HomeMy WebLinkAboutAgenda - 02-19-2008-3dORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: February 19, 2008
Action Agenda
Item No. -3- Orkpo,A
SUBJECT: Resolution Regarding Regional Value-Added Shared Use Food & Agricultural
Processing Center
DEPARTMENT: Economic Development PUBLIC HEARING: (YIN) No
ATTACHMENT(S): INFORMATION CONTACT:
1. DRAFT BOCC Resolution (Revised Noah Ranells 245-2330
Based on 2/12/08 BOCC Discussion) Willie Best 245-2300
2. Action Items for Implementation
PURPOSE: To consider a resolution:
1) Agreeing to participate in a regional, multi-county value-added shared-use food and
agricultural processing center;
2) 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;
3) Recommending that the governing board of the Center become a 501(c)3; and
4) Requesting that equitable fiscal support among partners be pursued that recognizes
the allocation of the Orange Enterprise building owned by Orange County.
BACKGROUND: On November 30, 2007, a feasibility study was completed. The study
included 62 completed surveys which resulted in a significant justification for the creation of a
regional value added shared use food processing center as well as a? strong "buy local"
component. During a four county search of Alamance, Chatham, Durham, and Orange
Counties for a possible site location, consultant Smithson Mills recommended the former
Orange Enterprise Building on Valley. Forge Road in Hillsborough as the most competitive site.
During a November 27, 2007 meeting in Hillsborough, commissioners from Alamance,
Chatham, Durham, and Orange counties expressed their appreciation for the feasibility report
and agreed to address the report at their respective commissioner meetings as well as the
relevant advisory boards. It was agreed also that each respective board of county
commissioners would indicate its interest to proceed as part of a regional partnership to develop
the center. It was agreed that the regional partnership consider hiring a project developer to
steward the project through fundraising, facility renovation, equipment acquisition, and
developing targeted programs for clients.
On December 11, 2007, the Orange County BOCC was presented with the Feasibility Report
and directed staff to schedule a work session to explore options for Orange County's
participation in this project. Many partners and stakeholders have reviewed the feasibility study.
2
On February 4, 2008, the Alamance County Board of Commissioners voted in favor of a
resolution supporting the project. Chatham and Durham Counties will be evaluating the project
at their upcoming meetings during the month of February.
The Feasibility Report noted 13 action items to address the development phase of the Center in
the upcoming 18 to 24 months.
At the February 12, 2008 BOCC work session, the Board reviewed and discussed the Feasibility
Report in greater depth with Smithson Mills, the author of the Report, and County staff. The
Board provided feedback including continued interest in the project, the setting up of a 501 (c)3
to govern operations, and concern over the allocation of costs with Orange County providing the
facility. These concerns have been incorporated into the attached draft resolution.
FINANCIAL IMPACT: There are no financial costs directly related to the attached draft
resolution. However, there will be cost implications attributed to the renovation of the facility and
development cost over a 3-year period based upon the Board's direction. After its first year of
operation, it is anticipated the facility will generate more than $150,000 in fees. During the
second and third years, the facility is projected to generate between $800,000 and $1.2 million
in gross revenues to the vendors per year. Financial grants will be sought to defray costs as
much as possible.
RECOMMENDATION(S): The Manager recommends that the Board approve the resolution
and authorize the Chair to sign:
1) Agreeing to participate in a regional, multi-county. value-added shared-use food and
agricultural processing center;
2) 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;
3) Recommending that the governing board of the Center become a 501(c)3; and
4) Requesting that equitable fiscal support among partners be pursued that recognizes
the allocation of the Orange Enterprise building owned by Orange County.
DRAFT
ORANGE COUNTY BOARD OF COMMISSIONERS
RESOLUTION
Support for a Piedmont Regional Shared Use; Value Added,
Food and Agricultural Processing Center
WHEREAS, the recent tobacco buyout program has left many farmers seeking
economically profitable alternative enterprises to allow them to remain farming; and,
WHEREAS, the proximity of Alamance, Chatham, Durham, and Orange counties to
markets for value added products is significant given existence of local farmer's markets,
grocers, restaurateurs, and food service managers that buy local farm products; and,
WHEREAS, added value products provide a means to retain economically viable,
thriving farms in Alamance, Chatham, Durham, and Orange counties, benefiting our rural
character and agricultural heritage, and contributing to the health and high quality of life;
and,
WHEREAS, shared use value added processing centers require careful planning and
strong collaborations to be successful; and,
WHEREAS, a feasibility study funded by Alamance, Chatham, Durham, and Orange
counties, as well as Weaver Street Market and Whole Foods, was completed in
November 2007, and,
WHEREAS, the survey respondents included 36 percent fruit and vegetable growers, 27
percent livestock producers, and 28 percent specialty food producers, caterers, or
restaurateurs, who together currently produce 74 food items, and in the future desire to
produce 112 distinct products, and,
WHEREAS, the feasibility study indicates client use at the facility can reach 142
production hours per week in one year and would generate more than $150,000 in fees
in years 2 and 3 of operation, and gross income generated by clients using the facility
would be between $800,000 and $1.2 million per year; and
WHEREAS, the feasibility report detailed 13 action items that will ensure that the center
can open in 2009;
NOW, THEREFORE BE IT RESOLVED that the Orange County Board of
Commissioners:
1) Agree to participate in a regional, multi-county value-added shared-use food
and agricultural processing center;
2) Formally allocate 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;
3) Recommend that the governing board of the Center become a 501(c)3; and
4) Request that equitable fiscal support among partners be pursued that
recognizes the allocation of the Orange Enterprise building owned by Orange
County.
This the 19th day of February 2008.
Barry Jacobs, Chair
Orange County Board of Commissioners
Feasibility Report Action Items Entity Target
Date
1. Formally allocate the former Orange Enterprises building for Orange County Feb. 15,
development of a regional value-added food and agricultural Board of 2008
processing facility Commissioners
Part of Draft Resolution
2. Pass resolutions for formal commitments to project Alamance, Feb. 15,
participation by county commissions in Alamance, Chatham, Chatham, 2008
Durham, and Orange counties Durham, &
Orange
Part of Draft Resolution Commissions
3. Pursue initial grant funding to secure the services of the Alamance, Feb. 15,
lead project developer Chatham, 2008
Durham, &
Currently Underway Orange
Commissions &
Staff
4. Contract with the lead project developer for services Orange County Apr. 2008
to act as fiscal
5. Continue pursuing grant funds necessary to complete facility agent for project Now
renovations and equipment acquisition and installation until a non-profit through
management Jan. 2010
6. Upon securing facility renovation funds, hire an architect to entity is formed Sep. 2008
develop blueprints and oversee bidding for construction
services from a general contractor
7. Working with county commissions and the community Project Oct. 2008
advisory committee develop plans for creation of a nonprofit Developer and to Jan
management entity to own and oversee operations of the Advisory Group / 2009
project Non-Profit
Management
8. File articles of incorporation and approve board members Entity Jan. to
and bylaws for the management entity Mar. 2009
9. Oversee the bid process and contract award for a general Jul. 2008
contractor to undertake facility renovations and through
improvements Jan. 2010
10. Acquire phase one equipment needed for opening Jul. to Dec.
2009
11. Establish a $1/yr lease agreement for the facility between Orange County Jul. to Dec.
the county and the management entity, active upon 2009
securing the certificate of occupancy or on opening for
business
12. Secure start-up funds for hiring an executive director of the Jan. to
management entity Apr. 2009
13. Hire an executive director between 3 and 6 months before Jul. to Oct
the facility is open for business 2009
CENTER OPENS FOR BUSINESS Jan. 2010
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