HomeMy WebLinkAboutAgenda - 02-07-2023; 8-i - Proposed Extension to Medline Industries, LP Incentive Performance Agreement Concerning the Company’s Employment & Investment Target Dates 1
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: February 7, 2023
Action Agenda
Item No. 8-i
SUBJECT: Proposed Extension to Medline Industries, LP Incentive Performance
Agreement Concerning the Company's Employment & Investment Target Dates
DEPARTMENT: Economic Development,
Manager's Office, Attorney's
Office
ATTACHMENT(S): INFORMATION CONTACT:
1) October 2019 Signed Performance
Agreement between Orange Steve Brantley, Director, Economic
County & Medline Industries Development, (919) 245-2326
2) Proposed Contract Amendment to
the Original Performance
Agreement
PURPOSE: To approve and authorize the Chair to sign a contract amendment (Attachment 2)
for Medline Industries, LP, formally Medline Industries, Inc., authorizing an extension for the
company's contractual requirement to achieve overall employment hiring and investment goals
over the first 5 years, as authorized in Section 6. B. (Delay of Inducement Package Initiation) in
the October 2019 Performance Agreement (Attachment 1).
BACKGROUND: On September 12, 2019, North Carolina Governor Roy Cooper, Orange County
and the City of Mebane jointly announced a decision by Medline Industries to build a 1.2 million
square-foot LEED certified distribution center in Mebane, Orange County. Medline delivers
medical devices and supplies to hospitals, independent physician practices, critical care units,
surgical centers, home healthcare and EMS providers. Medline manufactures and distributes
more than 550,000 products to more than 90 countries.
Previously, during a special meeting on September 10, 2019, the Orange County Board of County
Commissioners held a public hearing and approved a Performance Agreement with Medline
Industries. That Agreement requires the company to (1) add 250 new employee positions, and
(2) complete a $65.3 million investment by the end of the first five years. These two targets are to
be achieved between an assumed commencement date of no later than July 31, 2020, and by or
before the January 31, 2026 termination date. These numbers were anticipated to be achieved
by year 5 of the investment period, but according to the Orange County Tax Office, the 2022 Real
Property and Business Property Investment exceeds $95 million. Additionally, Medline's October
2022 employment exceeded the 250 employee goal.
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Medline experienced an unexpected delay in receipt of its certificate of occupancy not under the
company's direct control, resulting in a delay of the commencement date. This unexpected delay
exceeded 12 months in duration and caused the company's revised investment and job creation
schedule to face an unrealistic schedule in relation to its 2019 agreement with the County.
In accordance with the Performance Agreement's Section 6. Remedy; B. Delay of Inducement
Package Initiation, Medline submitted a request to the County on November 19, 2020, within the
timeframe outlined in the Performance Agreement, requesting an extension. A Contract
Amendment is necessary to formalize the new December 31, 2021 deadline for the
commencement date and January 31, 2027 agreement end date.
FINANCIAL IMPACT: There is no financial impact to the County associated with extending the
start date of the 5-year incentive contract with Medline Industries, since the County's Performance
Agreement was previously approved by the Board on September 10, 2019 following a public
hearing.
SOCIAL JUSTICE IMPACT: The following Orange County Social Justice Goal is applicable to
this item:
• GOAL: ENSURE ECONOMIC SELF-SUFFICIENCY
The creation and preservation of infrastructure, policies, programs and funding necessary
for residents to provide shelter, food, clothing and medical care for themselves and their
dependents.
ENVIRONMENTAL IMPACT: There is no Orange County Environmental Responsibility Goal
impact associated with this item.
RECOMMENDATION(S): The Manager recommends that the Board receive and review the
County's original Performance Agreement with Medline Industries, LP, and approve and authorize
the Chair to sign the contract amendment (Attachment 2). This action will approve the extension
request made by Medline Industries and allowed by Section "6 B" (Delay of Inducement Package
Initiation) in the Performance Agreement, making the new commencement deadline December
31, 2021 and termination date January 31, 2027.
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STATE OF NORTH CAROLINA
ORANGE COUNTY
PERFORMANCE AGREEMENT BETWEEN ORANGE COUNTY,NC
AND
MEDLINE INDUSTRIES,INC.
