HomeMy WebLinkAboutAgenda - 11-19-2013 - 5a1
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: November 19, 2013
Action Agenda
Item No. 5 -a
SUBJECT: Orange County Community Development Block Grant (CDBG)
DEPARTMENT: Planning and Inspections PUBLIC HEARING: (Y /N) Yes
ATTACHMENT(S): INFORMATION CONTACT:
1. Public Hearing Notice Craig Benedict, 919 - 245 -2592
2. Draft Resolution (Not for Approval) Steve Brantley, 919 - 245 -2326
3. Morinaga Site Map
PURPOSE: To receive comments from the public regarding a proposed CDBG- Economic
Development project including Morinaga America Foods, Inc.
BACKGROUND: The grant project being proposed would provide critical infrastructure
improvements in the Buckhorn Economic Development District ( Buckhorn EDD) that would
allow Morinaga America Foods, Inc. to build and staff a U.S. production facility in Orange
County. The improvements consist of a 2,500 linear foot roadway design that would create a
east -west access along Ben Wilson Road extension, and construction of a 3,700 -foot, 12 -inch
water line and a 1,500 -foot, 8 to 10 -inch sewer line to the site. In addition, the project will
include survey work, an environmental assessment, and grant administration services. The
facility will be located within the City of Mebane and receive water and sewer service from the
City per the interlocal utility service agreement. The proposed access road will be constructed
by the North Carolina Department of Transportation. In return for these incentives, Morinaga
America Foods, Inc. will commit to investing in the community and creating jobs.
Orange County (Martin - McGill Associates as consultant) is submitting a CDBG application to
support these site improvements requesting $750,000. The CDBG program provides grants to
local governments for creating and retaining jobs. Funding for projects is based on the number
of jobs created and the level of distress in the community applying for the funds. Sixty percent
of jobs created or retained in the project must be for persons qualifying as prior low and
moderate income (LMI). CDBG funds granted to local governments are to be used for various
types of infrastructure improvements to assist for - profit businesses in creating or retaining jobs.
A match upwards of $250,000 will be required from the County's Article 46 (One - Quarter Cent)
Sales and Use Tax. Funds provided from the County will be utilized primarily in conducting
engineering design work.
Morinaga is recognized as one of the largest candy and confection manufacturers in Japan with
$1.75 billion in global sales revenue and more than forty different product lines. The company
began operations in 1899 and has over 1,500 employees worldwide. The candy is currently
manufactured in Taiwan and distributed in the U.S. through distribution channels based in
Irvine, California and Fort Lee, New Jersey. The facility will be the first manufacturing facility in
the U.S. and will produce the company's number one selling product called "Hi- Chew ".
Morinaga has committed to creating at least 90 jobs during the first three years of operation.
These positions will pay approximately $38,000, a figure that meets the One North Carolina
Fund wage test. As part of the incentive package, Mebane and Orange County sponsored the
$264,000 One NC Fund performance grant that has been awarded. In addition, Durham
Technical Community College will provide training for the company's new employees. This
collaborative effort will bring much needed jobs and an investment of over $48 million in the
community. The 21 -acre site is large enough to accommodate future expansions that will add
more opportunity for the workforce. This new development can serve as a catalyst for business
activities in the Buckhorn EDD and Orange County industrial parks.
Attachment 1 includes the public hearing noticed published in The Herald Sun and News of
Orange on November 6, 2013. Attachment 2 contains a draft resolution for the Morinaga
America Foods, Inc. CDBG application. The final resolution will be included in the application
submittal for Board review at the December 2, 2013 BOCC meeting.
FINANCIAL IMPACT: The financial impact is to be determined as proposals, specific requests,
and updates come forward. Orange County's share will be funded from the Article 46 (One -
Quarter Cent) Sales and Use Tax for economic development infrastructure and business
incentives.
RECOMMENDATION(S): The Interim Manager recommends that the Board:
1. Receive comments from the public as additional information;
2. Close the public hearing; and
3. Schedule the CDBG application review for the December 2, 2013 Board of County
Commissioners meeting.
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Attachment 1
PUBLICATION INSTRUCTION: Please publish the following notice in the Special
Notice Section of the Classified Advertisements on Wednesday, November 6, 2013.
The County seal should be placed above the announcement.
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PUBLIC HEARING
Tuesday, November 19, 2013 at 7:00 p.m.
SOUTHERN HUMAN SERVICES CENTER
2501 Homestead Road,
Chapel Hill, NC 27516
Community Development Block Grant (CDBG) Second Public Hearing Notice — Orange County will
hold a public hearing to discuss the project determined to be applied for in the 2014 CDBG Economic
Development program as follows: Morinaga America Foods, Inc. is considering opening its first US
manufacturing facility in Orange County located off of Ben Wilson Road. The county will be applying for a
$750,000 CDBG Economic Development Grant to be matched with $250,000 to complete water, sewer,
and roadway infrastructure accessing the project site. The company proposes to invest $48 million in
Orange County and create over 90 jobs in three years. Comments will be solicited on project scope,
implementation, and its effects on residents. The hearings will begin at 7:00 P.M. on November 19, 2013
and will be held at the Southern Human Services Center located at 2501 Homestead Road, Chapel Hill,
NC 27516. Further information can be obtained by contacting Donna Baker at 919 - 245 -2130. In
compliance with the Americans with Disabilities Act, individuals needing special accommodations
(including auxiliary communicative aids and services) during these hearings should notify Donna Baker at
919- 245 -2130 at least three days prior to the hearing that will be attended.
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RES- 2013 -102 Attachment 2
DRAFT — NOT FOR APPROVAL
ORANGE COUNTY BOARD OF COMMISSIONERS
RESOLUTION FOR ORANGE COUNTY ECONOMIC DEVELOPMENT
APPLICATION FOR COMMUNITY DEVELOPMENT BLOCK GRANT
APPLICATION FOR THE MORINAGA AMERICA FOODS INC. PROJECT.
WHEREAS, the Orange County Board of Commissioners has previously
indicated its desire to assist in economic development efforts within
the County; and,
WHEREAS, the Orange County Board
hearings concerning the
Development Block Grant
Foods, Inc.; and,
of Commissioners has held two public
proposed application for Community
funding to benefit Morinaga America
WHEREAS, the Orange County Board of Commissioners wishes the County to
pursue a formal application for Community Development Block
Grant funding to benefit Morinaga America Foods, Inc.; and will
invest monies in the amount of $250,000 into the project as
committed to in the application.
WHEREAS, the Orange County Board of Commissioners certifies it will meet all
federal regulatory and statutory requirements of the Community
Development Block Grant Program,
NOW, THEREFORE BE IT RESOLVED by the Orange County Board of
Commissioners that Orange County Economic Development is authorized to
submit a formal application to the North Carolina Department of Commerce for
approval of a Community Development Block Grant for Economic Development
to benefit Morinaga America Foods, Inc.
Adopted by Orange County:
This the day of , 2013.
Barry Jacobs, Chair
Orange County Board of Commissioners
Donna Baker County Seal:
Clerk to the Orange County Board of
Commissioners
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M o ri n ag a Site I Attachment 3 5