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HomeMy WebLinkAboutAgenda - 09-07-1999 - 7aORANGE COUNTY BOARD OF COMMISSIONERS Action Agenda Item No. 7 _ g ACTION AGENDA ITEM ABSTRACT Meeting Date: September 7, 1999 SUBJECT: Utility Extension Fund Agreement DEPARTMENT: Economic Development Commission ATTACHMENT(S): Resolution Contract between Barber & Ross Company and Orange County Notice of Public Hearing PUBLIC HEARING: (Y/N) INFORMATION CONTACT: Dianne Reid, EDC Director TELEPHONE NUMBERS: - -ext. Hillsborough 732-8181 Chapel Hill 968-4501 Durham 688-7331 Mebane 227-2031 _` Yes PURPOSE: To review and approve the proposed Utility Fund Extension Fund Agreement by and between Barber & Ross Company and Orange County. BACKGROUND: Barber & Ross CoYnpany, a manufacturer of pre-hung doors, windows, and millwork, has an agreement of sale for the purchase of the former Redman Mobile Home manufacturing site west of Efland in the Buckhorn Road Economic Development District. The site, owned by the City of Mebane, has been unoccupied for a number of years. The septic tank drain field for the facility is situated on acreage south of the 9.9 acre site currently under agreement. There are environmental issues with this tract, and Barber & Ross does not wish to purchase the property. The company has asked Orange County to provide financial assistance to aid them in connecting the sanitary waste stream from the plant to the existing sanitary sewer line located on Route 70. Under the terms of this agreement, after the line is installed, Barber & Ross would transfer ownership of the line to Orange County. The Company requests $50,000 from the County's Water and Sewer Extension Fund. The project appears to comply with the criteria specified in the Orange County Water and Sewer Policy, approved 4/3/89 and amended 9/3/91. The policy was developed to, among other goals, "establish a basis for Orange County's financial participation in the provision of water and/or sewer services and facilities." The policy specifies that the County can be involved in the provision of water and/or sewage disposal services "to provide economic development opportunities" using the following criteria: 1. The project must be assured of having the proper zoning at the proposed site (the facility is located within a primary EDD); and 2. The project must improve job opportunities available to Orange County citizens, especially for women and minorities (the project will provide approximately 190 additional jobs); and 2 3. The project must provide jobs with wage scales in compliance with Orange County standards adopted from time-to-time (the project will provide jobs with wage scales equal to or greater than the current living wage provision in Orange County's Personnel Ordinance); and 4. The project must have a positive fiscal impact upon Orange County government (the cost of services to be provided must be less than the local taxes and other revenues paid to the County generated by the project (if the renovated property is assessed at $1.5 million, net new county taxes on the property and the equipment would result in County financing being recouped in approximately 3 and 3/ years). FINANCIAL IMPACT: 1. The project will improve job opportunities: a total of 200 jobs will be created, with fewer than 10 slots involving transfers from current plant sites in Virginia. The company's average annual payroll will total between $4.1 and $4.4 million. 2. The project will provide jobs with wage scales equal to or greater than the current living wage provision in Orange County's Personnel Ordinance. 3. At present, the plant site is exempt from property taxes because it is municipally owned. The purchase price is $600,000 and renovations are estimated at $2 to $2.5 million. The company will also install approximately $500,000 in equipment. Conservatively, if the renovated property is assessed at $1.5 million, new county taxes on the property will total $14,235 per year (at 1999-00 tax rate), plus another approximately $4,595 in taxes on the equipment. Using the national average services cost for commercial property ($.30 per $1 paid in property tax), the County's financing would be recouped within 3 and 3/4 years, well within the five year repayment period specified in the Utility Extension Fund Procedures. RECOMMENDATON(S): The Manager recommends that the Board approve the expenditure of $50,000 from the Water and Sewer Extension Fund and execute the agreement. 