This Agreement made and entered into this the_�J_day of^QC�oVVf , 2019 by and between Orange
County, a body politic existing under the laws of the State of North Carolina ("County") and Medline
Industries, Inc., an Illinois corporation authorized to do business in North Carolina, with facilities to be
Iocated in Mebane,North Carolina ("Company"), for the purpose of incentivizing Company's
investment in Orange County and Mebane.
Company is ail Illinois Corporation situated and doing business in Northfield, Illinois. Company is the
largest privately held manufacturer and distributor of medical supply products in the United States.
Company's Mebane Facility shall distribute medical supplies throughout the eastern United States and
central North Carolina. Company represents it is duly authorized to conduct business in North Carolina.
It is understood that the levels of performance required by this Agreement are to be met by this group
(Company and Medline Industries, Inc.)as a whale at its facility in Orange County(Mebane).
Accordingly,the term "Company" as used in this Agreement refers to the entire group at such facility.
WITNESSETH
THAT WHEREAS,the County has offered to the Company an inducement package as hereinafter set
forth; and
WHEREAS,the State of North Carolina and the Town of Mebane, North Carolina have offered separate
inducement packages to the Company; and
WHEREAS, but for the offer of an inducement package the Company would not be locating its
manufacturing facility within Orange County; and
WNTREAS, the Company has agreed to meet and continue meeting the min iinum investment and
employment requirements as hereinafter set forth;
NOW,THEREFORE,the parties hereto in consideration of these mutual covenants and agreements
passing from each to the other do hereby agree as follows;
1, DEFINITIONS. As used in this Agreement the terms below will have the following meanings:
A. "Affiliate," A company that the Company controls,controls the Company, or is under
common control with the Company.
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B. "Commencement Date. The date in which the Company begins actual operations at the
Subject Property, after having obtained applicable governmental approvals, certificates
of zoning compliance, and certificates of occupancy. The Commencement Date is
anticipated to he no later than July,2020.
C. "Company." Medline Industries, Inc. includes its affiliates, successors,and assigns.
D. "Eligible Property." Includes(a) the Subject Property(as defined in Exhibit B, Legal
Description of Deal Property), other real property in the County, and all improvements
the Company or an Affiliate of the Company constructs or installs, or causes to be
constructed or installed, at the Subject Property or such other real properly, including all
buildings, building systems, and building improvements, and(b) all personal property
(as defined in Section I.I. below, Personal Property) the Company or an Affiliate of the
Company purchases or leases and installs, at or relocates to, the Facility or such other
real property,
B. "Grant." An economic incentive grant to the County pursuant to Section 3 of this
Agreement.
F. "Minimum Taxable Investment," The aggregate investment amount in property and
infrastructure the Company intends to make and that Company and County anticipate
will result in a tags valuation of at least$65,300,000.00.
G. "Orange County Facility""Mebane Facility," or"Facility." The Company constructed
and/or owned primary and secondary structures, utilities, and operations and service
areas situated on the Subject Property in Mebane, Orange County,North Carolina in and
on which Company conducts its business,manufacturing, and/or operations.
H. "Person." Any individual,partnership, trust, estate,association, limited liability
company, corporation, custodian, nominee,governmental instrumentality or agency,
body politic or any other entity in its own or any representative capacity.
f. "Personal Property." All personal properly the Company or an Affiliate owns or leases
located at the Facility, including all (a)machinery and equipment, (b) furniture,
furnishings, and fixtures, (c) property that is capitalized for federal or state income tax
purposes, (d) all additions to any of the foregoing, and all replacements of any of the
foregoing in excess of$]00,000.
.1. "Qualifying Expenditure." All expenditures the Company, an Affiliate, or lessor to the
Company or an Affiliate makes for Eligible Properly which is subject to Tax in the
County and is not subject to an exemption from Tax that the Company uses.
K. "State," The State of North Carolina,
L. "Subject Property." The property on which Company constructs and/or operates the
Orange County facility.
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M. "Tax"or"Taxes." Ad valoren? property tax levied oil real and personal property located
in the County pursuant to Article 25, Chapter 105 of the North Carolina General Statutes
or any successor statute relating to ad valorem property tax the County levies on
property.
