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HomeMy WebLinkAbout2025-194-E-Economic Dev-Farmer & Poet LLC DBA Rezk Family Farm-AG Economic Development GrantOCEDaedga 1-25 ORANGE COUNTY ECONOMIC DEVELOPMENT AGRICULTURAL ECONOMIC DEVELOPMENT GRANT AGREEMENT THIS AGREEMENT, entered into this 7th day of May, 2025, by and between Orange County (“County”), by and through Orange County Economic Development (“Economic Development”) and Farmer & Poet LLC DBA Rezk Family Farm (“Grant Recipient”). WHEREAS, Economic Development is a County department that aids existing business investment and early-stage venture growth, assists local agriculture and local food systems, and supports entrepreneurial development; and, WHEREAS, Grant Recipient has a project to expand their Orange County business; and, WHEREAS, the Grant Recipient was selected to receive the Orange County Agricultural Economic Development Grant through the procedures duly adopted by Economic Development; and, NOW THEREFORE, the County and the Grant Recipient, for the consideration and under the conditions hereinafter set forth, agree as follows: 1. Approved Grant. Grant funds are provided for the project (“Project”) described in the Grant Recipient’s Grant Application (“Application”), dated March 16, 2025 and incorporated by reference, subject to this Agreement, the Agricultural Economic Development Grant Program Guidelines (“Guidelines”), as the Guidelines may be amended from time to time, attached as Exhibit A and any additional terms imposed on the Grant Recipient (“Additional Terms”) attached as Exhibit B, in that order of priority. 2. Grant Award. Grant funds in an amount of ten thousand dollars ($10,000) have been awarded by the Grant Subcommittee described in Exhibit A (“Subcommittee”) and shall be released to the Grant Recipient for the approved Project. The grant cannot be assigned or transferred without prior written approval. 3. Responsibilities of the Grant Recipient A. Implementation. The Project shall be implemented in the manner described in the Application. Time is of the essence in the implementation of the Project. B. Use of Funds. Grant recipient shall not use the grant funds for any of the prohibited purposes described in the Guidelines. The grant shall be utilized solely for its intended use, as detailed in the Application, and subject to the Additional Terms. 4. Indemnity. The Grant Recipient agrees to indemnify and hold harmless the County and Economic Development and their officers and employees from any and all claims of actual injury, damage or loss to a person, or real or personal property that results from or is in any way connected to the use of the grant funds. Docusign Envelope ID: 21C5EE31-0187-435E-A517-C714289A7E41 OCEDaedga 1-25 5. Termination. A. In the event of any of the circumstances set forth below (hereinafter referred to as “default”), the Subcommittee may immediately terminate this Agreement: i. Any fraudulent representation on a material matter related to securing and utilizing grant funds under this Agreement. ii. Failure to satisfactorily comply with any provision of this Agreement, any term of the Grant Application, and/or any Grant Program Guideline, as determined the Subcommittee in its sole discretion. iii. Failure to adhere to the terms of applicable county, state, or federal laws, regulations, or stated public policy. B. In the event of default by the Grant Recipient, the Subcommittee has the discretion to elect to terminate this Agreement, in whole or in part and/or require the Grant Recipient to repay the grant funds within thirty (30) days from written notice or allow the Grant Recipient the opportunity to cure the default. This clause shall not be interpreted to limit the County’s or Economic Development’s remedies in law or equity. 6. Miscellaneous. A. Governing Law. This Agreement shall be interpreted and governed in accordance with the laws of the State of North Carolina and Orange County. Grant Recipient shall at all times remain in compliance with all applicable local, state, and federal laws, rules, and regulations including but not limited to all state and federal anti-discrimination laws, policies, rules and regulations and the Orange County Anti-Discrimination Policy. Any violation of this requirement is a breach of this Agreement and County may immediately terminate this Agreement without further obligation on the part of the County. This paragraph is not intended to limit the definition of breach to discrimination. By executing this agreement Grant Recipient affirms that Grant Recipient and any subcontractors of Grant Recipient are and shall remain in compliance with Article 2 of Chapter 64 of the North Carolina General Statutes. Where applicable, failure to maintain compliance with the requirements of Article 2 of Chapter 64 of the General Statutes constitutes a breach of this Agreement. By executing this Agreement, Grant Recipient certifies that Grant Recipient has not been identified, and has not utilized the services of any agent or subcontractor, on the Iran divestment list created by the State Treasurer pursuant to G.S. 147-86.58. B. Status. Nothing contained in this Agreement shall be construed to create the relationship of principal and agent, or employer and employee, between Grant Recipient and Economic Development or Orange County Government. Grant Recipient understands and agrees that he/she is not authorized to incur any expenses or any liability whatsoever on behalf of the County or Economic Development