The Chapel Hill Town Council discussed an interlocal agreement with Orange County and Wegmans, Inc. Monday evening.
Town Manager Roger Stancil brought a proposal before the council concerning an interlocal agreement with Orange County to reimburse the county for an economic incentive grant to Wegmans, Inc. Wegmans is a privately held New York-based grocery chain. Wegmans is ranked as one of the top supermarket chains in the country.
Dwight Bassett, economic development officer for the town of Chapel Hill, presented the board with revenue and tax information for the development.
“The incentive agreement that the county will be considering is based on three factors,” Bassett said. “The first is the number of jobs that will be created over that time period. Long term projected to be 350 new jobs. The second is the investment being made to redevelop the site, which is estimated at about 30 million plus dollars. And then net new sales tax that will be generated off of the sales that we share with you which would be about 1.5 million dollars annually between the town and the county.”
Orange County will manage the deal with Chapel Hill potentially paying $2 million over a five-year period to Wegmans, Bassett said.
Dan Aken, director of real estate and site development at Wegmans, said a significant amount of the part-time jobs will go to high school and college students. When asked if Wegmans usually gets subsides, Aken said the result is mixed.
“We’ve had very mixed luck. Usually no because of the perceived type of jobs related to the retail industry,” he said.
Members of the public voiced concern about the development. The concerns ranged from the increased traffic that Wegmans would bring to issues of subsidizing a $7 billion a year company that might push out smaller, local businesses.
Several council members also voiced concerns about the subsides that would be given to Wegmans and if it could set a precedent of more business demanding subsides. However, Chapel Hill Town Council Member George Cianciolo saw Wegmans as a great opportunity for Chapel Hill and praised the company’s business practices.