3 NORTH CAROLINA RESOLUTION APPROVING AN AGREEMENT BETWEEN THE COUNTY OF ORANGE, NORTH CAROLINA AND BARBER & ROSS FOR REIMBURSEMENT OF FUNDS FOR A SEWER LINE TO CONNECT TO THE ORANGE ORANGE COUNTY COUNTY-EFLAND AREA SEWER SYSTEM WHEREAS, pursuant to anti in satisfaction of the requirements of N.C. Gen. Stat. ~ 158-7.1, the Board of Commissioners, following a public hearing, has determined that if it contracts with Barber & Roes as contemplated by the Exhibit A contract, the taxable property of the County and the business prospects of the County will increase; and WHEREAS, the Board of Commissioners of Orange County has determined that the Barber & Ross project will result in the creation of a substantial number of jobs in the County at a wage rate which exceeds the living wage established by Orange County by a policy now and in the future. NOW, THEREFORE, BE IT RESOLVED by the Board Of Commissioners for the County of Orange, North Cax'olina: 1. that the Board hereby makes the determinations attributed to i~ in the Exhibit A agreement and approves the agreement in substantially the form as Exhibit A to this resolution; 2. that the Board commits $50,000 from the County's Utility Extension Fund for Che proposed sewer extenslOrl project as described in Exhibit A; 4 3. officers and employees of the County are authorized and directed (without limitation except as may be expressly set forth herein} to make such changes to the agreement, to take such other actions and to execute and deliver such other documents, certificates, undertakings, agreements or other instruments as they, with the advice of counsel, may deem necessary or appropriate to effectuate the contemplated agreement. Upon motion duly made and seconded the foregoing resolution was passed by the following votes: Ayes- Noes: I, Beverly A. Blythe, Clerk to the Board of Commissioners for the County of Orange, North Carolina, DO HEREBY CERTIFY that the foregoing is a true copy of so much of the proceedings of said Board at a meeting held on 1999 as relates in any way to the adoption of the foregoing and that said proceedings are recorded in Minute Book No. of the minutes of said Board. WITNESS my hand and the seal of said County, this _ day of 1999. Clerk to the Board of Commissioners ~nyC~OC-vne:,t 3! re:3Ulut ionrrbazbcr6.rosa .doe Exhibit A NORTH CAROLINA UTILITY EXTENSION FUND AGREEMENT ORANGE COUNTY THIS AGREEMENT, made and entered into as of the day of , 19__,_. by and between the County of Orange, North Carolina, a political subdivisbn of the State of North Carolina having its principal office at 208 S. Cameron Street, Hillsborough, North Carolina, hereinafter sometimes referred to as "Orange County,' and Barber ~ Ross Company, Inc., a corporation having its princ~al office in , ___ , .._____ .hereinafter sometimes referred to as `Barber 8 Ross; WHEREAS, Barber b Ross intends to purchase the former Redman Mobile Home manufacturing site located in the Suckhorn Economic Development District at 200 Redman Crossing Road and renovate the facility to manufacture its millwork products; and WHEREAS. Barber & Ross proposes to connect the sanitary waste stream from the plant to the existing sanitary sewer line located approximately 2,000 feet east et the plant on Route 70; and WHEREAS, the Orange County Water and Sewer Policy, approved April 3, t989 and amended September 3, 1991, establishes "_.. a basis for Orange County's financial partlclpation in the provision of water and/or sewer services and facilities" to provide for economic development opportunities; and WHEREAS, by action taken at its June 30, 1999 meeting, the Orange County Board of Commissioners agreed to: 1j allow the extension of sewer service from the County's Efland sewer collection system by means of a new wastewater pumping station and force main, which Barber & Ross will constrtx:t to the applicable standards and approvals of the NC Division of Water (2uality and Orange County; and 2) accept ownership of tht3 portion of the wastewater torte main system which will bo installed in NCDOT rights-ot-way; and WHEREAS, on September 7, 1999, Orange County conducted a public hearing pursuant to North Carolina General Statute § 158-7_t, following publication of note of that public hearing at least ten (t0) days before the hearing was held, for the purpose of receiving public comment on this agreement; and WHEREAS, at that public hearing iMormatron was provided by or on behalf of Barber & Ross that Barber & Ross has commmed to do the following: 1) Upon c;omptetion of ppnstruGtien of the pumping station and farce main, Barber 8 Ross will provide to the Courtly an accounting of the total actual project cost, including documentation substantiating each expenditure. 