HomeMy WebLinkAboutMinutes 04-30-2024 - Work Session 1
APPROVED 6118/24
MINUTES
ORANGE COUNTY
BOARD OF COMMISSIONERS
WORK SESSION
April 30, 2024
7:00 p.m.
The Orange County Board of Commissioners met for a Work Session on Tuesday, April 30,
2024, at 7:00 p.m. at the Southern Human Services Center in Chapel Hill, NC.
COUNTY COMMISSIONERS PRESENT: Chair Jamezetta Bedford, Vice-Chair Sally Greene
and Commissioners Amy Fowler, Jean Hamilton, Earl McKee, Phyllis Portie-Ascott, and Anna
Richards
COUNTY COMMISSIONERS ABSENT: Commissioner Earl McKee
COUNTY ATTORNEYS PRESENT: John Roberts
COUNTY STAFF PRESENT: County Manager Bonnie Hammersley, Deputy County Manager
Travis Myren, and Clerk to the Board Laura Jensen. (All other staff members will be identified
appropriately below)
Chair Bedford called the meeting to order at 7:00 p.m. All commissioners were present,
except for Commissioner McKee.
Chair Bedford asked for a motion to add a closed session to the agenda.
A motion was made by Vice-Chair Greene and seconded by Commissioner Hamilton to
add a closed session.
VOTE: UNANIMOUS
1. Consultant Briefing on Orange County Land Use Plan 2050
The Board received a briefing from Clarion Associates, LLC, on the Land Use Plan 2050 for
discussion and feedback.
BACKGROUND: At its February 15, 2024 work session, the BOCC received a presentation with
a review of the first community engagement window outcomes and project deliverables, including
Stakeholder Summary Report and the Community Policy Profile. Following is a link to the agenda
materials from this meeting:
http://server3.co.orange.nc.us:8088/WebLink/0/doc/71722/Pagel.aspx
All deliverables are also made available to the public on the project website, "Resources" tab:
https://www.orangecountVIanduseplan.com
Tonight's presentation will be the Board's third from Clarion and will include a briefing on project
work completed and underway. More specifically, progress towards the development of land use
alternatives that will be used to test and explore policy options for the new Plan will be discussed.
Much of the basis informing this presentation and discussion is data that can be found in the
prolect's Fact Book and the responses collected from Community Engagement Window #1. This
will be an opportunity for the Board to ask questions and offer input for refining land use
alternatives prior to the next community engagement window this fall.
Tom Altieri, Senior Planner, introduced the item and the presenters Leigh Anne King, of
Clarion Associates.
,�A ,y,, April 30,2024
�• < �:° ORANGE COUNTY
LAND USE PLAN Board of County
`' curcnaou Fume 2050 Commissioners
Briefing
s
Leigh Anne King made the following the presentation:
SlideCLARION
°A • • •
Progress
2. • Use Alternatives
1.
t _ - Approach
Purpose,
c) Key b) Key Influences
Question
R
y
ProAlternatives
posed Land Use
3. Next Steps
Slide #3
Project Progress
3
Slide #4
Project Progress
Phase 1:
Phase 2 Phase 5:
Launch Identify New cvatuate Develop Adopt the
Project Issues and Planning PLan Ptah
Opportunities Influences
Moan A*
1 ¢-7 3-� 'Ad0 21-26
Slide #5
r.
ReportPhases 2-4 Status
Work that has been completed:
• Phase 2:
• Published the Community Engagement Window#1 Summary Report
• Finalizing New Issues and Opportunities Report
• Phase 3:
• Published the Fact Book Resources
• Phase 4:
• Project Team Work Session—Land Use Alternatives
Initial drafts of Plan Outline for Staff Team Review
Work that is underway: -- ——
Phase 4:
Develop Draft Plan Framework,Vision,and Goals
Development of Land Use&Development Recommendations Report(land use alternatives)
Develop Plan Policies and Actions
4
Slide#6
EngagementCommunity • .
ReportSummary
• Provides a summary report of the ORANGI COUNTY LAND USE M0
activities, objectives, and outcomes
of Community Engagement
Window #1
• Provides a foundation for Phase 4
work
• Available on the website under
Resources
Slide#7
New Issues and Opportunities Report 7T
• Draft reviewed by County Staff Team
• Finalizing report for website
Wgmhed and OPC
Space Rnrsenntion
• Synthesizes the critical issues and
opportunities identified in Phases 1-3
• Provides a foundation for Phase 4: c
Develop the Plan
New Issues&Opportunities:
Key Themes
Leigh Anne King said that their team wants sustainable development to reflect Orange
County.
5
Slide #8
Fact . • •
• Shares data and trends on
community planning topics
and future planning influences
that are important
considerations for developing
plan policies. `
• Leverages existing technical2050
reports prepared by County as well
as recent American Community
Survey data
• Includes data analysis shared C—ION
during CEW 41 workshop
• Available on the website
under Resources
Slide #9
3;
h Y�
6
Slide#10
What are ■ use alternatives?
2050 Land
2030 Future Use Plan
Land Use Plan
_ _ I
�—— ,,. Q
Land Use Alternatives: Inform Selection for m
Build off Current Policies Explore and Test Hypothetical Preferred Policy Approach ,,
Future Land Use Policies M50 Plan
Leigh Anne King said the alternatives are not intended to become the land use plan but
will be used to create the preferred land use plan. She said the alternatives are a type of thought-
exercise.
Slide #11
Key Terms
1 . Land use alternatives and land use scenarios are
synonymous terms.
Z. Conservation and Growth Framework is a thematic title
for the future land use map (FLUM) and categories.
0
7
Slide #12
Purpose/intentof LU Alternatives
1. Model hypothetical future land use policy alternatives
for unincorporated Orange County and assess outcomes.
2. Share outcomes of alternatives modeling with County
leadership and residents and gather feedback to inform
development of 2050 Plan Future Land Use Map (FLUM).
The final preferred Conservation and Growth Framework (FLUM) may be a
combination of policy directions from more than one of the alternatives.