N. "Term"or"Full Term." The duration of this Agreement meaning 00-0' r q,`2019
through and including January 31,2026,
2. INDUSTIUAL INVESTMENT AND EMPLOYMENT AGREEMENT
A. INVESTMENT
1. The Company anticipates it shall directly invest a Minimum "Taxable Investment of sixty
five million three hundred thousand dollars ($65,300,000.00), in accordance with the
investment plan attached as Exhibit A,on or before ,January 31, 2024. If the Company
does not make 80%of the Minimum Taxable Investment on or before January 31, 2021
(and as may be extended below), the amount of the Grants will be adjusted as provided
in Subsection 2.A.3.
2. The Company shall maintain the Minimum Taxable Investment for a period of at least
five years through and including January 31,2026.
3. If total increase of taxable investment falls below the Minimum Taxable Investment
levels, due to failure to meet the investment goals set forth in Exhibit A or removal of
equipment,as assessed by the Orange County Tax Assessor, the amount of the
following annual installment will be reduced by a pro-rata percentage of the shortfall.
The baseline for measuring whether the investment goals have been met will begin with
the date of performance agreement execution shall be adjusted (1) upward, if there is an
increase in the assessment of the Company's real property and (2)downward, to reflect
the natural decline in the value of the Company's personal property(existing in 2020
and acquired thereafter in the course of the new investment)as measured by the
depreciation orsuch property in accordance with generally accepted accounting
principles.
4, Should Company dispute the valuation of its property by the Orange County Tax
Assessor, Company may register an informal complaint with the Tax Assessor
requesting a re-evaluation of Company's property and resulting tax and the Tax
Assessor shall worlc with Company to conduct such re-evaluation. Should Company
dispute the results of any such re-evaluation the Company may appeal the resulting
valuation under the same process and subject to the same requirements as any other tax
appeal in Orange County.
R. EMPLOYMENT
1. an or before January 31, 2026, at least 250 persons will be employed in full-time
positions at the Mebane facility(".lobs Minimum"). The number of full-time positions
shall be evidenced by one or more Quarterly Tax and Wage Deports (Form NCUl 101)
filed with the North Carolina Department of Comrnerce's"NC Works"employment
career center. If 80%of the Jobs Minimum is not achieved on or before January 31,
2026 (or as extended as provided below), the amount of the Grants will be adjusted as
provided in Section 6.
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2. During the first year of operation after commencement of this Agreement,Company and
County agree Company shall hire 30 lull time employees at its Mebane Facility. During
the second year of operation the Company shall hire an additional 75 full time
employees at its Mebane Facility for a total of 105 full time employees at its Mebane
Facility. During the third year of operation the Company shall hire at a minimum all
additiona175 full time employees for a total of 180 Full time employees at its Mebane
Facility. During the fourth year of operation the Company shall hire an additional 50
full time employees for a total of230 full time employees at its Mebane Facility.
During the fifth year an additional 20 full time employees shall be hired for a final and
ongoing 250 full time employees at its Mebane facility. At the expiration of this
Agreement, the Company slialI employ, at its Mebane Facility in Orange County, at
least the equivalent of 250 full time employees in accordance with Exhibit A.
3. Employees counted toward this total shall include only new employees of the Company
employed and located at Company's Mebane Facility in Orange County, provided such
employees are employed in Orange County on a till time basis. Employees of the
Company will he eligible to participate in Company sponsored health insurance and
retirement programs. for purposes of this section "250 full time equivalent employees"
shall be defined as 250 actively employed individuals and shall not include vacant
positions for which the Company is actively or otherwise recruiting. It is understood
that vacancies occur and that when such occur the Company will immediately, or as
soon as is reasonably possible thereafter, fill said vacancies. The average wage of the
250 new full time equivalent employees shall be, as of the last day ofthis Agreement, at
the annual rate of$35,468.
C. DEVELOPMENT GRANT PARTICIPATION: Where applicable, the Company agrees to
partner, through the commitment to create new jobs, with Orange County and other applicable
agencies to apply ror development grants that will improve and/or add water, sewer, road or
other necessary infrastructure in order to Facilitate the successful completion of this project. The
Company agrees to meet with program representatives, and to participate in the grant request
process as necessary to secure the required funding.