2) Barber A Ross will complete its environmental assessment and site remediation for the property, including securing a browntieids agreement_ 3) Barber & Ross wilt invest between $t and $1.5 million in renovations to the Existing plant at 200 Redman Crossing Aoad, and install approximately $500,000 in equipment_ 4) Barber ~ Rvss wilt assure that the starting wages for aN positions created in Orange County will be at least 38 per hear and that, within two to three years, the proj~t wiil create two hundred jobs. 5) Barber 8 Ross will increase its starting wage rate from time to time to remain in compliance with the living wage starxiard in effect in Orange County. 6) Barber 8 Ross, as in its other plants, wiA provide health insurance for its employees and pay at feast fitty- ona percent of the costs of said insurance. 7) Barber & Ross agrees to tap in to a gravity sewer system serving the Buckhom Road Economic Development District when it becomes available, and pay any applicable tees. WHEREAS, by resolution adopted on __._, t9_, the Orange County Board of Commissioners made the determinations that: i) the Barber E Ross investment at the 200 Redman Crossing Road tacidty is expected to increase the Orange County tax base by an amount exceedh~g $stm,r)00. 2) Barber 8, Ross commits to a starting wage for all positions created in Orange County equal to at least S8.oo per hour and to increase the starting wage rate from time to time to remain in compliance with the living wage polity of Orange Gounry. 6 3) Barber 8 Ross commits to providing hesRh insurance for its employees and to pay at least 51°~ of the cost of that insurance. 4} Barber 8 Ross expects to create 200 jobs at the Redman Crossing Road facility. 5) Barber ~ Ross agrees to tap into a gravity sewer system serving the Buckhorn Road economic development district when it becomes availab{e and to pay any appi'~cable fees. WHEREAS, by resolution adopted on __ , t9_, the Orange County Board of Commissioners has agreed to provide 550,000 from the County's Utility Extension Fund for the proposed sewer extension project. WITNESSETH: to consideration of the commitments of Barber 8 Ross as described in this agreement to be performed by Barber ~ Ross and upon the successful construction of the sewer facilities and their successful permitting by aU necessary governmental agencies, Orange County agrees to pay to Barber 8~ Ross 550,000 as partial reimbursement for the cyst of constructing the sewer facilities which funds shall come from the Orange County Utility Extension Fund. 1N WITNESS WHEREOF, Orange County and Barber b Ross nave caused this utility extension fund agreement to be executed in their respective corporate names and the respective corporate seals to be he-eunio affixed and attested by their duly authorized officers, alt as of the date first above written. COUNTY OF ORANGE. NORTH CAROLINA BY: ATTEST: Beverly A. Blythe, Clerk to the Board of Commissioners ATTEST: J__ Secretary Alice M. Gordon, Chair, Orange County Board of Commissioners [SEAL] BARBER b ROSS COMPANY, INC. gr= President [CORPORATE sFAy rnydocurnem~ltrtr Ler drOSSaQ1 OOC 7 NOTICE OF ORANGE COUNTY BOARD OF COMMISSIONERS PUBLIC HEARING CONCERNING A LOCAL DEVELOFMEN'~ ~'RO:lE:CT IN ORANGE COUNTY NOTICE IS HEREBY GIVEN of a public hearing to be held at I:30 p.m. on September 7, I999 or as soon thereafter as the hearing can commence in the District Courtroom on the first floor of the new Orange County Courthouse on East Margaret Lane in Hillsborough, North Carolina. The purpose of the public hearing will be to take pubic comment on Orange County's intent to enter into a Utility Extension Fund Agreement with Barber & Koss Company. Following the public bearing, the orange County Board of Commissioners will vote on a resolution which resolution, if approved, will result in a $50,000 contribution from the Orange County utility extension fund for the extension of sewer service from the Orange County/Efland Area sewer collection system to the Barber & Ross property located on Highway 70 west of Efland, North Carolina. The sewer project will involve the construction of a new wastewater- pumping station and a forcemain. Zt is contemplated Chat Barber & Ross will construct the wastewater pumping station Arid forcemain at its expense. The facilities will be constructed to the applicable standards and require the approvals of the North Carolina Division of water Quality and Orange County. 