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Surry County adopts resolution to support ‘Project Star’ expansion; incentive capped at about $266,369 over five years
Summary
Following a public hearing, the board adopted a resolution authorizing county staff to pursue an incentive agreement that would cap Surry County’s grant for Project Star at $266,369.16 spread over five years, contingent on company performance.
The Surry County Board of Commissioners on June 2 adopted a resolution approving a conditional incentive for a local manufacturing expansion identified in staff materials as “Project Star.”
County economic development staff said Project Star is an existing manufacturer in the city of Mount Airy that has employed in the county for more than a decade and currently employs more than 50 people. The company is considering a phased expansion and additional equipment with a total projected investment between $8 million and $12.2 million. County staff proposed a cash incentive spread over five years that “collectively would not exceed $266,369.16,” to be paid only after the company completed qualifying investment and the company paid the property taxes associated with the work.
Why it matters: The county manager described the public benefits as expansion of the tax base, job creation or retention and improved local employment prospects. Economic development staff emphasized that incentives are performance‑based: the county would not disburse funds until the company met the agreed investment and tax payment thresholds, and any payment would be proportionate to the actual investment.
Motion and outcome: County economic development director Blake Moyer presented the request at a required public hearing. Commissioner Goins moved to adopt the resolution; Commissioner Hyatt seconded. Commissioners voted in favor and the chairman announced the motion carried.
Clarifying details: Staff said the incentive uses general fund reserves as the likely funding source and that payments will be prorated to actual investment (for example, if the company invests $9 million of a possible $12.2 million the incentive would be reduced proportionally). The county manager noted the $12.2 million figure is a project ceiling provided to the county to capture the full potential scope if the company proceeds with all equipment and phases.
What comes next: With the resolution adopted, county staff and the county attorney were authorized to begin drafting an incentive agreement for board consideration; staff said the agreement will include performance metrics and payment conditions.