D. GUARANTEED MINIMUM LEVEL OF PERFORMANCE: The Company guarantees that
its minimum level of performance pursuant to this Agreement shall be as set out in this Section
2. Company agrees that failure to meet the minimum level of new employment as reflected in
Section 2.13. shalI entitle the County to reductions in inducement installments paid to the
Company in an amount of four hundred fifty dollars ($450.00)per employee not hired as
reflected in Section 2,13. and Exhibit A. Company further agrees that failure to meet the
minimum level of direct investment as reflected in Section 2,A. and Exhibit A shall entitle
County to pro rata reductions in inducement installments paid to the Company as set out in
Section 3.
E. STATUTORY COMPLIANCE: The Company understands that the County's participation is
contingent upon authority found in North Carolina General Statute 158-7.1 and other relevant
North Carolina General Statutes and that should such statutory authority be withdrawn by the
North Carolina General Assembly County may terminate this Agreement without penalty to
County and without further compliance with this Agreement.
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3. INDUCEMENT PACKAGE
A. COUNTY INDUCEMENT GRANT: The County, upon execution of this Agreement, shall
provide to the Company an inducement to offset facility development, expansion, and
acquisition costs in an amount not to exceed One Million Eight I-1undred forty Thousand Nine
Hundred Sixty Seven Dollars ($1,840,967.00). This inducement shall be payable in five
installments over a five year period, calculated as a performance grant equal to seventy-five
percent(75,01K) of the actual property tax valuation for real and personal property taxes due in
each year of the 5-year grant period. The first installment shall occur during 111.cq of
the 2021 calendar year upon receipt of proof:, as described in Section 5 of this Agreemerlt, that
the minimum employment and investment numbers referenced in Section 2 of this Agreement
have been met and that all local property taxes on the real and business personal property owned
by the Company and located within Orange County have been paid. Subsequent annual
installments will occur during the month of January for the term of this Agreement with the final
installment occurring in January 2026. Na installment shall be required to be paid until such
time as County receives proof of the payment of all property taxes and verification of
employment and investment levels has been submitted to the County.
B.TOTAL COUNTY COMMITMENT: The total County commitment For the Inducement
Grant outlined in Section 3.A. above shall not exceed One Million Eight Hundred Forty
Thousand Nine Hundred Sixty Seven Dollars ($1,840,967.00),
4. EXPANSION OPPORTUNITY
Participation in this Agreement shall not exclude the Company from consideration for additional
inducements from.the County either during or upon completion of this Agreement. Future
projects shall be considered on a case-by-case basis and induced at the discretion of the County
based on new taxable investment and job creation in excess oFthe minimum levels outlined in
Section 2 above. Any such agreement shall require a separate "Performance Agreement" which
shall conform to al I relevant North Carolina Statutes and/or Orange County Ordinances, Policies
or Resolutions, shall be in writing, and shall be mutually agreed upon by the Parties.
5. PROOF AND CERTIFICATION
The officials of Parties to this Agreement shall furnish the necessary reports and certificates to
verify that each Party's respective goals are met. Once the Company maintains its investment
and employment goals for the term of this Agreement it will no longer need to furnish these
reports,
Acceptable forms of proof for taxable investment shall be the records of the County Tax
Administrator. Acceptable forms of proofof'payment of taxes shall be in the form of cancelled
cheeps and receipts of payment from the County Tax Administrator. Acceptable forius of proof
for employment numbers shall be in the form of notarized statement from allorth Carolina
licensed Certified Public Accountant and shall be verified by the North Carolina Employment
Security Commission.
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6. REMEDY
A. INDUCEMENT PACKAGE-': if the County does not meet and maintain the terms set forth
in the inducement package, the Company has the option to the rights set forth in Section 11.A.
of this Agreement upon thirty(30)days written notice to the County.
B. DELAY OF INDUCEMENT PACKAGE INITIATION: If the Company does not meet
employment and investment goals that are to be met pursuant to this Agreement by December
31, 2020, the onset of this Agreement may be delayed one(1) year, at the option of the
Company. Written notification of a request to delay onset must be received by the County no
later than December 31, 2020. In that event this Agreement shall initiate no later than December
31, 2021 and shall expire no later than January 3I, 2026.
