The Greensboro City Council will consider granting an economic incentive of up to $1.6 million to Lollytogs Ltd. at its meeting at 5:30 p.m. Tuesday, May 4.
The economic incentive being considered is based on Lollytogs investing $57.3 million to establish a new warehouse and distribution facility on Summit Avenue and creating 116 new jobs that pay at least $15 an hour with an annual average wage of $46,021.
The economic incentive would grant Lollytogs a reimbursement of 80 percent of the property taxes paid for six years. There is a condition in the agreement that allows the city to recapture the incentive payments if Lollytogs after six years has not invested the $57.3 million or created the 116 jobs.
Economic incentives are considered in closed sessions. When an official announcement is made of an economic incentive, a majority of the City Council has reached a consensus on the agreement, which means when the public is notified of a proposed economic incentive, it is rare that they are not approved.
Lollytogs, which does business as the LT Apparel Group, designs and manufactures children’s fashion apparel and school uniforms under the brand names French Toast, Healthtex, Detour and @School. The company also produces children’s clothing under licensing agreements with Adidas, Carhart, Lee School and Pelle Pelle brands.
Lollytogs was founded in 1958 and in 2004 bought the VF playwear division from VF Corporation, which at the time was headquartered in Greensboro.
Also on the agenda for the May 4 meeting is a resolution honoring the late Sen. Kay Hagan and a resolution to name a portion of the outer loop I-840 in honor of Hagan.
The meeting also includes the monthly public forum where speakers are allowed to speak to the City Council for up to three minutes on the topic of their choosing. Those wishing to speak during the public comment period are required to submit their request by 5 p.m. on Monday, May 3 at https://form.jotform.com/202643500426041.