HomeMy WebLinkAboutAgenda - 01-22-2009 - 4p ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: January 22, 2009
Action Agenda
Item No. 4 - p
SUBJECT: Contracts with Tobacco Trust Fund and Golden Leaf Foundation for the
Piedmont Value-Added Shared-Use Food & Agricultural Processing Center
DEPARTMENT: Economic Development PUBLIC HEARING: (YIN) No
Cooperative Extension
ATTACHMENT(S): INFORMATION CONTACT:
Tobacco Trust Fund Contract Brad Broadwell 245-2325
Golden Leaf Foundation Contract Noah Ranells 245-2330
Fletcher Barber 245-2050
PURPOSE: To approve 1) a $479,000 contract with the Tobacco Trust Fund Commission and
2) a $250,000 contract with the Golden Leaf Foundation for the Piedmont Regional Value-
Added-Shared-Use Food and Agricultural Processing Center.
BACKGROUND: On August 19, 2008, the BOCC ratified submissions of grant applications to
the North Carolina Tobacco Trust Fund and the Golden Leaf Foundation to support the
implementation of the November 2007 Feasibility Report. This project will build capacity for
local farmers to meet the increasing consumer demand for retail and wholesale marketing of
locally grown farm products in the Piedmont Region of North Carolina.
At a BOCC Work Session on February 12, 2008, designation of the 500 Valley Forge Road
property and funding for implementing the feasibility study completed in November 2007 were
discussed by the BOCC. At the February 19, 2008 regular meeting of the BOCC, a resolution
was unanimously approved "...formally allocating the former Orange Enterprise Building on
Valley Forge Road in Hillsborough for development of a regional value-added shared-use food
and agricultural processing center". In addition, it was resolved "...the shared monetary
compensation for the Valley Forge property will be determined later and request that equitable
fiscal support among partners be pursued that recognizes the allocation of the Orange
Enterprise building owned by Orange County." The compensation issue for the facility was
shared with the commissioner group that is guiding this process on July 17, 2008.
The center will accommodate a range of processing needs and allow for future expansion.
Business development support and education, especially training for new food-based
businesses, developing business plans, and meeting food safety requirements will allow the
center to engage rural farm communities with the opportunities offered by the center. Revenue
projection from user fees that provide incentives for sourcing locally grown farm products is
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$150,000 by year 3 of operation, with gross income for clients using the facility estimated at
$2,651,000 per year.
This facility will have the potential to serve farmers on 16,214 farms in 22 counties within a 75-
mile radius of Hillsborough, North Carolina, representing almost 30% of farms statewide.
Farmers and their rural communities as well as tobacco processing and marketing communities
can benefit from participating in training and education programs, adding value to and marketing
local farm product. Within the 22-county area, this center can enhance the capacity to process
local farm products for the 3.3 million individuals who are potential customers for the products
created at the center.
The short-term goal of the project is to open a regional value-added shared use food and
agricultural processing center in January of 2010 with a range of programs and equipment. The
success of the short-term goal will be measured by client use and revenues generated by the
center, as well as training and assistance to farmers and other food entrepreneurs. The long
term goal is to become financially independent by 2013. This will be accomplished by building
the capacity to process and market North Carolina agricultural products, thereby increasing the
number and diversity of farm operations that help to sustain the Piedmont Region.
Staff from Economic Development and Cooperative Extension have continued efforts to fund the
implementation of the November 2007 feasibility report. A $479,000 grant was award by the
Tobacco Trust Fund on October 28, 2008 and a $250,000 grant was awarded by the Golden
Leaf Foundation on December 4, 2008. Both contracts are attached for BOCC review.
Partnering counties (Alamance, Chatham, & Durham) have each provided $2,500 towards the
feasibility report and have each passed resolutions to continue the partnership through
implementation of the feasibility study. Chatham County's grant writing specialist was especially
helpful in preparing grant applications to Golden Leaf Foundation and the Tobacco Trust Fund
Commission. Orange County has provided $5,500 and staff support to this project.
FINANCIAL IMPACT: The financial impact associated with signing this contract involves the
commitment of the property and building at 500 Valley Forge Road and precludes the use of the
building for other purposes. In addition, staff will continue to devote time towards the
implementation of this project.
Including the previous NC Agricultural Development and Farmland Preservation award of
$132,000, a total of $861,000 has been committed to this project. A congressional request
through the office of Representative David Price is still pending. Given the total $1,178,000 cost
of establishment and first year of operation, the project needs an additional $317,000 to fully
implement the feasibility study and provide funds for year 1 operations. All grant funds will be
guided with assistance from a 501(c)3 non-profit group to be developed from the 40-member
advisory group, and a 65-member producer group.
RECOMMENDATION(S): The Manager recommends the Board approve the contracts
accepting grant funds for the Tobacco Trust Fund Commission and the Golden Leaf Foundation
subject to County Attorney review and authorize the Chair to sign the contract documents.
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{Trout Number 2003-041-22
GRANT AGREEMENT BETWEEN THE N.C.TOBACCO TRUST FUND
COMMISSION AND ORANGE COUNTY,NORTH CAROLINA A
This Grant Agreement("the Agreement")is entered into this ur_ __. . 2008
("Effective Date")by and bctvl.sen the North Carolina Tobacco TrmrtFind Commission(the
Commission"),an agency o:tlhe State c f North Carolina organized pursuant to Article 75 of
Clulpusr 143 ufihc N.C.General Statute;and Orange County,North Carolina,a local
governmental entity with its principle place of business at 110 E.King St.,Hillsborough, NC
27778(the Grantee")(together"the Parties"and each in the singular"the Party").
In consideration of mutual pmmises and such other valuable consideration as is set oat in this
Auk men!,Lhc:Partite du mutually amt.;Lu ibt following:
Section I. Term.
This Aureemenl shall ccsmrnenc s on Limo Effective 1Jalo rind shall nerruiutshe on or before
December 30,2010("TcrrainEiion Detc")unless sooner terminated pursuant to this Agreement.
Section Il. Scone of the Grant.
The purpose of this Grant is to fund equipment purchases and support the development of is
ngianal shahad-w a fluid and agricultural processing facility to be located in iIillshorough,
IcC (Projeof'). In performing this Project,the Grantee shall develop,perform and complete the
work set out in the Pmject Scope of Services contained in Exhibit A. Exhibit A, which
incorporates the Grantee's application far the Project,is expressly incorporated by reference and
is made a part of this Agreement The Grantee's application for the Prvjoot is thcrfurc also
incorporated by refircnce and made a pan.of this Agreement.
If there is a conflict among or between this Grant Agreement;the Project Scope of Services
contained in Exhibit A,or the Grantee's application for the Project,provisions of this Grant
Agreement;ball first control,then provisions of Exhibit A,Scope of S iccs shall control,and
finally the Ciraniud's application shall control.
If the Grantee uses any of the funds disbursed from the Commission under ibis Agreement to
grout funds to other entities as part of the Project("Subgranteas"),it must require its Subwantccs
to comply with eerlaim reporting requirements of Sc atom VI]of this Agrccanunl and certain
record keeping provisions of Section NMI of this Agreement Subgra ntces must also comply with
certain parts of Sections IV, V,MI,VIII,IX,XII and IR'of this Agreement as is provided for in
those Sections.
. Section W. Changes in the Protect
A. The Commission must authorize any changes with respect to the Project in writing
including any changes the Grantee requests be made to budgeted line items as provided in
Exhibit A:ttinclted.T e Grantee may not make changes to budgeted Fore items
without first getting written anthoriration from the Commission.
13. The Grantee shall immediately notify the Commission of any change in conditions or
applicable law or any other event which may significantly affect its ability to perform the
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Project in accordance with the provisions of Se!ion I l above,including but not limited to
loss of other funding.In the evert of any such sig scant change,the Commission
reserves the right to terminate this Aareeanent.
Section IV.Panting.
A. The Commission gram to the Grantee an ammmt not to exceed$479,000 for the Project
to he disbursed as them-ibis'in motion V below.
B. The Grantee represents and warrants that all sums as may be awarded ander this grant
shall be utilized exclusively for the purpose of the Project.
C. ru the event the Grantee or,i[`applicable,any of its Subgrantees breaches any of the
material iems or conditions of this Agreement,the Grantee ngrea5In repay to the
Commission the full amount of sums awarded under this Amnorncart and any interest that
has accauud on that sum.
Section V.Method of Payment.
A. The Corm-mission shall disburse the sum of up to$479,000 in installments reimbursing the
Grantee for amounts spent on or encumbered for the Project. Me Grh n=shall request
payments by submitting a Financial Request Form(Exhibit C)to the Commission no
more frequently than monthly. The Financial Request Form shall certify that the Grantee
has perlimned the work required under the Scope of Services and shall include
documentation of the amounts for which the Grantee requests reimbursement.'llie
Commission shall disburse a check as soon after receivbtg the roqucst for funds as
possible. The Grantee must show in the Commission's satisfaction how this payment has
been used in accomplish the terms of the Agreement before any further funding will be
disbursed pursuant to this Agreement.
B. The Commission shad withhold 5!0 of tlhe total funding or $23,950 to be disbursed upon
the satisfactory conclusion of the Project wlukh eonclusion shall inclade a Final Report as
described in Section VILE below. I the Gratuoe has unspent cost reimbursement funds
remaining at the end of the Project,the Commission may at its election subtract this
• amount iroru the final payment due to the Grantee. •
C. If the Grantee or,if applicable,the Grantee and its Subgrantees,cannot show in the
satisfaction of the Commission that it has or they have spent grant monies to accomplish
the teams of the Agrcomnent,the Commission may decline to disburse money until such a
showing is made.
Section Yt.]ndeeendcnt Sterns of the Peres,
A. The Parties are independent entities and neither this Ageementt nor any provision of it
shall be deemed to create a patanership or joint venture between the Commis:lion and the
Grantee.
R. The Grantee shall net represent k reIfas an agent of the Commission nor is the
A_irocment intended to be construed so as to make the Grantee an;Aunt nh'the
Commission. The Grantee shall not have the ability to bind the Commission to any
agreement for payment of goods or services,nor shall it represent to any person or entity
that it has such ability.
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C. All expenses incurred by the Cirnlec are its sole responsibility and the Commission shall
net be liable for the payment of any obligations incurred in the pertirrmanue or the
Projcct-
I). The Parties agree that this agreement has not been made for the benefit of any third
parties and no third party to this&ement has authority to attempt to enthrce it in any
way.
Section V IT. Reports.
A. The Grantee's fiscal year is the twelve months begatnhig July.
R. The Grantee vailI furnish the Cuntinission with detailed written Project Reports refleclirlg
catoadar year quarterly data(data for the quarter through the card ocMar hh data for the
quarter through the cad ofJu,ne,data for the quarter through the end of September,and
data for the quarter through the end of December)or at such other periods as may be
mutually weed upon. All reports shall be furnished in the format described in Exhibit 13
end Exhibit C and shall by supplied to the Cotmonision no later than nit een(15)days
after the end of the period which is being repcsrrd_
C. As provided in Rchihit D in this Agreement,the Gra:,tee if a non-governmental
organization shall also provide annual reports Fustian:to N.C.CGen.Slat 143C-6-23 and
Rules promulgated pursuant to that statute by the Office of Sim Budget and
IdartagementL Snbgran tees shall comply with any applicable provisions contained in C.S.
143C-6-23 as well as any Rule:promulgated thereunder. The i;rautce further agrees that
if it or its Subgrantee do not fik.tlx:repons required by G.S. '_43C-6-23,the
t onimission cannot disburse grant funds to it. If the Grantee has Subgt antees-the
Gramm mu:,t be able to demo s#rate that it lies complied with N.C.Gen.Stet 1430-6-23.
1). Project Reports shill describe the status of the Proioee,progress made by the Grantee
toward achieving the purposes)for which the funds were awarded,notable occurrences
and any significant problern:s enexxwtered acid steps taken to overcome the problems.
Failure to sabnita required report bytle scheduled submisann date may ressult hi the
withholding of any subsequent grant payment until the Commission is in receipt ofthe
delinquent report.
F The Crranb3e agrees that within thirty(30)days Idler the oondw rm of the Project as
described in Section II above,a Final Report shall be submitted to the Commission which
describes the activities and accosnplishmeatts of Project 'I*he Final Report will
include a review of performance and activities uvcr the entire project period and will
include a vmapage program Summary which the Coinnri=sion can use roar fibre
publication, in that summary,the Grantee will describe the Project,how it was
implemented.to what degree the established Project objectives were riot,the difficulties
encountered,what aspects of the tobacco related se,.mreat of tlx:State's agricultural
economy the Project changed and the Proje.etcost In addition,the Phial Report shalt
also include an Exhibit C which shall show the final financial report of the use of grant
nt
funds by category(i.e.,salaries,material,equipment,etc.)showing all w penditurea
during tiic entire:term of this Agreement and shall also report the sources,amounts and
use of all other funds used In support the Project.
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T. The Commission reserves the right to request information from the Grantee which will
assist the Commission with evaluation of the short-and long-range impact of its
programs. 'Ihr Grant=recognizes that mach requests may occur altar=ruination of this
Agreement and agrees,to the extend possible,.to provide tiach inlaxma iota to Lhe
Commission.
•
Section VIII.Project Records. •
A. The Grantee agxes to maintain fall.accurate and verifiable financial records,supporting
documents,and all other pertinent data for this Project in such a manner so as to identify
and document clearly the expenditure:of the Commission funds provided under the
Agreement separate from auxnuats for other awards,monetary contribution or other
revalues Aources for this Project The Grantee must require any Suhgmutx s to maintain
the same records.
13. The Grantee shall retain all fnanuial records,supporting documents and all other
pertinent records related to the Project for a period of five(5)years from the Termination
Date. In the event such records are audited,ail Project records shall be retained beyond
snub five-year period until any and all audit fmdinp have been resolved.The Grantee
. must require any Subgnntees to reten all recap~ for awe(5)years Croat the'fenniiaation
Date or from the resolution of any audit fmdinp,whichever is later.
C. The Grantee agrees to allow the State Auditor or the State Auditor's designee to enter its
penises and examine it records in accordance with N.C.[ten.SLaL 147-643 and[iul.hor
agrees to permit the Ste Auditor to examine vatic papers in the possession of the
Grantee's auditors. The Grantee shall require any Subgrtinntees to permit the State
Auditor er the Slate Auditor's designee the same access to the Subgrantnes`records and
work papers.
I). The Grantee further agrees to make available to the Commission or its designated
rep sentative all of its records iwhich relate In Lk;Project and agrees to allow the
Commission or its representative to audit,examine nod copy any:Ind all data documents,
proceodinp,records and notes of activities reio ing in any way to the Project. Access to
these records shall be allowed upon request at any time during normal business hours and
as often as the Commission or its representative may deesi necessary.
