FOR IMMEDIATE RELEASE
Tuesday, January 28, 2014
Contact: Katie Sparrow, Neighborhood & Business Services
Charlotte City Council approved Business Investment Grants to Electrolux and Stanley Black & Decker during their meeting on Monday, Jan. 27.
Business investment grant for Electrolux
City Council approved a Business Investment Grant to Electrolux for a total estimated amount of $2.3 million payable over seven years. Electrolux Home Products Inc. is a subsidiary of Sweden-based AB Electrolux, and is a global leader in appliances for household and professional use. Since moving its North American headquarters to Charlotte in 2010, Electrolux has created over 700 new jobs in Charlotte at its University City campus. On December 20, 2013, the company announced consolidation of additional functions in research & development, accounting, marketing and administration into a new facility in Charlotte, adjacent to its existing headquarters building.
Electrolux will build a new $85 million facility and add 610 jobs in Charlotte with an average wage of $100,000. The company had reportedly considered several locations for this project including Memphis, TN. In October 2013, Electrolux applied for a Business Investment Grant from the City which provides grants to expanding or relocating businesses based upon the amount of new property tax generated by the business. Over the next 10 years, the City expects to receive $3.6 million in new property taxes from the expansion, in addition to the employment gains and the continued influence of a world-renowned headquarters. Grants are offset by increased property taxes paid by the company, and require companies to meet thresholds for capital investment, new jobs and wages.
This is the third Business Investment Grant awarded to Electrolux in the past three years, and the company is currently meeting the investment and hiring standard outlined for each of the previous grants.
Business investment grant for Stanley Black & Decker
City Council approved a Business Investment Grant to Stanley Black & Decker for a total estimated amount of $66,126 payable over three years. Stanley Black & Decker is a global provider of hand tools, power tools, and other mechanical, security, and healthcare products. Stanley Black & Decker currently owns a 454,146 square foot production facility, with 272 employees, at 15040 Choate Circle. On November 11, 2013, the company announced a decision to relocate certain manufacturing operations, currently located in Reynosa, Mexico, to the United States. The company announced it had selected Charlotte for the expansion over its existing plant in Jackson, TN. Stanley Black & Decker will invest $6.3 million in facility improvements and new machinery, and add 250 new jobs over four years with an average annual wage of $29,926.
In July 2013, Stanley Black & Decker applied for a Business Investment Grant from the City which provides grants to expanding or relocating businesses based upon the amount of new property tax generated by the business.
Over the next ten years, the City expects to receive $186,336 in new property taxes from the expansion, as well as the benefits of adding manufacturing jobs in the community. Grants are offset by increased property taxes paid by the company, and require companies to meet thresholds for capital investment, new jobs and wages.
About the business investment program
- The Business Investment Program was created in 1998 in partnership with Mecklenburg County, to encourage the attraction, retention and/or expansion of businesses and jobs.
- Grants are performance-based, requiring recipients to meet contractually agreed upon investment and employment thresholds before receiving payments.
- Grant agreements include provisions that require the recipient to repay all or a portion of the grant if the company fails to comply or removes the investment from Charlotte.
- Since the program’s inception in 1998, the City has awarded 53 grants through the Business Investment Program worth an estimated $18.9 million. The grants have assisted in creating more than 7,900 new jobs. These grants have leveraged more than $767 million in private investment, with an additional $244 million of investment in progress.