Item:
Title
Public Hearing to Consider Allocating Economic Development Funds to Parexel International Corporation (15min)
Body
Date of BOCC Meeting: June 10, 2019
Request for Board Action:
Agenda Text
The Board is requested to hold a public hearing to consider allocating a total of $120,500 in Economic Development Investment funds to Parexel International Corporation. The company will open a second U.S. headquarters in Durham County, adding 264 jobs and investing $1.7 million in the facility
Parexel International Corporation, one of the world’s leading contract research and services companies serving the biopharmaceuticals industry, will locate several headquarters functions at the new facility including a range of operational and professional support functions. The new employees will join Parexel’s more than 600 existing employees in North Carolina, expanding on operations in the state dating back to 1993. Parexel International Corporation Limited, a wholly-owned subsidiary of United Kingdom-based West Street Holdings III Limited with approximately 20,000 employees worldwide, provides a comprehensive suite of biopharmaceutical research and services to help its customers transform scientific discoveries into new treatments for patients. From clinical trials to regulatory and consulting services to commercial and market access, the company’s therapeutic, technical and functional ability is underpinned by a deep conviction in improving patient health.
With approval of the award, Parexel has agreed to make reasonable effort to engage in the following community and workforce development partnerships: Provide paid summer internships and jobs; Collaborating with North Carolina Central Biomanufacturing Research Institute and Technology Enterprise (BRITE) Program; and, engaging Duke’s Office of Durham and Regional Affairs to participate in workforce and community activities.
Parexel will create a variety of headquarters positions in Durham which will in total provide an annual payroll impact of more than $29.4 million to the local economy. Parexel’s expansion in Durham County will be facilitated, in part, by a Job Development Investment Grant (JDIG) approved by the state’s Economic Investment Committee on May 30th. Over the course of the 12-year term of this grant, the project will grow the state’s economy by an estimated $869 million. Using a formula that takes into account the new tax revenues generated by the new jobs, the JDIG agreement authorizes the potential reimbursement to the company of up to $4,194,000, spread over 12 years. Durham County payments only occur following performance verification that the company has met its incremental job creation, investment and criteria targets.
Staff is recommending that the County provide $120,500 in Economic Development Investment funds subject to certain performance goals being met by Parexel, related to timing and amount of investment, employment creation and maintenance of the created jobs as well as partnership engagement criteria.
This public hearing has been advertised as required by law
Alignment with Strategic Plan: This item aligns with Goal 4: Environmental Stewardship and Community Prosperity to promote and support the community and economic vitality for all residents.
Resource Persons: Andy Miracle, Economic Development Officer; Jay Gibson, General Manager Goal 4
County Manager’s Recommendation: The County Manager recommends that the Board hold a public hearing to consider allocating a total of $120,500 in Economic Development Investment funds to Parexel International Corporation that will open a second U.S. headquarters in Durham County, adding 264 jobs and investing $1.7 million in the facility.
Signature
County Manager: ____________________________