1` hi the event the Grantee dissolves or otherwise goes out of existence before the
'I imnination Date or before five years from the Termination Date has elapsed,records
produced tinder this contract will he turned ever in the Cemminsiun.
Section IX.Subcontracting..
A. The Grantee or any of ils Suhgraotees.shall not subcontract any of the work coolAs itplated
under this contract 7.ithoirtobtainingprior written approval IT,im the Commission.
B. Any approved subcontract shall be scibri; to all terms and conditions of this Agreement
and the Grantee and any Subgrantees shall not be relieved of any of the duties and
responsibilities of this Agroeinent by the approved subcontract The Grantee 4iail he
• responsible for the performance of any subcontractor and the subcontractor shall provide
sufficient iafornaation to the Grantee or any of its Subgrantees to allow the Grantee to
comply with all term.;and ounclitium°f this Agreement
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•Section X Publicity and Publicalfons
A. Airy published or distributed reports,dam,or other information shall contain an
acknowledgment of the support of the Commission as well as a disclaimer statement to
the following effect:Arty opinion,firgring conch Lrion or re00111112271fialitiTIN..2grrensed
this publication are those of the a d hor(c) d do not necmarily reflect the vie*and
policies of t e North Carolina Tobacco Trust Fond Commission.Upon publication of
materials resulting from the work of the Project,the Grantee shall furnish a minimum of,
two copies of reports to the Commission. The Grantee shall flclmnwledge the support of
the Commission by including its logo on prima info inforrnation,presentations and other •
materials produced pursuaat in the Project.
Fl.. At the request of the Commission,the(trainee shall place signage at the Project site or
sites idtentifying the Project as receiving Commission Funds. This signnge shall he in
mutually agreeable warding and format
C. Subject to the requirements of Section X.A above,die Grantee may publishor arrange for •
the publication of information resulting from work carried out under this Agreement;
• however,the information shall not be marketed for profit by the Grantee.
D. If work done pursuant to the Agreement results in any intellectual property field accruing
to the Grantee,the Grantee hereby grants to the Commission an assignable royalty-free,
non-exctusive irrevocable license to publish,translate,reproduce,deliver,perform or use
the material covered by the intellectual property right.
+Section XL Termination&Availability of Tanis
A. Either Party shall have d::ability to terminate this Agreement on thirty days'written
notice.
13. If after notice and reasonable opportunity to cure a dcfoct or problem,the Grantee fails
for any reason in i rilti II in punper mannur its obligations under this Agreement_or violates
any of the material terms or conditions of this Agreement,the Commission shall have the
right to terminate this Agreement by giving fourteen(14)days written notice to the
°lance of such termination. In such event,the Commission shall have no responsibility
to make additional payments under this Agreement slier the Termination Date. No
further expenditures shall be made ender this Agreement upon notice of termination
except for such work as sl1alI have already been performed prior to the notice of
'rumination Date and the Grantee shall repay all unspent grant funds upon the deiced of
the Commission together with nnv n ik:c,t accrued on those unspent lands.
C. The Commission's ob1i+ration to pay any sraounts under this Agreement is contingent
upon the availability Of funds to it to fund the Project.In the event that funds for this
Projeel b.cone unavailable,the Commission may terminate this Agreement immediately
upon facsimile notice to the Grantee.In the event c t notice c f the unavailability of funds,
all obligations of the Commission to make payments under this Apeman t shall cease as
of the date of the notice of tcs-roinatir.n for unavailability of funds except for such work as
shall have already been porfurured prior to the dale of the notice of terminat iion for
unavaliability of funds.
Seetiou XII.Liabilities sad Loss
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A. The Commission assumes no liability with respect to accidents,bodily injury;,illness,
breach of contract cw;my Bother dirnge a claims Or losses arising out of any adivities
undcrtakcm by'.he Grantee or any of its Sub gratirees under this Agreement,with respein
to persons or property of the Grantee,Suhgrairtee or third parties_
B. The Grantee agrees to ohtain insurance to pnrlct iisel:noel others as it may deem
desirable,ter,if it elects not to obtain such insurance,it represent;that it ha;adequate
resour es available to it for this purpose.
C. The Grantee agrees to indemnify,det nd and save harmless the Commission and its
officers,agents trnd employees against any liability,including costs and expenses and
attorneys ferns for thn Grantoe's or any Subgrautee's(e)violation of any proprietary right
or right of privacy arising out of the publication,translation,mprodnction,dcliv;zy,
performance,use or disposition of any information published resulting from the work of
the Projet or based on any 1iibelou,or other unlawful manor ixedained in such
information.
D. The Grantees also furtb,rr agrees to indemnify,defend and save harmless the Commission
and its officers,agents and employees from any other person,firm or corporation
furnishing or supplying work,services,material or supplies in connect with the Project
and the performance of this Agreement and from any and all claims and losses accruing
or resulting to any perms'',firm or oorporatiou who may be injured or damaged by the
G7ranwe,any Subgrantoes or any of their agents in the performance of the Project.
Section XLIt. l iLire Aareement
A_ This Agreement and its Exhibits contain the entire undemanding between the Parties_
B. The agreement may be amended only in writing duly executed by authorized persons
for the Commission and the Grantee.
Section XIV.Grantee Representation and Warranties
The Grantee hereby represents and Warrants tbat
A. The Grantee is duly organized and validly existing under the laws of the Sixla of North
. Carolina.
13. 'Ms.Agree went unnAitrrlc5 a binding obligation of Grantee,enforceable against it in
accordance with its terms. The execution and delivery of this Agreement have been duly
authorized by all necessary action on the part of Grantee and does not vialaa any
applicable organizational documents of;he Grantee or any agreement or undertaking to
which it is a party of by which it is bound.
C_ There is r3o action,suit,proceeding,or investigation at law or in equity or before any
court,public board or body pending or to the Grantee's knowledge,threatened spins':or
affecting it,that could or might adversely affect the Project or any of the transactirnrs
contemplated blithe Agreement or the validity or enferecability cif this Agreement or the
Grantee's ability to discharge it obligation tinder this Agreemte it.
D. If auy ccoasent or approval is necessary from any governmeotal authority as a condition to
the execution and delivery ofth=;Agreement by the Grantee or the p rtirnnancee ofany of
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its obligations under the Agareemel]L,all such requisite government consent or approvals
have been ubtaintxl.
Section XV. Saecial Provisions and Conditions
R_ Nondiscrimination_ The Oran tee agreut not to d caiiniisate by reason of a,ge,race,
religion,color:sex,national origin or handicap in the performance Of this Agreement
B. Conflict of Interest. Pursuant to N.C.Gen.Stat-5 !430.6--23 the Grantee must provid°,a
copy of its conflict of interest lie to the Cinrimissinu prior to any disbur ernes[of
finds under this At recme+t
C. Compliance with Laws. The Grantee shall at alt times observe and comply with an taws:
ordinences,roles and regulations of the state,federal and Jaen]governments which many
affect the performance of the Agreement
A. TQr�- tliguability. The Parties shall not assign any interest in the Agreement:provided,
however,that claims fur iuoney due to the Grantee from the Commission under this
Agreczncnt may be assigned after notice And approval of the Commission.
E. Personnel. The Grantee represents that it has or will secure at its own expense all
personnel required to carry out and perform the scope of services required under this
Agreement. Such personnel shall be frilly qualified and mall he aulhoriped under'date
and local law to work on the Project.Such employees shall not be employees of the
Commission.
F. R.str}ctien on use of the funds. The Grantee will expend funds consistent with the terms
and conditions of this Agreement Failure to do so may result in legal action to recover
funds spent inconsistently with the terms and condition of this Agreement w.ithout further
notice. Tftlfe('rrantee has Suhgranlnes,the tiranlIna muz,(require this rm iricstion on Le of
funds by all of its Subgrantoes.
(1. Certification of Nu Overdue Taxes. Pursuant to N.C.Gen.Seat 5 1430-G-23 the Grantee
must execute the certification of an overdue taxes attached as Exhibit k In this
Agreement prior to receiving funds under this Agrccrnt nt_
H.. Taxpayer Identification Number. The Grantee and any Snbgrantees nmst provide
taxpayer identification information to the Commission prior to receiving funds smiler this
Agreement.
I. Exhibit-s. All Exhibits to this Agreement are expressly incorporated by reference arid
made a parr of this Agreement.
Section XVL Notice.
A_ AB notices required by this Agreement with tltc exewtion of Notice provided pursuant to
Section XLC shall be in writing and stall be deemed given when personally delivered or
when deposited in the'United States mails,certified,return receipt requested,first class,
postage prepaid and addressed as follows:
•
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BOCC Meeting, January 22, 2009, Page 9 /39
10
•
If w the Commission: Mr.William-Upchurch
Executive Director
/1.a Tuhrucx:u'l ust Nand CornnLission
IMO Mail Service Center
Raleigh,NC 27699-1080.
Tel: (919)733-2!60
Fax:(919)733-251U
If to the Grantee: M .Laura Dlackman
- County Manager
Orange County
PO Box 1177
Hillsburaugh,NC 27278 -
Tcl: (9I9)245-23'30
Fax: (919)644-3008
B. Each Party may designate another Notice rocipiant by written communication to the other •
Party.
,Section XVIT.Cunstructien
This Agreement shall he construed and governed by the laws of the State of North Carolina.
The Parties do hereby exeente this Agreement in duplicate originals:
N.C.Tobacco Trust Orange County
Fund Commission •
Jahn�V liiarn Garter,III Ms.I-atri filuclnmmn
Chairman County Manager
Grant Number 2/a118-041-22
BOCC Meeting, January 22, 2009, Page 10/39
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M"ORTHCAROLI?A i , A.
i ._ _°er NORTH CAROLINA "
OA
TOBACCO TRUST FUND COMMISSION
r Tom=ThusT Fti C . i
1080 Mail Service Center
Raleigh, North Carolina 27699-1080
Phone:919-733-2160
Billy Carter,Chairman
Web Site: www.tobaccotrustfund.ora
GRANT APPLICATION
State Fiscal Year 2008-2009
Complete all sections of this application and send an original plus four(4)copies to the NC
Tobacco Trust Fund Commission,1080 Mail Service Center, Raleigh, North Carolina
27699-1080. The application may be printed by hand in ink,by typewriter or produced by word
processor, in 11 or 12 pt.font, on eight-and-half inch by eleven-inch paper. Additional materials
that will assist the Commission in its deliberation on this project may be attached. The left hand
margin of any attached page must be at least one inch. All applications, attachments to
applications and written materials received by the Commission are public records,unless
determined otherwise by court order or other applicable law. Please do not submit social
security numbers,tax information or other personal identifying information. If at all possible,
include an electronic copy(diskette,email)of this proposal with the paper copies. Refer to the
Commission's Rules,02 NCAC 57 .0101 et seq.,which can be viewed on our web site,
www.tobaccotnistfund.or+a. An electronic version of the application can be found on the
Commission's web site. The maximum grant amount,for this cycle,will be no more than
5500.000, unless the Commission determines otherwise.Completed applications must be
postmarked or hand-delivered by 5:00 PM on August 1,2008 to be considered during this
granting cycle.The awards will be announced on October 31,2008.
- �O+ 4.- al �a Pa R.• 0- a ., 111.111111.1111111111111111111111111111111
• Community Economic _ Natural Resource and Farmland
Develo ment Preservation
Skill and Resource Develo•ment Increasin' Farm Profitabili
Diversification Initiatives
a c'a s- - s. - Wa e a _e;a ¢ s a.e fie'_ a� ,s : w -s _
:: At the Farm Level
== At the Manufacturing Level
• At both Farm and Manufacturing Level
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1
BOCC Meeting, January 22, 2009, Page 11 /39
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SECTION I:GENERAL INFORMATION
Project Title: Piedmont Value-Added Shared Use
Food and Agricultural Processing Center
Applicant Organization: Orange County
On behalf of Alamance,Chatham, &Durham Counties
Organization's Operating Year. July 1 —June 30
Mailing Address: POB 8181, Hillsborough, NC 27278
Physical Address(if different): 200 S. Cameron Street, Hillsborough, NC 27278
County: Orange Web site:htto://www.co.oranae.nc.us
Telephone: (D) 919-245-2300 FAX:919-688-3008_
E-mail: Iblackmoneco.orange.nc.us
Primary contact/title/contact information (if different from above):
Noah Ranells,Ag Economic Development Coordinator
POB 1177, Hillsborough, NC 27278
919-245-2330 nranells(c)co.oranae.nc.us
Project director/title/contact information
N/A
Authorized contract signer/title(if different from organization, please include address,telephone,
fax and e-mail address): Laura Blackmon,County Manager
Applicant's status: (check one)
❑ Non profit -Classification: (501(c)(3), etc....]
0 State or local governmental unit
❑ Federal governmental unit
❑ For profit corporation or business
❑ Other.
Counties in North Carolina the project will serve(check one)
❑ Statewide
RI County or counties list each county and the ap•licable%of TTFC funds)
Alamance Guilford `+ .t,Q Randol.h Y,,
Caswell EM Harnett Rockin: m
Chatham Johnston L, Stokes
Davidson -177, Lee ° ' Vance
Durham ° Moore ... Wake
Fors Nash 4 Warren
Franklin i Orange
Granville lOrfit Person
2
BOCC Meeting, January 22, 2009, Page 12 /39
13
Piedmont Value-Added Shared-Use Food and Agricultural Processing Center
Section II:Project and Applicant Description
1. Executive Summary
Goals and Objectives
The goal of this project is to enable farmers in tobacco-dependent,economically distressed,and rural
communities in a 22-county area of the Piedmont region of North Carolina to expand their markets,
increase their revenues,and revitalize their farms.The primary objective of this project is the
development of a value-added shared-use food and agricultural processing center that will be open in
January 2010. The facility will provide a wide range of food processing equipment in addition to
business development support and education,especially training to start a food-based business,
developing business plans,and meeting food safety requirements. The processing center will be
financially sustainable in its third year of operation through the collection of user and program fees
and from the fundraising effort of the nonprofit entity that will be formed to manage the center.
Partner Organization
This project represents collaboration between Alamance,Chatham,Durham,and Orange Counties,as
well as Weaver Street Market and Whole Foods. The feasibility study was jointly funded and guided
by an advisory group that included farmers,county commissioners,chefs,grocers,and consumers
with representatives from chambers of commerce,community colleges, farmers markets,
Cooperative Extension,Soil&Water Conservation District Boards,Voluntary Agricultural Districts
Boards,economic development and small business specialists,Carolina Farm Stewardship
Association,and North Carolina Dept.of Agriculture and Consumer Services.