and has no authority, expressed or implied, to obligate or make representations on behalf of the County or Economic Development. Docusign Envelope ID: 21C5EE31-0187-435E-A517-C714289A7E41 OCEDaedga 1-25 C. Entire Agreement and Signatures. The parties have read this Agreement and agree to be bound by all of its terms, and further agree that it constitutes the complete and exclusive Agreement between the parties unless and until modified in writing and signed by the parties. This Agreement together with any amendments or modifications may be executed electronically. All electronic signatures affixed hereto evidence the intent of the Parties to comply with Article 11A and Article 40 of North Carolina General Statute Chapter 66. IN WITNESS WHEREOF, the Orange County and the Grant Recipient have signed this Grant Agreement, effective on the last date this Agreement is signed by both parties as indicated by the dates set forth under signatures below. For and on behalf of the Grant Recipient Omar Rezk, CEO Date For and on behalf of Orange County Government Date Docusign Envelope ID: 21C5EE31-0187-435E-A517-C714289A7E41 5/12/2025 5/13/2025 OCEDaedga 1-25 Exhibit A Guidelines ORANGE COUNTY AGRICULTURAL ECONOMIC DEVELOPMENT GRANT PROGRAM GUIDELINES This program is intended to provide assistance to Orange County farmers in developing new sources of agricultural income through the provision of grants. Individual grant limit is $10,000. Farmer applicants must be able to demonstrate that their existing operation is a verifiable farm business meeting the following requirements: • Land - owned or leased by applicant in Orange County • Infrastructure - suitable for existing operation and any required expansion • Market - defined, accessible, with history of sales • Experience - knowledge, ability, and demonstrated relevant experience • Concept – demonstrates a valid need and specific request Or, in the case of a newly developing farm enterprise, the applicant must be able to demonstrate the following requirements: • Land - owned or leased by applicant in Orange County • Infrastructure - suitable for proposed project (site, etc.) • Market – researched, defined, and accessible • Experience - knowledge and ability relative to the proposed project • Concept – demonstrates a valid need and specific request Eligibility • The farm tract and farming operation on which the funds are to be used must be in Orange County in areas zoned appropriately for their use. • Collaborative/Group grants must include at least 3 farmers and may include agricultural groups and agencies. • Applicants and their businesses must not have any past due tax, fee, or fine applicable to Orange County. The Orange County Tax Office will review and follow-up with businesses that are found to have outstanding taxes and apply to the grant program. Applicants are responsible for annually completing and submitting a business personal property listing form to the Orange County Tax Office by January 31st each year. Additional information on this process can be located at the following page: https://www.orangecountync.gov/1783/Business-Personal-Property. • Applicant must be current with any existing Orange County Small Business Loan, or Emergency Small Business Loan Payments. • Duplication of benefits prohibited. No individual business or affiliated owner(s) shall receive in excess of $10,000 from Orange County’s Small Business and Large Business Investment Grant Programs, the Agriculture Grant Program, and any other County grant awards over a three year period. Some individual programs may have more stringent restrictions in an effort to spread the funding across as many individual operations as possible. This prohibition includes a situation in which the same owner(s) owns multiple businesses. In such a situation if one or more of the multiple businesses applied for a grant(s) the maximum available to any one or more of such businesses is $10,000. • Individuals who have taken legal action against the County in the past 12-months, or have an active legal case, and who applies for any available County grant program, are ineligible to apply for and Docusign Envelope ID: 21C5EE31-0187-435E-A517-C714289A7E41 OCEDaedga 1-25 receive grant funding through Orange County Government until the settlement or dismissal of such legal action. • Businesses in which Orange County elected officials have any financial or ownership interest are ineligible to apply. • Businesses in which grant program administrative staff of the Orange County Economic Development Office, the Orange County Cooperative Extension Office, and the review committee members of the Business Investment Grant and Agriculture Grant programs have any financial or ownership interest are ineligible to apply. Other Orange County employees and Advisory Board members not directly connected to the grant program are eligible to apply. • Applicant must agree to the following terms and conditions to submit their application: “By submitting this application, you are (1) certifying that all the information provided in this application is true and accurate; (2) Granting us permission to contact your primary bank, mortgagor or landlord (as applicable), any owner of the business, or otherwise verify information included in your application if determined helpful in assessing your application; and (3) Agreeing to cooperate and assist in the verification of information provided in this application and to provide additional information if requested. Applicant further