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Agenda Packet August 3 2015PERSON COUNTY BOARD OF COUNTY COMMISSIONERS MEETING AGENDA 304 South Morgan Street, Room 215 Roxboro, NC 27573-5245 336-597-1720 Fax 336-599-1609 August 3, 2015 6:00pm CALL TO ORDER…………………………………………………. Chairman Puryear ITEM #1 Closed Session #1 for the purpose of considering appointment of individuals through an informal interview process with applicants of boards and committees per General Statutes 143-318.11(a)(6) for the following: A. Jury Commission B. Library Advisory Board C. Piedmont Community College Board of Trustees D. Person-Caswell Lake Authority E. Planning Board Return to Open Session for Board discussion and action as deemed appropriate Recess to the regularly scheduled meeting at 7:00 pm * * * * * * * * * 7:00pm CALL TO ORDER…………………………………………………. Chairman Puryear INVOCATION PLEDGE OF ALLEGIANCE DISCUSSION/ADJUSTMENT/APPROVAL OF AGENDA 1 PUBLIC HEARING: ITEM #2 Request by North Park Drive LLC, representing Spuntech Industries, Inc., to rezone 71.23 acres of a 181 acre parcel (Tax Map A58 Parcel 35) located on Boston Road (US 501 N) from Rural Conservation to General Industrial ………………………………………………………... Mike Ciriello ITEM #3 Consideration to Grant or Deny Request by North Park Drive LLC, representing Spuntech Industries, Inc., to rezone 71.23 acres of a 181 acre parcel (Tax Map A58 Parcel 35) located on Boston Road (US 501 N) from Rural Conservation to General Industrial …………………………………………………. Chairman Puryear INFORMAL COMMENTS The Person County Board of Commissioners established a 10 minute segment which is open for informal comments and/or questions from citizens of this county on issues, other than those issues for which a public hearing has been scheduled. The time will be divided equally among those wishing to comment. It is requested that any person who wishes to address the Board, register with the Clerk to the Board prior to the meeting. ITEM #4 DISCUSSION/ADJUSTMENT/APPROVAL OF CONSENT AGENDA A. Approval of Minutes of July 20, 2015, and B. Lease Agreement with Philips Medical Capital (EMS Defibrillators) UNFINISHED BUSINESS: ITEM #5 Appointments to Boards and Committees ……………………………. Brenda Reaves A. Jury Commission B. Library Advisory Board C. Piedmont Community College Board of Trustees D. Person-Caswell Lake Authority E. Planning Board F. Economic Development Commission G. Nursing Home Advisory Committee NEW BUSINESS: ITEM #6 Woodland Tower Lease ……………………………………………………... Sybil Tate CHAIRMAN’S REPORT MANAGER’S REPORT COMMISSIONER REPORTS/COMMENTS Note: All Items on the Agenda are for Discussion and Action as deemed appropriate by the Board. 2 PUBLIC NOTICE The Person County Board of Commissioners, by action at its meeting on July 20, 2015, has recessed the meeting until August 3, 2015 at 6:00pm. The meeting will be held in the Board’s usual meeting room 215 in the County Office Building. Brenda B. Reaves, NCCCC, CMC Clerk to the Board 3 PERSON COUNTY BOARD OF COUNTY COMMISSIONER’S PUBLIC HEARING NOTICE The Person County Board of County Commissioners will hold a public hearing on Monday, August 3, 2015 at 7:00 p.m. in Room 215 of the Person County Office Building at 304 South Morgan Street , Roxboro, North Carolina to hear the following: Request by North Park Drive LLC, representing Spuntech Industries, Inc., to rezone 71.23 acres of a 181 acre parcel (Tax Map A58 Parcel 35) located on Boston Road (US 501 N) from Rural Conservation to GI (General Industrial) Citizens will have an opportunity to speak regarding the above requests. Site-specific information is on file with the Person County Planning and Zoning Department, 325 S. Morgan Street, Suite B. Mike Ciriello Planning Director 4 AGENDA ABSTRACT Meeting Date: August 3, 2015 Agenda Title: Public Hearing – Request by North Park Drive LLC, representing Spuntech Industries, Inc., to rezone 71.23 acres of a 181 acre parcel (Tax Map A58 Parcel 35) located on Boston Road (US 501 N) from Rural Conservation (RC) to General Industrial (GI) Summary Information: The request is to rezone 71.23 acres of a 181.34 acre parcel located on Boston Road, US 501 N from Rural Conservation to General Industrial. If rezoned, all land uses permitted in the GI District will be allowed and would accommodate future industrial uses and/or expansion of existing industrial facilities on adjacent parcels. The general intent of the GI, General Industrial District shall be to provide suitable locations for service, manufacturing