C. INVESTMENT AND EMPLOYMENT PACKAGE: If the Company does not meet and
maintain either the investment or employment goals within the annual timetable set forth in this
Agreement,and does not opt to delay the onset of this Agreement as described above,then the
county will reduce the annual installment payment as set forth in Section 2.D. of this Agreement
until such time as the Company once again meets both the investment and employment goals.
Reduction shall be computed, exclusively by the County,based on the percentage of the goal not
met. In order to qualify for the full reimbursement, including recovery of any prior reductions,
both investment and employment must meet or exceed the minimum standards outlined above
prior to the natural termination of this Agreement.
7. SEVERABILITY
If any term or provision of this Agreement is held to be i Ilega1, invalid, or unenforceable,the
legality, validity,or enforceability of the remaining terms, or provisions of this Agreement shall
not be affected thereby; and in lieu of such illegal, invalid or unenforceable term or provision,
there shall be added by mutually agreed upon written amendment to this Agreement,a legal,
valid,or enforceable term or provision, as similar as possible to the term or provision declared
illegal, invalid, or unenforceable.
S. COMPLIANCE WITH THE LOCAL GOVERNMENT BUDGET AND FISCAL CONTROL
ACT OF NORTH CAROLINA GENERAL STATUTES
All appropriations and expenditures pursuant to this Agreement shall be subject to the provisions
of the Local Government Budget and Fiscal Control Act of[lie North Carolina General Statutes
for cities and counties and shall be listed in the annual report submitted to the Local Government
Commission by the County.
9. GOVERNING LAWS & FORUM
This Agreement shall be governed and construed by the Laws of the State of North Carolina.
Any action brought to enforce or contest any term or provision of this Agreement shall be
brought in the North Carolina General Court of Justice sitting in Orange County,North
Carolina. The Parties hereto stipulate to the jurisdiction of said court.
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]0. INDEMNIFICATION
The Company hereby agrees to indemnify, protect and save the County and its officers,
directors, and employees harmless from :ill liability, obligations, losses, claims, damages,
actions, suits, proceedings, costs and expenses, up to the amount of the Inducement Grant
including reasonable attorneys' fees, arising out of, connected with, or resulting directly or
indirectly from the business, construction, maintenance, or operations of the Company or the
Company's Mebane Facility or the transactions contemplated by or relating to this
Agreement, including without limitation, the possession, condition, construction or use
thereof, insofar as such matters relate to events subject to the control of the Company and
not the County, To the extent authorized by North Carolina law the County hereby agrees
to indemnify, protect and save the Company and its officers, directors, and employees
harmless from all liability, obligations, lasses, claims, damages, actions, suits,proceedings,
costs and expenses, including reasonable attorneys' fees, arising out of, connected with, or
resulting directly or indirectly from the performance of this Agreement attributable to the
negligence or misconduct of the County, its officers or employees. '1Thc indemnification
arising under this Article shall survive the Agreement's termination,
11. TERMINATION
A, COMPANY: Upon Company's meeting its Employment and investment obligations as set
out in Section 2 above and upon Company's certification to such and certification of the
payment of all real and personal property taxes, as set out in Section S above, then upon the
occurrence of any of the following events, the Company shall have the option of terminating
this Agreement: Failure of the County, to provide the initial inducement installment as
provided in Section 3 of this Agreement; or, under the same circumstances, failure of the
County to matte future inducement installments, as provided for in Section 3 of this
Agreement. Should the Company exercise its option to terminate this Agreement, pursuant to
this Section for failure by the County, the Company shall be entitled to retain all funds paid to or
for the benefit of the Company pursuant to this Agreement:. Should the Company terminate this
Agreement of its unilateral choice, regardless of any of the above incidences of default, the
Company shall repay to the County all fiends paid to or for the benefit of the Company
pursuant to this Agreement. Thereafter,the County shall have no further obligation to matte
inducement installments annually or otherwise, Any such termination of this Agreement by the
Company shall be in writing and shall meet notice requirements as set out herein.
