**View the map of the Local Business Investment Zone (pdf/344k)**

What is the Business Investment Program (BIP)?

The Business Investment Program (BIP) seeks to encourage the creation, retention and/or expansion of new or existing businesses and jobs in identified Investment Zones within the community. The program provides grants to companies based upon the amount of property tax generated by the business investment being made. The program aligns itself with local Smart Growth, Transit, and Communities Within A City (CWAC) Strategic Plans.

Eligible Business Growth Clusters

Companies from the following business growth clusters who are relocating or expanding to or within the program’s geography may be eligible for participation in the program.

Manufacturing
Transportation and Logistics 
Emerging Technologies & Industries
Corporate Headquarters
Financial, Insurance & Professional Services

See Attachment I for a more detailed list of eligible business growth clusters.

Eligible Investment Zone Geography

Local Business Investment Zones include (i) Center City, (ii) targeted Business Districts, (iii) Transit Corridors*, and (iv) the Arrowood-Westinghouse** industrial area. Locations that are consistent with adopted land use policies and plans will also be considered. Additional geographies are considered for projects that meet the program’s definition of a "Large Economic Impact Project" (see Attachment II for additional information).

Grants may also be considered for projects that convert or adaptively reuse vacant retail "Big Box" sites, whether inside or outside the development zone, provided that the planned use is consistent with adopted plans for that area.

* If an adopted Transit Station Area Plan exists, the development zone will include the area defined for mixed-use in the plan. If an adopted Plan does not exist, the development zones will extend ¼ mile from transit stations identified in the Major Investment Study.

** Eligible Business Growth Clusters in the Arrowood-Westinghouse industrial area are limited to Transportation/Distribution and Manufacturing.

Program Guidelines and Requirements

• A minimum investment of $3 million.
• A minimum of 20 new jobs must be created.
• Grant recipients must pay an average wage rate for all employees at the investment site equal to or greater than 100% of the average annual wage rate for the Charlotte-Gastonia-Rock Hill M.S.A. The average wage can be lowered by up to 20% for those companies that pledge to employ Work First participants and/or residents of the development zone itself in 25% or more of the new job positions.
• Manufacturing companies creating less than 20 new jobs, but at least 10 may be considered for the program with a minimum investment of $6 million within the Investment Zone. 
•  Required investment and employment standards will be set forth in a contractual agreement between the City, County and Grantee. These standards must be maintained throughout the term of the Grant in order for Grant payments to continue. Failure to maintain these levels during the Grant term will result in suspension of Grant payments until such time as the levels are once again met and maintained.
• Grant recipients that relocate outside of Charlotte during the term of the Grant – or within 3 years after receipt of the final Grant installment – will be required to repay a proportional amount of the Grant.

Criteria for Evaluating Projects

In making a recommendation for grant approval, the City will consider whether there is demonstrated competition from other cities and whether the company’s planned relocation or expansion is a realistic choice given the company’s product and market. Criteria will include a certification by company executives that the relocation or expansion is contingent upon receiving local incentives.

Grant Amounts

Grants last for three years and are based upon new property tax generated by the investment:

Year 1: 90% of new property tax

Year 2: 90% of new property tax

Year 3: 90% of new property tax

How does the Program work?

• The Charlotte Chamber of Commerce, together with the City, works to identify candidate companies for the Program. If the candidate meets the criteria of a "Large Economic Impact Project" (see attachment II) then the City and County governments are involved in the process.

• City staff evaluates the prospective project and develops the proposed Grant.

• The Charlotte City Council and Mecklenburg County Board of County Commissioners consider approval of the proposed grant at a regularly scheduled business meeting.

• Investment is broadly defined as improvements to land and/or buildings, or the purchase or lease of new equipment, or buildings constructed for the qualifying company. Where circumstances warrant, however, Grant calculations may give consideration to the value of leasehold improvements in existing buildings when it can be reasonably demonstrated that the lease will cause additional investment to replace the leased space, or that the lease results in a higher value for the building.

For Additional Information, contact:

 Brad Richardson
Manager – Business Retention
Economic Development Office
City of Charlotte
PH: 704-336-3857
brichardson@ci.charlotte.nc.us

ATTACHMENT I

ELIGIBLE BUSINESS CLUSTERS

Manufacturing
Focused on the following:
-  Automotive/Transportation Equipment
-  Medical Devices
-  Plastics
-  Metalworking
-  Industrial Machinery
-  Defense & National Security
-  Aerospace
-  Consumer Products and Food Processing
-  Research & Development Facilities

Headquarters
-  Includes: Corporate, Divisional & Regional

Transportation/Distribution (Logistics)
Focused on the following:
-  Truck transportation
-  Support activities for transportation
-  Warehousing and storage

Financial, Insurance & Professional Services
Focused on the following:
-  Financial investment & related activity
-  Credit intermediation & related activity
-  Insurance carriers & related activity
-  Funds, trusts & other financial vehicles
-  Professional & technical services
       * Software development
       * Back Office Operations 
       * Excludes:
            - Law Firms or Accounting Firms, or other   professional service companies that predominantly serve the Charlotte region.

Emerging Technologies/Industries
Includes:
-  Opto-Electronics
-  Fuel Cells/Alternative Energy
-  Bio-Informatics
-  Film/Video Production Facilities
-  Industries which create synergy with programs of focus at the Charlotte Research Institute or local colleges and universities.

ATTACHMENT II

LARGE ECONOMIC IMPACT PROJECTS

Consideration for participation in the Business Investment Program can also be given to projects that have a larger economic impact than that set forth in the previous program guidelines as identified on page one.

For the purposes of this program, Large Economic Impact Projects will typically be those that consist of:

• Investment of $30 million or more
• Creation of a minimum of 150 jobs, resulting in the average wage rate for all employees at the investment site being equal to or greater than 125% of the average annual wage rate for the Charlotte-Gastonia-Rock Hill M.S.A.

It is important to recognize that some Large Economic Impact Projects may create fewer jobs yet more investment, or higher paying jobs with less investment, or a higher number of jobs with lower average wages, etc. For this reason, such Large Economic Impact Projects could still be considered for the program based upon the project’s location and overall economic impact.

Eligible Geography for Large Economic Impact Projects

• City of Charlotte (any area)

• Consistent with adopted land use policies and plans.

 

Criteria for Evaluating Large Economic Impact Projects

Economic Impact Factors	Other Factors
Number and quality of new jobs	Competition from other cities
Number of new jobs filled by local residents	Demonstrated need for assistance
Amount of investment	Location within local development zone
Quality of company
Net tax benefit to City and County
Primary economic impact

Large Economic Impact Projects Grant Amounts INSIDE THE ZONE

Year 1: 90% of new property tax	Year 5: 90% of new property tax
Year 2: 90% of new property tax
Year 3: 90% of new property tax
Year 4: 90% of new property tax

Large Economic Impact Projects Grant Amounts OUTSIDE THE ZONE

Year 1: 50% of new property tax	Year 5: 50% of new property tax
Year 2: 50% of new property tax
Year 3: 50% of new property tax
Year 4: 50% of new property tax