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Back You are here: Home News Local and State News Local Wilmington City Council Approves Castle Branch Incentive

Wilmington City Council Approves Castle Branch Incentive

By WILLARD KILLOUGH III
Managing Editor

WILMINGTON - The Wilmington City Council unanimously voted at their June 18, meeting to approve of an incentive package for Wilmington based Castle Branch, Inc.
Castle Branch offers employment screening, background checks and drug testing solutions to help businesses make informed hiring decisions.
Mayor Bill Saffo said, "400 jobs. That's a lot of jobs. Excellent work."
Councilman Kevin O'Grady explained, "What this does is separates the incentive into two parts. For the building and for the jobs. The beauty of it is, after they've built the building, the building is going to pay the incentive back to us so we are getting the jobs for free. If they miss on the jobs number, the incentive goes down."
O'Grady said, "This is a beautiful deal for us and if it brings 400 jobs... The important thing about these jobs are, this company has a track record of hiring from our college graduates, UNCW. And if we can have college students come here, enjoy living here and then they can find good jobs right here in Town this is great for the future of the city."
O'Grady said, "This is as close to a no brainer as you can have for an incentive. I think we should do this."
Castle Branch had indicated they were also looking at locations in California and Canada.
On February 19, 2013, the Wilmington City Council adopted a resolution authorizing an Industrial Investment Grant Pursuant to state law to Castle Branch, Inc.
The Council authorized the Mayor and the City Clerk to execute an Industrial Investment Agreement with Castle Branch, Inc., consistent with that Resolution.
On September 21, 1999, the Wilmington City Council adopted an Industrial Investment Policy to promote growth and diversity of the tax base and create more high quality, well paying jobs in the City of Wilmington.
The policy provides for the consideration of grants to encourage new industries to locate in the area subject to certain minimum project qualifications and satisfaction of program parameters.
Castle Branch, Inc. is considering locating its world headquarters facility in the corporate limits of the City. Such a facility would include a real and personal property investment of a minimum of $9,000,000 and the employment of an additional 400 employees. The City's current infrastructure, including water and sewer facilities, can support the proposed facility.
According to the resolution, "An Industrial Investment Grant is competitively necessary to encourage Castle Branch, Inc. to choose to locate the world headquarters facility within the City. The proposed capital investment exceeds the minimum level set forth in the City's Industrial Investment Policy. In addition, the projected jobs exceed the required minimum number and the required wages under the policy."
According to the resolution, "The proposed grant would provide a payment by the City of $50,000 per year for five (5) years (Not to exceed $250,000). The grant and payments will be contingent upon the location of the center in the City's corporate limits and the satisfaction of the minimum level of capital investment and job creation as set forth above. The grant will not commence until a certificate of occupancy is issued for the facility."
The Council voted unanimously to approve of the incentive package.