Chair Bedford referred to slide #7. She asked if those key themes will be the measured
outcomes.
Leigh Anne King said they will be more detailed, but they will likely be grouped into those
themes.
Chair Bedford asked for an example.
Leigh Anne King said one is thinking about the capacity for development in particular
areas. She said the different alternatives could have different amounts of land that will be
developed and land that will be preserved. She said that could be quantified and measured. She
said they could also have guidance on how these alternatives might support transit service. She
said they might ask if there are more opportunities for developing affordable housing in one
alternative versus another.
Vice-Chair Greene asked if Clarion needs guidance from the Board on which alternatives
support transit better than others.
Leigh Anne King said no, but when they evaluate the alternatives, they can have an
evaluation of multiple types of metrics and one example could be how do the different alternatives
compare in terms of creating development that could utilize transit fairly well or less so.
Vice-Chair Greene clarified that it would be using the existing transit map.
Leigh Anne King said yes.
Commissioner Portie-Ascott asked if the alternatives based on current zoning only or are
they dreaming of different possibilities.
Leigh Anne King said they start off looking at current policies. She said they would look
at the land use classification and current zoning. She said that the first scenario is asking where
are we today and establishing a baseline. She said that there are three alternatives from that
baseline. She said that she also would share more later in the presentation.
Cy Stober, Planning and Inspections Director, said that zoning is not part of the modeling,
but future land use classification is. He gave an example of Area A of the Buckhorn Economic
Development District. He said that area is not going to change in this process, and the county
would want to locate jobs in that area, but not houses.
8
Slide #13
Land Use Alternatives Process
Identify the areas Explore the Evaluate the Inform the policies
where we might potential land use outcomes of and land use
want to see alternatives for those changes. changes needed
change. those areas. to support the
desired outcomes.
Slide #14
How LU Alternatives Will Be Used
Refine Plan
Goals and Policies Adjust Future
-_ Land Use Map
CO010
Generate Share and �-
Computer Collect
Models of Feedback
Land Use from Public
Alternatives Engagement
Slide
Alternatives in � -� •
Oran a Count
Initial Public Inputs
0
on Plan Vision and ..
ls
g Conditions &Plannirg Influences
Analysis
Development
Public Inputs on Preferred Aspects of Land Use
Alternatives
D- opmerit of Policies and Growth and
categories)Conservation Framework (map and
-- and Use Alternatives Discussion
What is the
What's the What are the modeling
question? alternatives? approach?
Define the question that iVlethvdoiogy and tools to
alternatives modeling will Conceptual alternatives that model alternatives
answer
res{�ond to question
16
10
Slide#17
Work Completed To Date � )
1. Project team work session to discuss question,
conceptual alternatives, and begin discussing
methodology.
2. Staff Working Group meeting to share the
recommended question, conceptual four (4) land use
alternatives, and discuss data needs.
m
Slide#18
Alternatives Approach: Exploratory
Provides for exploration of critical community topics:
• Natural resources and agricultural lands protection
• Creating more affordable housing
• Reducing carbon footprint through reduction of VMTs and transit
• Economic equity and jobs creation _—_ -
11
Slide#19
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Slide #21
About the Key Question
■ Focuses effort so all groups involved have a
common understanding of purpose and intent
■ Focuses analysis to ensure that testing includes
a manageable number of variables and results in
meaningful outcomes
■ Serves as a "beacon" during the development of
the alternatives when other questions tend to
creep in
Slide#22
Identifying Key Question
■ What specific question do we want the land use
alternatives to answer?
■ 4r put another way, what is the critical land use
planning question that would benefit from
alternatives analysis and testing with the public?
13
Slide#23
Key Influences to Consider
Q1.Most critical roles for the county government in the next 10 to 20years
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Slide#24
Key Influences to Consider
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Slide#25
Key Influences • Consider
Q17.Rated Future Priorities of the County
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Slide #26
V
Key Influences to Consider
■ Depending on how you ask the question,
the priorities change.
• It may be hard to understand the
interconnections of some of these issues.
■ Example...
15
Slide#27
Key Influences to Consider
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Slide#28
a�.
Proposed Key Question
Which aspects of the land Agricultural,
Watershed,and Open
use alternatives best Space Preservation
achieve the balance of
sustainable development
DEVELOPMENT
111d,1 7
in unincorporated Orange Housing Attaipability Climate Responsive
Countyand Advaricing Transportation and
Development
Vice-Chair Greene said that people are likely speaking to government subsidy in already
dense areas rather than putting housing in unincorporated Orange County. She said this is a plan
for unincorporated Orange County and there is a disconnect that causes conflict.
Leigh Anne King said the first alternative is status quo and continue as is. She said the
second alternative is for focused affordable housing development to happen in municipalities. She
said there is not a policy that would direct affordable housing developments to unincorporated
areas in the county.
16
Vice-Chair Greene said that is how she understands it but referenced slide 28 and said if
that the answer shown is confusing to the reader if it is answering the question that is posed.
Leigh Anne King said the other two alternatives do offer affordable housing in the county
and that is one of the things they want to get feedback on. She said the question they have for
the Board is if they want affordable housing in the county's jurisdiction or the county supporting
efforts for those to be located within the municipalities.
Vice-Chair Greene said that if there are four scenarios, scenarios 1 and 2 are confusing.
Chair Bedford said they would want that for all of Orange County versus just the
unincorporated part. She said they want to think big picture for all of the county.
Leigh Anne King said they would be building off of total county statistics and off projections
in the metropolitan transportation planning exercise that gets updated every five years. She said
the reason this question shows unincorporated is because they are trying to be clear because
they are testing what the county could do differently policy-wise in the areas that they have
planning and zoning jurisdiction.
Cy Stober said the scenarios will evaluate if the land use addresses affordable housing or
not. He said it will show the potential to serve that need or not. He said that the land use plan will
show whether the needs are being met or will need to be met in the municipalities. He said in
terms of the language, they would take their thoughts under consideration.
Commissioner Fowler asked if they mean housing that is more affordable for everyone, or
do they mean affordable for lower income.