Intended Beneficiaries
This project will effectively serve farmers and food-based entrepreneurs within 75 miles of its
location in Hillsborough,NC. This 22-county region includes 16,214 farms,nearly one-third of all
farms in North Carolina,according to 2002 USDA statistics. Included in the 22 counties are 15
counties designated"Rural"by the NC Rural Center and 2,721 tobacco farms based on the 2002
USDA data. The service area represents 35%of tobacco farms and 40%of tobacco production,
statewide. Farmers and food entrepreneurs will benefit from an FDA-inspected food processing
facility and 3.3 million consumers in the service area will benefit from safe firm products produced
locally,often with enhanced nutritional and health benefits.
Positive Impact on the State's Economy
While the Food and Agricultural Processing Center will serve one third of the state's farmers,
collaborations with the existing Blue Ridge Food Ventures in western NC and emerging processing
facilities in eastern NC allow magnified statewide impact. Preliminary discussions are underway to
develop a network of processing centers that enhances the overall capability ofNorth Carolina to
produce a greater proportion of the food that is consumed within the state.
Amount Requested and Timeline
We are requesting$479,000 from the Tobacco Trust Fund. Development of the center will begin in
January 2009 and be completed by December 2009. Funds will be used for the purchase and
installation of equipment and for seed funding during the first year of operations.
Method of Evaluation
The first objective,completion of the facility by January 2010,will be measured by the pace of
development. The second objective,financial sustainability,will be measured by the revenue the
center creates from user fees and program participation.
3
BOCC Meeting, January 22, 2009, Page 13/39
14
Piedmont Value Added Shared-Use Food and Agricultural Processing Center
Section II:Project and Applicant Description
2. Project Budget
a. TTFC Grant Request: $479,000 Total Project Cost: $1,218,500
b. Detailed Budget—Entire Project
The budget below indicated the full project cost. The Project Partners and Agricultural
Development and Farmland Protection Trust Fund amounts have been committed. Project
partners represent Alamance,Chatham,Durham,and Orange Counties as well as Weaver Street
market and Whole Foods. The figures for Golden Leaf and Tobacco Trust Fund are requested as
of the date of submission of this proposaL
A more detailed budget follows for the funding requested from the Tobacco Trust Fund.
Cost Proj.Partners Ag.Dev. Goldenleaf Tob.Trust
Feasibility Report
(completed Dec 2007) $ 15,000 $ 15,000
Project Manager (May
2007-Dec 2009) $ 25,500 $ 25,500
Renovation $ 400,000 $ 132,000 $ 268,000
Equipment(installed) $ 656,000 $ 299,000 $ 357,000
Operations&Maintenance
(1st 12 months) $ 122,000 $ 122,000
$1,218,500 _ $ 40,500 $ 132,000 $ 567,000 $ 479,000
4
BOCC Meeting, January 22, 2009, Page 14 /39
15
Piedmont Value-Added Shared-Use Food and Agricultural Processing Center
Section H:Project and Applicant Description
2. Project Budget(cont'd)
b. Detailed Budget-Tobacco Trust Fund Request
Category/Item Cost
Equipment
Vegetable?olisher(potato/can•ot),roller type,conveyor feed $ 45,000
Size reduction equipment(Urschel) $ 24,000
Hard Vegetable Wash Line $ 20,000
Filler,auger type&weigh pack $ 29,500
Pulper,Langsenkamp type $ 20,000
Conveyor,Accumulator&Scrambler tables-filling line $ 12,500
Food pump and stainless pipefittings(Waukesha type) $ 8,000
Pulper/Stever,Robo-Coupe type $ 6,000
Continuous Blancher $ 7,500
Dough sheeter÷r;proof cabinet $ 13,500
Double deck oven,gas;Braising Pan;Fryer $ 12,000
Smoker,Convection type $ 10,000
Commercial Meat Grinder $ 3,000
Meat bandsaw $ 1,500
Commercial sausage filler $ 1,500
Blast Freezer 10 X 16 $ 24,000
Steam generator-20-30 hp.&Kettle $ 15,000
Vacuum Sealer-double chamber-w/map capability $ 8,000
Box taping machine,Shrink Tunnel $ 7,300
Mixer-60 qt.with bowl dollies, $ 6,000
Cooler-2 door reach in;ice machine 3 ton per day $ 15,000
Security cameras w/monitor per system $ 5,000
255 Batch Code printer,excluding computer $ 5,000
Mixer 20 qt.,stainless bowl $ 4,000
Griddle;Microwave;Dehydrator $ 3,900
Vegetable,olisher(potato/carrot),roller type,conveyor feed $ 3,100
Size reduction equipment(Urschel) $ 135
Equipment shipping and installation $ 46,565
Equipment Subtotal $ 357,000
Personnel
Executive Director,salary+benefits $ 60,000
Personnel Subtotal $ 60,000
Operations
Legal&Accounting $ 2,300
Office Supplies $ 1,500
Cleaning Supplies/Waste Management $ 4,000
Marketing $ 5,000
Equipment Maintenance,Parts&Labor $ 10,000
Staff Travel $ 1,000
Insurance $ 4,000
Building Maintenance&Utilities;Telephone $ 34,200
Operations Subtotal $ 62,000
TOTAL REQUEST $ 479,000
5
BOCC Meeting, January 22, 2009, Page 15/39
16
Piedmont Value-Added Shared-Use Food and Agricultural Processing Center
Section H:Project and Applicant Description
2. Proiect Budeet(cont'dl
c. Administration costs include funding for an Executive Director of the processing center.
Recruitment and hiring will occur in the last four months of 2009. No overhead charges are
requested.
d. The in-kind contribution involves staff resources from the partner counties and is listed in the
budget as$25,500
e. Additional funding partners
Agricultural Development and Farmland Protection Trust Fund
$132,000 in grant funds committed to this project as of June 30,2008
Dewitt Hardee,919-733-7125
Golden Leaf Foundation
$567,000 in grant funds requested in proposal submitted August 1,2008
Ted Lord,252-442-7474
Alamance County $2,500 in cash committed
Commissioner Dan Ingle,336-278-5555
Chatham County $2,500 in cash committed
Commissioner Tom Vanderbeck,919-545-2160
Durham County $2,500 in cash committed
Commissioner Becky Heron,919-732-4941
Orange County $5,500 in cash; $25,500 in-kind committed
Commissioner Barry Jacobs,919-732-4941
Weaver Street Market $1,000 in cash committed
Ruffin Slater,919-929-0010
Whole Foods $1,000 in cash committed
Dan Thomas,919-968-1983
6
BOCC Meeting, January 22, 2009, Page 16 /39
17
Piedmont Value-Added Shared-Use Food and Agricultural Processing Center
Section II:Project and Applicant Description
3. Proiect Timeline
Year/Quarter
Activity Yl Yl Yl Y1 Y2 Y2 Y2 Y2
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Complete Contract
Contract for
Engineering Services
Renovations , .k.
Equipment Purchase&
Installation 4
Transition to Non-profit
Entity
Recruit Executive aTe
Director
Establish Network of -.,, ..
�: rc
Agricultural,Food,& 4 . � <
Economic Development g
Professionals
Outreach
(meetings,website, „'
brochure)
Grant Report
7
BOCC Meeting, January 22, 2009, Page 17 /39
18
Piedmont Value-Added Shared-Use Food and Agricultural Processing Center
Section II:Project and Applicant Description
4 Organizational History and Goals
This project is the result of collaboration between Alamance,Chatham,Durham,and
Orange Counties,as well as Weaver Street Market and Whole Foods.Together,they funded a
feasibility study that was completed in 2007 with guidance from an 40-member advisory group
that included farmers,county commissioners,chefs,grocers,and consumers with representatives
from chambers of commerce,community colleges,farmers markets,Cooperative Extension, Soil
&Water Conservation District Boards,Voluntary Agricultural Districts Boards,economic
development agencies&small business specialists,Carolina Farm Stewardship Association,and
North Carolina Department of Agriculture and Consumer Services.
The four core counties that have provided institutional support for this project have a
demonstrated commitment to promoting agricultural economic development.
• Alamance was the first county in the state to complete a Farmland Preservation Plan and
each of the other three counties has a plan in progress.The director of the Alamance
Community College culinary technology program has been a strong supporter of the
project.
• Chatham County is home to a widely recognized sustainable agriculture program at the
Pittsboro campus of Central Carolina Community College. Also in Chatham County is
the award winning Growing Small Farms program developed by Cooperative Extension
Agent Debbie Roos.
• Durham County has had outstanding success with the recent development of a large
farmers market hosting vendors from up to 70 miles from Durham.
• Orange County has been a pioneer in farmland preservation and hired the first
agricultural economic development coordinator in a joint effort with NC A&T State
University in Greensboro. American Farmland Trust Southeast Director Gerry Cohn is
based in Hillsborough and continues to support this project and assist in implementation.
In collaboration with NC State University(NCSU),Orange County Economic
Development and Cooperative Extension are helping to develop the WC Breeze Family Farm
Extension and Research Center in northern Orange County. This 270-acre farm was bequeathed
to NC State University by Colonel Breeze,a long time landowner in the tobacco growing
communities of Cedar Grove and Hurdle Mills. A concept plan for the farm,agreed to by NCSU
and Orange County,includes the development of an off-site processing center that would work in
tandem with a farm enterprise incubator on the Breeze Farm initiated in January 2008 by Orange
County. Emerging components of the approved concept plan include focus areas on 1)4-H,FFA,
and youth,2)Forages,Grasslands,and Grains,and 3)Fruits and Berries. This small farm
extension and research center promises to complement efforts of the processing center in the
same counties thereby enhancing benefits to farmers in communities across the 22-county region.
As the feasibility plan for the processing center is implemented,the 40-member advisory
board and 65-member producer group will develop into a 501(c)3 non-profit entity during the
coming 18 months. A formal mission statement,goals,and objectives will be developed during
this development process. Strong participation and interest has resulted in producers already
volunteering to help steward this transition from a government entity to a non-profit.
8
BOCC Meeting, January 22, 2009, Page 18 /39
19
Piedmont Value-Added Shared-Use Food and Agricultural Processing Center
Section II:Project and Applicant Description
5. Goals and Objectives
The goal of this project is to enable farmers in tobacco-dependent,economically
distressed,and rural communities throughout the Piedmont region of North Carolina to expand
their markets and increase their revenues. While local distribution and sales systems exist in the
form of farmers markets,community supported agriculture programs(CSAs),and cooperative
groceries,opportunities for greater retail and wholesale marketing of farm products can be found
in the form of minimally processed products,such as washed and graded produce,as well as
more highly processed value-added products such as jams,jellies,and baked goods. Recent
health issues concerning out-of-state food,such as e-coli and salmonella outbreaks,have
increased the demand for locally grown food but a lack of available approved manufacturing
space constrains the marketing of local farm products for all marketing venues.
The primary objective of this project is the development of a regional value-added
shared-use food and agricultural processing center that will serve a 22-county area in the
Piedmont region of North Carolina and be open for business in January of 2010. The facility •
will provide a wide range of food processing equipment,such as range/ovens,cutters,mixers,
food processors,coolers,and packaging equipment.Business development support and
education,especially training in starting a food-based business,developing business plans,and
meeting food safety requirements,were noted by feasibility study survey respondents to be
needed components of the food and agricultural processing center.
A related objective is that the processing center will be financially sustainable by 2013
through the collection of user and program fees and from fundraising efforts. To achieve this
objective we will be forming a nonprofit corporation from the stakeholder group of 40
individuals and the 62 producers who completed the survey during the feasibility study. This
501(c)3 group will act as a management entity that owns and oversees operations of the project,
including managing staff and program development,outreach to farmers in the regional area,and
fund development.
9
BOCC Meeting, January 22, 2009, Page 19 / 39
20
Piedmont Value-Added Shared-Use Food and Agricultural Processing Center
Section II:Project and Applicant Description
6. Evaluation of Expected Outcomes
Establishment of Processing Center
The short-term goal of the project is to open a regional value-added shared use food and
agricultural processing center in January of 2010 with a range of programs and equipment. The
success of the short term goal will be measured by client use and revenues generated by the
center,as well as training and assistance to farmers and other food entrepreneurs.
Establishment of Processing Center impacts of the project will include:
1)Developing training programs and services to tobacco farmers who are considering
diversification;
2)Making equipment and facilities available to farmers and other clients who want to increase
their revenue and bring new value-added local products to market;and
3)Enabling local institutions to make use of freezer and refrigeration space that would permit
them to increase the use of locally grown food in their organizations.
All trainings and workshops will include printed evaluation forms that will be used to
determine program effectiveness and solicit suggestions for future center initiatives
Operating Revenue
Based on 62 survey responses during the feasibility study,client use was conservatively
estimated at 142 production hours per week after the first year of operation. On a 50-week basis
and at an average use fee of$22 per hour,fees in year 3 of operation were projected to be
$150,000. In the same timeframe,gross income for clients was reported at$2,651,000 per year.
Financial statements of the nonprofit management entity will be used to evaluate revenue
projections.
We expect to exceed this projection based on two factors: 1)Increased demand from
individuals and businesses who did not complete the survey but became aware of this project and
expressed interest in using the facility,and 2)The heightened awareness related to food security
associated with the escalating price of oil and the outbreak of food safety concerns in food grown
out of state reinforce the benefits of buying locally produced food.
Strengthening the NC Agricultural Economy
Long term goal is to become fmancially independent in 2013 by building the capacity to
process and market North Carolina agricultural products,thereby increasing the number and
diversity of farm operations that help to sustain the Piedmont region.Long term impacts of the
project include the potential for collaboration with Blue Ridge Food Ventures,a shared use
facility in western North Carolina. This development could increase North Carolina agricultural
revenue and an increase in the number and diversity of farm operations in the Piedmont region.
10
BOCC Meeting, January 22, 2009, Page 20 /39
21
Piedmont Value-Added Shared-Use Food and Agricultural Processing Center
Section II:Project and Applicant Description
7. Proiect Justification for a Oualified Agricultural Program
This project,as a Qualified Agricultural Program,seeks to fulfill the following criteria
• Alleviating and avoiding unemployment in the tobacco-related sector of the state's
agricultural economy;
• Preserving and increasing the local tax base in agricultural areas;
• Encouraging the economic stability of participants in the state's agricultural economy;
This project also fulfills the following types of activities noted by Tobacco Trust Fund
• Programs to finance the modernization of farming equipment or conversion of existing
equipment to conform to environmental and other regulatory requirements;
• Marketing incentives such as promotions or export programs;
• Incentives to grow alternative crops;
• Development of value-added facilities and/or resources.
