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Article 46
The document provides information on Orange County's use of funds from Article 46, a 1/4 cent retail sales tax. It summarizes spending in FY 2012-13 and FY 2021-22, which supports economic development through infrastructure, small business programs, education, and more. It also outlines recent job and investment announcements from companies expanding in Orange County totaling over 1,600 jobs and $338.7 million in investments.
Article 46
- 1. Economic Development Department Reporton Article 46 May 5, 2022
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- 3. Article 46: ¼Cent Retail Sales Tax 3 • Approved by Orange County voters in Nov. 2011. • Funds became available in April 2012. • Annual $ proceeds (currently $4 million) are split 50/50 between Public Education and Economic Development. • Economic Development uses are approved by the Orange County Board of Commissioners.
- 4. Article 46 FY12-13 4 Economic Development Use for FY 2012-13 Amount % of Allocation Debt Service on Utility Infrastructure $750,000 60% Collaborative Outreach $20,000 2% Small Business Loan Program $200,000 16% Collateral Materials $20,000 2% Innovation Center – “Launch Chapel Hill” $100,000 8% Agricultural Economic Development – Ag Grants $60,000 5% Business Investment Grants $100,000 8% TOTAL $1,250,000 100%
- 5. Debt Service onUtility Infrastructure 60% Collaborative Outreach 1% Small Business Loan Program 16% Collateral Materials 2% Innovation Center – “Launch Chapel Hill” 8% Agricultural Economic Development – Ag Grants 5% Business Investment Grants 8% Article 46 Budget FY2012-13 (Economic Development) 5
- 6. Article 46 BudgetFY21–22 6 Economic Development Programs in FY 2021-22 Amount % of Allocation Debt Service for water/sewer in the Econ. Dev. Districts $896,986 44% Utility Service Agreement with City of Mebane $50,000 2% Collaborative Outreach with 3 Towns $60,000 3% Small Business Loan Program $0 “Launch, Inc.” Innovation Center $73,500 4% Agricultural Grant Program* $100,000 5% Small Business Investment Grant Program $150,000 7% Incentive Payments Reserve $ 251,202 12% Agricultural Summit* $5,000 <1% Orange County/Economic Development Annual Summit $0 Durham Tech Promise (Scholarships)* $200,000 10% Durham Tech Back-to-Work Initiative* $50,000 2% Breeze Farm Contribution* $10,000 <1% Piedmont Food Processing Center Improvements* $140,000 7% City of Mebane Coordinated Planning Project – Phase 2* $15,000 1% Orange County Arts Incubator* $10,000 <1% National Endowment for the Arts – County match* $5,000 <1% Farm App – to identify Orange County Farms* $3,600 <1% TOTAL $2,020,288 100% *Yellow identifies use of funds outside of Economic Development Department
- 7. Debt Service onUtility Infrastructure 44% Utility Service Agreement with Mebane 2% Collaborative Outreach 3% Innovation Center – “Launch Chapel Hill” 4% Agricultural Grants 5% Business Investment Grants 7% Incentives 12% Agricultural Summit <1% Durham Tech Promise (Scholarships)* <1% Durham Tech Back-to-Work Initiative 2% Breeze Farm Contribution* <1% PFAP Improvements* 7% Mebane Coordinated Planning Project – Phase 2 1% Arts Incubator* <1% National Endowment for the Arts <1% Farm Application <1% Article 46 Budget FY2021-22 (Economic Development) 7
- 8. Article 46 FY21–22 (EconomicDevelopment Reserve Funds) 8 Use of Article 46 Reserve Funds for FY 2021-22 Amount % of Allocation Economic Development Department Budget $418,158 68% Indirect Costs associated with Economic Development Department, as per County’s Cost Allocation Plan $122,170 20% County’s 75% share of the Agricultural Economic Development Position, now affiliated with NC State University and based in Cooperative Extension Dept. $74,504 12% TOTAL $614,832 100%
- 9. Financial Support providedby Orange County’s Article 46 for Small Business and Food/Agriculture operations since 2Q 2015 Summary of Financial Grant Programs 9 Programs Awards Made Amount of Funding (1) COVID-19 Emergency Small Business Loan and Grant Program (3 special grant offerings) 139 $647,131 (2) Small Business Investment Grant Program 209 $1,061,079 (3) Agriculture Grant Program 75 $600,512 Total Funds Awarded Since 2015 423 $2,308,722
- 10. $60,000 Distributed Annuallyto Towns for Economic Development Initiatives Collaborative Outreach 10 Carrboro Chapel Hill Hillsborough Mebane FY 21-22 $13,800 $39,600 $5,400 $1,200 % of Population 23% 66% 8% 2%
- 11. LAUNCH, Inc. 11 Summary ofkey LAUNCH metrics achieved since the 2013 opening: Total # of start-up companies accelerated: 153 Total # of companies still in operation: 98 (64%) Total # of student cohorts: 17 Total venture capital & grants raised in 2020: $714,000 Total revenues earned in 2020: $69 million Total # of employees/jobs created: 802 Total # of employees based in Orange County: 435 Minority-led companies: 47% Women-led companies: 53% Mentors advising student cohorts in 2020: 83 • Award-winning innovation center funded by Orange County, the Town of Chapel Hill and UNC Chapel Hill (Innovate Carolina) • Promotes entrepreneurial technology start-up small businesses. • The County allocates annually $73,500 per year from Article 46.
- 12. New jobs andinvestment in Orange County since 2019 from announcements by retail, commercial and industrial businesses. New Jobs and Investments 12 Company Jobs Average Wage Investment Full Employment Expected by ABB 403 $70,789 $40 million Dec. 2024 Medline 250 $35,468 $80 million Jan. 2026 Piedmont Metalworks 42 $41,236 $4.2 million Dec. 2024 Wegmans 350 $12-15/hr $18 million Feb. 2026 Well Dot 400 $63,656 $3.5 million Dec. 2025 Thermo Fisher Scientific 200 N/A $193 million Dec. 2023 TOTAL 1,645 jobs $338.7 million - Wegmans may eventually generate $1 million/year in retail sales tax - Board of Commissioners approved recruitment incentives for most of the projects listed above. - All firms listed above total 2 million sq. ft. of new construction.
- 13. Current Economic DevelopmentActivity 13
- 14. 14 Orange County’s 3Economic Development Districts Durham County Alamance County