Cy Stober said he would review the responses from the Strategic Plan to confirm.
Vice-Chair Greene said that at the community sessions, people would say that they
wanted more affordable housing.
Commissioner Fowler said it is critical to clarify what affordable housing means before
they take action.
Commissioner Portie-Ascott said it would be important to define affordable housing,
because her impression was, they were trying to address the issue of people driving each day to
work in Orange County.
Leigh Anne King said they take the land use planning focus to the work and when they
think about affordable housing, they are thinking about what that would look like by types of
developments that would support various income levels.
Commissioner Richards said that in every community survey they have done, this issue
has come up to the top. She said she understood that the "influencers" in the study were the
things that the community has highlighted as important issues. She confirmed that the scenarios
would be put together, and that Clarion would get feedback.
Leigh Anne King said they are not presented as answers but as various options and there
will be questions asked about what is liked and not liked in all alternatives.
Commissioner Richards said that feedback from all four of the alternatives would be the
basis of the development for the then recommended plan.
Leigh Anne King said it is a safe, hypothetical way to test out options for policy direction.
Commissioner Richards asked if the questions were already phrased or if Clarion was
working on that.
Leigh Anne King said this would be the overarching question for the process. She said
they are trying to figure out what the best balance is for sustainable development in
unincorporated Orange County.
Commissioner Richards said it could change nothing, or three other alternatives.
Leigh Anne King said that it would likely be something slightly different than all four
alternatives. She said normally there are key pieces of exploratory scenarios and those come
together meaningfully as a comprehensive land use approach.
17
Commissioner Richards said she is glad that they are not limiting where it can be. She
said that they need to be able to look at alternatives. She said they might reject them all, but to
not explore all of the possibilities, would shortchange themselves.
Commissioner Hamilton said for the proposed key question, she would change the
question to read "Which aspects of the unincorporated Orange County land use alternatives best
achieve the balance of sustainable development in Orange County?"
Vice-Chair Greene asked how that helps the question.
Commissioner Hamilton said because it is clear that the question is regarding land use in
unincorporated Orange County but that when they are making decisions about unincorporated
Orange County, they are also considering all of Orange County.
Vice-Chair Greene said her eye is drawn to the three circles and thinking about how to
balance these things in Orange County and she said that she does not think they want to change
their policies to the point of placing affordable housing all over rural Orange County.
Commissioner Hamilton said she sees the suggestion as consistent with what Vice-Chair
Greene is saying but they can only do the land use for the unincorporated area.
Vice-Chair Greene said that they could take out the word unincorporated and all of the
planners would know they were dealing with unincorporated.
Leigh Anne King said it was important to be clear when presenting to the public that they
are not planning for the municipalities.
Commissioner Hamilton said they can discuss the language later. She said the tension
between affordable housing, the environment, and economic development has been going on for
a long time in Orange County. She said that you can increase density in the area, and it does not
increase affordability because of the demand pressures in the area. She said that to be sure that
there is affordable housing, it will take a lot due to demand pressures. She said the data to
understand those dynamics needs to be part of the plan.
Commissioner Portie-Ascott asked for clarification for Vice-Chair Greene's earlier
comments because she thought they were essentially dreaming about what could be done but
based on the comments, she heard that there are areas that they want untouched.
Vice-Chair Greene said that she was not going that far but the fact is that they have
policies, and the towns have policies. She said the two biggest housing non-profits have no
intention of developing in rural Orange County. She said they are working to develop affordable
housing in the municipal areas and those policies have been in place for a long time. She said
she does not want to force a question that leads to a confusing direction.
Commissioner Richards said she disagreed with not looking at policies. She said the
reason people do not develop in other areas is because they are told they cannot. She said it is
critical to explore all the options. She said if they do not, this is a very expensive way to do nothing.
Slide #29
4.
• 0 • - a
r�
18
Slide#30
ConsiderKey Influences to
Climate Action Plan
F"i�FF( Rural buffer and
9!ice conservation priorities
Strategic Plan
Environmental o
stewardship, natural areas
— protection, affordable
housing
Slide #31
• Fact Book findings:
Demographic shifts
A,rkull oral.
l Housing trends wrrepndadop•
Spare Resemnpn
• Climate impacts
1 Agricultural lands loss
• Natural resource impacts
r
Slide #32
And Data... Watersheds
F
k, Slr
Municipal Jurisdiction 111 �.„„,,,,,•
Streams
M Water Bodies
River Basin Boundary
Watersheds
Water Supply Watersheds:
Protected 4 A
Crtical
Railroad
19
Leigh Anne King said that the watersheds are critical components that will guide what they
put and where.
Slide #33
` 1
' • • • ►
1 . Continue Current Policies
2. Enhance Agricultural and Environmental
l' Protections
3. Add Low-Impact, Mixed-Use Neighborhoods in
Strategic Locations
4. Add Higher Intensity, Mixed-Use Centers in
Strategic Locations
as
Activities will guide engagement participants to identify aspects of each they support.
Leigh Anne King said that in alternatives 3 and 4, the strategic location language means
that these centers, or neighborhoods would not just go anywhere.
Slide #34
i ► • Pill 111111
' •
Policies to Test:
' - Continue with currently
adopted FLUM and
associated zoning densities
- Minor adjustments to
_ change to parcel-based map
and combine duplicative = =
FLUM categories
20
Slide #35
' tel • '
Policies to Test:
Lowering densities to protect priority agricultural,
environmental, watershed, and rural lands
Assumption that new affordable/denser housing is
accommodated within the municipalities
- Could also eliminate the Rural Community Activity
■�■ Nodes that are not currently developed
Commissioner Hamilton asked for a definition of Rural Community Activity Node.
Tom Altieri said that it is land focused on the designated road intersections that serve as
a nodal crossroads for the surrounding rural community and is an appropriate location for any of
the following uses: church, fire station, small post office, school, or other similar institutional uses
and one or more commercial uses.
Leigh Anne King said this is a very common thing they do when they work with counties.