and warehousing activities which are non-noxious. The area along Boston Road is primarily zoned Rural Conservation but there are some residential and B-1 properties. There are two parcels that are zoned B-1 (Highway Commercial, one is the Bull Pen (formerly Outer Limits) and the other parcel is vacant. Immediately adjacent to the parcel on Boston Road there is a mixture of vacant land, single family dwellings and an auto repair garage. The property immediately west of the site is owned by North Park Drive LLC and it is zone General Industrial. This is the location of Spuntech on North Park Drive. Adjacent and to the north along North Park Drive is Georgia Pacific. The Planning Board held a Public Hearing on June 11, 2015. The Board voted 4 to 0 to recommend approval of the rezoning provided the 71.23 acres is recombined with Tax Map A58 Parcel 124. The Board found that the rezoning was consistent with the Comprehensive Plan. Recommended Action: Vote to approve or deny the rezoning Submitted By: Michael Ciriello, Planning Director 5 6 7 8 9 10 11 12 13 14 15 16 REZONING REQUEST RZ-02-15 APPLICANT NORTH PARK DRIVE LLC PROPERTY OWNER NORTH PARK DRIVE LLC REQUEST REZONE PROPERTY ON NORTH SIDE OF BOSTON ROAD, US 501 N, (TAX MAP A58, PARCEL35) FROM RURAL CONSERVATION (RC) TO GI (GENERAL INDUSTRIAL) LOCATION BOSTON ROAD, US 501 N WOODSDALE TOWNSHIP BACKGROUND AND SUMMARY The County has received an application from North Park Drive LLC to amend the official zoning map. The request is to rezone 71.23 acres of a 181.34 acre parcel located on Boston Road, US 501 N from Rural Conservation to General Industrial. If rezoned, all land uses permitted in the GI District will be allowed. The general intent of the GI, General Industrial District shall be to provide suitable locations for service, manufacturing and warehousing activities which are non-noxious. The area along Boston Road is primarily zoned Rural Conservation but there is some residential and B-1 properties. There are two parcels that are zoned B-1 (Highway Commercial, one is the Bull Pen (formerly Outer Limits) and the other parcel is vacant. Immediately adjacent to the parcel on Boston Road there is a mixture of vacant land, single family dwellings and an auto repair garage. The property immediately west of the site is owned by North Park Drive LLC and it is zone General Industrial. This is the location of Spuntech on North Park Drive. Adjacent and to the north along North Park Drive is Georgia Pacific. That property has been annexed by the City of Roxboro and is zoned I-2. Attached to this report is a map showing the area and zoning of adjacent parcels. The Person County Land Use Plan’s “Future Land Use Map” shows this area as Suburban Residential. It is defined as Residential land uses including subdivisions and manufactured home parks at densities of 1-3 dwelling units per acre; commercial, office, industrial, public/institutional uses meeting locational criteria. Locational criteria for non-residential uses within this land use category would include frontage and access to a major State highway or secondary road, proximity to similar uses and spatial separation from non-compatible uses such as existing residential development. Land uses within this category could develop with or without public sewer. 17 Section 160-5(B) of the Zoning Ordinance states: “The Planning Board shall provide a written recommendation to the Board of County Commissioners that addresses that the proposed amendment is consistent with the comprehensive plan, but a comment by the Planning Board that a proposed amendment is inconsistent with the comprehensive plan shall not preclude consideration or approval of the proposed amendment by the Board of County Commissioners. Prior to adopting or rejecting any zoning amendment, the Board of County Commissioners shall adopt a statement describing whether its action is consistent with an adopted comprehensive plan and why such action is reasonable and in the public interest. The Land Use Plan has Goals and Objectives for future land development within the County. The following item is listed within this section: 2.1 Objective: Promote continued economic investment through retention and expansion of existing industrial concerns and the recruitment of new industrial and commercial businesses. This parcel consists of 181.34 acres and only the western portion consisting of 71.23 acres is within the rezoning request. The 71.23 acres will be recombined with the adjacent property (all