and consider entering into economic development incentive agreements for a company considering locating a facility in the Town of Cary, investing approximately $9 million in capital investments and creating 1,237 jobs. A cash grant of up to $123,700, tentatively approved by Council in conjunction with State incentives, would be paid in installments as performance milestones are met. If Council approves the $123,700 incentive grant, staff recommends that Council authorize the Town Manager to enter into the appropriate agreement with the State and negotiate one or more economic development incentive agreements with terms and conditions as necessary and acceptable to the Town of Cary.

Discussion: An international information technology and engineering services firm is considering locating a facility in Cary. Over three years, the company would invest approximately $9 million and create 1,237 new jobs with an average annual wage of $52,000.

A public hearing is required prior to any appropriation or expenditure for economic development incentives. This public hearing was advertised in accordance with the requirements of N.C.G.S. 158-7.1(c).

The State is offering Cary a One North Carolina grant of $123,700 for the project. The One North Carolina grant requires a local match. [The state is also offering $17 million in Job Development Investment Grant (JDIG) funding.] To receive OneNC funding, the company must meet performance criteria in accordance with the state’s OneNC requirements. These performance criteria include:

• Investing approximately $9 million
• Creating 1,237 jobs with an average annual salary of $52,000
• Providing documentation of performance commitments

The funding would be paid out over a period of time as the company meets performance milestones. As required by NC law, grant funds would be repaid if the company fails to meet milestones and maintain the jobs and facility for three years.

Fiscal Impact: This incentive will require a $123,700 appropriation to the Economic Development Strategic Fund. The $123,700 from the NC Department of Commerce will also need to be recognized and appropriated to the Economic Development Strategic Fund for the project.

Staff Recommendation: Staff recommends that Council hold a public hearing on an economic development project pursuant to NCGS 158-7.1 for a company considering locating in Cary and creating 1,237 new jobs with an annual salary of $52,000. If Council approves the $123,700 economic development grant from the Town, staff recommends a $123,700 appropriation from General Fund fund balance to the Economic Development Strategic Fund, recognition and appropriation of the $123,700 from the NC Department of Commerce to the Economic Development Strategic Fund and authorization for the Town Manager to negotiate and enter into 1) a OneNC grant agreement with the State of North Carolina, 2) the corresponding OneNC agreement with Company, and 3) a Town incentive grant agreement with Company on terms and conditions similar to the OneNC agreement with Company and other Town of Cary incentive grant agreements.