She said when they update older plans, the communities found the nodes and said it would be a
great opportunity. She said that the market has not really met the plan and now the review is more
about questioning if the nodes are still in an appropriate location.
Tom Altieri said there are 5 of these nodes in the county. He said there are four in the
northern portion and one in White Cross. He said that they area a half-mile radius around historic
areas in the community with access to transportation.
Commissioner Portie-Ascott asked what would replace them if they are eliminated.
Leigh Anne King said usually they revert to whatever is currently surrounding the node.
Cy Stober said it would likely rural and agricultural residential. He said that there are also
rural neighborhood activity nodes.
Tom Altieri said there are about 10 of them.
Cy Stober said that in these scenarios, they are pressing hard on levers to show different
scenarios. He said that they will likely end up somewhere in between but this is a demonstration
to prove a point. He said they are focused primarily on housing and jobs density and locations
they would be fated to be over the next 20 years.
Slide#36
Focus on creating conservation subdivisions that
could include a mix of housing types and possibly
neighborhood serving commercial areas
- Protect key ecologically valuable areas of site
- Will likely require municipal utility services or
community systems to serve development
Identify locations within County'sjurisdiction
proximate to municipalities and outside of WSW
critical areas
�f - Potential testing of locations in Rural Buffer
21
Commissioner Hamilton asked for definitions of conservation subdivisions and community
systems.
Leigh Anne King referred to the slide #37.
Slide #37
■W.
Conservation S • . •
l _
ya'
i
A proposed A conservation
Images courtesy , conventional suhdivisian
of Randall Arendt site plan in New Bern. plan for the same site.
ter`
Cy Stober said community systems are decentralized wastewater systems and community
wells. He said that Orange County does not have any decentralized wastewater systems and
technology has come a long way. He said that it would be new ground, and Environmental Health
would have to be involved. He said a lot of them are state permitted and involved proprietary
technology.
Slide#38
Focus on maximizing available land that could include
a mix of housing types and commercial/employment
areas
- Protect currently required areas (e.g. RPA)
- Will require municipal utility services to serve
development; community systems could be an option
- Identify locations within County's jurisdiction
proximate to municipalities and outside of WSW
critical areas
` - Potential testing of locations in Rural Buffer
Commissioner Portie-Ascott asked if this is the alternative that would impact the
diversification of the tax base.
Leigh Anne King said that could be quantified based on the square footage of non-
residential areas.
Cy Stober said yes, this would maximize EDDs throughout the county and fully filling those
with municipal partnership.
22
Slide #39
j R ,�Fx
Southern Village
Slide #40
al
Slide #41
�J
For#Z (Expand Agricultural and Environmental
Protection), should the following be included?
Agricultural Preservation Board's plan work
l Eno River and New Hope Landscape Plan for Wildlife
Habitat Connectivity(ecologically valuable areas)
Lands Legacy Program Priorities
1
(There are timing and effort implications to add in these
I inputs into modeling.)
m
23
Leigh Anne King said they recommended that they look at those plans and especially
number 2. She said there is a level of preciseness that they can get to by working with other
groups that are working in these areas. She said it is possible to shift the process by getting more
detailed information to incorporate but they are not recommending that at this time because these
are hypothetical at this point. She said they can come back and look at the underlying data when
they are creating the preferred conservation growth framework. She said that she wanted to be
clear that they would not be fully incorporating every detail because there are timing issues.
Commissioner Richards said that if the final plan was in conflict with one of these plans,
she would want to understand that. She said that she understood that the detailed work would
not be done at the scenario level but would be done later.
Leigh Anne King said that it would be incorporated in the preferred framework.
Commissioner Richards said she is interested in where it might conflict.
Cy Stober said that can be one of the output tests by showing the level of conflict.
Leigh Anne King said they are going to try to avoid conflicts and make things realistic. She
said that is their focus.
Vice-Chair Greene said she would not want them to get too far ahead of the Agricultural
Preservation Board. She said they will hear Piedmont Food Processing Center later and Orange
County is largely about agricultural production. She said that in 2017 there were almost$37 million
of agricultural products sold in Orange County.
Commissioner Fowler said in terms of the connectivity plan a lot relies on the watershed
area and hopefully that would prevent too much conflict. She said that it would be nice to try to
avoid those.
Leigh Anne King said they want to start off with the best that they can so that they are
moving forward with something that can happen.
Slide #42
: • • •ME"111111FAM ma .
' To stay on schedule, will need any further BOCC
inputs by middle of May 2024.
24
Slide #43
.did"err
r
Slide #44
Next Steps
Next Steps
• Phase 4 - Develop Plan (Summer 2024):
• Draft Plan Framework,Vision,and Goals
• Growth and Conservation Framework
• Land Use&Development Recommendations Report
• Preparation for Community Engagement Window#Z
Chair Bedford said she liked having the four alternatives to consider. She said that at one
point, she thought about removing the entire rural buffer but that would lead to changes she does
not want. She said she disagreed with the rural activity nodes having a lack of market but that it
could be water restrictions and the rural buffer that limit. She said that she does not want to have
an assumption but would like to find out what could be there, and what it looks like. She said
regarding the economic development zone in Efland, she wondered if the zoning or FLUM should
be changed there because the sewer was installed but not a lot more.
Cy Stober said that the presumption in scenario 4 is the utilization of existing utilities. He
said that the City of Mebane just put out a new RFP for a comprehensive land use plan. He said
that they have a future growth area, and it goes farther east than their current future growth area.
He said they have asked for their GIS file so that it is incorporated into this data. He said they do
not have any data or public discussion on what they intend to do with that area.
Leigh Anne King said they do not have any guidance to test what they might want to plan
for in the areas, but they can look at the current plan and see what makes sense.
Chair Bedford said that the Board of Commissioners were divided with the City of Mebane
about the area, and it seems there will be the need for more collaboration.
25
Cy Stober said that the adoption of a comprehensive land use plan is intended to drive
changes. He said that is usually how it plays out, and how he would prefer it as a planner.
Commissioner Portie-Ascott asked if the Buckhorn Road area would impact the tax base.
