Davidson OKs tax incentive for business bringing 400 jobs
by Staff Writer
DAVIDSON — Town commissioners voted unanimously Tuesday to approve an incentive package for MSC Industrial Direct Co., Inc., which announced last week it will build a $26 million facility in town that will ultimately employ 400 people.
The MSC project is set for two phases. The incentive only applies to phase one, which includes a180,000-square-foot facility on a 14-acre site that will house 200 employees in the Harbor Place development, off Interstate 77, Exit 30.
With construction slated to begin later this year, the phase-one facility could be complete by 2013. In phase two, MSC is slated to construct a second, identical facility to house an additional 200 workers.
In all, MSC’s Project Husker, as it’s being called, is expected to generate a total of 400 jobs by the end of 2017.
The incentive package provides a 90-percent grant that will give the New York-based industrial distribution company a tax break once the new facility is built. Project Husker will be a customer service center.
The incentive is self-funding and performance-based, meaning the company will pay property taxes and the town will then refund 90 percent of any taxes applicable to the improvements to the property for five years after the facility is complete.
Town Manager Leamon Brice said the town will work with fellow taxing body Mecklenburg County to create a contract that will likely include performance measurements tied to job creation.
“This resolution is to assure MSC we are going to follow through on an incentive grant as we have said we would throughout the process,” Brice said.
The estimated annual property tax revenue from the project will be about $250,000 for the county and $110,000 for Davidson.
A technical report done for the town outlining the project’s financial benefits estimates the construction of the first facility will generate 292 construction-related jobs and more than $17.9 million in labor income.
Once phase-one construction is complete, Project Husker is expected to generate 200 jobs and annual labor income of $22.9 million.
The technical report said phase one of the project will result in an annual fiscal benefit of $294,000 for the town and place minimal demand on town services, even with a potential 300-plus new residents moving to town for work.
Davidson was selected over sites in Fort Mill, SC, Lexington, KY, and the University City area of Charlotte.