Incentive deal to lure at least 70 jobs revealed

A public hearing on an economic incentive deal affecting two local industries and creating at least 70 new jobs will be held at 10:15 a.m. on June 20.

The actual incentive deal involves Charleston Forge Inc., which will create 45 new jobs and assist NAPCO in creating an additional 25 positions. Charleston Forge is named with two other associated entities in the agreement: Hearthstone Enterprises Inc. and Barber Investments LLC.

County Manager Don Adams said the deal involves turning over the former Carolina Narrow Fabrics plant to Charleston, as well as the transfer of the current NAPCO building to that company.

In turn, NAPCO will be purchasing the former Spring Ford (Hanes) building on Trojan Avenue and move their operations there. Adams said Charleston Forge is moving a woodworking plant to Sparta from Boone. That plant will be located in the current NAPCO facility. The sale price and the terms of that privately negotiated deal have not been made public.

Under the terms of the proposed incentive deal, the county has established as a fair market price $719,985 and will apply all lease payments made since Charleston Forge located in the former Carolina Narrow plant in mid-2001 through this month. Those payments total $246,000, which will be deducted from the purchase price. In addition, the county will give the business $8,533 cash credit toward the purchase price for each new job created, up to $383,985 total (representing 45 jobs). The company has about 48 jobs here in the county at this time, said Adams. The job credits will be secured in the form of a deed of trust until the jobs are created. The company has until September 2006 to create all of the new jobs. However, Adams noted that the company expects to have the positions in place by January 2006.

If the jobs are not created by the deadline, the company would be responsible for the $383,985 or the portion of the incentives remaining. If all the criteria are met, the company will pay off the county’s current $90,000 loan on the building. The company will not receive the building in deed until September, at which time the EDA (Economic Development Administration) restrictions will be able to be lifted. The county purchased the building in the mid 1980s with the assistance of EDA funds, which included a restriction stating that the county must repay a portion of the funds if the building was sold within 40 years.

However, 1998 legislation allows the EDA to release its interest in the property after 20 years, which is what the county is requesting. Meanwhile, NAPCO is purchasing the Spring Ford building from Byron Wurdeman, owner of Piedmont Medical.

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