owned by North Park Drive LLC). The remaining acreage will continue to be zoned Rural Conservation There is City water and sewer available on North Park Drive and could be available to this site. Access to the site is on US 501 North, Boston Road. Typical uses permitted by right in the GI District are as follows: Bakery production and wholesale sales, bottling, beverages, cabinet making, candy wholesale production and distribution, clothing manufacture, construction trades, dairy products and processing, dry kiln, electrical equipment manufacture and distribution, feed and seed milling, manufactured home Industrial facility, school, textile manufacture and tobacco processing. There are many other uses allowed with a Special Use Permit such as asphalt and asphalt production, bank, church, day care center, electrical generating facility, fertilizer manufacture, food processing, furniture manufacturing, Industrial operations, machine tool manufacture, mixing plants for concrete, non-hazardous, non-toxic solid waste disposal, plastic fabricating, salvage operation, storage, flammable, etc. There are no uses allowed with a Conditional Use Permit. If the property were to remain Rural Conservation, the following uses would be permitted by right: ABC store, retail sales, banks, bowling alley, car wash, convenience 18 store, dry cleaners, single family dwelling, multi-family dwelling, fire station/law enforcement center, funeral home, golf course, nursery (plants), professional office, reception center for recycling, mini-storage facility, etc. The Rural Conservation district allows other uses with a Special Use Permit such as: asphalt and asphalt production, automobile repair, camper/recreational park, electrical generating facility, Industrial Operations, mobile home park, private recreation for profit, etc. Some uses allowed with a Conditional Use Permit are: flammable storage, school, private or public; and storage of coal by products. PHYSICAL CHARACTERISTICS Watershed: Located in the Roanoke Watershed Flood Hazard: There are no one hundred year flood areas on the property per Map3720090800, dated July 25, 2006. There are some minor streams located on the property. CHARACTER OF THE SURROUNDING AREA The property is located on Boston Road, US 501 North. There is a mixture of uses within the area. Along US 501, there is vacant land, single family dwellings, an auto repair garage and the Bull Pen. Along North Park Drive, there is Spuntech and Georgia Pacific, all Industrial Operations. TRAFFIC COUNTS Per the 2013 NCDOT Traffic Count Map: 5500 ADT ORDINANCE PROVISIONS 160-3 The Zoning Administrator shall have up to 30 days, at his or her discretion, prior to the regular Planning Board Meeting to review petitions from the public to amend this ordinance or Official Planning Map. Each petition unless initiated by the Board of County Commissioners, the Planning Board, the Board of Adjustment or the Zoning Administrator shall be accompanied by a fee as set- out in SECTION 181-1 to defray the cost of advertising and other administrative costs. Applications for the amendments to the Official Planning Map and/or Planning Ordinance text shall contain at least the following: (1). For Amendments to the Official Planning Map, a map drawn to scale showing the exterior boundaries of the lot(s) which will be covered by the proposed map amendment; 19 (2). For amendments to the Planning Ordinance text, a copy of the existing text provisions which the applicant proposes for amendment, and a written statement which describes in detail changes the applicant proposes to make to the text of the Ordinance. (3). The alleged error in the Official Planning Map and/or Planning Ordinance Text which will be corrected by the proposed amendment with a detailed explanation of such and detailed reasons how the proposed amendment will correct the same; (4). The changed or changing conditions, if any, in the area or in the County generally, which makes the proposed Official Planning Map and/or Planning Ordinance text amendment reasonable necessary to the promotion of the public health, safety and general welfare; (5). The manner in which the proposed Official Planning Map and/or Planning Ordinance text amendment will carry out the intent and purpose of the Comprehensive Plan or part thereof; and, (6). All other circumstances, factors and reasons which the applicant offers in support of the proposed Official Planning Map and/or Planning Ordinance text amendment. (Amended 8/5/96) 160-4 After