County kicks in incentives for Hatteras Yachts

The Craven County Board of Commissioners on Tuesday approved a $30,850 incentive agreement with Brunswick Corp./Hatteras Yachts, to be paid in increments as the company achieves defined economic development goals.

The board approved the deal following a public hearing that yielded no public comment. The incentive is in response to the company’s relocation of its Cabo Yachts manufacturing operations from California to its New Bern facility.

“Everyone seemed very enthused that they picked Craven County at a time such as this,” Commissioner Vice Chairman Johnnie Sampson said of the feedback he has noticed.

Hatteras will receive up to four $7,712.50 incentive payments for reaching each of four milestones: manufacture and delivery of the first Cabo Yacht; obtaining an employee count of 400; reaching more than $27 million of capital investment at its Glenburnie Road location; and obtaining an employee count of 500, according to the agreement.

Hatteras had laid off employees in the past, and company officials expect that the Cabo relocation will allow it to recall some former employees and offer further job opportunities.

“I know how it is to lose your job. It’s not easy looking for a job. It’s such a trying time,” Sampson said. “I’m glad to see that someone will be able to get off the unemployment list and get back to work.”

Commissioners also approved two other agreements following public hearings.

The board approved an agreement to sell a half-acre site in the Industrial Park to American Towers for $30,000. The company intends to build a communications tower, which will provide leased service to cell phone companies.

During the public comment period, Raynor James, of the River Bluffs community, raised questions about contract details, adding that she did not mean to infer the agreement is a bad deal for the county.

“It’s an excellently written buyers contract,” she said, seeking clarification on terms that may protect the county.

Attorney Arey Grady, who represents the county, said he successfully negotiated certain adjustments that had been too buyer favorable. The result, he said, is a fair agreement.

“I think the due diligence provisions on they buyer’s behalf are typical and customary for this type of transaction,” he said.

The board also approved financing for about $2.1 million in Qualified School Construction Bonds, part of a federal program of the American Recovery and Reinvestment Tax Act. 

P. Christine Smith can be reached at 252-635-5666 or pcsmith@freedomenc.com.