• Although there was no question that Filtec Precise qualifies for an economic incentive grant for a $468,106 investment for plant expansion and the creation of at least five additional jobs, commissioners took no action due to confusion on whether a public hearing is required.

By NICOLE CARTRETTE
Staff Writer

Economic incentives aren’t just for new industry.

Columbus County Economic Development requested the county commissioners’ approval on a $13,607.85 incentive package to be paid over a five-year period to Filtec Precise, of Tabor City, at the Nov. 6 meeting.

While no questions arose about the company or its meeting the requirements for the incentive, there was much confusion over whether or not a public hearing is required on such incentives and the board held off on taking any action on the matter.

“We are going to have to have a public hearing, aren’t we?” Chairman Kip Godwin asked. He explained that he knew there was a policy but recalled signing a notice for a public hearing on the incentive grant that he had been given by the county attorney.

“Since it’s not clear,” Commissioner Amon McKenzie said, “table it.”

“We have done this before,” Commissioner Bill Memory declared.

Several commissioners looked to the clerk of the board, June Hall, for clarification of the situation.

“Ask Steve (Fowler, the County Attorney) what he has seen,” Hall said. “I have not seen anything.”

Godwin then asked the board if they would feel comfortable approving the incentive contingent upon any required hearing being held before the action was signed. He reiterated that he signed off on an advertisement for a public hearing on the matter.

“Will this hurt us in any way?” Varner asked.

“Let’s be safe,” Memory said. “Better than sorry.”

No action was taken on the matter with the understanding that a public hearing may or may not have to be held.

Although information contained in a commissioner’s packet stated the expansion would create 25 additional jobs, according to the Economic Development Office the plant’s expansion would likely add five new jobs and an additional $468,106 to the 2006 tax base for the company. The actual investment ($468,106) is multiplied by the tax rate and percentage of the incentive over a five-year time span meaning the company will receive roughly $2,500 to $3,000 each tax year after paying its taxes.

Under Columbus County’s Incentive Policy adopted in September 2004, companies must invest a minimum of $100,000 and create at least five jobs to apply for the incentive, which applies to manufacturing, distribution and other industrial projects. Retail or commercial businesses, which include professional offices, do not qualify.

Companies seeking the incentive must meet several criteria, including proof of jobs created and continuous employment. Evidence of a banking relationship, acceptable to the economic director’s satisfaction, is also required. Entrepreneurs must demonstrate their belief in the project by detailing personal investment and liability for failure.

The incentive payment is paid yearly after tax payments and employment numbers are verified each of the five years. In 2005, Filtec Precise’s assessed property value totaled more than $2.2 million.

The public hearing on the cash grant was originally planned for Nov. 20, however the public notice on that hearing was cancelled. It is unclear when a hearing will be held. County Attorney Steve Fowler responded to a phone message with an email on Wednesday.

“The Filtec Precise Expansion incentive grant topic was tabled at the November 6 County Commissioner meeting. It is my understanding there should be a call for a public hearing on this matter sometime in the near future,” Fowler stated in the email.