submission of an application, the Zoning Administrator will schedule a public hearing for the planning board. When the provisions of the ordinance require that written or mailed notices be required, the Zoning Administrator will be responsible for mailing the written notices to all abutting property owners including the applicant. If required, the applicant at his expense shall post the notice on weatherproof signs, one sign per each road frontage and no more than 25’ from the street right of way. Signs must be clearly visible from the street and designate “Zoning Proposal Pending” with the phone number of the Person County Planning office. A notice of such public hearing shall be published once a week for two (2) consecutive weeks in a newspaper of general circulation in Person County. Said notice shall be published the first time not less than ten (10) days and not more than twenty-five (25) days prior to the date established for such public hearing. (Amended 11/5/01) 160-5 The Planning Board shall have sixty (60) days after the public hearing specified in SECTION 160-4 within which to submit its recommendations to the Board of 20 Commissioners. Failure of the Board to submit its recommendation within this time period shall constitute a favorable recommendation. 160-6 The Board of County Commissioners shall consider requests at the next regular scheduled meeting of the Board following receipt of the Planning Board’s recommendation and after notice of the public hearing is provided in accordance with Section 160-7. 160-7 The County Manager or designate is authorized to set the public hearing date immediately following the Planning Board recommendation and after notice of the public hearing is provided in accordance with Section 160-7. STAFF COMMENTS This is a request to rezone 71.23 acres of a 181.34 acre parcel from RC (Rural Conservation) to GI (General Industrial). The remaining portion which will consist of 110.11 acres will remain zoned RC. If the rezoning is approved, the 71.23 acres will be recombined with Tax Map A58 Parcel 124 and access will on North Park Drive. The remaining acreage will have access on Boston Road. Attached to this report is an article on Spot Zoning from the Institute of Government, and a map showing the property in question and surrounding properties. The properties immediately adjacent are primarily zoned Rural Conservation but the Spuntech property on North Park Drive is zoned GI (General Industrial). There are four factors in determining a reasonable basis for spot zoning. They are as follows: 1. Size of tract. The general rule is the smaller the tract, the more likely the rezoning will be held invalid. 2. Compatibility with Plan. Need to see if the rezoning fits into a larger context involving rational planning for the community. 3. Benefits and Detriments. Who benefits and who is harmed from the rezoning. Need to look at the property owner and the neighbors. 4. Relationship of Uses. Need to look at the relationship between the proposed uses and the current uses of adjacent properties. The Planning Board has the following options in a recommendation to the County Commissioners: 1. Approve the rezoning request as submitted. If approved, the 71.23 acres to be recombined with Tax Map A58 Parcel 124. 2. Deny the rezoning request. 21 The Board needs to address the compatibility with the Comprehensive plan in making their recommendation. PLANNING BOARD REVIEW The Planning Board held a Public Hearing on June 11, 2015. The Board voted 4 to 0 to recommend approval of the rezoning provided the 71.23 acres is recombined with Tax Map A58 Parcel 124. The Board found that the rezoning was consistent with the Comprehensive Plan. 22 July 20, 2015 1 PERSON COUNTY BOARD OF COMMISSIONERS JULY 20, 2015 MEMBERS PRESENT OTHERS PRESENT Kyle W. Puryear Heidi York, County Manager David Newell, Sr. C. Ronald Aycock, County Attorney B. Ray Jeffers Brenda B. Reaves, Clerk to the Board Jimmy B. Clayton Tracey L. Kendrick The Board of Commissioners for the County of Person, North Carolina, met in regular session on Monday, July 20, 2015 at 9:00 am in the Commissioners’ meeting room in the Person County Office Building. Chairman Puryear called the meeting to order. Commissioner Kendrick gave an invocation and Vice Chairman Newell led the group in the Pledge of Allegiance. DISCUSSION/ADJUSTMENT/APPROVAL OF AGENDA: A motion was made by Commissioner Kendrick and carried 5-0 to approve the agenda. RECOGNITION: RESOLUTION OF APPRECIATION FOR RETIREE: Chairman Puryear read and presented a Resolution of Appreciation to Person County retiree, Wes Lail. Board members thanked Mr. Lail for his service to Person County. 