Wayne County OKs incentive package, sale to Pelsan Tekstil after public hearing

The Wayne County Board of Commissioners voted June 17 to approve an economic incentive agreement to sell county-owned industrial property in Park East to Pelsan Tekstil (referred to in county materials as Project Istanbul).

The agreement covers roughly 31.83 acres that include two county-built shell buildings at 404 and 408 Gateway Drive. Under the approved terms, the county will convey the buildings and a portion of acreage at a reduced sale price of about $5,186,400 after an upfront economic incentive of roughly $2,539,000. The company has committed to invest $82,600,000 in capital improvements and create 216 jobs in Wayne County.

Why it matters: county economic development staff said the structure accelerates tax revenue because the buyer will pay property taxes immediately on the improved property, rather than waiting while a buyer builds. County staff also said the agreement protects the county by keeping a ledger of performance; if Pelsan fails to meet job or investment thresholds during the 10-year agreement, the company could be required to repay part of the up-front incentive.

Details from the public presentation: planning and economic development staff told commissioners the county negotiated sale-price reductions on two parts of the property: an up-front $1,500,000 reduction tied to the shell buildings (including 3.5 acres conveyed with those buildings) and a discounted per-acre price ($40,000/acre vs. market $100,000/acre) for an additional 17.33 acres. Staff noted the final sale price remains subject to adjustment pending a boundary survey that will excise the Ivy Drive right-of-way and a small triangular parcel that will remain county-owned.

State and local partners: county staff summarized state participation tied to the project. The North Carolina Job Development Investment Grant (JDIG) approved a potential reimbursement of up to $2,065,000 over 12 years. County staff said the city of Goldsboro approved an amendment to the interlocal agreement that (for these specific parcels) waives Goldsboro’s split of property tax receipts until Wayne County’s upfront incentive is recouped, and the city agreed not to annex the property and to provide water and sewer without requiring annexation.

Commissioners and staff described the project as a rare instance of foreign direct investment locating manufacturing in Wayne County. County economic developers said one of the shell buildings will be used for warehousing immediately and the other will be adapted for manufacturing; if needed, the manufacturing building could be expanded by another 200,000 square feet in future phases.

Public hearing and vote: the board opened and closed the required public hearing on the sale and incentive. After the hearing, a commissioner moved to approve the economic incentive agreement; the motion carried.

Next steps: staff said the county expects to close once the survey and final descriptions are completed and that closing could occur within months. County staff indicated the buyer has already contracted to begin renovations on the 30,000-square-foot building for immediate use as warehousing, and full manufacturing build-out will follow the company’s due diligence and permitting.

Provenance: transcript blocks covering the project presentation and the public hearing beginning at the 09:30AM public hearing (topic intro) and ending after the board motion and commissioner comments (topic finish).