Earlier this month, the Mebane City Council unanimously approved a performance agreement with the United Parcel Service, which will bring yet another high-profile tenant to Mebane’s North Carolina Commerce Park.
“UPS is looking to invest in Mebane $262 million on a facility,” said City Manager David Cheek. “As part of that facility, they will be employing 451 full-time jobs at a salary of over $65,000, producing an annual payroll of over $30 million, plus benefits. There will likely be some part-time jobs with that.”
UPS will be locating in the North Carolina Commerce Park, which in recent years has attracted the likes of Prescient, Walmart, and Lidl, among others. City Manager Cheek indicated that Windsor Capital is building another speculative building, and Samet also has a speculative building within the Commerce Park.
“We’re excited about this opportunity for Alamance County and for Mebane,” said Mac Williams of the Alamance Chamber.
“Back in 2012, we put together an agreement with Graham, Alamance County, and Mebane, which became known as the North Carolina Commerce Park Partnership. We share all revenues and expenses in that area,” Cheek said.
Kevin Zaletel, a Senior Project Manager for UPS, expressed his company’s excitement at making its way to Alamance County.
“This site would allow us to build for our current needs. It would also allows us to build two future expansions for growth opportunities in the area,” Zaletel told the City Council.
Preliminary site development plans call for a 525,000 square foot main hub, including an automotive shop, vehicle wash bay, customer center, and employee entrance to the site. UPS could process approximately 30,000 large packages per hour in the facility, along with 15,000 smaller packages per hour.
The partnership will allow UPS free use of a 7-acre piece of land that Mebane and Graham own together within the N.C. Commerce Park, currently valued at approximately $490,000. In addition, Mebane is waiving utility and site connection fees up to $150,000 as part of its one-third commitment to the incentives, combined equally with Alamance County and Graham. There are also cash grants being provided, making the total incentives package well over $4 million.
“We are going to offer cash incentives grant totaling over $3.9 million (in addition to the land and utility fee waivers), for total incentives of approximately $4.6 million,” Cheek explained. “Graham and Alamance County will share those costs equally with Mebane, making Mebane’s portion of the incentives just over $1.5 million.”
The monies will be paid over a period of five years. Mebane will make its first grant payment to UPS one year after the facility receives its Certificate of Occupancy, with four more grants each year after that.
“These grants go with how timely the project meets certain goals. The grants are limited to 5 percent of the taxable value (of the property),” said Cheek, adding that there are performance clawback clauses if investments and job goals are not reached.
Cheek said that the facility could bring Alamance County, Mebane, and Graham as much as $23.3 million in property taxes from UPS over the first ten years of the agreement - far exceeding the $4.6 million the three entities are investing. With Mebane responsible for just over $1.5 million in incentives, the City figures to see anywhere from $7 to $8 million in tax revenue over the facility’s first decade of operation.