23 July 20, 2015 2 24 July 20, 2015 3 INFORMAL COMMENTS: There were no comments from the public. DISCUSSION/ADJUSTMENT/APPROVAL OF CONSENT AGENDA: A motion was made by Commissioner Kendrick and carried 5-0 to approve the Consent Agenda with the following items: A. Approval of Minutes of June 1, 2015, June 3, 2015 and June 15, 2015, B. Budget Amendment #1, C. Resolution – Stepping Up Initiative to Reduce the Number of People with Mental Illnesses in Jails, D. DSS Attorney Contracts, and E. Tax Adjustments for the month of July 2015 a. Tax Releases, b. NC Vehicle Tax System pending refunds CANCER DEATH RATE STUDY – WITHIN A 2-MILE RADIUS OF THE UPPER PIEDMONT LANDFILL: Health Director, Janet Clayton stated as a follow-up to the initial cancer death rate study of Person County dated April 1, 2015, a cancer death rate study was requested to more specifically investigate a 2-mile radius surrounding 9550 Oxford Road, also known as the Upper Piedmont Landfill. Ms. Clayton introduced Dr. Rick Langley of the Occupational and Environmental Epidemiology Branch of the North Carolina Division of Public Health to present to the Board the state’s results. Dr. Langley stated the following types of metals: barium, cobalt, copper and zinc show elevated levels around the landfill. Dr. Langley noted Dr. Ken Rudo, State Toxicologist, will meet with the Person County Health Director, Janet Clayton on July 21, 2015 to review sampling of well water located within a 2-mile radius of the landfill. The correspondence dated May 28, 2015 describing the results of the study follows: 25 July 20, 2015 4 26 July 20, 2015 5 27 July 20, 2015 6 Dr. Langley reported the following Person County Cluster Analysis to the Board: 28 July 20, 2015 7 29 July 20, 2015 8 NEW BUSINESS: ECONOMIC DEVELOPMENT COMMISSION: Mr. Kenneth Perry, Chairman of the Economic Development Commission addressed the Board for input related to the expectations and/or improvements for the Economic Development Commission (EDC). Commissioner Kendrick stated without the interstate system to help Person County, he felt smaller projects to grow into larger projects would be his expectation for EDC. Commissioner Jeffers noted the EDC should continue its transparency, working with regional partners in collaboration as well as small business partnerships. Commissioner Clayton stated having the EDC to continue to meet regularly, continue to support the director, and state level partnerships was important and he prefers expending economic incentives based on performance measures. Vice Chairman Newell stated the current EDC has politics that should be put aside and to go forward as one body with each member taking on the role as a recruiter. Chairman Puryear noted transparency, communication with the Board of Commissioners, management of funds related to consultants and legal fees as well as to seek community leaders’ input as his expectations for EDC. Mr. Perry told the Board that Representative Larry Yarborough has been appointed to the state’s budget committee noting the Senate’s provision in the budget to allocate additional state sales tax to rural counties could benefit Person County in a great way should it be adopted. Commissioner Jeffers commented that the NC Association of County Commissioners’ Board of Directors recently met with the Senior Finance Chair with the House noting there is a divide of urban versus rural on the state sales tax and the opinion is that there may not be a state budget adopted until after the first of the year (2016) with a continuance resolution in place so there is more time to further review the details of the state sales tax. 30 July 20, 2015 9 RESOLUTION AUTHORIZING A CONTRACT BETWEEN PERSON COUNTY AND THE ROXBORO BUILDING COMPANY, INC. WHICH INVOLVES A COUNTY COMMISSIONER AS SHAREHOLDER: County Attorney, Ron Aycock noted Person County recently contracted for the renovations of the Kirby Theatre. The parking lot located behind the Kirby Theatre, accessed by Reams Avenue, is owned by the Roxboro Building Company, Inc. This parking lot has been used by patrons of the Kirby for many years. During the renovation, this parking lot was damaged. The County and Roxboro Building Company, Inc. wish to partner on the repaving of the parking lot. The total cost of the full repaving is $22,340 with both the County and the Roxboro