The VinFast choice to build its electric car plant in Chatham is proof that your board of commissioners has made wise economic development policy decisions. Here are the top four things that citizens need to know.
First, when it voted to purchase an option on the Chatham Advanced Manufacturing (later Wolfspeed) site in Siler City, the board gained a guiding interest in that project on behalf of the public. This $500,000 buy-in on that land allowed the county to almost immediately secure $4 million from the Golden LEAF Foundation for wastewater connection to the site and upgrades to the Siler municipal system. Moreover, the board’s commitment to industrial development in the west prompted the developers of the Moncure site to make the public, through the county, an option partner for only one dollar. This led to $4 million to link the Moncure parcels to the Sanford treatment plant.
The people of Chatham got $8 million of infrastructure for $500,001.
Second, the Chatham commissioners have developed a strong partnership with Lee County and Sanford. Some of the funds from the Duke coal ash settlement have been used to enlarge and expedite the Moncure sewer line connections. It must also be noted that our county Economic Development Corporation wisely hired Mark Smith, who previously did the same job in Lee County, to be its leader. His commitment and knowledge of our community allows him to deal with potential investors, local governments and state leaders with great skill and familiarity. Going forward, developing our economy will be an increasingly regional effort.
Third, the Central Carolina Community College is crucial for job growth in our area. When the board of commissioners approved funding the Chatham Promise, the program that guarantees two years of free CCCC tuition for any high school graduate, it made a solid commitment to the rising generation. The college has an established track record of training workers for many businesses and industries. An entire factory is being reborn as the E. Eugene Moore Manufacturing and Biotech Solutions Center, where many thousands more will gain skills certification. It is the shopfloor where wizard-like instructors shape the craftspeople whose work will lift the region.
Finally, county tax incentives are scaled to the value of the plant itself (VinFast’s investment) and the number of auto workers whom they actually employ. They must first pay the tax obligation in full, then Chatham County determines the incentives return payments. And these phase out quickly. After five years VinFast’s full obligation must be paid in full, henceforth. This is important. Chatham needs a diverse tax base because it is precarious to rely almost solely on residential values. VinFast gives us more fiscal ballast, as does Wolfspeed (which has similar incentives).
Even if the fledgling automaker doesn’t realize its vision, the county will not lose money. The considerable improvements to the site so far have increased site value and subsequent revenue.
So, neighbors, the good news is that there is no need to panic because VinFast is trimming its initial footprint. The bad news is that there are many other things to worry about.
Jim Crawford was a member of the Chatham County Board of Commissioners from 2014 to 2017. He lives in Chapel Hill.