Cy Stober said yes. He said there has been rapid development in that area that has been
served by the city but regulated by the county. He said the alignment of 1-40 and 1-85 in the county
is remarkable. He said there is a north-south and east-west corridor and that is remarkable. He
said that you do not really see that on the eastern seaboard. He said that Buckhorn Road is highly
appealing to the development community. He said that there are also other areas that they have
already agreed upon with the City of Mebane. He said that there are no signs of interest slowing.
The Board and County Manager agreed for any feedback to be sent to the Clerk to the
Board's office by May 15, and the Clerk would send it to the Planning Director.
2. Presentation on Piedmont Food Processing Center Management Services Agreement
The Board received information regarding the County's management services agreement with the
Piedmont Food Processing Center (PFPC), the state of the shared kitchen spaces, and the food
business incubator services.
BACKGROUND: At its October 3, 2023 Business Meeting, the Orange County Board of
Commissioners approved a one-year contract renewal with the Piedmont Food Processing Center
to continue managing a Shared Use Kitchen Incubator in the County facility located at 500 Valley
Forge Road, Hillsborough, NC. In 2011, Orange County was one of four county government
partners that helped to establish the Piedmont Food and Agriculture Processing Center. The
Center has changed names (now Piedmont Food Processing Center), staff and leadership, and
scope of services in the past 13 years. The County owns and maintains the facility in which the
Piedmont Food Processing Center (PFPC), a North Carolina nonprofit corporation, operates
shared kitchen spaces and provides food business incubator services.
The County entered into the first management services agreement with PFPC in 2021. The
management services agreement approved in October 2023 did not modify any of the provisions
of the prior agreement. In follow-up to concerns raised by the Board of Commissioners regarding
the management structure, business classification, operations, benefits to Orange County
residents and other topics, County Cooperative Extension Director Jonathon Smith and
Community & Rural Development Extension Agent Mike Ortosky have since met regularly with
PFPC leadership to address ongoing concerns and to identify steps that can be taken to improve
operations and accountability between the nonprofit corporation PFPC and Orange County.
A presentation will be provided at the meeting with:
1. Clarification on the business classification of Piedmont Food Processing Center
2. Survey results from other Shared Incubator Kitchens operating in North Carolina
3. Suggestions for highlighting and enhancing Orange County-specific impacts
4. A proposal for instituting a future facility management contract that strengthens this public-
private partnership and includes measurable goals as well as expected outcomes that
benefit County farms and food businesses.
Jonathon Smith, the Cooperative Extension Director, introduced the item and made the
following presentation:
26
Slide #1
Update on Piedmont Food
Processing Center Management
Services Agreement
Orange County Board of County Commissioners
Work Session 4-30-24
1- PIEDMONT
... .
ORANGE COUNTY
NORTH CAROLINA
Slide#2
Introduction of Presenters
• Jonathon Smith,Director,Orange County Cooperative Extension
• Eric Hallman, Executive Director, Piedmont Food Processing Center
• Sue Ellsworth,Manager, Piedmont Food Processing Center
• James Watts,Board Chair, Piedmont Food Processing Center
• Mike Ortosky, Community&Rural Development Agent,Orange County
Cooperative Extension
.-4t-T %
�1
ORANGE
COUNTY
- Nc�u nl rnanl 1>un
Slide #3
Goals for Tonight
• To clarify and improve the working relationship between Orange County
Government and Piedmont Food Processing Center(PFPC).
• To address BOCC concerns and to improve communication.
• To improve processes in order to better support the small business food
economy in Orange County.
p[EnMONT ORANGE
�� COUNTY
NC]RTH CA RCII.INA
27
Slide #4
PFPC Historical Timeline (Where We Have Been and
Where We Are Now)
Piedmont Food Processing Center Time Line
PFAP
launched with PFAP IRSievokes Y30CC Trc-I
4 County MOU recleves 501{c)3 a roves2
PP
IRS 501tcp Status year contract
status wlth PFPC
PFAP
01}icially -
opens PFAP new PFPCwlthdraws anagement 541ts)3appilcatron
with P FP
7AM an r12 12alu 94Y17 6A&-A 3AU23 !ZV25
Jonathon Smith said that the appropriate paperwork was not filed to maintain their
501(c)(3) status. He said that after new management took over, they chose to register as a non-
profit corporation with the NC Secretary of State, but do not have 501(c)(3) status and are not tax
exempt.
Slide #5
PIEQMaNT
Who is PFPC Reaching?
Business Ownership -Race Business Ownership -Gender
Non-White White
Female
48%
Black
30%
Note:2023 Data
28
Slide #6
Client Type and Economic Impacts (2023)
Client Type
1111, Pi
>$2.5 M in RetaitValueCreated
(.2311Y
>150 Jobs 86 Businesses Incubatedruck
>400 Products Launched
>300 Companies+6 National Brands
Slide #7
Insights from Shared Kitchen Incubator Survey
Who owns the facility in which this operation is housed?
10 responses
Owned by Management Company
r'.
�Owned by Cooperative
r .
r Owned by County Government
r, Owned by Regional Council of Govern...
Owned by Non profs 501(c)(3)
•Owned by Community Colege
•Owned by University
Privately Owned
currently seeking Facility:undetermined
Ta be Owned by City Gayemment(City
of Sanford)
ORANGE
COUNTY
NORTH CAR01 INA
29
Slide #8
Insights from Shared Kitchen Incubator Survey
Who manages this incubator kitchen?
10 responses
Contracted Management Company(C-
corp,5-corp,LLC,...j
Cooperative
�'.
�Non-profit 501(c)(3)
�Cooperative Extension
Other County Government
ver Department
S Regional Council of Government
Community College
University
Privately Owned �1110ft-
ORANGE
COUNTY
NORTH CARCII INA
Slide #9
Insights from Shared Kitchen Incubator Survey
Types of support Respondents Have Received or are
Currently Receiving from Governmental Partners
Do you receive any government support for your incubator kitchen?
to responses Grants
County Government Funding from County Budget
�vs
No Facilities including maintenance and utility assistance
Initial funding from county endowment
Funding for equipment purchases
ARPA Funding used to help construct a facility.
