AGENDA ITEM EXECUTIVE SUMMARY
ITEM TITLE*
title
Public Hearing: Project Stark Tower Incentive Agreement
presenter
RESPONSIBLE STAFF, TITLE, DEPARTMENT*
David Putnam, Director, Economic Development Department
STAFF RECOMMENDATION*
Staff recommends that Council adopt the resolution authorizing the Town Manager to sign the {PROJECT STARK TOWER} Incentive Agreement.
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ACTION/DECISION POINTS*
Council must approve or reject the resolution to authorize the Town Manager to execute the incentive agreement with Project Stark Tower allowing issuance of incentives not to exceed $318,000 over five years.
BACKGROUND AND CONTEXT*
Council will consider a proposed incentive agreement for Project Stark Tower, planning to invest significant capital investment and jobs in downtown Chapel Hill. The incentive includes an in-kind parking credit in an amount not to exceed $261,000, to be paid in five annual payments not to exceed $52,200, and a cash grant in an amount not to exceed $57,000, to be paid in five annual payments not to exceed $11,400, based upon Project Stark Tower’s projected hiring of 152 full time jobs with an average wage above $77,303, of which 106 of the new jobs are planned to pay a competitive wage at or above the 2026 County Private Sector Average Wage in Orange County ($70,442) as outlined in a proposed incentive agreement.
FINANCIAL IMPACT
The incentive amount will not exceed $318,000 in foregone parking revenue and cash grant over five years. Payments are performance based and tied to verified taxable investment and jobs by the company. Forecasted revenue impacts presented to Council indicate that the Town will achieve a net positive fiscal return through increased property values and associated revenues.
COMPLETE COMMUNITY CONNECTION
This project supports the Town’s goal of maintaining a vibrant, active, and economically resilient downtown by increasing employment, supporting local business activity, and encouraging redevelopment of underutilized sites.
ATTACHMENTS
Resolution
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