Building Company, Inc. paying $11,170. Mr. Aycock presented a Resolution authorizing a contract between Person County and the Roxboro Building Company, Inc. which involves a county commissioner as a shareholder noting the agreement for this cost sharing was contingent upon the approval by the Board of the Resolution. Mr. Aycock stated Vice Chairman David Newell, Sr. is a shareholder of Roxboro Building Company, Inc. owning in excess of a 10% interest. North Carolina General Statute 14-234 titled Public officers or employees benefiting from public contracts; exceptions- provides for an exemption of the prohibition of contracting on behalf of a public agency when they will derive a direct benefit from a contract. The exemption is allowed for counties with no city population over 15,000. The following requirements must be met in order to allow the exemption: a) The contract may not exceed $40,000 in value, b) The affected commissioner must abstain from voting, c) The County must post on the County Bulletin Board, notice showing the name of the county commissioner, the amount of the contract, and a brief explanation, and d) The contract must be noted in the independent auditor’s next fiscal audit. A motion was made by Commissioner Kendrick and carried 4-0 to recuse Vice Chairman Newell from Board action related to a Resolution authorizing a contract between Person County and the Roxboro Building Company, Inc., which involves a county commissioner as shareholder. Vice Chairman Newell did not participate in the vote. A motion was made by Commissioner Clayton and carried 4-0 to adopt a Resolution authorizing a contract involving a County Commissioner pursuant to NC General Statute 14-234 as presented. Vice Chairman Newell did not participate in the vote. 31 July 20, 2015 10 32 July 20, 2015 11 33 July 20, 2015 12 TAX COLLECTOR SETTLEMENT: Tax Administrator, Russell Jones stated as required by General Statute 105- 373(a)(3), an annual settlement for taxes for the current fiscal year and all previous years must be made with the governing body of the taxing unit. Mr. Jones presented to the Board the following: 34 July 20, 2015 13 35 July 20, 2015 14 36 July 20, 2015 15 37 July 20, 2015 16 38 July 20, 2015 17 A motion was made by Vice Chairman Newell and carried 5-0 to accept the Tax Collector Settlement as presented. 39 July 20, 2015 18 ORDER TO COLLECT TAXES: Tax Administrator, Russell Jones stated as required by General Statute 105-321, the governing board of the taxing unit must issue an order of collection to tax collectors. The Order gives the tax collector legal authority to collect taxes. A motion was made by Vice Chairman Newell and carried 5-0 to direct Person County’s Tax Collector to collect taxes for 2015 and all delinquent taxes from prior years. 40 July 20, 2015 19 RE-APPOINTMENT OF COUNTY ASSESSOR: Tax Administrator, Russell Jones stated as required by General Statute 105-294(a), the Person County Board of Commissioners must appoint a Tax Assessor. The Board of Commissioners appointed the current tax assessor, Russell Jones, on July 5, 2011 for a four year term, which will expire this month. The current tax assessor is certified by the North Carolina Department of Revenue as an Assessor, and therefore eligible for a four year appointment. It is customary for counties to appoint an Assessor for the full four year term. § 105-294. County assessor. (a) Appointment. – Persons occupying the position of county assessor on July 1, 1983, shall continue in office until the first Monday in July, 1983. At its first regular meeting in July, 1983, and every two years or four years thereafter, as appropriate, the board of county commissioners of each county shall appoint a county assessor to serve a term of not less than two nor more than four years; provided, however, that no person shall be eligible for initial appointment to a term of more than two years unless such person is deemed to be qualified as provided in subsection (b) of this section or has been certified by the Department of Revenue as provided in subsection (c) of this section. The board of commissioners may remove the assessor from office during his term for good cause after giving him notice in writing and an opportunity to appear and be heard at a public session of the board. Whenever a vacancy occurs in this office, the board of county commissioners shall appoint a qualified person to serve as county assessor for the period of the unexpired term. A motion was made by Vice Chairman