8 The pub]. i c benefit to be derived f torn makin~~ these improvements includes: 1. Barber & Ross wilt invest between $1 rttillion and $1.5 million in renovations to the existing industrial plant facility located at 200 Redman Crossing Road and will install approximately $500,000 in equipment. The improvements and the equipment installation are expected to increase the Orange County tax base by an amount exceeding $500,000. 2. Barber & Ross commits to a starting wage for all positions created in Orange County equal to at least $8.00 per hour and to in~r'ease the starting wage rate from time to time to remain in Compliance with the living wage policy of Orange County. 3. Barber & Ross commits to providing health insurance for its employees and to pay at least 51% of the COSt of that insurance. 4. Barber & Ross expects to create 200 jobs at the Redman Crossing Road facility. 5. Barber ~ Ross agrees to tap into a gravity sewer system serving the Buckhorn Road economic development district when itr becomes available and to pay any applicable fees. Beverly A. Blythe Clerk to the Board of Commissioners for Che County of Orange, North Carolina .. . ~. 9-~ ~9r~ NORTH CAROLINA ORANGE COUNTY UTILITY EXTENSION FUND AGREEMENT THIS AGREEMENT, made and entered into as of the ~ day of 19~by and between the County of Orange, North Carolina, a political subdivision of the Stat of North Carolina having its principal office at 208 S. Cameron Street, Hillsborough, North Carolina, hereinafter sometimes referred to as "Orange Countyy," and Barber ~ Ross Company, Ise-, a Vil~al~l7rif corporation having its principal office in LpeShv~, i~ i~ a ,hereinafter sometimes referred to as "Barber & Ross;" WHEREAS, Barber & Ross intends to purchase the former Redman Mobile Home manufacturing site located in the Buckhorn Economic Development District at 200 Redman Crossing Road and renovate the facility to manufacture its millwork products; and WHEREAS, Barber & Ross proposes to connect the sanitary waste stream from the plant to the existing sanitary sewer line located approximately 2,000 feet east of the plant on Route 70; and WHEREAS, the Orange County Water and Sewer Policy, approved April 3, 1989 and amended September 3, 1991, establishes "... a basis for Orange County's financial participation in the provision of water and/or sewer services and facilities" to provide for economic development opportunities; and WHEREAS, by action taken at its June 30, 1999 meeting, the Orange County Board of Commissioners agreed to: 1) allow the extension of sewer service from the County's Efland sewer collection system by means of a new wastewater pumping station and force main, which Barber & Ross will construct to the applicable standards and approvals of the NC Division of Water Quality and Orange County; and 2) accept ownership of the portion of the wastewater force main system which will be installed in NCDOT rights-of-way; and WHEREAS, on September 7, 1999, Orange County conducted a public hearing pursuant to North Carolina General Statute § 158-7.1, following publication of notice of that public hearing at least ten (10) days before the hearing was held, for the purpose of receiving public comment on this agreement; and WHEREAS, at that public hearing information was provided by or on behalf of Barber & Ross that Barber & Ross has committed to do the following: 1) Upon completion of construction of the pumping station and force main, Barber & Ross will provide to the County an accounting of the total actual project cost, including documentation substantiating each expenditure. 2) Barber & Ross will complete its environmental assessment and site remediation for the property, including securing a brownfields agreement. 3) Barber & Ross will invest between $1 and $1.5 million in renovations to the existing plant at 200 Redman Crossing Road, and install approximately $500,000 in equipment. 4) Barber & Ross will assure that the starting wages for all positions created in Orange County will be at least $8 per hour and that, within two to three years, the project will create two hundred jobs. 5) Barber & Ross will increase its starting wage rate from time to time to remain in compliance with the living wage standard in effect in Orange County. 