13. COUNTY: The County shalt have the option of terminating this Agreement upon any
Abandonment of Operations by the Company,without penalty to the County, which option
shall be executed by giving written notice to the Company.Abandonment of Operations shall
he defined as a period in excess of four(4) weeks during which the Company's level of Full
Time Equivalent Employees or Direct Investment goes below twenty percent(20%) of the
guaranteed minimum levels of performance Commitments for either Full Time Equivalent
Employees or Direct Investment as reflected in Section 2 above. Notwithstanding the foregoing,
if the aforesaid decline in the number of full time equivalent employees or the Company's
failure to make the required direct investments is attributable to a substantial overall national
economic decline (as such may be recognized by the United States Bureau of Labor Statistics),
this shall not be deemed an abandonment of operations entitling the County to terminate this
Agreement,and the Company shall not be deemed in default. In such event,the Company's and
the County's obligations shall be suspended for one year and resume thereafter. If after one
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year the aforesaid substantial. decline continues the County may declare an Abandonment of
Operations and proceed as set forth herein.
C. NATURAL; In any event, the above terms notwithstanding, this Agreement shall
terminate upon the 31F° day of January of the year in which the final financial inducement
installment is made.
12. LIMITATION OF COUNTY'S OBLIGATION
NO PROVISION OF THIS AGREEMENT SHALL BE CONSTRUED OR
INTERPRETED AS CREATING A PLEDGE OF THE FAITH AND CREDIT OF
THE COUNTY WITHIN THE MEANING OF ANY CONSTITUTIONAL DEBT
LIMITATION. NO PROVISION OF THIS AGREEMENT SHALL BE
CONSTRUED OR INTERPRETED AS DELEGATING GOVERNMENTAL POWERS
NOR AS A DONATION OR A LENDING OF THE CREDIT OF THE COUNTY
WITHIN THE MEANING OF THE STATE CONSTITUTION. THIS
AGREEMENT SHALL NOT DIRECTLY OR INDIRECTLY OR CONTINGENTLY
OBLIGATE THE COUNTY TO MAKE ANY PAYMENTS BEYOND THOSE
APPROPRIATED IN THE COUNTY'S SOLE DISCRETION FOR ANY FISCAL
YEAR IN WHICH THIS AGREEMENT SHALL BE IN EFFECT. NO PROVISION
OF THIS AGREEMENT SHALL BE CONSTRUED TO PLEDGE OR TO CREATE A
LIEN ON ANY CLASS OR SOURCE OF THE COUNTY'S MONEYS, NOR SHALL
ANY PROVISION OF THE AGREEMENT RESTRICT TO ANY EXTENT
PROHIBITED BY LAW,ANY ACTION OR RIGHT OF ACTION ON THE PART
OF ANY FUTURE COUNTY GOVERNING BODY.TO THE EXTENT OF ANY
CONFLICT BETWEEN THIS ARTICLE AND ANY OTHER PROVISION OF THIS
AGREEMENT,THIS ARTICLE SHALL CONTROL.
13. LIABILITY OF PUBLIC OFFICERS
No officer, agent or employee of the County or the Company shall be subject to any personal
liability or accountability by reason of the execution of this Agreement or any other
documents related to the transactions contemplated hereby. Such officers, agents, or
employees shall be deeined to execute such documents in their official capacities only, and
not in their individual capacities. This Section shall not relieve any such officer, agent or
employee from the performance of any official duty provided by law.
14. MISCELLANEOUS
A. ENTIRE AGREEMENT; This Agreement, including all exhibits attached, constitutes the
entire contract between the parties,and this Agreement shall not be amended except ill
writing signed by the Parties.
B, BINDING EFFECT: Subject to the specific provisions of this Agreement, this
Agreement shall be binding upon and inure to the benefit of and be enforceable by the
Parties and their respective successors and assigns.
C. TIME. Time is of the essence in this Agreement and each and all of its provisions.
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D. CONSTRUCTION: Nothing in this Agreement shall be construed to the effect that the
County has any right to influence the Company's business decisions or to receive business
information from the Company(except as expressly provided in Section 2B and Section S
hereof].
15. NOTICES -
Any notices pursuant to and/or required by this Agreement shall be in writing and shaII liu
delivered via Upited States Mail,certified, return receipt requested:
If to Orange County; If to Medline Industries, Inc.:
County Manager Director Tax
Tax Department
Three Lakes Drive
200 S. Cameron Street Northfield, IL 60093
Hillsborough,NC 27278
Any addressee may designate additional or different addresses for communicatiuns by notice
given under this Section to the other Party,
[SIGNATURE PAGE TO FOLLOW]
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AGREEMENT REVIEWED AND ACCEPTED BY:
By Medline Industies, I t.