understands that should the Applicant herein be awarded assistance and there is a subsequent determination that misleadi ng or false information was provided in this application or otherwise provided to obtain the assistance, the Applicant may be subject to civil or criminal penalties.” Agricultural Grant Subcommittee • The Agricultural Economic Development Grant Subcommittee will be made up of five (5) voting members including: • The Agricultural Representative from the Orange County Economic Development Advisory Board (OCEDAB), • Two members of the Orange County Agricultural Preservation Board (OCAPB) who are farmers in Orange County (chosen by the OCAPB), • One “at-large” farmer from Orange County, • One “at-large” food system or agriculture business practitioner from Orange County with relevant and beneficial experience, • Diversity among the Subcommittee is essential in ensuring equitable management of the Grant Program. Every effort will be made by the existing Subcommittee and support staff to seek qualified members from the categories above to encourage diverse participation with regard to race, ethnicity, national origin, gender, and age, • Designated members from the OCEDAB or OCAPB may serve up to 3 years with an option for renewal if the Subcommittee approves, as long as they are active members of the designated Boards. • “At-large” members are recruited by the Subcommittee for approval by the County Manager and may also serve up to 3 years with option for renewal, • Participation is expected and essential. If a member misses more than 2 meetings in a fiscal year (approximately 50%), the Subcommittee will have the option to remove that member. • A quorum is required for the Subcommittee to hold an official meeting and conduct business. A quorum is considered attendance by a simple majority of the active members. Attendance may be in- person, virtual, or telephonic. • The Subcommittee will meet quarterly (if funds are available) to review applications and also as required to conduct follow-up or general business. • Support will be provided by staff from the Orange County Economic Development Office and Orange County NC Cooperative Extension Service Docusign Envelope ID: 21C5EE31-0187-435E-A517-C714289A7E41 OCEDaedga 1-25 Procedures 1. Applicants will be referred to a common application link residing on both Orange County’s website and Orange County NC Cooperative Extension’s website, where they will complete and submit their application. Quarterly application deadlines are; September 30th, December 31st, March 31st, and June 30th by 5PM. The Subcommittee will meet soon after each quarterly deadline if applications have been submitted for that period. Grant cycle deadlines may be adjusted should program funding runout early during the fiscal year. Please check the Orange County Economic Development website for up-to-date information on the next available grant cycle. 2. County staff will provide completed applications to the Subcommittee for their review after the closing deadline and before the scheduled review meeting. 3. Quarterly review meetings will begin at the start of each funded fiscal year and will continue until funds are expended for that funding year. At its scheduled quarterly meetings, the Subcommittee will discuss the strengths and weaknesses of complete grant application(s) and decide whether or not to take action on the request, based on the information provided. All Applications must be complete, including a descriptive budget. Additional information may be provided if necessary to add clarity or better justification for how funds will be used. 4. The Subcommittee shall approve, deny, or defer and request additional information from the applicant based on the strengths and weakness of the application as reflected in the comprehensive scoring sheet (discussed and agreed-to by the Subcommittee). The Subcommittee may request an interview from an Applicant if greater detail is required to act on the application. Support staff will attend each meeting and document actions of the Subcommittee. 5. The applicant will be informed by email by County staff of the Subcommittee’s decision to deny, grant, grant with condition, or seek more information. . 6. Should the Subcommittee fully deny an application, the Subcommittee will not consider any applications from that applicant for at least six months. Should an applicant think that their application has been improperly denied, then the applicant may notify, in writing, the Subcommittee. The notice to the Subcommittee shall state why the applicant thinks the grant should be approved. The application shall then be given further consideration by the Subcommittee and its decision is final. 7. At its discretion, the Subcommittee may impose any additional terms to a grant request. 8. The Subcommittee may request alternative use for the funds from County management should an event or condition broadly impact agricultural operations in the County such that the intent, criteria, and schedule of funding be reconsidered to address that impact. 