Escalating costs of oil and the health concerns such as e-coli and salmonella in meat and produce
have increased consumer demand for locally grown food. More and more consumers are
shopping at local farmers'markets,enrolling in Community Supported Agriculture programs
(CSAs),and joining coop groceries,while schools,universities,and hospitals are seeking locally
grown food in large amounts and at regular frequencies.
One limitation to marketing local farm products is the lack of processing facilities.But the
growing demand for locally grown food,considered alongside the American habit of buying
`imported'produce out of season highlights the potential of processing facilities to extend the
markets and increase the revenues of North Carolina farmers.
This project will provide a facility for farmers and potential food-based entrepreneurs within 75
miles of Hillsborough which will increase the demand for local farm products.This 22-county
region had 16,214 farms in 2002,including 2,721 tobacco farms,all of whom could benefit from
the facilities and training that will be offered by the center. Within the 22-county area,there is a
total population of 3.3 million individuals who are potential customers of the end product created
at the facility. Many strong farmers markets and CSAs are already operating in the area and the
region is situated with fairly close proximity to two of the state-run farmers markets in the
Triangle and Triad.Shelf stabilized value added products are also able to be aggregated and
shipped longer distances thereby increasing potential markets for North Carolina farm products,
given the centralized geographic location of NC for shipping centers.
A suitable building has been located that is owned by Orange County and which meets all the key
criteria for the development of a regional shared use food processing facility,including being a
modern building with access to all major utilities that meets code,including handicap-accessible
bathrooms and entrances. The building is a 10,400 sq.ft.metal industrial structure consisting of
a large warehouse-type area on concrete slab,a loading and storage room with a dock,parking
lot,multiple offices,and meeting rooms.
The feasibility stage of this project is complete. With the research that has demonstrated
sufficient demand and a suitable location,we are well-positioned for success. Investment in the
project will support the Tobacco Trust Fund's goal to fund programs that support,foster,
encourage,and facilitate a strong agricultural economy in North Carolina.
11
BOCC Meeting, January 22, 2009, Page 21 /39
22
Piedmont Value-Added Shared-Use Food and Agricultural Processing Center
Section II:Project and Applicant Description
8. Project Impact: Detailed explanations of expected economic impact and outcomes based on 75-
mile,22-county region. Because this is a startup venture,it is difficult to quantify the impact the
project will have.The rationale for the figures here represents a combination of survey data and
estimates based on expertise with the subject.
Outcome Estimate Detailed Explanation of Estimate
Jobs created 24 Average of 1 job per county created in production and marketing plus 2
positions for center within 5 years. 1 x 22 counties+2=24
Workers Re-Employed 44 Average of 2 jobs per county retained the to enhanced viability of farms. 2
x 22 counties=44
Worker Skills 1,100 Average of 50 individuals trained on food safety and post harvest handling,
Upgraded per county. 50 x 22=1,100
Persons Receiving 440 Average 20 farmers assisted per county through center affiliated activities
Increased Educational
Training
Tobacco Farmers 44 Average of 2 current or former tobacco farmers will be assisted across the
Assisted 22-county region
Acres of Farmland 1,100 Average of 50 acres protected through economically viable farm production.
Protected 50 x 22=1,100
Acres in new Crop 880 Average 20 acres per each new farmer in productions(see above). 20 x 44=
Production 880
People Served 550 Average 25 people per county served through conferences,meetings,
takings,and workshops in the 22-county region. 25 x 22=550
Dollars Leveraged $959,600 $739,500 in funding for center and$220,000 New investment(below)
Other:New Investment $220,000 Average$5,000 investment in production,post-harvest handling,and
marketing for minimum of 2 farmers in each county. $5,000 x 2 x 22=
$220,000
Other Tax base Increase $2,651,000 Survey data from prospective center clients in 2007 feasibility study.
Other.Increased $420,000 1 part-time position in each county related to production,post-harvest
Payroll handling,and marketing with salary of$15,000 per position;Plus 2 center
staff at$90,000. 1 x$15,000 x 22+$90,000=$420,000
Other.Farmers in New 44 Average 2 farmers per county that enter farm production enterprises
Production resulting from the ability to add value through the center. 2 x 22=44
As described elsewhere in this proposal this project helps to offer options for farmers to revitalize
their agricultural enterprises and respond to emerging market opportunities. The rural communities
that support farmers and their families will also have the opportunity for renewed and new
employment as operations diversify given the ability to utilize the equipment and programs provided
by this project and Tobacco Trust Fund support.
Associated with the strong cooperative extension network and emerging programming at the WC
Breeze Family Farm Extension and Research Center,the Center for Environmental Farming Systems
provides information for optimal natural resource management in the context of productive farms.
Economic vitality and stability are fostered in the region through the ability for rural communities to
eat-and buy-local. Circulating dollars through local communities rather than exporting to far-away
profit centers with less benefit to the towns where the dollars are spent can enhance the resiliency of
rural communities to respond to economic hardship.
12
BOCC Meeting, January 22, 2009, Page 22/39
23
Piedmont Value Added Shared-Use Food and Agricultural Processing Center
Section II:Project and Applicant Description
9. Financial Information
a. Date of incorporation 1752
b. Total annual operating $161,456,517(FY07 last fiscal year audited)
c. Current auditor McGladrey&Pullen
PO Box 2470
230 North Elm St,Suite 1100
Greensboro,NC 27401-2436
d. Date of last audit November 20,2007(letter attached)
e. Description of fmancial accounts that will be established to administer the project
A grant project ordinance will be established to track grant expenditures
separately from regular operating funds.
f. Name and telephone number of person responsible for the fmances of the project
Gary Humphreys
919-245-2453
g. Plans to sustain funding
Project sustainability will be supported by operating revenue and additional
fundraising efforts.
Operating Revenue:
Based on responses from 62 survey respondents during the feasibility study,user
fees will generate more than$150,000 by year 3 of operation. We expect to
exceed this projection based on two factors: 1)Increased demand from
individuals and businesses who did not complete the survey but become aware of
this project and have expressed interest in using the facility,and 2)The
heightened awareness related to food security associated with the escalating price
of oil and the outbreak of food safety concerns in food grown out-of-state
reinforce the benefits of buying locally produced food. These factors can be
expected to have a positive bearing on projected revenues of a the processing
center.
Nonprofit fundraising:
As recommended in the feasibility study,a nonprofit entity will be formed to
support funding development to help sustain operational expenses..
13
•
BOCC Meeting, January 22, 2009, Page 23/39
24
Piedmont Value-Added Shared-Use Food and Agricultural Processing Center
Section II:Project and Applicant Description
10. References
The following individuals have an operating knowledge of the project and will serve as
references to the commission:
Representative Joe Hackney
Professional Address:
410 Martin Luther King Jr.Boulevard
Chapel 1111,North Carolina 27514
(919)929-0323
Joeh(abellsouth.net
Legislative Address
2304 State Legislative Building
Raleigh,NC 27601
(919)733-3451
Joeh @ncleg.net
Senator Bob Atwater
300 North Salisbury Street,Room 312A
Raleigh,NC 27603-5925
(919)715-3036
Boba(a,ncleg.net
14
BOCC Meeting, January 22, 2009, Page 24/39
25
Pi:d>na.t Value-reed Shared-Use Food and Agricultural Processing Center
Saction IA:Verification
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BOCC Meeting, January 22, 2009, Page 25 / 39
26
•
stts�;e ' code A
PaRRY.LICCFET. MAIN UiLaF !'bra+��,�QM?
ORANGE CourCt Y HOARD OF COMMISSIONERS
aacrsC. :.v POST OFFS Box 8181
Burr_-,e ta;+ar�n;
ZOO SOUTH CAMERON STREET
yes,
HILLSBOROUGH, NORTH CAROLINA 27278
e
•
July 31,2008
Mr Wiliam lire:hrrrh
Executive Director
North Carolina Tobacco Trust Fund
1 090 Mail Service Center
• Raleigh, NC 27699-108t}
Dear Mr.Upchurch:
This letter serves to express the support of the Orange County Bawd of Commissioners for the
Piedmont Regional Value-Added Shared Use Food and Agricultural Processing Center proposal
submitted on behalf of Abe-Rance,Chatham, Durham,and Orange counties. That core group of
counties has worked di igently to bud community and user support,augmented by e
professional feasnilly study completed in November 2007 and funded by government and
private cnnirihutinn .The tour respective boards of county commissioners mowed our
commitment Lo this project dough resolution passed in the first hat of 2008.
'diva ore enthusiastic about implementing this collaborative project vfilc h wll effectively serve a
78-mile radius that includes 22 counties and 16214 fern's, almost one-third of the farms in
North Carolina.We pledge to engage We 2,721 tobacco farms in the service area and their
respective rural communities through existing networks of cooperative extension canters as well
as regional,county,and local economic development speclafrsts.Those interests already have
open engaged in our efforts to advantxr this project,and in the 1(1 annual Agricuitirral Summits
rieki here in Orange County since 1998.
The feasibliy study showed a clear demand from farmers and food entrepreneurs for a facility
such as we propose.The population base arm concentration of institutional and retail outlets are
adequate to support the sate of products from the processing center.which will promote
valuable sorrel business development.Our growing populace has demonstrated strong and
wing demand for high value, locally produced food,and our farmers have shown
condidorablo innovrilion in attempting to explore new markewng opportunities.
Finding viable finandal alternatives for tobacco fanners and other producers in nil[Aunties
remains a key to our future as we face significant Growth and development pressures_We must
act now to help fanners and rural communities retrain active centers for economic development
through agriculture and agriculture-retaled production_ We believe that bolstering the local
agricultural economy is essential to economic,Guttural,and environmental sustainabllity in
urbanizing counties such as the bur involved in our partneleht.
wow Ca ORAXGE.N6u8
PIPOTECT,NN ANO PR£5Rr1R8 PCW 1C.ff MPVIICAb,QUASI r Vt 110-;
QvAiMEF Cavalry,magma cam:km-rpa COUNT:
(919)245-2110O• PAX(PM,E.M.-.0.440
BOCC Meeting, January 22, 2009, Page 26 /39
27
Page 2
. Orange County Has enthusiastically supported the regionally based approach to these
challenges through the development of a food processing value-added center. We havo
contnixited financially to this effort in concert with pubic and private partners to get hard data •
and recommendations for well-grounded actions through the feasibBlty study.Wu base have
played an active role in the diverse advisory croup wotldng together on this protect.
We urge 1110 NC Tobacco Trust Fund 10019 PJamanoe,Chatham,Durham,and Orange
• counties in OF Investment in this regional prooessing center.Mitch can serve a large area and
be a model for others. We look forward to the chance to wort/.together on this innovative and
caaperalivc vunEure_Thank yuu for your consideration.
Ja "th "
Orange ry uaiy� �misoners
•
BOCC Meeting, January 22, 2009, Page 27 / 39
28
McGladrey&Pullen
Independent Auditor's Report
To the Board of County Commissioners
Orange County,North Carolina
Hillsborough,North Carolina
We have audited the accompanying financial statements of the governmental activities,the business-type activities,
each major fund,and the aggregate remaining fund information of Orange County,North Carolina(the'County'),as
of and for the year ended June 30,2007,which collectively comprise the Countys basic financial statements as listed
in the table of contents. These financial statements are the responsibility of the County's management Our
responsibility is to express opinions on these financial statements based on our audit. We did not audit the financial
statements of the Orange County ABC Board(the"Board'),a component unit. Those financial statements were
audited by other auditors whose reports thereon have been furnished to us;and our opinion,insofar as it relates to
the amounts included for the Board is based solely on the reports of the other auditors.
We conducted our audit in accordance with auditing standards generally accepted in the United States of America
and the standards applicable to financial audits contained in Government Auditing Standards,issued by the
Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material misstatement The financial
statements of the Board were not audited in accordance with Government Audflfng Standards An audit includes
examining,on a test basis,evidence supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant estimates made by management,as well as
evaluating the overall financial statement presentation. We believe that our audit and the report of the other auditors
provide a reasonable basis for our opinions.
In our opinion,based on our audit and the report of other auditors the financial statements referred to above present
fairly,in all material respects,the respective financial position of the governmental activities,the business-type
activities,each major fund,and the aggregate remaining fund information of the County as of June 30,2007,and the
respective changes in financial position and cash flows,where applicable,thereof and the respective budgetary
comparison for the general fund for the year then ended in conformity with accounting principles generally accepted
in the United States of America.
In accordance with Government Auditing Standards,we have also issued our report dated November 20,2007 on
our consideration of the Countys internal control over financial reporting and our tests of its compliance with certain
provisbns of laws,regulations,contracts and grant agreements,and other matters. The purpose of that report is to
describe the scope of our testing of internal control over financial reporting and compliance and the results of that
testing,and not to provide an opinion on the internal control over financial reporting or on compliance. That report is
an integral part of an audit performed in accordance with Government Auditing Standards and should be considered
in assessing the results of our audit
Modadrey&P iIar LIP a a member irm of RSM International.
an atNiafon of separate and independent legal sower.
1
BOCC Meeting, January 22, 2009, Page 28 /39
29
Managements Discussion and Maps,and the Law Enforcement Officers'Special Separation Allowance schedule
of funding progress and employer contributions on pages 3 through 14 and 63 through 64,respectively,are not a
required part of the basic financial statements but are supplementary information required by the Governmental
Accounting Standards Board. We have appied certain limited procedures,which consisted principally of inquiries of
management regarding the methods of measurement and presentation of the requited supplementary information.
However,we did not audit this information and express no opinion it
Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively comprise
the basic financial statements of the County. The combining and individual fund financial statements and other
schedules,as well as the accompanying Schedule of Expenditures of Federal and State Awards for the year ended
June 30,2007 as required by the U.S.Office of Management and Budget Circular A-133,Audis of States,Local
Governments and Non-Profit Organizations,and the State Single Audit Implementation Act,are presented for
purposes of additional analysis and are not a requied part of the basic financial statements. The combining and
individual fund financial statements and other schedules,and the accompanying Schedule of Expenditures of Federal
and State Awards have been subjected to the auditing procedures applied in the audi of the basic financial
statements and,in our opinion,are fairly stated,in all material respects,in relation to the basic financial statements
taken as a whole. The introductory and statistical sections have not been subjected to the auditing procedures
applied in the audit of the basic financial statements and,accordingly,we express no opinion on them.
ff..." f r e f L GJ°
Greensboro,North Caroina
November 20,2007
•
2
BOCC Meeting, January 22, 2009, Page 29 /39
30
O i l l TOBACCO TRUST FUND COMMISSION
Exhibit B: Grantee Quarterly & Final Report Form
l Quarterly Report Period: to
❑ Quarterly Report
•• ❑ Final Report—The Final Report must ALSO include a summary of how the project
goals and objectives were met,resulting benefits and future status of project.