Date: Attest: Date
Dmitry Dukhan
Vice President of Real Estate 'Title:
Medline Industries, Inc.
By Grange County,
4"o
{
Penny Lich Date Attest: Donna Baker Date
Chair Clerk to the Board
Orange County Commissioners Orange County Commissioners
This iiMrument 11as been pre-audited in the manner required by the Local Government Budget and
Fiscal anti 1,A;ct,
Chief r jii4ncia110fficer
Approved as to form.and legal sufficiency.
Office of the County Attorney
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EXHIBIT A — Proposed Orange County Incentive
Project Summary Form for State of North Carolina Incentive Review
PROJECT SUMMARY FORM
1edline Industries,Inc.
Key Dates: Enterthe date that the Company anbapates
a.Making the deCiMn vhet her to locate the Project in IiC 5 2019
b.Mmina the initial capita[investment related to the Project 7 2019
c Starting cons"etion,expansion, or renovatiOWUPtit of the P roject fadflty 9 2019
d.Hiring the first joh related to the Project 7 2020
e.Commencing operationsat the Project fealty 10 2020
Average Wages
Avg.Ann va
Nerv_J_otgs BrYenr 3-yew +-Year Wa;eofALL Min
202D 24c1 23M $0 202: TOTAL TOTAL Jots Wade.`Jots
1Jetivtnvesrnent By-Yea r -Yea 5-v
ear
12019 =0 2Q"c'1 2= TOTAL TOTAL
Real Prapert/ S25 000.000 S30,000,000 - 9Q —� so St? S55,000.000 s55s000,000
Tan,QiNePersoraI Pro perty 53.000.000 57,000.000 510Q.D00 51 DO.000 St00.000 Sf0.400,000 St0,300,000
Total Investment S28,000,000 S37,000,0001 S't00,000 S100.00131 Si W0001 L $66.100.0001 SSS,300.000
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EXHIBIT B—Proposed Orange County Incentive
Legal Description of Real Property
Owner Property Identification Number PIN Acreage
Collins, Donna G 9834657934 34.37
Collins Donna G Trustee
Rohl irell Trustee Eta] 9834756858 62.51
Rohl, Robert D
Whitfield,James H 9834853573 14.09
Airison,_Gary L 9834956553 14.08
SL Efland Heirs LLC 9834868296 28
Brown, Martha S 9834955749 19.74
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Attachment 2
NORTH CAROLINA
CONTRACT AMENDMENT
ORANGE COUNTY
THIS CONTRACT AMENDMENT ("Amendment") is made and entered into this day of , 20 by
and between ORANGE COUNTY (hereinafter referred to as "County") and MEDLINE INDUSTRIES, LP and MRE
Propeo LP (formerly Medline Industries,Inc.)(hereinafter referred to as"Provider").
WITNESSETH:
THAT WHEREAS, the County and Provider entered into a contract dated October 4, 2019, (hereinafter the "Original
Agreement"), for the provision of services for incentivizing the Company's investment in Orange County; and
WHEREAS, the County and Provider desire to amend the Original Agreement while keeping in effect all terms and
conditions of the Original Agreement not inconsistent with the terms and conditions set forth below.
NOW THEREFORE, for and in consideration of the mutual covenants and agreements made herein, the parties agree to
amend the Original Agreement as shown below.
1. Pursuant to the terms of Section 6B the Commencement Date, as defined in Section 1D is amended to
December 31, 2021 and the expiration date is amended to January 31, 2027. Other dates in the Original
Agreement tied to rights and obligations of the parties are extended by one calendar year from the date
reflected in the Original Agreement.
2. Except for the changes made herein, the Original Agreement shall remain in full force and effect to the extent
it is not inconsistent with this Amendment. In the event there is a conflict between the terms of the Original
Agreement and the terms of this Amendment,this Amendment shall control.
IN TESTIMONY WHEREOF, this Amendment has been executed by the parties hereto, as of the date first above
written.
ORANGE COUNTY PROVIDER
Chair Kate Slattery
Orange County Board of Commissioners Vice President of Real Estate
MEDLINE INDUSTRIES,LP
MRE Propco,LP
Revised 06/21