9. Applicants agree to utilize grant funds for their intended use unless having successfully presented a revised scope of work to the Subcommittee. Each venture receiving a grant must provide an expenditure report indicating how all funds were used and key milestones reached by the venture within 180 days of the receipt of the grant. An additional one-year expenditure report on jobs, sales and key milestones of the venture will be required within 365 days of receipt of the grant. This accounting will include a request for proof of expenditures made including copies of receipts and/or photos of the equipment or facility upgrades made. Any use of grant funds for non-intended uses must be justified by a revised scope of work pre-approved by the Subcommittee. This approval will occur through the completion and approval of the “Change of Use” form in the applicant’s Submittable Account. Deviation from this approach may result in activation of the “Clawback/Collections Policy” Docusign Envelope ID: 21C5EE31-0187-435E-A517-C714289A7E41 OCEDaedga 1-25 outlined at the end of this document Grant funds may not be used to reimburse prior expenses incurred before grant funds are received. 10. If an applicant fails to complete item #9 in a timely manner, the County has the right to require all grant funds back from the applicant, and may initiate legal proceedings against the applicant. 11. The Subcommittee shall provide annual reports to the Economic Development Department of the number of grants requested, approved and denied, and an analysis of the program’s success metrics to date. 12. Documents, including, but not limited to, financial statements, business plans, customer and supplier lists, description of inventory or assets, contractual obligations and existing liabilities, submitted during the application process shall be treated as confidential information. Expenses Suitable expenses are those associated with the production and marketing of diversified farm enterprises, value-added, and agritourism endeavors. Funds are not intended for farmer or full-time employee salaries or normal farm operational costs (utilities, insurance, rent, etc.). Funds should be used as stated in the applicant’s proposal unless any requested changes are pre-approved by the Subcommittee. Funding Limits The maximum amount any one farm can receive within 3 years of initial funding is $10,000. Multiple applications and subsequent awards of less than the $10,000 limit may be made within the 3-year period by one farm entity but may not exceed $10,000 in total awards for the 3-year period Advisors/Mentors Although not required, advisors and mentors can bring valuable expertise and may increase the likelihood of success of your project. These may include County Agriculture Economic Development Coordinators, other farmers, marketing and production specialists, extension agents, crop consultants, non -profit organizations, business and other agricultural advisors. GRANT APPLICATION GUIDELINES: 1. Farm Name / DBA 2. Farm Address (must be located in Orange County, NC) 3. Years of Farming Experience 4. Phone number 5. E-mail address 6. Website or Social Media (if available) 7. Percent of Personal Income from Farming Enterprise 8. Amount of Grant Request ($10,000 max) 9. Budget Summary – show how funds will be used 10. Owner(s) First & Last Name 11. Owners Address (if different than farm address) Docusign Envelope ID: 21C5EE31-0187-435E-A517-C714289A7E41 OCEDaedga 1-25 12. Briefly describe your project/plan (scope, intent, goal, etc.) 400 word limit (Questions 13-18 have 250 word limit) 13. Describe the effects of a successful project (market access, income, jobs, changes to current operations, etc.) 14. Summarize your current market (type, trends, etc.) and describe how a successful project will allow you to more effectively serve that market and/or new markets. 15. Describe anything new or innovative about your project and also what others may learn from your experience. 16. List the major steps/phases of your project and provide an estimated schedule for completion. 17. Describe how your knowledge, skills and abilities support the success of the project. 18. Describe any additional resources/assistance (financial, technical, contractual services, equipment, etc.) needed to complete your project and identify proposed sources for that assistance. ORANGE COUNTY ECONOMIC DEVELOPMENT GRANTS CLAWBACK/COLLECTION POLICY SECTION 1 PURPOSE AND APPLICABILITY: This administrative policy is intended to serve as a guideline by which grant funds may be collected or clawed back by Orange County. The Economic Development Department administers the following Grant Programs: The Business Investment Grant Program; the Agriculture Grant Program. Each program has requirements grantees must meet in order to satisfy the terms of their respective grant agreements. Failure to meet the requirements of the programs and the grant agreements and thereafter the failure to cure the initial problem will result in the County exercising its rights to collect or clawback the grant funds. SECTION 2 COLLECTION PROCEDURE: Upon discovery by Economic Development staff that a grantee or grantee’s agent has failed to comply with the terms of the grant program or grant agreement Economic Development staff shall engage in the following process: Step 1; Upon initial discovery, send written notice to the grantee and grantee’s agent. Notice may be via email or first-class mail, Step 2; Upon failure to comply send via first class mail final notice, Step 3; Upon failure to comply notify the appropriate entity to investigate further. Docusign Envelope ID: 21C5EE31-0187-435E-A517-C714289A7E41 OCEDaedga 1-25 Information to be included in Step 1: Identify the grantee and grantee’s agent responsible for payment Identify the terms of the policy or agreement with which the grantee is noncompliant Notify the grantee how they may achieve compliance Notify the grantee they should come