The Final Report will include a detailed financial statement on how the grant
funds were spent
Date Submitted: Contact Person:
(To be filed no later than fifteen days after the end of the third month of the calendar quarter)
Project Title: Piedmont Value-Added Shared-Use Food &Agricultural Processing Center
Project Number. 2008-041-22
Grantee: Orange County, North Carolina
Address: County:
Phone: Email:
Start date of the project Anticipated completion date: December 2010
1. PROJECT NARRATIVE:On a separate page or pages,write a summary of progress on your project for this
report period.Provide a minimum half page narrative summary addressing the status of each of the project
objectives noted in Exhibit A 'Scope of Services"plus any other pertinent information.
In addition to the summary,your quarterly narrative report should also address any of the following issues
affecting your project during this last quarter.
a) Explain any project costs that were below or above expectations.
b) Explain any problems your project has encountered and steps taken to overcome them.
2. STATUS(check pertinent boxes):
Project Status: ❑On Schedule ❑Completed ❑ Delayed ❑Canceled
Project Cost Status: ❑Cost Unchanged ❑ Cost Overrun ❑ Cost Underrun
3. PROJECT IMPACT NARRATIVE: On a separate page or pages,write a summary of how grant-funded
activities are affecting specific populations of people.Who are these people and how many are being served?
Where do these people live? Name specific counties,towns,or neighborhoods.
4. PROJECT IMPACT TABLE: Complete all line items that pertain to your project and the activities funded by
your grant.
IMPACT TYPE Quarterly Impact Project to Date
Jobs Created
Workers Re-Employed
Former Quota Holders Assisted
Worker Skills Upgraded(#of Workers)
Persons Receiving Increased Educational Training
Amount of New Income for Former Tobacco Workers
Current or Former Tobacco Farmers Assisted
Acres of Farmland Protected
Acres of New Crop Production
Total Number of People Served
Dollars Leveraged
State Tax Revenue Generated
Other(Explain)
Other(Explain)
5. EXHIBIT C: Attach your most recent Exhibit C,Financial Request Form,with the signature of the Chief
Financial Officer.
Authorized Signature:
Print Name: Title:
BOCC Meeting, January 22, 2009, Page 30/39
•
TOBACCO TRUST FUND COMMISSION
EXHIBIT C: FINANCIAL REQUEST FORM PURPOSE FOR FILINGLCHECK ONE)
(REQUEST FOR FUNDS I (QUARTERLY REPORT
Date:
Pro ect Number:2008-041-22 TTFC Grant Amount: $ 479,000.00
Grant Red,lent:Oran_e Coun North Carolina Payment Request Number: .
Protect Title:Piedmont Value-Added Shared-Use Food& Amount This Request: $ -
Agricultural Processing Center
Signature of Chief Financial Officer:
CO
0
C) A B C D E F G
C)
K TTFC Budget as TTFC Amount Amount of TTFC Total Requested Unrequested TTFC Funds
CD Itemized Expenditures as Shown in Exhibit A, TTFC Amount This
tD Shown in Scope of Previously Funds Expended To TTFC Funds Remaining(Columns B
Scope of Services Services Requested Date Request (Columns C plus E) minus F)
L E'ui.mentAc'uisition and Installation $ 357 000.00 0 0.00 357,000.00
SD Executive Director Sala &Benefits Full-Time $ 60 000.00 0 0.00 60,000.00
m
C Le:: Accountin: :Id ' 1 • .01% •u • $ 2 300.00 0 0.00 2,300.00
!v Office Su.'lies $ 1 500.00 0 0.00 1,500.00
N Cleanin:Su..lies&Waste Mana: ment $ 4 000.00 0 0.00 4,000.00
N Marketin: $ 5 000.00 0 0.00 5,000.00
N E.u'. 'ent Maintenance 'arts and Labor $ 10 000.00 0 0.00 10,000.00
o Staff Travel $ 1000.00 0 0.00 1,000.00
0 Insurance $ 4 000.00 0 0.00 4,000.00
Buildin:Maintenance&Utilities $ 34 200.00 0 0.00 34 200.00
CD
Ca
CD Totals '000.00 $0.00 $0.00 $0.00 $0.00 $479,000.00
W NOTE:If any amounts in column G are ne.ative contact the TTFC immediate) .
Amount Expended r Ifa �g ai'4 R' eh 31 d s
I
• List other revenue sources for this project j
0.00
TOTAL ,a4 � .. � �, _._...
Revised 11-2008 W
32
°e,�� 7� 1 ash
Grantee shall comply with the all rules and reporting requirements established by statute or administrative rules. For
convenience,the requirements of 9 N.CA.C.Subchapter 3M.0205 are set forth in this Attachment.
Reporting Thresholds.
There are three reporting thresholds established for grantees and subgrantees receiving State funds.The reporting thresholds
are:
(1) Less than$25,000—A grantee that receives,uses,or expends State funds in an amount less than twenty-five
thousand dollars($25,000)within its fiscal year must comply with the reporting requirements established by 9
N.C.A.C. Subchapter 3M induding:
(A) A certification completed by the grantee Board and management stating that the State funds were
received,used,or expended for the purposes for which they were granted; and
(B) An accounting of the State funds received,used, or expended.
All reporting requirements shall be filed with the funding agency within six months after the end of the
grantee's fiscal year in which the State funds were received.
(2) $25,000 up to $500,000-A grantee that receives, uses, or expends State funds in an amount of at least
twenty-five thousand($25,000)and up to five hundred thousand dollars($500,000)within its fiscal year must
comply with the reporting requirements established by this Subchapter including:
(A) A certification completed by the grantee Board and management stating that the State funds were
received, used,or expended for the purposes for which they were granted;
(B) An accounting of the State funds received,used,or expended; and
(C) A description of activities and accomplishments undertaken by the grantee with the State funds.
All reporting requirements shall be filed with the funding agency within six months after the end of the
grantee's fiscal year in which the State funds were received.
(3) Greater than$500,000—A grantee that receives,uses, or expends State funds and in the amount greater
than five hundred thousand dollars ($500,000) within its fiscal year must comply with the reporting
requirements established by this Subchapter including:
(A) A certification completed by the grantee Board and management stating that the State funds were
received, used,or expended for the purposes for which they were granted;
(B) An audit prepared and completed by a licensed Certified Public Accountant for the grantee consistent
with the reporting requirement of this Subchapter,and
(C) A description of activities and accomplishments undertaken by the grantee with the State funds.
All reporting requirements shall be filed with both the funding agency and the Office of the State Auditorwithin .
nine months after the end of the grantee's fiscal year in which the State funds were received.
Other Provisions:
1. Unless prohibited by law,the costs of audits made in accordance with the provisions of 9 N.C.A.C.3M.0205 are allowable
charges to State and Federal awards. The charges may be considered a direct cost or an allocated indirect cost, as
determined in accordance with cost principles outlined in the Office of Budget and Management(OMB)Circular A-87.The cost
of any audit not conducted in accordance with this Subchapter is unallowable and shall not be charged to State or Federal
grants.
2. The audit requirements in 9 N.C.A.C. Subchapter 3M do not replace a request for submission of audit reports by grantor
agencies in connection with requests for direct appropriation of state aid by the General Assembly.
3. Notwithstanding the provisions of 9 N.C.A.C. Subchapter 3M, a grantee may satisfy the reporting requirements of Part
(a)(3)(B)of this Rule by submitting a copy of the report required under the federal law with respect to the same funds.
4. All grantees and subgrantees shall use the forms of the Office of State Budget and Management and of the Office of the
State Auditor in making reports to the awarding agencies and the Office of the State Auditor.
NGO Form 0008 Page 1 of 1
Eff.July 1,2005
Revised 712007
BOCC Meeting, January 22, 2009, Page 32 /39
33
The Golden LEAF Foundation
GRANTEE ACKNOWLEDGMENT AND AGREEMENT
1. Grantee: Orange County,NC
2. Project Title: Piedmont Value-Added Shared-Use Food and Agricultural Processing Center
3. Purpose of Grant: This Golden LEAF grant will help equip a regional value-added shared use food and
agricultural processing facility to serve central NC. A feasibility study indicates that the facility will serve
16,214 farms in a 75-mile radius and generate more than$800,000 in revenue for local farmers. Orange County
has dedicated a building in which to locate the center. Alamance, Chatham, and Durham Counties have also
indicated their intent to support the operation of the Center.
4. Amount of Grant: $250,000.00
5. Award Date: 12/4/2008 Start Date:
6. Special Terms and Conditions Applicable to Grant:
• The term of the grant is 12 months.
• Grantee agrees to submit a revised budget,timeline,and workplan for approval. The revised
documents should reflect any special conditions of the grant award.
• Budget modifications must be submitted to Golden LEAF for approval prior to expending funds on
modified budget lines.
• Release of grant funds is contingent on Grantee attendance at a Golden LEAF grants management
workshop or satisfactory consultation with staff to gain training in management of Golden LEAF
grants and reporting requirements.
• Release of grant funds is contingent on Golden LEAF approval of management and operating plans,
including fee structures,for the Center.
• Release of funds is contingent on Grantee demonstrating that it has secured sufficient funds to
complete the project.
• If items purchased with Golden LEAF funds cease to be used for the purposes of this grant,Grantee
agrees that the items will be sold and proceeds of the sale returned to Golden LEAF, unless
otherwise approved by Golden LEAF. Grantee will notify Golden LEAF prior to holding any such
sale.
• Grantee agrees to provide economic impact data regarding the program annually FOR FIVE
YEARS beyond the grant period,and to provide that data to Golden LEAF upon request.
7. The Grantee confirms that the Internal Revenue Service has determined that the Grantee is now an organization
described in Section 501(c)(3)of the Internal Revenue Code of 1986,as amended, or is a federal,state or local
governmental unit. Grantee agrees to notify the Foundation promptly if the Grantee's tax-exempt status is
revoked or modified in any way. It agrees that it will use the funds from this grant only for charitable,
educational,or scientific purposes within the meaning of Section 501(c)(3) of the Code,and that it will not use
the funds from this grant in any way that would result in or give rise to private inurement or private benefit. The
Grantee agrees that no funds from this grant will be used to carry on propaganda or otherwise to attempt to
influence legislation, to influence the outcome of any public election, or to carry on directly or indirectly any
voter registration drive. The Grantee agrees that it will not use any of these grant funds to make any grant that
does not comply with the requirements of Section 4945(dX3)or(4)of the Code or to undertake any activity for
any purpose other than one specified in Section 170(cX2XB) of the Code. Unless otherwise agreed by the
Foundation, no portion of the Grantee's rights or obligations under this Agreement may be transferred or
assigned to any other entity.
BOCC Meeting, January 22, 2009, Page 33 /39
34
8. The Grantee accepts and will retain full control of the disposition of funds awarded to the Grantee by the
Foundation under this grant, and accepts and will retain full responsibility for compliance with the terms and
conditions of the grant. Grant funds shall be utilized exclusively for the purposes set forth above, and if any
portion of the grant is not used for these purposes,the Grantee agrees to repay such portion to the Foundation.
If the Grantee breaches any of the covenants or agreements contained in this Agreement, or any of the
representations and warranties are untrue as to a material fact,the Grantee agrees to repay to the Foundation the
full amount of this grant. Any condition, purpose,term or provision in the Foundation's resolution approving
funding or in this Agreement shall take precedence over any conflicting provision in the Grantee's application.
9. The Grantee is in material compliance with all federal,state,county,and local laws,regulations,and orders that
are applicable to the Grantee, and the Grantee has timely filed with the proper governmental authorities all
statements and reports required by the laws,regulations,and orders to which the Grantee is subject. There is no
litigation,claim,action,suit,proceeding or governmental investigation pending against the Grantee,and there is
no pending or(to the Grantee's knowledge)threatened litigation,claim,action,suit,proceeding or governmental
investigation against the Grantee that could reasonably be expected to have a material adverse effect upon the
Grantee's ability to carry out this grant in accordance with its terms. The Grantee has timely paid all judgments,
claims,and federal,state,and local taxes payable by the Grantee the non-payment of which might result in a lien
on any of the Grantee's assets or might otherwise adversely affect the Grantee's ability to carry out this grant in
accordance with its terms.
10. The Grantee agrees to immediately notify the Foundation of anything that may materially affect the Grantee's
ability to perform the project funded. If the Grantee proposes to modify the budget,the objectives,or any other
feature of the project funded, it shall not expend any funds from this grant for such purposes unless the
Foundation has approved such proposed modifications in writing. Moreover,no further payments shall be made
to the Grantee in connection with the project funded unless and until the Foundation has approved such
proposed modifications in writing.
11. The Grantee acknowledges that grant funds shall be paid to the Grantee only when those sums are needed to
carry out the project funded and the Grantee has submitted a written request for payment.A sum equal to twenty
percent(20%)of the total amount of the grant will be retained by the Foundation until the Grantee completes its
obligations under this grant, including its submission of a final report on the project funded. Each request for
payment shall be in writing and shall certify that the Grantee has performed in accordance with the terms and
provisions of its Grantee Acknowledgment and Agreement, and that such Grantee is entitled under the terms of
such Agreement to receive the amount so requested. Each request should be made to Mr. Dan Gerlach,
President,The Golden LEAF Foundation,301 N.Winstead Avenue,Rocky Mount,NC 27804. Payment should
not be requested until the Grantee has need for actual expenditures of the funds. Grantee should request
payment at least thirty (30) days prior to its desired payment date. All requirements under this Grantee
Acknowledgment and Agreement must be met before payment will be made. If the grant is conditional or
contingent,all conditions and contingencies must be met before payment will be made.
12. The Grantee agrees to submit an Interim Report to the Foundation annually,to be received by the Foundation by
June 30. The Grantee agrees to submit a Final Report for receipt by the Foundation within sixty(60)days after
the completion of all obligations for the project funded. The Grantee will furnish additional or further reports if
so requested by the Foundation on forms prescribed by the Foundation. Failure to submit a required report by
the scheduled submission date will result in the withholding of any subsequent grant payment until the
Foundation receives the delinquent report.