Newell to appoint Russell Jones as Person County’s Tax Assessor for a designated term of two years. A substitute motion was made by Commissioner Jeffers and failed 2-3 to appoint Russell Jones as Person County’s Tax Assessor for a designated term of four years. Commissioners Jeffers and Clayton voted in favor of the substitute motion. Chairman Puryear, Vice Chairman Newell and Commissioner Kendrick voted in opposition to the substitute motion. The original motion carried 3-2. Vice Chairman Newell, Chairman Puryear and Commissioner Kendrick voted in favor of the original motion. Commissioners Jeffers and Clayton voted in opposition to the original motion. Chairman Puryear administered the County Tax Assessor oath to Mr. Russell Jones. 41 July 20, 2015 20 42 July 20, 2015 21 DESIGNATION OF VOTING DELEGATE TO NC ASSOCIATION OF COUNTY COMMISSIONERS ANNUAL CONFERENCE: Chairman Puryear asked Board consideration to designate Person County’s voting delegate for the NC Association of County Commissioners annual conference scheduled for August 20-23, 2015 in Pitt County. A motion was made by Commissioner Jeffers and carried 5-0 to designate Commissioner Clayton as Person County’s voting delegate for the NC Association of County Commissioners annual conference in Pitt County on August 20-23, 2015. CHAIRMAN’S REPORT: Chairman Puryear reminded the Board members that on August 3, 2015 at 6:00pm, the Board would hold the informal interview process with candidates for certain boards and committees. MANAGER’S REPORT: County Manager, Heidi York stated copies of the final document containing the adopted Fiscal Year 2015-2016 budget was placed at the Board member’s seats. Ms. York updated the Board on the solid waste study Request For Proposals noting the bids was coming in under the $100,000 budgeted amount. Ms. York noted the Request for Qualifications have been evaluated by a committee to select an architect for the Senior Center project. COMMISSIONER REPORT/COMMENTS: Vice Chairman Newell publicly apologized to Commissioner Jeffers for a comment he directed to him in the last Board meeting as well as apologized to the Board for his conduct. Commissioner Kendrick reported resources at the Person County Library for continuing education classes, foreign language programs and he encouraged citizens to take advantage of such. Commissioner Clayton congratulated Commissioner Jeffers for being elected to the National Association of Counties’ board. Commissioner Clayton asked the County Manager to confirm if a meeting was being scheduled for the Chairman and Vice Chairman for each the Museum of History, Tourism Development Authority and the Commissioners to which Ms. York replied affirmatively. 43 July 20, 2015 22 Commissioner Jeffers commented that he and Commissioner Tracey Johnson of Washington County were elected by the NC Association of County Commissioners’ voting delegates for all 100 counties to be state representatives on the national board for a three year term. Commissioner Jeffers reported the Fire Chiefs were pleased with the county’s funding programs. Commissioner Jeffers recognized the Director of Social Services, Carlton Paylor, Assistant County Manager, Sybil Tate and the Summer Intern, Caley Trujillo for their efforts to make the human services event a success. RECESS: A motion was made by Vice Chairman Newell and carried 5-0 to recess the meeting at 9:59am until 6:00pm on August 3, 2015. _____________________________ ______________________________ Brenda B. Reaves Kyle W. Puryear Clerk to the Board Chairman (Draft Board minutes are subject to Board approval). 44 45 46 47 AGENDA ABSTRACT Meeting Date: August 3, 2015 Agenda Title: Appointments to Boards and Committees Summary of Information: On June 15, 2015, the Person County Board of Commissioners took action to hold the informal interview process to aid in the process for appointments to the following boards and committees. Attached are interested citizen applications for consideration for appointments. - Jury Commission 2-Year Term; 1 position available 1) Bayard R. Crumpton requests reappointment 2) Carmen Lou Giggey requests appointment - Library Advisory Board 3-Year Term: 2 positions available 1) Margaret McMann requests reappointment 2) Robert A. Bridges requests appointment 3) Riley J. Oakley, Jr. requests appointment 4) Charles Harvey requests appointment - Piedmont Community College Board of Trustees 4-Year Term; 1 position available 1) Charles Harvey requests appointment 2) Tommy Humphries