into compliance within 30 days Information to be included in Step 2: Notify the grantee that they must come into immediate compliance Notify the grantee that failure to comply within 10 business days will result in further action Notify the grantee that further action may involve reporting to law enforcement where fraudulent activity is suspected or collection litigation for all other situations Step 3: Notify law enforcement where fraudulent activity is suspected. For all other situations notify the County Attorney’s office possible collection litigation. Exhibit B Additional Terms The Grant Recipient agrees to cooperate in the promotion of their project to the benefit of other farm-related businesses in Orange County by allowing tours of, or presentations about, the project by associated entities such as Agricultural Extension, Orange County Economic Development, local educational institutions, or other non-profit groups who promote development of the local agriculture economy. This will be limited to two per year up to five years from the date of award or as otherwise agreed to by the Recipient and Orange County Economic Development Office. Exhibit C Additional Information Use of Funds: $10,000 towards Freight Farm Container; (Grading and Leveling Area where the container will be placed; Connecting electrical and irrigation components: this includes activating a business utility meter for dedicated electricity, installing a breaker box, installing electrical cables, installing irrigation pipes; Initial Startup Costs for operating supplies - Labeling Tags, Zerotol (cleaning solution), Nutrients for hydroponic system, Packaging material (Zip and open-top plastic bags, a bag taper, paper bags, boxes), Herb/Flower Clamshells in both 0.75 oz and 0.25 oz sizing, 150 qt. Coolers and Ice Packs, Crates for storage and harvesting, Scissors and scales for harvesting, Coveralls and sticky mats, 288 cell seeding trays with humidity domes & extra 200 cell seeding trays, & Plugs for starting seedlings. Solar panels and batteries to power system - Renogy 1.2kW Essential Kit. Purpose: Operation “freight farm” is a self contained vertical farming system that is housed in a 40’ shipping container. This project is meant to tackle some of the main challenges with growing food at scale, including efficient water usage, compact growing area, year-round food production and toxin-free produce grown without the use of harmful chemicals. The goal is to bring this growing system here to Hillsborough, NC on our 5 acre farm and to use it to supply restaurants and markets with fresh local produce year round. Docusign Envelope ID: 21C5EE31-0187-435E-A517-C714289A7E41 Revised 01/24 1 ORANGE COUNTY—INTERNAL USE ONLY ______________________________________________________________________________ Finance Information Vendor Name: Farmer & Poet LLC DBA Rezk Family Farm Vendor Contact Person: Omar Rezk Phone: 919- 667-3448 Address: 5500 St Marys Rd City Hillsborough State: NC Zip: 27278 Department: Economic Development Amount: $10,000 Purpose: AG Economic Development Grant Budget Code(s): 34600020-900050 Vendor # 68951 Vendor Status with NCSOS: Current-Active Vendor is a BOCC consultant: Yes No Contract Details Contract Type: New Amendment (Original Contract: ) (Most Recent Amendment ) Effective Date 5-7-25 End Date Notice Date (Notice Purpose ) Award Approved by Board (Agenda Date: ); Made or Administered by Signature Authority - BOCC Express Delegation (Agenda Date: ) - Policy 9.4: Under $5,000; Service Under $90,000; Construction Under $250,000 - Budget Policy Section XV (Capital Improvement Project: ) Bidding Informal Bidding ($30k-$90k); Formal RFP ($90k+); Other (<$30k); Exception(# ) Department Affirmation This agreement is approved as to technical form and content and I as Department Director affirmatively state work on this project has not been initiated prior to execution of the agreement. This agreement is approved as to technical form and content. Services related to this agreement have alread y begun or been completed. Description of the nature of the emergency condition that was addressed: Department Director’s Signature ________________________________________ Date: ________ Information Technologies This agreement has been reviewed and is approved as to information technology content and specifications: Office of the Chief Information Officer___________________________________ Date: ________ Inapplicable because no hardware/software purchases or related services Risk Management This agreement is approved for sufficiency of insurance standards, specifications, and requirements: Office of the Risk Management Officer___________________________________ Date: _________ Financial Services This instrument has been pre-audited in the manner required by the Local Government Budget and Fiscal Control Act: Office of the Chief Financial Officer ____________________________________ Date: _________ Legal Services This agreement is approved as to legal form and sufficiency: Office of the County Attorney __________________________________________Date: ________ Clerk to the Board All Docusign contracts must be copied to the Clerk upon completion: occlerkdocs@orangecountync.gov The following signature block is for hard copies only and is not required for Docusign contracts: Received for record retention: Office of the Clerk to the Board __________________________________________Date:_________ Docusign Envelope ID: 21C5EE31-0187-435E-A517-C714289A7E41 5/12/2025 5/12/2025 5/12/2025