Grants from outside agencies/nonprofits
ORANGE
COUNTY
Jonathon Smith said sustaining food incubators for the long-term is difficult. He said many
of the incubators they talked to are young.
30
Slide #10
Insights from Shared Kitchen Incubator Survey
Note: For
Since your incubator kitchen is located in a county or state-owned facility,do you pay rent?
those paying
7 responses rent,
Community
•Yes Impacts was
•NQ
stated as one
of the main
drivers of rate.
ORANGE
COUNTY
NORTH CAROLINA
Slide #11
Insights from Shared Kitchen Incubator Survey
Note:While not all
Does this incubator kitchen serve one primary county or does it serve people/businesses from more users sell their
products solely in
than one county? Orange County,
10 responses their payment of
user fees subsidizes
•Serves One(1}County Only ongoing operations
•Serves Multiple Counties helping PFPC to
remain an Orange
r County business
resource available
® to county residents.
i
ORANGE
COUNTY
NORTH CAROLINA
31
Slide #12
Estimated Ongoing Cost to County To Have PFPC in a
County Facility
• $120,000-140,000 per year(opportunity cost of not charging rent to PFPC)
o Estimated$12-141sq ft(Pickett-Sprouse Realtors estimate)
• No Capital Improvement Projects have been scheduled for FY25 or FY26.
• Capital Improvement Projects Attributed to PFPC Operations Schedule from
FY27-FY30 are estimated at$153,173 (In 2021 dollars). All CIP projects are
subject to BOCC approval annually.
o This number excludes regular facility maintenance projects such as roofing,HVAC,lighting
upgrades,and other facility improvements required to maintain the county property.
Note: PFPC covers all utilities. ORANGE
COUNTY
NORTH CAROT INA
Slide #13
Functional Goals For Moving Forward
• Move to a Facility Management Contact model whereby the County contracts
directly with Piedmont Food Processing Center to manage the facility.
• A five year Facility Management Contract is optimal for business planning and
operations.
ORANGE
f` COUNTY
:VOW f H CAROI INA
Jonathon Smith said that the current agreement is vague and more like a renter's contract.
He said there are not any deliverables for what PFPC is expected to give to Orange County. He
said that he would like the Board's feedback on changing the contract to meet Orange County's
needs.
32
Slide #14
�1
Proposals for Improving Future Management Contracts ORANGCOUNT,
1. Provide discounted rates for Orange 3.Offer annual State of Food presentation to report
County residents and businesses to on impacts on food economy and demand that
use facility. PFPC is addressing.
2. Increase outreach efforts to
agriculture community. 4.Conduct outreach meetings with Durham Tech,
a. Improve user awareness of Carolina Farm Stewardship Association,Consumer
local farm products and Packaged Goods(CPG)Value-Added Courses.
encourage sourcing.
b. Offer 2-3 courses annually in S.Increase outreach in community by supporting NC
cooperation with Cooperative Farm School,Ag Summit,Young Chef
competitions,and outreach to high
Extension for farmers to help
schools.
them better understand how to
access and use PFPC as a 6.Continue to work closely with area farmers
resource for value-added markets.
products.
7.Provide regular impact reports to Orange County
Government as defined by contract.
Slide #15
State and Federal Resources Available to Possibly Support �~
ORANGE
PFPC Business Planning And Growth COUNTY
NflRTl1 CA RfII 1NA
1. NO State Extension Food Business 5. Economic Development Partnership of North Carolina
Resources And Staff A. Can assist with raising funds for existing
a. Nick Fragedakis, Program Director business.
and Acidified Foods Process
Authority 6. Noah Ranells,NO Farml Director,IWC State Extension
b. Chris Pennell, Research Associate 7, NC State Department of Food,Bloprocessing and Nutrition
c. Allison Sain,Extension Associate Sciences Safety Programs
d. Ann Zielinski, Extension Associate
2. Tom White,Director,Economic A. Dr.Clinton Stevenson,Associate Professor
Development Partnership, NO State's B. Dr.Lynette Johnston,Assistant Professor and
Office of External Affairs,Partnerships Food Safety Extension Specialist
and Economic Development 8. NC State Department of Agricultural and Resource
3. NO Department Of Agriculture & Economics Business Development Resources and Staff
Consumer Services Food&Drug
Protection Division 9. NC A&T State University Urban&Community Food
Complex(corning in 2025)
4. Small Business&Technology
Development Center
33
Slide #16
Thank you!
ORANGE COUNTY PIEDMONT
NORTH CAROLINA
Commissioner Portie-Ascott asked if there are other management agreements with other
entities and if this recommended agreement is consistent with those.
Bonnie Hammersley said what is being recommended is to model a management
agreement similar to the agreement the county has for the Sportsplex. She said the county owns
the PFPC facility, just like how the county owns the Sportsplex.
Jonathon Smith said that there may be some aspects that are like rental agreements, but
there should be clear and defined goals. He said the areas of responsibility have been unclear
since the beginning. He said for example, some commissioners asked if the goal would be to start
fresh and define the expectations. He said that that they are a non-profit corporation and have
their own by-laws, like any business would have. He said that the county could clarify the
relationship and let them run the facility. He said that other folks could be removed if they are not
a stakeholder.
Commissioner Fowler said that the recommendations seem very responsive to previous
commissioner comments. She said that she understands the comments about needing outside
users. She said a small discount for Orange County residents would be beneficial so that Orange
County does have a benefit from it. She said she loved the concept, but she thought it was
important to have a more organized structure and find ways that both the county and PFPC could
benefit. She said it does not make sense for Durham County to have positions on the PFPC
board given that they do not have any other involvement.
Jonathon Smith said one of the things they have talked about with the County Manager's
department and they are also now doing food insecurity work. He said that Cooperative Extension
would be involved on behalf of the county.
