The Botetourt Board of Supervisors agreed 5-0 to pay Eldor Corporation $500,000 as part of the county’s incentive package for the Italy-based advanced automotive parts manufacturing company that’s located at Botetourt Center at Greenfield.
County Administrator Gary Larrowe said theincentive payment was scheduled in the last fiscal year, but was payable when Eldor received its certificate of occupancy (CO) for the
250,000-square-foot facility.
He said Eldor received the CO the week before.
“It’s a good thing,” he added. This is the second incentive payment from the county. The money was budgeted in the last fiscal year and carried over to this fiscal year that started July 1.
Jobs and investment in machinery and tools are at the center of the county’s performance agreement with Eldor. The county is providing local revenue performance grants on a
schedule that covers 22 years.
In year one, the county is providing a grant that equals 100 percent of the real estate taxes on the property that’s required to have a capital investment of $14 million, but no machinery and tools yet.
In years two and three, the company is obligated to have 100 and 169 cumulative jobs, respectively, and have invested a cumulative total of $29 million in the real estate and $15.4 million in machinery and tools.
The county will provide a performance grant equal to 100 percent of both the machinery and tools and real estate taxes those two years. The maximum estimated value of the grant in the first year is $358,236.
In years four through 22, Eldor is obligated to increase its cumulative investment in machinery and tools to $30.8 million in year four, a cumulative of $46.2 million in years five and six, and $61.6 million in year seven. By year eight, Eldor is obligated to increase
its machinery and tools investment to $77 million.
Eldor is supposed to have 266 jobs by year four and 350 jobs by year five. In order to continue to receive performance grants, Eldor will have to have 405 jobs by year six, 495 jobs by year seven, 588 jobs by year eight and 650 jobs by year nine.
The county will provide grants back to Eldor for meeting those benchmarks by refunding 45 percent of machinery and tools taxes and real estate taxes in years four through 10.
