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HomeMy WebLinkAboutAgenda - 08-21-2012 - 7e 001 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date:August 21, 2012 Action Agenda Item No.7-e SUBJECT: Interlocal Agreement with Town of Chapel Hill in Support of Business Incubator DEPARTMENT:Economic DevelopmentPUBLIC HEARING: (Y/N)No ATTACHMENT(S):INFORMATION CONTACT: Interlocal AgreementSteve Brantley, Economic Development Director 919-245-2326 PURPOSE: To support the growth of the County’s entrepreneurial development goals and also form an economic development tie with the Town of Chapel Hill with an interlocal agreement regardingthe creation of an innovation center located at 321 West Rosemary Street in Chapel Hill. BACKGROUND: In response to the Board of County Commissioner’s request to explore opportunities to support the growth of entrepreneurs in Orange County, and to mitigate the exodusof University-affiliated start-up companies to other counties, the County contracted with Dr. Emil Malizia to conduct a real estate assessment to evaluate the space needs for these companies throughout their life span. A key recommendation from this report suggested the development of an innovation center to better retain entrepreneurial talent both from the University and the community. Several properties as recommended in Dr. Malizia’s report were evaluated to determine their feasibility to function as an innovation center. In March2012, a property located at 321 West Rosemary Street in Chapel Hill was identified as a potential location, and the Town of Chapel Hill and Orange County began working collaboratively to support further development of an innovation center at this location. On April 3, 2012, the Board of County Commissioners received a summary of the potential project during closed session. Following this report, the Board agreed to continue moving forward on this opportunity. In July2012, Orange County prepared a draft Interlocal Agreement outlining the commitments of both parties. The Town of Chapel Hill suggested several changes to the Interlocal Agreement. The most current version of the Interlocal Agreement is provided as an attachment. 002 FINANCIAL IMPACT: Asprovided in the attachedInterlocal Agreement, Orange County will provide a $10,000 quarterly payment for three and one-half years, totaling $140,000. RECOMMENDATION(S): The Manager recommends that the Board review the attached Interlocal Agreement, and following the County Attorney’s recommendation to proceed, authorize the Manager to sign the final document. 003 STATE OF NORTH CAROLINA INTERLOCAL AGREEMENT COUNTY OF ORANGE This INTERLOCAL AGREEMENT(“Agreement”) is hereby made and entered into this the ____ day of _______, 2012, by and between ORANGE COUNTY, hereinafter referred to as (“County”), and theTOWN OF CHAPEL HILL, hereinafter referred to as (“Town”) pursuant to N.C. Gen. Statute 160A-460 et seq., 160A-17.1 and other applicable laws. WITNESSETH: WHEREAS, County and Town desire to enter into a partnership whereby local startup businesseshave more opportunities to remain in Orange County and Chapel Hill. NOW, THEREFORE, in consideration of the mutual covenants, promises and agreements containedherein, the parties hereto agree as follows: 1.County Grant.County shall grant to the Town $140,000. This grant shall be payablequarterlyin installments of ten thousand dollars ($10,000). Town acknowledges and agrees the full amount, which shall not exceed $140,000, shall be expended by Town for the sole purpose of establishing a small business incubator/joint working space at 321West Rosemary Street, Suite 110, Chapel Hill, North Carolina (the “Small Business Incubator”). County and Town agree this grant is the full extent of the County’s contribution. Town shall be responsible for conducting any statutorily required public hearing prior to the expenditure of any grant funds. 2.Town Obligation. Town shall be responsible for payment of the rental obligationof the Small Business Incubator property using the County grant, together with Town resources, in order to maintain the property’s availability for lease and sublease as a Small Business Incubator. 3.Term.The term of this Agreement shall commence the year and day first above recorded and shall continue for a period of forty-two (42) months. 4.Reporting. Town shall on or before July 1 annually during the term of this Agreement provide a report to the Orange County Manager detailing the expenditure of the grant funds described in Section 1 above. Upon request by County, Town shall provide Countywith any audit or underlying documents necessary to verify thecontents of theannual report. In the event such report or documents are not provided County may suspend grant installments until such time as the report or documents are provided. 5.Force Majeure/Emergency Non-Appropriation. In the event Town or Countyshould be delayed in, or prevented from, performing or carrying out any of the agreements, covenants, orobligations made by, and imposed upon, said Party by this Agreement, by reason of or through any cause reasonably beyond its control and not attributable to its neglect, includingbut not limited to condemnation, order of any court granted in any bona fide adverse legal proceeding or action, explosion, fireor other act of God or public enemies, and/or emergency non-appropriation, then, in each such case or cases, the affected Party shall be relieved of performance under this Agreement. 6. Termination.The County and Town may terminate this Agreement upon mutual written agreement approved by the County’s and Town’s managers. Either County or Town may terminate this Agreement upon a material breach by the other. Material breach includes but is not limited to the failure by Town to expend grant funds as required by this Agreement. Effectivethe date of termination any termination of this Agreement relieves County of any further responsibilities or obligations established by this Agreement. 1 004 IN WITNESS WHEREOF, the parties have caused this Interlocal Agreement to be executed as of the day and year first aboverecorded. FOR ORANGE COUNTY FOR CHAPEL HILL By:_________________________ By:_________________________ Frank CliftonRoger Stancil Orange County Manager Chapel Hill Town Manager This instrument has been pre-audited in the manner required by the Local Government Budget and Fiscal Control Act. ____________________________ Orange County Director of Financial and Administrative Services This instrument has been pre-audited in the manner required by the Local Government Budget and Fiscal Control Act. ____________________________ Town of Chapel Hill Finance Director 2