Wayne County OKs pass-through of $300,000 North Carolina Railroad grant to Alianza (Team Foods)
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Summary
The Board approved a project investment and grant performance agreement to pass through a $300,000 North Carolina Railroad Invest grant to Alianza/Team Foods USA to complete a rail spur; agreement includes clawback provisions tied to capital and job thresholds and passed on a 6-0 vote.
The Wayne County Board of Commissioners voted Dec. 16 to approve a project investment agreement and grant-performance agreement that will allow county staff to pass a $300,000 North Carolina Railroad Invest grant through to Alianza (doing business as Team Foods USA Inc.) to complete a railroad spur serving the company's Park East facility.
Staff said the spur will cross Lot 7 and extend onto the company's lot, enabling freight access to the site. Under the Invest program, a local government must serve as the recipient and pass funds through to the company; staff said the county will hold a separate agreement requiring repayment if the company fails to meet capital-investment and job-creation thresholds, describing the contract as providing a "clawback" to protect taxpayers.
"They have received a $300,000 grant, and this would allow them to finish construction of the railroad spur that's on their lot," staff said.
The board moved the agreement and the chair recorded that the vote passed "6 to nothing." Staff characterized the arrangement as similar to existing building-reuse programs that the county has used previously.
Next steps: staff will finalize the invest agreement and the related grant-performance contract that secures clawback provisions and performance thresholds before funds are released to the company.