Item:
Title
Public Hearing to Consider a Performance-Based Award for Projects Arrowwood & Red Cedar with Novartis Gene Therapies, Inc. (20min)
Body
Date of BOCC Meeting: December 8, 2025
Request for Board Action:
Agenda Text
The Board is requested to hold a public hearing to consider a performance-based award for Projects Arrowwood and Red Cedar with Novartis Gene Therapies, Inc. (“Novartis”) in a not-to-exceed amount of $5,500,000 and to authorize the County Manager to negotiate and execute a performance agreement for the award. These new manufacturing projects in total will create approximately 280 jobs and invest $540 million over a five-year period.
The performance-based award will be funded by new tax revenue generated by Projects Arrowwood and Red Cedar; the award pays for itself and the revenue would not exist but for Projects Arrowwood and Red Cedar. All payments for the project will adhere to the Durham County Business Recruitment & Expansion Policy and will only occur following annual performance verification that the Company has met its job creation, investment, and community partnership targets. This includes maintaining that property taxes paid annually are at a minimum twice the scheduled payment amount.
Novartis currently employs over 300 people in Durham County for the development and production of gene therapies for patients and families devastated by rare and life-threatening neurological genetic diseases. This expansion will allow Novartis to manufacture medications across various other therapeutic areas. The facilities in Durham will include advanced biologics manufacturing, as well as filling and packaging capabilities for biologics. An additional manufacturing project is also planned for Wake County.
Manufacturing is a priority for Durham County. Approximately 200 of the new jobs (71%) are open to those with only a high school diploma or a two-year degree, paying an average wage of $104,000. Additionally, with approval of this award, the Company has agreed to make good faith efforts to: donate $35,000 annually to the Durham Public Schools (DPS) Foundation for the payment period of the award, participate in two annual DPS Career and Technical Education (CTE) programs, donate approximately $100,000 in equipment to Durham Technical Community College, and participate in two Durham job fairs annually. The Company also offers robust benefits to its employees, including 14 weeks of paid parental leave, a $5,000 adoption expense reimbursement, and up to $1,000 for childcare or elder care expenses, among other benefits.
Staff recommend approval of this award. This public hearing has been advertised as required by law.
Alignment with Strategic Plan: This item aligns with Regional Leadership 1b.
Resource Persons: Matthew Filter, Economic Development Manager; Andrew Miracle, Economic Development Director; Maurice Jones, Deputy County Manager External Affairs
County Manager’s Recommendation: The Board is requested to hold a public hearing to consider a performance-based award for Projects Arrowwood and Red Cedar with Novartis Gene Therapies, Inc. (“Novartis”) in a not-to-exceed amount of $5,500,000 and to authorize the County Manager to negotiate and execute a performance agreement for the award.
Signature
County Manager: ____________________________