Lee County and Sanford officials have agreed on an incentive package in their efforts to recruit Project Jupiter, a gene therapy company, to Central Carolina Enterprise Park.
Stories that ran Wednesday and Thursday in The Herald erroneously reported that the county would invest more than $100 million in the company when, in fact, the company would make a taxable investment in the county in that amount.
The company’s investment of $109.4 million is the estimated amount it will spend to purchase new machinery and equipment, and to purchase and renovate the shell building it will occupy in the industrial park.
An announcement and the identity of the company is expected Tuesday in Raleigh.
Local government officials and members of the Sanford Area Growth Alliance began negotiations with the company in June, leading to the first incentive agreement approved in December.
However, the terms of the agreement have since been amended, which required the county commissioners and Sanford City Council members to approve revisions to the seven-year performance-based incentive package.
The company agrees to create a total of 209 jobs that will pay an annual average salary of $83,900. The jobs are to be created incrementally on an annual basis, starting with 33 this year, until reaching 209 by 2026, according to the agreement.
As long as the company is meeting those terms, the county and city will provide annual cash grants, based on taxable investments, according to Michael Smith, SAGA’s executive director.
The grants are similar to tax rebates.
“The annual payments to the company would never exceed the tax revenue (it) received,” Smith said Thursday.
Over the seven-year period of the agreement, the county will pay a total of $2.757 million in incentive grants while the city will pay a total of $2.1 million.
However, the company must meet the terms of the agreement each year to receive a full grant or any payment at all. The county and city also maintain the option of terminating the agreement if the goals are not met, according to county documents.
Should the company fall short of the yearly goal, the cash grant will be reduced accordingly, said Bob Joyce, SAGA’s executive director of Economic Development.
Reach Assistant Editor Nancy McCleary at 919-718-1219.