Commissioner Hamilton thanked Jonathon Smith for his presentation. She said when
looking at the data, she would like more details about the incubators in other counties. She
wondered about some of the economic opportunities in those counties. She asked if this is
something that county government should be doing, similar to the Sportsplex. She said that the
county has limited resources and could use the maintenance funds for other uses. She said that
if there is a management contract, they would have to treat it similarly to the Sportsplex and see
if there are other management options. She asked if county government should be doing this.
Commissioner Portie-Ascott said she took a tour of the facility and met with one of the
business owners there who expressed their appreciation for PFPC. She said that over half of the
businesses there are minority-owned. She said there is also a lot of vacant commercial spaces
now that are not being utilized, and she would not want the county's facility to also sit vacant.
Vice-Chair Greene said she appreciated the work they do and she also appreciates the
presentation and the responses. She said in terms of investment, forgoing rent each year and
achieving more retail value, then it is very powerful economic development. She said she is not
34
sure why they would want someone else to operate the facility when they have strong leadership.
She said she looks forward to considering a draft of the five-year contract.
Commissioner Richards said it was helpful to know what other counties are doing with
incubators. She said she believed it was a helpful economic development tool. She said she was
pleased to see the partnership with Cooperative Extension. She said the return on investment
was amazing. She thanked the members of PFPC for their responsiveness to their questions and
comments. She said having a five-year contract provides some continuity of business so that
they can continue to do more extensive planning with Cooperative Extension and Economic
Development.
Chair Bedford asked if Article 46 sales tax is used for the capital needs of the facility.
Bonnie Hammersley said yes.
Chair Bedford said that is important. She said that even though she did not think tax
dollars should be used to support a for-profit business when it does not happen in other industries
but it was clear that she is the only one that thinks that way. She said that is why she volunteered
to be on the board and help ensure their success. She said that many of the incubators are newer
and are based on the work PFPC has done. She said that it may be better to use the contract to
benefit Orange County residents, rather than having a majority of PFPC members to be from
Orange County. She said that because it is a private company, the county does not really have
a say-so on the board positions.
Commissioner Hamilton asked why other counties did not participate in the PFPC.
Bonnie Hammersley said initially it was thought to make the facility regional to attract
grants, and that there would be funding from other counties. She said she asked those counties
in 2015, and they declined.
Jonathon Smith asked Mike Ortosky, an Orange County Extension Agent for Community
and Rural Development, to provide more information.
Mike Ortosky said that in a private business, the board is there to inform the business. He
said these are remnants from that interlocal agreement. He said if it is going to be clarified, this
is the perfect time to clean up the board membership for the benefit of the company.
Vice-Chair Greene said she agreed. She said that when she was on the board, there
were several members from Durham County who were strong members.
Chair Bedford said she supported Cooperative Extension being the manager of the
contract.
Bonnie Hammersley said that is a management decision and will be discussed if
supported by the Board.
Chair Bedford said that the PFPC board is meeting regularly and that they completed the
evaluation of the executive director. She said that the board's previous lack of activity was a real
concern to her.
Commissioner Richards asked how long it would take to draft a management contract.
Chair Bedford said one thought she had was to give them a 6-month extension if
necessary while the contract was being developed.
Bonnie Hammersley said that she thought an initial draft could be brought back in
September. She said the Finance department can do that and they do not need to hire anyone to
look at those items. She said it could be an addendum that does not tie anyone's hands.
Commissioner Richards said it could take a while, so she liked the idea of an extension
giving everyone a chance to review.
Chair Bedford asked if there is a law about when a contract has to go to bid.
John Roberts said not in this type of situation.
Commissioner Hamilton said it would be helpful to know about the other counties and what
they are subsidizing.
Jonathon Smith said they could research that information.
35
Chair Bedford said that Sue Ellsworth, Manager of PFPC, had an online class of how to
start a food business.
Mike Ortosky said he agreed and that the PFPC staff are providing a lot of information and
value to other incubators. He said that he is excited that extension is involved, because they can
provide a lot of value to the vendors.
Eric Hallman, Executive Director of PFPC, thanked Jonathon Smith for working with
PFPC.
Sue Ellsworth thanked the Board members who were able to visit PFPC. She said she is
excited about their work with Cooperative Extension.
James Watts, Chair of the PFPC Advisory Board, thanked the Board of Commissioners.
3. Advisory Board on Aging —Appointments Discussion
The Board discussed appointments to the Advisory Board on Aging.
BACKGROUND: The Advisory Board on Aging suggests policy and makes recommendations to
the Board of Commissioners and the Department on Aging while acting as the liaison between
older adults of the County and County government. It is charged with promoting needed services,
programs, and funding that impacts older residents.
The Board of County Commissioners appoints all twelve (12) members.
The following individuals are recommended for Board consideration:
NAME POSITION TYPE OF EXPIRATION
DESCRIPTION APPOINTMENT DATE
TERM
Dr. Jeff Charles Chapel Hill Town Second Full Term 06/30/2027
Limits
Ann Bradford Carrboro Town Limits First Full Term 06/30/2027
(reappointment)
Sandy Walker At-Large Second Full Term 06/30/2027
Jonathan Wilner At-Large Partial Term 06/30/2025
Shahnaz GiGi At-Large Partial Term 06/30/2025
Rashdi
If the individuals listed above are appointed, no vacancies remain.
Tara May introduced the item.
The Board agreed by consensus on the recommended applicants.
4. Arts Commission —Appointment Discussion
The Board discussed an appointment to the Arts Commission.
BACKGROUND: The Arts Commission recommends strategies to promote the artistic and
cultural growth of Orange County, advises the Board of Commissioners on matters involving the
arts, and acts as the granting panel for funding programs available to individual artists and non-
profit groups sponsoring arts projects in Orange County.
The Board of County Commissioners appoints all fifteen (15) At-Large members.
36
The following individual is recommended for Board consideration:
NAME POSITION TYPE OF EXPIRATION
DESCRIPTION APPOINTMENT DATE
TERM
Alexa Velez At-Large First Full Term 03/31/2027
If the individual listed above is appointed, no vacancies remain.
Tara May introduced the item.
The Board agreed by consensus on the recommended applicant.