6) Barber & Ross, as in its other plants, will provide health insurance for its employees and pay at least fifty- one percent of the costs of said insurance. 7) Barber & Ross agrees to tap in to a gravity sewer system serving the Buckhorn Road Economic Development District when it becomes available, and pay any applicable fees. WHEREAS, by resolution adopted on ~ ~- , 19~, the Orange County Board of Commissioners made the determinations that: 1) the Barber & Ross investment at the 200 Redman Crossing Road facility is expected to increase the Orange County tax base by an amount exceeding $500,000. 2) Barber & Ross commits to a starting wage for all positions created in Orange County equal to at least $8.00 per hour and to increase the starting wage rate from time to time to remain in compliance with the living wage policy of Orange County. :~ 3) Barber & Ross commits to providing health insurance for its employees and to pay at least 51 % of the cost of that insurance. 4) Barber & Ross expects to create 200 jobs at the Redman Crossing Road facility. 5) Barber & Ross agrees to tap into a gravity sewer system serving the Buckhorn Road economic development district when it becomes available and to pay any applicable fees. WHEREAS, by resolution adopted on ~ 5~~, 19~, the Orange County Board of Commissioners has agreed to provide $50,000 from the County's Utility Extension Fund for the proposed sewer extension project. WITNESSETH: In consideration of the commitments of Barber & Ross as described in this agreement to be performed by Barber & Ross and upon the successful construction of the sewer facilities and their successful permitting by all necessary governmental agencies, Orange County agrees to pay to Barber & Ross $50,000 as partial reimbursement for the cost of constructing the sewer facilities which funds shall come from the Orange County Utility Extension Fund. IN WITNESS WHEREOF, Orange County and Barber & Ross have caused this utility extension fund agreement to be executed in their respective corporate names and the respective corporate seals to be hereunto affixed and attested by their duly authorized officers, all as of the date first above written. Alice M. Gordon, Chair, Orange County Board of Commissioners COUNTY OF ORANGE, NORTH CAROLINA ATTEST' ~~ '' _ [SEAL] everly A. he, Clerk to the Board of Commissioners BARBER & ROSS COMPANY, INC. .~7 ~' /) President 4; (CORPORATE SEAL] r - ~1't~trt~e CQUrety ~'om~-~rra~ssinners P. ~. ~QX ~1 ~.~ 3~D S Cameron Street R'borort~h, .NC ~9Z~8 ~~:c ~~~~++~ ~.c.~k ~'~wb o+r~rr .11iosK ~~~ '~'© F'RC~I: Beverly A. Bl: e ~~ ; /elf ~,~ ~ AAA DA'T'E / ~" ~ 2~ This .item was a~sovad by the County Co~.#asicners. Please .provide the followings i~lC 1. copies of the document or enQUgh copies that will provide me with an orir~inal for my Permanent Agenda File.. Phase. obtain all n~acessary signatures;except !cr the tsir of the County . Co~issfoners . 2. ~na~tructons on the disposition of the documents, Please provide addressed envelopes if necessary. You may '.use the ~botto3a portion of this : memt~ to provide .this nformate~n. il The Contract Procedure is on the back side: of this'mema: If ` you have any questions, please give me a call. Thank you. ~•~;~s ~- ~q-4!f + .Rb ~INV~~ LltG/OSoo~ V a) ~ ac l npII c~TCr a~~ ~~ ~ o. k , ~, 3~ ~~ ' l,A~uft~ts 4} ~~ ~r~1es </ \ yoxF ~,,~, ~ \ r r~u Cant lrr tl,~ng~ c~»ry AREr! C©DE (919) 73.2-SiBX ~8-4SOl : ~t8-7331: 227.2©31 r FAX (919j 64d3~Od Fxt 2134 .~ I_ `• ti :>~ CONTRACT CONTROL PROCEDURES FOR YTEMS REQUIRING SIGNPi'1't1RE OF THE BOCC CHAIR The. following procedure is for iaems which require the signature of the Chair of the County Comcai.ssioners . 1. When the abstract is submitted for the agenda,- alI originals of the .contract, agreement, etc. stay. with. the originator unl.oae all signatures have been obtained. If ~ " ~atures have been obtained, forward o the Clerk all sgn _ for the Chair's signature. 2. After the item has been approved by the BOCC, the Clerk wild semd to the originator a sheet indicating ,the .; disposition of the its. ,3. The origindator will obtain all the necessary signatures. If there 3.s an expenditure of County funds, the: document must be preaudited by the Finance Director. 4. The documents are then sent to the Clerk to the Board for the Chair's. .signature. Send. enough copies so that .the Clerk and the Purchasing Director will have originals for their files. 5 . ' ~ then you send the documents for signature by the' Chair, r include instructions on distribution, including s appropriate envelopes.