HomeMy WebLinkAboutAgenda - 11-01-1993 - VIII-C 1
O R A N G E C O U N T Y
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: November 1, 1993
Action Agenda
Item n 1777LC
SUBJECT:
Sewer Extension Reimbursement
DEPARTMENT: PUBLIC HEARING: Yes X No
Economic Development
ATTACHMENT (S) : INFORMATION CONTACT:
Letter from HanL:or (2) Olivier Devaud - 2327
Excerpt from Water/Sewer Policy (3-4) Paul Thames - 2303
TELEPHONE NUMBERS :
Hillsborough - 732-8181
Durham - 688-7331
Mebane - 227-2031 .
Chapel Hill - 967-9251/968-4501
•
Purpose: To consider utilizing our current Water and Sewer Policy
to re-imburse a portion of the sewer extension cost paid by
Hancor, Incorporated to serve their $4, 000, 000 plant expansion
completed in June 1993 .
Background: In mid-1992, Rancor, Incorporated began the process of
considering an expansion of their existing manufacturing plant on
US 70 in Orange County near Mebane. The Economic Development
Commission, the County Engineer, and the Planning Department
worked closely with them to assist them with necessary information
for their land to be re-zoned, and for them to complete a site
plan and obtain a building permit for a new 41, 880 square foot
manufacturing facility. In November 1992, the property was re-
zoned to Industrial-1 (I-1) which did not require public sewer,
but having public sewer allowed a higher impervious surface limit
and a better long-term solution to their manufacturing needs . The
$1,500, 000 construction on site was completed in June 1993,
$2 ,500, 000 in equipment was purchased and installed, and 20 new
employees have been hired.
Rancor, Incorporated paid for all the engineering and construction
of the 2" forced main that serves their plant. Domestic waste is
pumped into the Efland Sewer System. Controls on the volume of
waste discharged have been implemented through the County
Engineer. The pump station is privately owned and operated; the
sewer lines were built to county standards and were given to the
County upon inspection and testing. Because the line is a forced
main, no residences along the line can tap in.
(CONTINUED TO PAGE 2)
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In the 1993-98 Capital Improvement Plan, $75 , 000 was budgeted for
a Utility Extension Fund.
Hancor, Incorporated' s tax bill in 1993 was $2 , 626 . 70; the 1994
tax bill, reflecting the expansion, is projected to be $30, 534 . 63;
the 1995 tax bill is projected to be $30,381 . 72 . The two year
projected increase in tax revenue to Orange County would be
$55 , 662 . 41 .
Recommendation: That the Board of County Commissioners allocate a
portion of the Utility Extension Fund during the next two fiscal
years to re-imburse Hancor Inc . for half of the actual
construction cost of the sewer line -- half would be $38,427 . 50;
total design and construction cost was $76, 855 . 00 . Re-imbursement
during fiscal years 1993 794 and 1994-95 would be $19,213 .75 per
year. Based on the current Water and Sewer Policy, Orange County
has the option to contribute funds for utility extension in the
amount equal to five years increased tax revenue caused by the
project. In this case, the payback for the funds allocated
through the Utility Extension Fund would occur in less than two
years .
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Hancor, Inc.
IHANCOR 401 Olive Street
P.O. Box 1047
Findlay, Ohio 45839.1047
Phone (419) 422-6521
FAX (419) 424-8300
September 22, 1993
Mr. Oliver DeVaud
Development Specialist
Orange County Economic
Development Commission
P.O. Box 1177
Hillsborough, N.C. 27278
Dear Mr. DeVaud:
In follow up to your request, listed below are the costs associated with
the sanitary sewer extension for Hancor's North Carolina manufacturing
facility expansion.
Engineering Services $ 9,800.00
(Phillip Post & Associates)
Material & Labor for Installation 67,055.00
(Lutz Construction Co.)
)
Capital Facilities Fees to the Town of
Hillsborough $800/acre for 10.4 acres 8,320.00
Tap fee for sewer access to Orange County 600.00
Total $ 85,775.00
This sanitary sewer extension allowed for Rancor's expansion
following new construction. P project of the
One (1) 43,000 sq. ft. manufacturing building with a construction
cost of $1,500,000.00 and approximately an additional $2,500,000.00
in equipment installed.
This expansion will open approximately 20 new jobs at our facility.
Hancor, Inc. is very appreciative of the assistance Orange County has given
toward making this project a reality. Please use this letter as Hancor's
request that Orange County share our costs for the sanitary sewer line
extension project listed above.
If you need any further information, please do not hesitate to contact me.
Sincerely,
RANCOR, INC
I
obert G. Hauz '
Vice President, Administration
RGH/a
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WATER & SEWER POLICY •
ORANGE COUNTY, N.C.
Draft: 7-31-87
Revisions: 8-26-87
9-2-87
11- 16-87
11-24-87
9- 17-88
11-21-88
1 -31-89
2 -7-89
3-30-89
Approved: 4-3-89
S_
G. Financial Participation in Extensions/Expansions of
County-Owned Systems
1 . Orange County' s financial participation for
approved projects which are extensions/expansions
to an existing County-owned system shall be limited
to those extensions/expansions where projected
revenues from the extensions equal or exceed the
projected operating costs plus the total debt
service of the extensions by the end of the fifth
year after the project is completed.
GOAL 5 - ACCESS AND AVAILABILITY FEE POLICIES (RESERVED)