By Brad Dountz and Robert Sullivan

SALISBURY — The Rowan County Board of Commissioners approved tax incentive packages for two economic development projects during their meeting on Monday. The two projects, code-named Project Hoist and Project Crowe, are expected to bring in a total of about 250 jobs.

Project Hoist is an existing Rowan County employer which is planning to expand its advanced manufacturing operations, adding 170 jobs, according to Rowan EDC Vice-President Scott Shelton. The company also estimates that it will invest about $21 million into new construction and equipment. Shelton said that the company is looking at a 20-acre property on Summit Park Drive.

The county agreed to sell the property to Beacon Partners during an earlier commissioner meeting. Beacon is expected to contribute $17 million of the $21 million by constructing the facilities, and Hoist would invest the remaining $4 million in equipment. Shelton said that the company plans to pay an average salary of $55,000.

Hoist is also looking at other locations in the United States as well as Mexico. If Rowan County is chosen, the facility is expected to be completed by the end of 2024 and the 170 jobs are projected to be created by the end of 2028.

The county’s incentive program is based on a point system. Under this system, Hoist is a level two project. It received a point for creating 51 to 250 jobs, a point for investing between $10 million and $50 million, a point for planning to pay 90 percent to 110 percent of the county’s average wage, a point for being in an industry the county targets, a point for being an existing Rowan County company and a point for planning to provide health insurance and pay 50 percent of the monthly premium.

Hoist qualified for a 45 percent tax return, which the commissioners approved. The EDC projected that the project would create $1,153,040 in taxes by the end of 2033 and $269,248 of that would be returned by the grant.

Project Crowe is a company that is hoping to expand into Rowan County with a new distribution facility. Shelton said that Crowe projects will create 80 jobs over the next three years with an average salary of $53,000 and invest around $114 million at the 713,000-square-foot facility Peeler Road location that is under consideration. Project Crowe plans to pay around $53,000.

The company is also looking at other locations in the Southeastern U.S..

Crowe also qualified for a level-two grant and 45 percent tax return. The project earned a point for creating 51 to 250 jobs, three points for investing between $100 million and $499 million, a point for planning to pay between 90 percent to 110 percent of the county’s average wages, a point for being in a targeted industry and a point for planning to provide health insurance and pay 50 percent of the monthly premiums.

The EDC projected that the project would create $6,397,214 in taxes paid by the end of 2033 and $1,475,307 of that would be returned by the grant.

Commissioners Greg Edds and Jim Greene wanted to take the opportunity of multiple hearings on economic projects to clear up the process by which the county’s incentives and grants work.

“I’d like to just reiterate what we do from time to time. These grants are not checks that we go out and write before buildings are ever constructed. What happens is that after these buildings are constructed and taxes are paid on that, and this incentive is a portion of what they have paid to us going back to the owners of the building. So we are not sitting up here writing checks out to these projects,” said Greene.

Edds clarified that if any of the companies fail to meet their job-creation goals or any of the other criteria by which they earned a point the county has a way to lower the amount of their grant, called a clawback.

Project Crowe in Salisbury

At their Oct. 17 meeting, the Salisbury City Council approved a three-year incentive grant to the company behind Project Crowe for their personal property or equipment that would be equal to 90 percent of taxes paid. These terms would lead to a smaller overall grant payment, but the net revenue to Salisbury would be $78,787 more over a 10-year period compared to the city’s standard incentive policy of 80 percent of taxes paid over five years. The total value of the grant is $184,376 and the total net revenue for the city is $303,915.

A similar grant that differed from the standard policy was awarded to Crow Holdings for the facility’s real property back in April to make up for $4 million in infrastructure costs. These altered terms are being used to motivate the company behind Project Crowe to choose Salisbury as the site for their new distribution center.

If Salisbury is selected, the company would invest $12 million in new equipment and just over $29 million in tenant upfits to the building. The company plans to begin operating at their chosen location in the third quarter of 2024.

“The tax revenue is important, but I feel what’s more important is the economic development and the job opportunities that this project provides,” City Manager Jim Greene said.