BRUNSWICK COUNTY — A much needed boost in financing from a state nonprofit will lead the way for economic development in Brunswick County.
The Mid-Atlantic Industrial Rail Park will gain a 1-million gallon elevated water tank paid for in part by a $3-million grant.
The Golden LEAF foundation grant is focused on providing water infrastructure to serve Epsilon Advanced Materials’ new Brunswick facility, as well as its affiliates and subsidiaries.
Golden LEAF, which stands for Long Term Economic Advancement Foundation, is a nonprofit organization focused on job creation, economic development, and agriculture in the state’s rural and formerly tobacco-dependent communities. Epsilon’s $650 million investment in its new facility is expected to be a boon to the local economy.
Before the grant funds are released, Golden LEAF requested an agreement that Epsilon’s location to the park will create at least 450 new jobs with average annual wages of $47,078 by Dec. 31, 2028. The jobs must also include benefits covering at least 50% of the cost of employee-owned health insurance.
Epsilon is India’s leading provider of synthetic graphite used in electric car batteries. Gov. Cooper announced the company’s investment in its Mid-Atlantic Industrial Rail Park facility last month, which is estimated to create 500 jobs in Brunswick County and power more than 1 million electric cars by 2030.
Construction on the Epsilon plant is expected to begin mid-2024, open in 2026 with 30,000 tons at phase one capacity, and reach full capacity of 50,000 tons annually in 2031.
Brunswick commissioners unanimously approved the Golden LEAF Foundation grant funding at a meeting on Monday after approving deputy director of design and construction Brent Lockamy’s request to apply on Sept. 18.
“The project is critical to future economic opportunities in Brunswick County and the surrounding region,” Lockamy wrote in the request for approval.
Expanding water tank infrastructure at the site has been in consideration since at least 2019, when the county’s public utility department released a scope of work for a 500,000-gallon storage tank. Water tanks are used in industrial sites to streamline water delivery and meet fire flow requirements, the rate of water supply available for fire fighting.
The public-owned industrial park tank and associated piping is expected to cost a total of $6.3 million. The other half of the funds could come from the state or county but have not yet been identified.
Port City Daily asked the county when construction would start on the tank, but did not receive a response by press.
The 1,100-acre Mid-Atlantic Industrial Rail Park is located near U.S. Hwy. 74/76 on the border of Brunswick and Columbus counties. Commissioners approved a $19-million budget appropriation from the county’s general fund to purchase 539 acres of the park in October to provide space for Epsilon Advanced Materials’ 1.5 million square foot facility.
Golden LEAF’s agreement with the county stated it will regularly monitor progress and appropriate use of funds on the elevated water tank, but state audits have accused the foundation of improperly managing its grant funds and inadequately cooperating with auditors.
The foundation was established by the North Carolina General Assembly in 1999 to receive 50% of annual funds designated to the state through the 1998 Master Settlement Agreement with cigarette manufacturers. North Carolina’s share of the approximately $206 billion settlement to 46 states is estimated to be $4.6 billion after 25 years, according to the North Carolina Tobacco Trust Fund, created by the state legislature in 2000 to assist individuals engaged in tobacco-related businesses hurt by the settlement.
According to the foundation, it has awarded 2,151 grants worth $1.2 billion since its founding. It received tobacco settlement funds of $17.5 million in fiscal year 2023. Its funding also includes other state appropriations and income from investments.
In a 2022 audit, state auditor Beth Wood found Golden LEAF “did not monitor $83 million of federal funds distributed through rapid relief funds.” She said fraud would be “easy” with the level of oversight they provided.
In a 2009 audit, the Office of the State Auditor claimed the nonprofit exercised inadequate oversight of the $326 million in grants it awarded over the past decade, awarded a $15 million grant in a closed session, and did not sufficiently cooperate with auditors.
One-third of the foundation’s 15-member board is appointed by the governor, one-third by the House speaker, and one-third by the Senate president pro-tem.
Former Sen. Clark Jenkins (D-Edgecombe, Martin, Pitt) introduced a bill in 2007 to dissolve the Golden LEAF foundation for inadequately serving tobacco-dependent communities. On the other side of the political aisle, conservative nonprofit the Civitas Institute alleged the organization engaged in “pay-to-play” use of funds. Todd Cohen, former News & Observer journalist and editor of the Raleigh Philanthropy Journal, criticized the foundation as “a political creature subject to the whims and agendas of politicians.”
The foundation has pushed back against these claims and its investments have been largely successful in recent years, although with significant losses in some years.
Earlier this year it provided a $1 million grant to Brunswick Community College and $250,000 for Southport’s stormwater system. Other recent projects in the Cape Fear region include a $500,000 grant for the demolition and redevelopment of the BASF chemical manufacturing site in Pender County.
According to the nonprofit’s tax filings, president Scott T. Thompson received $279,715 in total compensation in 2022 and $272,888 in 2021.
Port City Daily reached out to the foundation for comment but did not receive a response by press.
Tips or comments? Email journalist Peter Castagno at peter@localdailymedia.com.
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