13. The Grantee agrees to maintain full, accurate and verifiable financial records, supporting documents, and all
other pertinent data for the project funded in such a manner so as to identify and document clearly the
expenditure of Foundation funds provided, separate from accounts for other awards,monetary contributions,or
2
BOCC Meeting, January 22, 2009, Page 34 /39
35
other revenue sources for the project funded. The Grantee agrees to retain all financial records, supporting
documents, and all other pertinent records related to the project funded for a period of five (5)years from the
end of the grant funding period. In the event such records are audited, all project records shall be retained
beyond such five-year period until all audit findings have been resolved. The Grantee shall make available to
the Foundation, or the Foundation's designated representative, all of the Grantee's records that relate to the
project funded, and shall allow the Foundation or the Foundation's representative to audit, examine and copy
any data,documents,proceedings,records and notes of activity relating to the project. Access to these records
shall be allowed upon request at any time during normal business hours and as often as the Foundation or its
representative may deem necessary.
14. The North Carolina State Auditor considers the funds from this grant to be"State funds"as that term is used in
Section 143C-6-23,North Carolina General Statutes,and the accompanying regulations. The Grantee agrees to
comply with audit and reporting requirements imposed by the North Carolina State Auditor on recipients of
"State funds."
15. In consideration of its receipt of funds granted by the Foundation,the Grantee agrees that during the course of
the project funded by the grant, the Grantee, and any recipient of grant funds, will promptly disclose to the
Foundation any improvements, inventions, developments, discoveries, innovations, systems,techniques, ideas,
processes,programs, and other things,whether patentable or unpatentable,that result from any work performed
by or for the Grantee in connection with the project funded, or by individuals whose work is funded by the grant
(the"New Developments"). If Grantee notifies the Foundation of any Invention Disclosure Reports it receives
from Grantee employees that report making inventions under this Agreement,then Grantee will be deemed to
have satisfied the disclosure requirement in the preceding sentence.
The Grantee agrees that it, and any recipient of grant funds, shall take all reasonably appropriate actions to
assure that the New Developments shall be and remain the sole and exclusive property of the Grantee. In the
event that the interests of the public would be served by commercialization of the New Developments, the
Grantee agrees to use its best reasonable efforts to pursue the commercialization of any such New Developments
in a manner that will serve the interests of the public, including but not limited to the transfer, assignment or
licensing of such New Developments; provided, however, that the Grantee, and any recipient of grant funds,
shall not transfer,assign or license such New Developments in part or in whole without first having obtained the
written consent of the Foundation.
Any revenue generated as a result of transferring, assigning, or licensing New Developments will be managed
by the Grantee in accordance with its published patent,copyright and technology transfer procedures,if any,and
in the absence of such procedures such revenue will be managed by the Grantee in accordance with procedures
approved by the Foundation. Such procedures typically will prioritize the distribution of revenues to insure that
the Grantee first honors its obligation to its inventors and then to cover its own out-of-pocket expenses as
necessary to protect its intellectual property.
16. The Grantee and Foundation further agree that should there be any revenue generated greater than that necessary
to meet the obligations of the preceding paragraph("Net Revenue"),the Net Revenue shall be managed by the
Grantee as follows:
a) 15%of the Net Revenue will be retained by the Grantee as a fee for the management and distribution of
funds as required under this Agreement.
b) 30%of the remaining Net Revenue will be paid to the Foundation.
c) 70% of the remaining Net Revenue will be retained by the Grantee and used in accordance with the
procedures referenced in Section 15,above.
The Grantee's obligations pursuant to this Section will continue beyond the expiration of the funding period.
3
BOCC Meeting, January 22, 2009, Page 35 /39
36
17. The Grantee acknowledges and agrees that the Grantee is an entity independent from the Foundation,and is not
an agent of the Foundation,and is not authorized to bind the Foundation to any agreement of payment for goods
or services. The Grantee is responsible for payment of all its expenses, including rent, office expenses and all
forms of compensation to employees. It shall provide workers compensation insurance to the extent required for
its operations and shall accept full responsibility for payments of unemployment compensation, social security,
income taxes and any other charges, taxes or payroll deductions required by law in connection with its
operations, for itself and its employees. All expenses incurred by the Grantee are the sole responsibility of the
Grantee, and the Foundation shall not be liable for the payment of any obligations incurred in the performance
of the project funded.
18. The Grantee acknowledges receipt of the following statement of the Foundation's policy regarding termination
and rescission of grants. The Grantee acknowledges that the Foundation may, from time to time, amend its
policy regarding termination and rescission of grants, and the Grantee acknowledges that the Grantee will be
subject to the policy as so amended.
Rescission and Termination of Grants. Rescission of a grant revokes the grant award. When funds have been
disbursed to a Grantee by the Foundation and a grant is rescinded, the Grantee may be liable for repayment to
the Foundation of any and all grant funds received by the Grantee under the grant. Termination of a grant ends
the grant on a going-forward basis,and the Grantee is liable for repayment to the Foundation only of that portion
of the grant funds that has been disbursed to but not expended by the Grantee in accordance with the terms of
the grant.
A grant may be rescinded or terminated at any time, at the discretion of the Foundation, for reasons
including the following:
a. The Grantee has not signed and delivered to the Foundation the Grantee Acknowledgment and
Agreement within four(4)months of the date it was sent to the Grantee.
b. The Grantee has failed to complete the project within the time established by the Grantee
Acknowledgment and Agreement or any extensions thereof.
c. The Grantee's tax-exempt status has been modified or revoked.
d The Grantee is unable,or has failed or refused,to comply with a material term or condition of the grant.
e. The Grantee has experienced a change in circumstances that would have a material adverse effect upon
the Grantee's ability to accomplish fully the purposes of the grant(e.g., loss of collateral funding, loss
of key personnel,etc.).
f. The Grantee has failed or refused to submit a report, statement,accounting or return required under the
Grantee Acknowledgment and Agreement or by applicable law.
g. The Grantee has materially modified its budget for the project,and such material modification has not
been approved by the Foundation.
h. The Grantee commits a material violation of the Internal Revenue Code,or uses funds for some purpose
not permitted by the Internal Revenue Code or for some purpose not contemplated by the grant.
i. The Grantee breaches any of the covenants or agreements contained in the Grantee Acknowledgment
and Agreement, or any of the representations and warranties made by the Grantee in the Grantee
Acknowledgment and Agreement is untrue as to a material fact.
j. The Grantee requests that the grant be rescinded or terminated.
It is anticipated that a grant will be rescinded if one of the reasons set forth above exists and no grant funds
have been disbursed. Where grant funds have been disbursed, it is anticipated that a grant will be rescinded
in the case of the more serious violations (including, without limitation, use of Foundation funds for some
purpose not contemplated by the grant or in violation of the Internal Revenue Code, or upon other
affirmative misconduct of the Grantee), and that termination of a grant will take place in the case of the less
serious instances of noncompliance.
4
BOCC Meeting, January 22, 2009, Page 36 /39
•
37
If the Board of Directors of the Foundation determines that a grant should be rescinded or terminated, the
Foundation will notify the Grantee of that decision. In the discretion of the Foundation, where the Grantee
can correct the noncompliance, the Foundation may notify the Grantee that the grant is subject to rescission
or termination unless the Grantee, within thirty (30) days of the date upon which such notice is sent: (1)
remedies the situation in accordance with the instructions of the Foundation; (2) requests and receives an
extension of time within which to comply;or(3)requests and receives a modification of the terms of the grant,
and complies with the terms of the grant as modified. If the Foundation allows the Grantee the opportunity to
correct the noncompliance, no further funds shall be advanced pursuant to the grant until the
noncompliance is remedied.
19. The Grantee shall not discriminate by reason of age, race, ethnicity, religion, color, sex, national origin, or
handicap related to the activities of a project funded by the Foundation.
20. All publicity and printed materials regarding projects or activities supported in whole or in part by this grant
should contain the following language: "This project received support from The Golden LEAF Foundation."
The Golden LEAF logo (digital versions of which can be downloaded from the Golden LEAF website at
www.goldenleaforg) is to be displayed in all of the Grantee's publicity and printed materials relating to this
grant
21. The individual signing below certifies his or her authority to execute this Agreement on behalf of the Grantee.
By executing this Agreement, the Grantee, to induce the Foundation to make this grant, makes each of the
representations set forth hereinabove and certifies that each of such representations is true, accurate and
complete as of the date hereof.
IN WITNESS WHEREOF,the Grantee has executed this Agreement this_day of ,20_.
Name of Grantee Organization(print):
Signature:
Name of Person Signing(print):
Title of Person Signing(print):
Date:
5
BOCC Meeting, January 22, 2009, Page 37 /39
38
Piedmont Value-Added Shared-Use Food and Agricultural Processing Center Revised Budget
Original Revised
Budget Budget
Category/Item Unit # Unit Cost Unit Cost Item Cost
Renovation
Engineering Services $ 51,000 $ 49,000
Plumbing-Drains&Supply $ 70,000 $ 65,000
Floor tiling and sloping $ 44,000 $ 40,000
Electrical $ 35,000 $ 33,000
Acoustical Ceilings $ 12,000 $ 12,000
HVAC Extension $ 12,000 $ 12,000
Painting $ 10,000 $ 8,000
Circulating Hot Water Heater $ 8,000 $ 7,000
Doors&Hardware $ 7,000 $ 5,000
Fire Sprinkler Extension $ 7,000 $ 7,000
FRP Board $ 5,000 $ 5,000
Fire Alarm System Extension $ 3,000 $ 3,000
Sink Hand Wash x 6 $ 2,500 $ 2,500.
Fire Extinguishers $ 1,500 $ 1,500
Renovation Subtotal $268,000 $ 250,000
Equipment
Exhaust hoods w/fire suppression&makeup air lin ft 60 $ 1,000 $ 60,000 $ -
Freezers-sub zero, 16'x 20' ea 2 $27,200 $ 54,400 $ -
Cooler-produce walk in 18 x 20, exterior compressor ea 1 $22,000 $ 22,000 $ -
Cooler-meat walk in 12 x 18,exterior compressor ea 1 $ 12,960 $ 12,960 $ -
Cooler-2 door reach in ea 2 $ 2,500 $ 5,000 $ -
Forklift, 5000 lb. Electric or gas ea 1 $ 15,000 $ 15,000 $ -
Steam kettle-70-80 gal w/tip out agitator ea 1 $ 14,000 $ 14,000 $ -
Steam kettle-40-50 gal.w/tilt ea 1 $ 10,000 $ 10,000 $ -
Filler, Simplex type piston ea 1 $ 8,750 $ 8,750 $ -
Mixer-80 qt.with bowl dollies, M802 w/stainless bowl ea 1 $ 8,000 $ 8,000 $ -
Oven convection full pan size, gas fired ea . 2 $ 4,000 $ 8,000 $ -
Range-6 burner, gas fired ea 2 $ 2,286 $ 4,572 $ -
Tables-6 foot stainless on wheels ea 8 $ 450 $ 3,600 $ -
Cutter Mixer-(HCM)30 qt ea 1 $ 3,000 $ 3,000 $ -
Label applicator jars and bottles ea 1 $ 3,000 $ 3,000 $ -
Maintenance tools and spare parts, per set ea 1 $ 3,000 $ 3,000 $ -
Sinks-3 compartment&2 compartment ea 9 $ 400 $ 3,600 $ -
Pallet racking _lin ft, 25 $ 100 $ 2,500 $ -
Computers ea 2 $ 1,000 $ 2,000 $ -
Shelving,wire rack,triple deck ea 20 $ 100 $ 2,000 $ -
Dunnage racks ea 20 $ 75 $ 1,500 $ -
Tables-5 foot stainless on wheels ea 5 $ 300 $ 1,500 $ -
Wire cooling rackson wheels-4 tier 24 x 60 x 4 ea 4 $ 300 $ 1,200 $ -
Carts-30"x 60"flat bed ea 3 $ 350 $ 1,050 $ -
Keypad entry control system ea 2 $ 500 $ 1,000 $ -
Tables-break room/meeting ea 5 $ 200 $ 1,000 $ -
Misc. Equipment $ 5,500 $ -
Misc. Cleaning Supplies $ 1,868 $ -
Equipment Shipping& Installation, 15% $ 39,000 $ -
Equipment Subtotal $299,000 $ -
TOTAL FUNDS REQUESTED $567,000 $ 250,000
BOCC Meeting, January 22, 2009, Page 38 /39
39
Piedmont Value-Added Shared-Use Food and Agricultural Processing Center Revised Budget
Narrative
Renovation activities are necessary for preparing the designated facility for installation of equipment.
Category/Item Budget Explanation
Professional engineering services are required to ensure that
renovations are certain to enable complete installation of
Engineering Services processing equipment
The facility must be retrofitted for water supply and
wastewater. These activities must be completed in a manner
that ensures successful permitting of the facility for food
Plumbing-Drains&Supply processing
Floors of the facility must be modified to ensure that most
areas of the facility can be cleaned regularly and allow
Floor tiling and sloping wastewater to be evacuated from the food preparation areas
Electrical fixtures are required to modified for a food
processing facility. Specific equipment outlets will be installed
Electrical to ensure timely installation of processing equipment
Acoustical Ceilings Installation of specialized ceiling surfaces needed to
HVAC extension is needed for retrofitting of facility into
HVAC Extension separate areas to serve specialized processing equipment
Painting Required for obtaining the necessary food processing permits
Circulating Hot Water Heater Required for obtaining the necessary food processing permits
Doors and hardware are needed for retrofitting of facility into
Doors&Hardware separate areas to serve specialized processing equipment
Fire sprinkler extension is needed for retrofitting of facility into
Fire Sprinkler Extension separate areas to serve specialized processing equipment
FRP board is needed for retrofitting of facility into separate
FRP Board areas to serve specialized processing equipment
Fire alarm extension is needed for obtaining the necessary
Fire Alarm System Extension occupancy permits
Sink Hand Wash x 6 Required for obtaining the necessary food processing permits
Fire extinguishers are required for obtaining the necessary
Fire Extinguishers occupancy permits
BOCC Meeting, January 22, 2009, Page 39/39
111-r- //Wit y p
■
—Please return this copy to
Grant Number 2008-041-22 Clerk to the Board's office for PAF
GRANT AGREEMENT BETWEEN THE N.C. TOBACCO TRUST FUND
COMMISSION AND ORANGE COUNTY,NORTH CAROLINA
This Grant Agreement("the Agreement")is entered into this p of (2 r(h 2009
("Effective Date")by and between the North Carolina Tobacco Trust Fund Commission("the
Commission"), an agency of the State of North Carolina organized pursuant to Article 75 of
Chapter 143 of the N.C. General Statutes and Orange County,North Carolina,a local
governmental entity with its principle place of business at 110 E. King St.,Hillsborough, NC
27278 ("the Grantee")(together"the Parties"and each in the singular"the Party").
