BOARD OF COMMISSIONERS
OF THE TOWN OF
WAKE FOREST, NC
The Town of Wake Forest (“Town”) proposes to appropriate and expend Town funds for the following economic development project pursuant to NCGS 158-7.1. The Town Board of Commissioners (“Board”), following the recommendation of the Futures Fund Committee, intends to consider entering into an economic development incentives contract with 3 Phoenix, Inc. (“3 Phoenix”). 3 Phoenix is a product and system engineering company located at Capcom Avenue, Wake Forest. Approximately 90 employees occupy a 33,000 square feet building at the current location and 3 Phoenix intends to expand into a second building comprised of 33,000 square feet by July, 2014. 3 Phoenix expects to employ approximately 110 additional people to be located in the second building. 3 Phoenix has other engineering facilities in Chantilly, Virginia and Hanover, Maryland.
The purpose of the proposed incentive is to encourage 3 Phoenix to continue to expand in Wake Forest to a third building, comprised of approximately 30,000 square feet (“Project”), rather than expanding or relocating to its other existing locations. The Capcom Avenue location can accommodate the Project. The Project is in the planning stages and could begin as early as the 2nd quarter 2016. In the alternative, 3 Phoenix could forgo expansion in Wake Forest and expand or relocate in other locations.
The benefit to the Town based on the increased tax value represented by the third building equals approximately $3,500,000, based on the cost of construction for the second building. The size and cost of the third building are merely estimates and the final size and cost of the third building will be established by plans and costs that are not currently available.
3 Phoenix expects to hire a substantial number of new employees in connection with the Project. 3 Phoenix expects new employees to earn salaries comparable to the salaries paid current employees of 3 Phoenix at the Wake Forest facility. The average salary at the current Wake Forest facility equals approximately $100,000 per year per employee. The new jobs created in connection with Project are approximately double the $50,487 average annual salary in the Wake Forest area. The number of new jobs to be created and the average salary to be paid by 3 Phoenix in connection with the Project is uncertain at this time.
In consideration of 3 Phoenix’s willingness to commit to the Project, including the construction of the third building and committing to create a substantial number of new jobs, the Town proposes a $90,000 cash incentive grant to 3 Phoenix, payable in three installments of $30,000 each, beginning on the effective date of the contract (estimated to occur on June 17, 2014) and thereafter on December 1, 2014 and February 1, 2015. The Town will fund the payments with available revenues held in the Town’s Futures Fund. The Board believes this Project will stimulate and stabilize the local economy and result in the creation of a substantial number of new, permanent jobs.
The Board will hold a public hearing on the Town’s proposed appropriation and expenditure of funds for this Project at its regularly scheduled meeting at 7:00 P.M. on Tuesday June 17, 2014 in the Town Hall. The Commissioners invite all interested persons to attend and present their views.
The Wake Forest Weekly
June 5, 2014
- Real Estate
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