5. Board of Health —Appointments Discussion
The Board discussed appointments to the Board of Health.
BACKGROUND: The Board of Health makes policy and is charged with protecting and promoting
public health in Orange County.
The Board of County Commissioners appoints all eleven (11) members with representation from
specific health-related professions and the general public.
The following individuals are recommended for Board consideration:
NAME SPECIAL TYPE OF EXPIRATION
REPRESENTATIVE APPOINTMENT DATE
TERM
Keith Bagby At-Large Third Full Term 06/30/2027
BOCC Appointee
Dr. Bruce Optometrist Third Full Term 06/30/2027
Baldwin
Dr. Alison At-Large Second Full Term 06/30/2027
Stuebe BOCC Appointee
Tony Whitaker Professional Engineer Second Full Term 06/30/2027
If the individuals listed above are appointed, no vacancies remain.
Tara May introduced the item.
The Board agreed by consensus on the recommended applicants.
6. Carrboro Northern Transition Area Advisory Committee -Appointment Discussion
The Board discussed an appointment to the Carrboro Northern Transition Area Advisory
Committee.
BACKGROUND: The Carrboro Northern Transition Area Advisory Committee will review zoning
amendment requests, special/conditional use permit applications for developments within the
Northern Transition Area of Carrboro; make recommendations to the Carrboro Board of
Adjustment or Carrboro Town Council; inventory areas of cultural, archaeological, historical
significance; areas of open space, rural character, scenic qualities, biological values; areas of
agricultural uses; and make recommendations based on the above studies for additional policies,
37
goals, etc. that will preserve and enhance the special character of this area, and relate to its
growth.
The Board of County Commissioners appoints three (3) members representing the Northern
Transition Area.
The following individual is recommended for Board consideration:
NAME POSITION TYPE OF EXPIRATION
DESCRIPTION APPOINTMENT DATE
TERM
Anahid Vrana Northern Transition Fourth Full Term 02/28/2027
Area
BOCC A ointee
If the position listed above is filled, no vacancies remain.
Tara May introduced the item. She said that Carrboro's advisory board policy allows for
exceptions to term limits due to lack of applicants or to increase diversity. She said in this case,
it is because of a lack of applicants.
The Board agreed by consensus on the recommended applicant.
7. Orange County Housing Authority Board —Appointments Discussion
The Board discussed appointments to the Orange County Housing Authority Board.
BACKGROUND: The goal of the Orange County Housing Authority Board is to provide decent,
safe, and sanitary housing for the low- and moderate-income families in the County. Due to the
nature of its work, the Housing Authority Board does not make recommendations for
appointments.
The Board of County Commissioners appoints all seven (7) members.
The following terms of current members need corrections:
NAME POSITION TYPE OF CORRECT
DESCRIPTION APPOINTMENT EXPIRATION
TERM DATE
Jana E. At-Large First Full Term 06/30/2027
Murdock-
Doherty
Jenn Sykes At-Large First Full Term 06/30/2027
The following individuals and positions are presented for Board consideration:
38
NAME POSITION TYPE OF EXPIRATION
DESCRIPTION APPOINTMENT DATE
TERM
Eva Weatherly- At-Large First Full Term 06/30/2029
Rosner
BOCC At-Large First Full Term 06/30/2029
Appointment
BOCC At-Large First Full Term 06/30/2029
Appointment
If the positions listed above are filled, no vacancies remain.
Tara May introduced the item.
The Board agreed by consensus to correct the term limits for Jana E. Murdock-Doherty
and Jenn Sykes.
The Board agreed by consensus to appoint Eva Weatherly-Rosner to an At-Large
appointment.
Chair Bedford said one applicant resided in Alamance County and asked why they were
able to apply.
Tara May said it was because the applicant was a participant in a program. She said she
would double check the rules.
Chair Bedford suggested Othlone McCalla and Victoria Hudson for the remaining At-Large
positions.
The Board agreed by consensus to appoint Othlone McCalla and Victoria Hudson to the
two At-Large positions.
8. Orange County Parks and Recreation Council —Appointment Discussion
The Board discussed an appointment to the Orange County Parks and Recreation Council.
BACKGROUND: The Orange County Parks and Recreation Council consults with and advises
the Department of Environment, Agriculture, Parks and Recreation, and the Board of County
Commissioners on matters affecting parks planning, development and operation; recreation
facilities, policies and programs; and public trails and open space.
The Board of County Commissioners appoints all twelve (12) members with representatives from
each of the County's townships plus its municipalities, as well as two (2) non-voting youth
delegates.
The following individual is recommended for Board consideration:
NAME POSITION DESCRIPTION TYPE OF EXPIRATION
APPOINTMENT DATE
TERM
Allen Parker Cheeks Township First Full Term 03/31/2027
If the individual listed above is appointed, the following vacancy remains:
39
POSITION EXPIRATION VACANCY INFORMATION
DESIGNATION DATE
Little River 03/31/2026 Vacant since 08/18/2023
Township
Tara May introduced the item.
The Board agreed by consensus on the recommended applicant.
Closed Session
A motion was made by Commissioner Fowler and seconded by Commissioner Hamilton, to
enter in to closed session at 9:25 p.m. for the purposes listed below:
"To consult with an attorney employed or retained by the public body in order to preserve the
attorney client privilege between the attorney and the public body regarding the national
prescription opiate litigation, 1:17-MD-2804, and Thompson v. Orange County," NCGS § 143-
318.11(a)(3).
VOTE: UNANIMOUS
RECONVENE INTO REGULAR SESSION
A motion was made by Commissioner Fowler, seconded by Commissioner Hamilton, to
reconvene into regular session at 9:53 p.m.
VOTE: UNANIMOUS
Adjournment
A motion was made by Commissioner Fowler, seconded by Commissioner Hamilton, to
adjourn the meeting at 9:53 p.m.
VOTE: UNANIMOUS
Jamezetta Bedford, Chair
Laura Jensen
Clerk to the Board
Submitted for approval by Laura Jensen, Clerk to the Board.