In consideration of mutual promises and such other valuable consideration as is set out in this
Agreement,the Parties do mutually agree to the following:
Section I. Term.
This Agreement shall commence on the Effective Date and shall terminate on or before
December 30, 2010("Termination Date")unless sooner terminated pursuant to this Agreement.
Section H. Scope of the Grant.
The purpose of this Grant is to fund equipment purchases and support the development of a
regional shared-use food and agricultural processing facility to be located in Hillsborough,
NC ("Project"). In performing this Project,the Grantee shall develop,perform and complete the
work set out in the Project Scope of Services contained in Exhibit A. Exhibit A,which
incorporates the Grantee's application for the Project, is expressly incorporated by reference and
is made a part of this Agreement. The Grantee's application for the Project is therefore also
incorporated by reference and made a part of this Agreement.
If there is a conflict among or between this Grant Agreement,the Project Scope of Services
contained in Exhibit A, or the Grantee's application for the Project,provisions of this Grant
Agreement shall first control,then provisions of Exhibit A, Scope of Services shall control, and
finally the Grantee's application shall control.
If the Grantee uses any of the funds disbursed from the Commission under this Agreement to
grant funds to other entities as part of the Project("Subgrantees"), it must require its Subgrantees
to comply with certain reporting requirements of Section VII of this Agreement and certain
record keeping provisions of Section VIII of this Agreement. Subgrantees must also comply with
certain parts of Sections IV,V,VII,VIII, IX,XII and XV of this Agreement as is provided for in
those Sections.
Section III. Changes in the Project
A. The Commission must authorize any changes with respect to the Project in writing
including any changes the Grantee requests be made to budgeted line items as provided in
Exhibit A attached. The Grantee may not make changes to budgeted line items
without first getting written authorization from the Commission.
B. The Grantee shall immediately notify the Commission of any change in conditions or
applicable law or any other event which may significantly affect its ability to perform the
1
Project in accordance with the provisions of Section II above, including but not limited to
loss of other funding. In the event of any such significant change,the Commission
reserves the right to terminate this Agreement.
Section IV.Funding.
A. The Commission grants to the Grantee an amount not to exceed$479,000 for the Project
to be disbursed as described in Section V below.
B. The Grantee represents and warrants that all sums as may be awarded under this grant
shall be utilized exclusively for the purpose of the Project.
C. In the event the Grantee or, if applicable, any of its Subgrantees breaches any of the
material terms or conditions of this Agreement,the Grantee agrees to repay to the
Commission the full amount of sums awarded under this Agreement and any interest that
has accrued on that sum.
Section V.Method of Payment.
A. The Commission shall disburse the sum of up to $479,000 in installments reimbursing the
Grantee for amounts spent on or encumbered for the Project. The Grantee shall request
payments by submitting a Financial Request Form(Exhibit C)to the Commission no
more frequently than monthly. The Financial Request Form shall certify that the Grantee
has performed the work required under the Scope of Services and shall include
documentation of the amounts for which the Grantee requests reimbursement. The
Commission shall disburse a check as soon after receiving the request for funds as
possible. The Grantee must show to the Commission's satisfaction how this payment has
been used to accomplish the terms of the Agreement before any further funding will be
disbursed pursuant to this Agreement.
B. The Commission shall withhold 5%of the total funding or$23,950 to be disbursed upon
the satisfactory conclusion of the Project which conclusion shall include a Final Report as
described in Section VILE below. If the Grantee has unspent cost reimbursement funds
remaining at the end of the Project,the Commission may at its election subtract this
amount from the final payment due to the Grantee.
C. If the Grantee or, if applicable,the Grantee and its Subgrantees, cannot show to the
satisfaction of the Commission that it has or they have spent grant monies to accomplish
the terms of the Agreement,the Commission may decline to disburse money until such a
showing is made.
Section VI.Independent Status of the Parties.
A. The Parties are independent entities and neither this Agreement nor any provision of it
shall be deemed to create a partnership or joint venture between the Commission and the
Grantee.
B. The Grantee shall not represent itself as an agent of the Commission nor is the
Agreement intended to be construed so as to make the Grantee an agent of the
Commission. The Grantee shall not have the ability to bind the Commission to any
agreement for payment of goods or services,nor shall it represent to any person or entity
that it has such ability.
2
•
C. All expenses incurred by the Grantee are its sole responsibility and the Commission shall
not be liable for the payment of any obligations incurred in the performance of the
Project.
D. The Parties agree that this agreement has not been made for the benefit of any third
parties and no third party to this agreement has authority to attempt to enforce it in any
way.
Section VII. Reports.
A. The Grantee's fiscal year is the twelve months beginning in July.
B. The Grantee will furnish the Commission with detailed written Project Reports reflecting
calendar year quarterly data(data for the quarter through the end of March,data for the
quarter through the end of June, data for the quarter through the end of September, and
data for the quarter through the end of December)or at such other periods as may be
mutually agreed upon. All reports shall be furnished in the format described in Exhibit B
and Exhibit C and shall be supplied to the Commission no later than fifteen(15)days
after the end of the period which is being reported.
C. As provided in Exhibit D to this Agreement,the Grantee if a non-governmental
organization shall also provide annual reports pursuant to N.C. Gen. Stat. 143C-6-23 and
Rules promulgated pursuant to that statute by the Office of State Budget and
Management. Subgrantees shall comply with any applicable provisions contained in G.S.
143C-6-23 as well as any Rules promulgated thereunder. The Grantee further agrees that
if it or its Subgrantees do not file the reports required by G.S. 143C-6-23,the
Commission cannot disburse grant funds to it. If the Grantee has Subgrantees,the
Grantee must be able to demonstrate that it has complied with N.C. Gen. Stat. 143C-6-23.
D. Project Reports shall describe the status of the Project,progress made by the Grantee
toward achieving the purpose(s)for which the funds were awarded,notable occurrences
and any significant problems encountered and steps taken to overcome the problems.
Failure to submit a required report by the scheduled submission date may result in the
withholding of any subsequent grant payment until the Commission is in receipt of the
delinquent report.
E. The Grantee agrees that within thirty(30)days after the conclusion of the Project as
described in Section II above, a Final Report shall be submitted to the Commission which
describes the activities and accomplishments of the Project. The Final Report will
include a review of performance and activities over the entire project period and will
include a one-page program summary which the Commission can use for future
publication. In that summary,the Grantee will describe the Project,how it was
implemented,to what degree the established Project objectives were met,the difficulties
encountered,what aspects of the tobacco related segment of the State's agricultural
economy the Project changed and the Project cost. In addition,the Final Report shall
also include an Exhibit C which shall show the final financial report of the use of grant
funds by category(i.e., salaries,material, equipment, etc.)showing all expenditures
during the entire term of this Agreement, and shall also report the sources, amounts and
use of all other funds used to support the Project.
3
F. The Commission reserves the right to request information from the Grantee which will
assist the Commission with evaluation of the short-and long-range impact of its
programs. The Grantee recognizes that such requests may occur after termination of this
Agreement and agrees,to the extent possible,to provide such information to the
Commission.
Section VIII.Project Records.
A. The Grantee agrees to maintain full,accurate and verifiable financial records, supporting
documents, and all other pertinent data for this Project in such a manner so as to identify
and document clearly the expenditure of the Commission funds provided under the
Agreement separate from accounts for other awards,monetary contribution or other
revenues sources for this Project. The Grantee must require any Subgrantees to maintain
the same records.
B. The Grantee shall retain all financial records, supporting documents and all other
pertinent records related to the Project for a period of five(5)years from the Termination
Date. In the event such records are audited, all Project records shall be retained beyond
such five-year period until any and all audit findings have been resolved. The Grantee
must require any Subgrantees to retain all records for five(5)years from the Termination
Date or from the resolution of any audit findings,whichever is later.
C. The Grantee agrees to allow the State Auditor or the State Auditor's designee to enter its
premises and examine its records in accordance with N.C. Gen. Stat. 147-64.7 and further
agrees to permit the State Auditor to examine work papers in the possession of the
Grantee's auditors. The Grantee shall require any Subgrantees to permit the State
Auditor or the State Auditor's designee the same access to the Subgrantees' records and
work papers.
D. The Grantee further agrees to make available to the Commission or its designated
representative all of its records which relate to the Project and agrees to allow the
Commission or its representative to audit,examine and copy any and all data, documents,
proceedings, records and notes of activities relating in any way to the Project. Access to
these records shall be allowed upon request at any time during normal business hours and
as often as the Commission or its representative may deem necessary.
E. In the event the Grantee dissolves or otherwise goes out of existence before the
Termination Date or before five years from the Termination Date has elapsed, records
produced under this contract will be turned over to the Commission.
Section IX.Subcontracting.
A. The Grantee or any of its Subgrantees shall not subcontract any of the work contemplated
under this contract without obtaining prior written approval from the Commission.
B. Any approved subcontract shall be subject to all terms and conditions of this Agreement
and the Grantee and any Subgrantees shall not be relieved of any of the duties and
responsibilities of this Agreement by the approved subcontract. The Grantee shall be
responsible for the performance of any subcontractor and the subcontractor shall provide
sufficient information to the Grantee or any of its Subgrantees to allow the Grantee to
comply with all terms and conditions of this Agreement.
4
Section X.Publicity and Publications
A. Any published or distributed reports, data, or other information shall contain an
acknowledgment of the support of the Commission as well as a disclaimer statement to
the following effect:Any opinion,finding conclusion or recommendations expressed in
this publication are those of the author(s)and do not necessarily reflect the view and
policies of the North Carolina Tobacco Trust Fund Commission.Upon publication of
materials resulting from the work of the Project,the Grantee shall furnish a minimum of
two copies of reports to the Commission. The Grantee shall acknowledge the support of
the Commission by including its logo on printed information,presentations and other
materials produced pursuant to the Project.
B. At the request of the Commission,the Grantee shall place signage at the Project site or
sites identifying the Project as receiving Commission Funds. This signage shall be in
mutually agreeable wording and format.
C. Subject to the requirements of Section X.A above,the Grantee may publish or arrange for
the publication of information resulting from work carried out under this Agreement;
however,the information shall not be marketed for profit by the Grantee.
D. If work done pursuant to the Agreement results in any intellectual property right accruing
to the Grantee,the Grantee hereby grants to the Commission an assignable royalty-free,
non-exclusive irrevocable license to publish,translate,reproduce, deliver, perform or use
the material covered by the intellectual property right.
Section XI. Termination&Availability of Funds
A. Either Party shall have the ability to terminate this Agreement on thirty days' written
notice.
B. If after notice and reasonable opportunity to cure a defect or problem,the Grantee fails
for any reason to fulfill in proper manner its obligations under this Agreement, or violates
any of the material terms or conditions of this Agreement,the Commission shall have the
right to terminate this Agreement by giving fourteen(14)days written notice to the
Grantee of such termination. In such event,the Commission shall have no responsibility
to make additional payments under this Agreement after the Termination Date. No
further expenditures shall be made under this Agreement upon notice of termination
except for such work as shall have already been performed prior to the notice of
Termination Date and the Grantee shall repay all unspent grant funds upon the demand of
the Commission together with any interest accrued on those unspent funds.
C. The Commission's obligation to pay any amounts under this Agreement is contingent
upon the availability of funds to it to fund the Project. In the event that funds for this
Project become unavailable,the Commission may terminate this Agreement immediately
upon facsimile notice to the Grantee. In the event of notice of the unavailability of funds,
all obligations of the Commission to make payments under this Agreement shall cease as
of the date of the notice of termination for unavailability of funds except for such work as
shall have already been performed prior to the date of the notice of termination for
unavailability of funds.
5
Section XII.Liabilities and Loss
A. The Commission assumes no liability with respect to accidents,bodily injury, illness,
breach of contract or any other damages, claims or losses arising out of any activities
undertaken by the Grantee or any of its Subgrantees under this Agreement,with respect
to persons or property of the Grantee, Subgrantee or third parties.
B. The Grantee agrees to obtain insurance to protect itself and others as it may deem
desirable, or, if it elects not to obtain such insurance, it represents that it has adequate
resources available to it for this purpose.
C. To the extent permitted by law, specifically including N.C. Gen. Stat. 153A-435,the
Grantee agrees to indemnify, defend and save harmless the Commission and its officers,
agents and employees against any liability, including costs and expenses and attorneys
fees for the Grantee's or any Subgrantee's(s')violation of any proprietary right or right of
privacy arising out of the publication,translation, reproduction,delivery,performance,
use or disposition of any information published resulting from the work of the Project or
based on any libelous or other unlawful matter contained in such information.
D. To the extent permitted by law, specifically including N.C. Gen. Stat. 153A-435,the
Grantee also further agrees to indemnify,defend and save harmless the Commission and
its officers, agents and employees from any other person, firm or corporation furnishing
or supplying work, services, material or supplies in connect with the Project and the
performance of this Agreement and from any and all claims and losses accruing or
resulting to any person,firm or corporation who may be injured or damaged by the
Grantee,any Subgrantees or any of their agents in the performance of the Project.
Section XIII.Entire Agreement
A. This Agreement and its Exhibits contain the entire understanding between the Parties.
B. The agreement may be amended only in writing duly executed by authorized persons
for the Commission and the Grantee.
Section XIV. Grantee Representation and Warranties
The Grantee hereby represents and warrants that:
A. The Grantee is duly organized and validly existing under the laws of the State of North
Carolina.
B. This Agreement constitutes a binding obligation of Grantee, enforceable against it in
accordance with its terms. The execution and delivery of this Agreement have been duly
authorized by all necessary action on the part of Grantee and does not violate any
applicable organizational documents of the Grantee or any agreement or undertaking to
which it is a party of by which it is bound.
C. There is no action, suit,proceeding, or investigation at law or in equity or before any
court, public board or body pending or to the Grantee's knowledge,threatened against or
affecting it,that could or might adversely affect the Project or any of the transactions
6
contemplated by the Agreement or the validity or enforceability of this Agreement or the
Grantee's ability to discharge it obligation under this Agreement.
D. If any consent or approval is necessary from any governmental authority as a condition to
the execution and delivery of this Agreement by the Grantee or the performance of any of
its obligations under the Agreement, all such requisite government consent or approvals
have been obtained.
Section XV. Special Provisions and Conditions
A. Nondiscrimination. The Grantee agrees not to discriminate by reason of age, race,
religion, color, sex, national origin or handicap in the performance of this Agreement.
B. Compliance with Laws. The Grantee shall at all times observe and comply with all laws,
ordinances,rules and regulations of the state, federal and local governments which many
affect the performance of the Agreement.
C. Non-Assignability. The Parties shall not assign any interest in the Agreement; provided,
however,that claims for money due to the Grantee from the Commission under this
Agreement may be assigned after notice and approval of the Commission.
D. Personnel. The Grantee represents that it has or will secure at its own expense all
personnel required to carry out and perform the scope of services required under this
Agreement. Such personnel shall be fully qualified and shall be authorized under state
and local law to work on the Project. Such employees shall not be employees of the
Commission.
E. Restriction on use of the funds. The Grantee will expend funds consistent with the terms
and conditions of this Agreement. Failure to do so may result in legal action to recover
funds spent inconsistently with the terms and condition of this Agreement without further
notice. If the Grantee has Subgrantees,the Grantee must require this restriction on use of
funds by all of its Subgrantees.
F. Taxpayer Identification Number. The Grantee and any Subgrantees must provide
taxpayer identification information to the Commission prior to receiving funds under this
Agreement.
G. Exhibits. All Exhibits to this Agreement are expressly incorporated by reference and
made a part of this Agreement.
Section XVI.Notice.
A. All notices required by this Agreement with the exception of Notice provided pursuant to
Section XI.0 shall be in writing and shall be deemed given when personally delivered or
when deposited in the United States mails, certified, return receipt requested, first class,
postage prepaid and addressed as follows:
7
If to the Commission: Mr. William Upchurch
Executive Director
N.C. Tobacco Trust Fund Commission
1080 Mail Service Center
Raleigh,NC 27699-1080
Tel: (919)733-2160
Fax: (919) 733-2510
If to the Grantee: Ms. Laura Blackmon
County Manager
Orange County
PO Box 1177
Hillsborough,NC 27278
Tel: (919)245-2330
Fax: (919) 644-3008
B. Each Party may designate another Notice recipient by written communication to the other
Party.
Section XVII. Construction
This Agreement shall be construed and governed by the laws of the State of North Carolina.
The Parties do hereby execute this Agreement in duplicate originals:
N.C.Tobacco Trust Orange County
Fund Commission
pi* ihataft afar
Aftrallelit I
John William Carter, III M 7 Valerie Fous 71,
Chairman Chair, Board of County Commissioners
Grant Number 2008-041-22
8
EXHIBIT A
SCOPE OF SERVICES
Project #: 2008-041-22
PIEDMONT VALUE-ADDED SHARED-USE FOOD &
AGRICULTURAL PROCESSING CENTER
ORANGE COUNTY, NORTH CAROLINA
Orange County North Carolina shall carry out the terms of this contract as follows:
1. General Project Description and Justification:
Orange County North Carolina is a unit of local government headquartered in
Hillsborough, NC. The purpose of this Grant is to support development of a regional
shared-use food and agricultural processing facility to be located in Hillsborough,
NC. Commission funds will support equipment acquisition, personnel, and
operations over a two-year period. Farmers from 22 counties in North Carolina will
benefit from this project.
This is a QAP project that promotes community economic development for areas
experiencing economic distress at the farm and manufacturing level. Orange County
North Carolina will monitor the results of this project by tracking the progress on
developing a viable value added processing center. The center will meet FDA
requirements for food manufacturing and will serve farmers, small businesses and
individuals in need of facilities and training for commercial production and marketing
of value-added food products. Specific activities to be monitored shall include
progress in developing training programs and services to tobacco farmers who are
considering diversification, making equipment and services available to farmers and
other clients, and enabling local institutions to make use of storage space that
permits them to increase use of locally grown foods.
Orange County North Carolina shall recognize the Tobacco Trust Fund Commission
as a supporter of this project through all documents and publications related to the
project, signs used for the project and in public speeches and announcements.
2. Approved TTFC Project Expenses
Approved Grant Funded Expenses
Item Description Cost
Commercial grade
Equipment Acquisition and equipment for food
Installation processing and packaging $357,000
Executive Director, Salary&
Benefits Full-Time 60,000
Legal, Accounting, and
Professional Services $2,300
Office Supplies $1,500
Cleaning Supplies &Waste
Management $4,000
Marketing $5,000
Equipment Maintenance Parts and Labor $10,000
Staff Travel
$1,000
Insurance $4,000
Building Maintenance & Utilities $34,200
Total $479,000
3. Project Reporting and Funding Requests:
Orange County North Carolina shall adhere to the terms and conditions contained in
this contract which include filing quarterly reports within 15 days of the last business
day of the quarter by using the form shown in Exhibit B to this contract. This report
should also include photos, printed materials, etc, which help to further explain the
results of the project.
Orange County North Carolina shall also request funds as previously agreed upon in
Section V of this contract by using Exhibit C - Financial Request Form. Within 30
days of completion of the project, Orange County North Carolina shall provide a final
report detailing the project's activities and successes.
Orange County North Carolina shall comply with the reporting requirements pursuant
to N.C. Gen. Stat. § 143C-6-23.
4. Grant Application Incorporated by Reference:
Orange County North Carolina grant application submitted for this project is herein
incorporated by reference. Satisfactory progress on this project will be measured by
this scope of services which includes services as presented in the application.
To the extent there is a conflict among the provisions of the grant applications, the
Grant Agreement or this Scope of Services statement, provisions of the Grant
Agreement shall first control, then provisions of this Scope of Services statement
shall control and finally provisions of the grant application shall control.
5. Special Provision:
Use of Commission funds is contingent upon securing additional funds necessary for
facility renovation.
2
' ! C4r13 TOBACCO TRUST FUND COMMISSION
Exhibit B: Grantee Quarterly & Final Report Form
Quarterly Report Period: to
❑ Quarterly Report
❑ Final Report—The Final Report must ALSO include a summary of how the project
rY P 1
goals and objectives were met, resulting benefits and future status of project.
Tah403,. r 14444CMG404014 The Final Report will include a detailed financial statement on how the grant
funds were spent.
Date Submitted: Contact Person:
(To be filed no later than fifteen days after the end of the third month of the calendar quarter)
Project Title: Project Number:
Grantee:
Address: County:
Phone:
Email:
Start date of the project: Anticipated completion date:
1. PROJECT NARRATIVE: On a separate page or pages, write a summary of progress on your project for this
report period. Provide a minimum half page narrative summary addressing the status of each of the project
objectives noted in Exhibit A "Scope of Services"plus any other pertinent information.
In addition to the summary, your quarterly narrative report should also address any of the following issues
affecting your project during this last quarter:
a) Explain any project costs that were below or above expectations.
b) Explain any problems your project has encountered and steps taken to overcome them.
2. STATUS (check pertinent boxes):
Project Status: ❑ On Schedule ❑ Completed ❑ Delayed ❑ Canceled
Project Cost Status: ❑ Cost Unchanged ❑ Cost Overrun ❑ Cost Underrun
3. PROJECT IMPACT NARRATIVE: On a separate page or pages, write a summary of how grant-funded
activities are affecting specific populations of people. Who are these people and how many are being served?
Where do these people live? Name specific counties, towns, or neighborhoods.
4. PROJECT IMPACT TABLE: Complete all line items that pertain to your project and the activities funded by
your grant.
IMPACT TYPE Quarterly Impact Project to Date
Jobs Created
Workers Re-Employed
Former Quota Holders Assisted
Worker Skills Upgraded (#of Workers)
Persons Receiving Increased Educational Training
Amount of New Income for Former Tobacco Workers
Current or Former Tobacco Farmers Assisted
Acres of Farmland Protected
Acres of New Crop Production
Total Number of People Served
Dollars Leveraged
State Tax Revenue Generated
Other(Explain)
Other(Explain)
5. EXHIBIT C: Attach your most recent Exhibit C, Financial Request Form, with the signature of the Chief
Financial Officer.
Authorized Signature:
Print Name: Title:
TOBACCO TRUST FUND COMMISSION •
EXHIBIT C, FINANCIAL REQUEST FORM _ _ ___ _ PURPOSE FOR FILING (CHECK ONE) .
• #REQUEST FOR FUNDS �� (QUARTERLY REPORT
Date:
Project Number: TTFC Grant Amount:
Grant Recipient: Payment Request Number:
Project Title: Amount This Request: $0.00
Signature of Chief Financial Officer
A B C D E F G
Itemized Expenditures as Shown in Exhibit A, TTFC Budget as TTFC Amount Amount of TTFC TTFC Amount This Total Requested Unrequested TTFC Funds
Scope of Services Shown in Scope of Previously Funds Expended To Re uest TTFC Funds Remaining(Columns B
Services Requested Date q (Columns C plus E) minus F)
0 0.00 0.00
0 0.00 0.00
0 0.00 0.00
0 0.00 0.00
0 0.00 0.00
0 0.00 0.00
0 0:00 0.00
0 0.00 0.00
0 0.00 0.00
0 0.00 0.00
0 0.00 0.00
0 0.00 0.00
0 0.00 0.00
0 0.00 0.00
0 0.00 0.00
0 0.00 0.00
0 0.00 0.00
0 0.00 0.00
0 0.00 0.00
0 0.00 0.00
Totals $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
NOTE:If any amounts in column G are ne l ative,contact the TTFC immediate) .
Amount Expended rah `" �� Y, t ,"
List other revenue sources for this project � . Y _ �
fe$, ; p ; H ) ;",•';"1791.!".;';ddi i x r tli ,\,M If ,,
ai d. : I 1s } ) L. ' *:,:.if; i {} '#?# . i, hz.s�tti.a 7,,47,- "r v
TOTAL
Revised 11-2008
Exhibit D
Notice of Certain Reporting and Audit Requirements
Grantee shall comply with the all rules and reporting requirements established by statute or administrative rules. For
convenience, the requirements of 9 N.C.A.C. Subchapter 3M.0205 are set forth in this Attachment.
Reporting Thresholds.
There are three reporting thresholds established for grantees and subgrantees receiving State funds. The reporting thresholds
are:
(1) Less than$25,000—A grantee that receives, uses,or expends State funds in an amount less than twenty-five
thousand dollars($25,000)within its fiscal year must comply with the reporting requirements established by 9
N.C.A.C. Subchapter 3M including:
(A) A certification completed by the grantee Board and management stating that the State funds were
received, used, or expended for the purposes for which they were granted; and
(B) An accounting of the State funds received, used, or expended.
All reporting requirements shall be filed with the funding agency within six months after the end of the
grantee's fiscal year in which the State funds were received.
(2) $25,000 up to $500,000 -A grantee that receives, uses, or expends State funds in an amount of at least
twenty-five thousand($25,000)and up to five hundred thousand dollars($500,000)within its fiscal year must
comply with the reporting requirements established by this Subchapter including:
(A) A certification completed by the grantee Board and management stating that the State funds were
received, used, or expended for the purposes for which they were granted;
(B) An accounting of the State funds received, used, or expended; and
(C) A description of activities and accomplishments undertaken by the grantee with the State funds.
All reporting requirements shall be filed with the funding agency within six months after the end of the
grantee's fiscal year in which the State funds were received.
(3) Greater than $500,000—A grantee that receives, uses, or expends State funds and in the amount greater
than five hundred thousand dollars ($500,000) within its fiscal year must comply with the reporting
requirements established by this Subchapter including:
(A) A certification completed by the grantee Board and management stating that the State funds were
received, used, or expended for the purposes for which they were granted;
(B) An audit prepared and completed by a licensed Certified Public Accountant for the grantee consistent
with the reporting requirement of this Subchapter; and
(C) A description of activities and accomplishments undertaken by the grantee with the State funds.
All reporting requirements shall be filed with both the funding agency and the Office of the State Auditor within
nine months after the end of the grantee's fiscal year in which the State funds were received.
Other Provisions:
1. Unless prohibited by law, the costs of audits made in accordance with the provisions of 9 N.C.A.C. 3M.0205 are allowable
charges to State and Federal awards. The charges may be considered a direct cost or an allocated indirect cost, as
determined in accordance with cost principles outlined in the Office of Budget and Management(OMB)Circular A-87.The cost
of any audit not conducted in accordance with this Subchapter is unallowable and shall not be charged to State or Federal
grants.
2. The audit requirements in 9 N.C.A.C. Subchapter 3M do not replace a request for submission of audit reports by grantor
agencies in connection with requests for direct appropriation of state aid by the General Assembly.
3. Notwithstanding the provisions of 9 N.C.A.C. Subchapter 3M, a grantee may satisfy the reporting requirements of Part
(a)(3)(B) of this Rule by submitting a copy of the report required under the federal law with respect to the same funds.
4. All grantees and subgrantees shall use the forms of the Office of State Budget and Management and of the Office of the
State Auditor in making reports to the awarding agencies and the Office of the State Auditor.
NGO Form 0008 Page 1 of 1
Eff.July 1,2005
Revised 7/2007
Exhibit E
State Grant Certification No Overdue Tax Debts
Instructions: Grantee should complete this certification for all state funds received. Entity should enter
appropriate data in the yellow highlighted areas. The completed and signed form should be
provided to the state agency funding the grant to be attached to the contract for the grant funds. A
copy of this form, along with the completed contract, should be kept by the funding agency and
available for review by the Office of the State Auditor
Entity's ilrrlltd
Wets of COriffklatkon(n )]
To: State Agency Head and Chief Fiscal Officer
Certification:
We certify that the [heart tation's name) does not have any overdue tax debts, as defined
by N.C.G.S. 105-243.1, at the federal, State, or local level. We further understand that any person
who makes a false statement in violation of N.C.G.S. 143C-6-23(c) is guilty of a criminal offense
punishable as provided by N.C.G.S. 143-34(b).
Sworn Statement:
[Name of Board Chi] and [Nizator0 Second,Aathogzing official] being duly sworn, say that we are
the Board Chair and [Title of the Second Auth obi], respectively, of[knot name of
organization] of[City] in the State of[Wine of Mato]; and that the foregoing certification is true,
accurate and complete to the best of our knowledge and was made and subscribed by us. We also
acknowledge and understand that any misuse of State funds will be reported to the appropriate
authorities for further action.
Board Chair
[Mid Se o AuthoitintiOnidan
Sworn to and subscribed before me on the day of the date of said certification.
My Commission Expires:
(Notary Signature and Seal)
If there are any questions,please contact the North Carolina Office of the State Auditor:
Leigh Ann Kerr @(919)807-7535 or
Harriet Abraham @(919)807-7673.
1 G.S. 105-243.1 defines: "Overdue tax debt.—Any part of a tax debt that remains unpaid 90 days or more after
the notice of final assessment was mailed to the taxpayer.The term does not include a tax debt, however, if the
taxpayer entered into an installment agreement for the tax debt under G.S. 105-237 within 90 days after the
notice of final assessment was mailed and has not failed to make any payments due under the installment
agreement."
Page 1 of 1
MS&NCD Form 0008
Eff.July 1,2005
Revised July 18,2006,7/07