requests appointment 3) James J. Woody requests appointment 4) Merilyn P. Newell requests appointment 5) Alan R. Whitlow requests appointment - Person-Caswell Lake Authority 3-Year Term: 1 position available 1) Gil Stovall requests reappointment 2) Michael Boucher requests appointment - Planning Board 3-Year Term: 2 positions available 1) Sandra Majors requests reappointment 2) Michael Riley requests appointment 3) Michael Brandon requests reappointment ************************** 48 The Person County Board of Commissioners solicited volunteers to fill positions on the following boards, commissions, authorities, and committees through advertisement in the Courier-Times edition dated June 18, 2015 with notice to submit applications by the deadline of July 14, 2015. Attached are interested citizen applications for consideration for appointments. The Board of Commissioners are encouraged to recruit citizens to fill the current vacancies for those which no applications have been received. - Board of Adjustment 1 position to fill an unexpired term to 6/30/16, and 1 position for an unspecified term for an alternate - No applications received. - Economic Development Commission 1 position available for an unexpired term to 6/30/17 for a representative of a business with a presence in Person County 1) Jeff Fitzgerald requests appointment - Industrial Facilities and Pollution Control Financing Authority 6-Year Term; 2 positions available – No applications received. - Juvenile Crime Prevention Council 1-Year Initial Term; 2-Year Reappointment 1 position available for a member of the business community; 1 position available for a substance abuse professional; 2-Year Term: 1 citizen-at-large position; 1 position for the Chief of Police or his designee; 1 position for the District Attorney or his designee; 1 position for a representative from the Department of Social Services. - No Applications received. - Nursing Home Advisory Committee 1-Year Initial Term; 3-Year Reappointment; 3 positions available 1) Geraldine Yancey requests reappointment Recommended Action: Board nomination for appointment as deemed appropriate. Submitted By: Brenda B. Reaves, Clerk to the Board Note: Highlights denote competitive board. 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 AGENDA ABSTRACT Meeting Date: August 3, 2015 Agenda Title: Woodland tower lease Background information: At the April 20th BOC meeting, the Board approved a proposal to lease the Woodland School tower site to the State for construction of a VIPER tower. Summary of Information: Attached is a copy of the lease agreement from the Attorney General’s Office. It has been reviewed and approved by the County Attorney. Representative from the State will be available to answer questions regarding the terms and conditions of the lease. Recommended Action: Approve the lease. Submitted By: Assistant County Manager, Sybil Tate 73 Page 1 of 10 STATE OF NORTH CAROLINA GROUND LEASE AGREEMENT COUNTY OF PERSON THIS GROUND LEASE AGREEMENT (“Lease”), made and entered into as of the last date set forth in the notary acknowledgements below by and between the COUNTY OF PERSON, a political subdivision of the State of North Carolina, hereinafter referred to as “Lessor”; and the STATE OF NORTH CAROLINA, a body politic and corporate, hereinafter referred to as “Lessee” (Lessor and Lessee each individually referred to herein as a “Party” and collectively referred to herein as the “Parties”); W I T N E S S E T H: THAT WHEREAS, the North Carolina Department of Public Safety, Division of the Law Enforcement, State Highway Patrol has requested and approved the execution of this instrument for the purposes herein specified; and WHEREAS, the execution of this Lease for and on behalf of Lessee has been duly approved by the Governor and Council of State at a meeting held in the City of Raleigh, North Carolina, on the 2nd day of June, 2015; and WHEREAS, the Parties have mutually agreed to the terms of this Lease as hereinafter set out. NOW THEREFORE, in consideration of the Premises, as described herein, and the promises and covenants contained in the terms and conditions hereinafter set forth, Lessor does hereby rent, lease and demise unto Lessee for and during the term and under the terms and conditions hereinafter set forth, the Premises with all rights, privileges and appurtenances thereto belonging. The terms and conditions of this Lease are as follows: 1. Premises. The “Premises” means that certain parcel or tract of land containing 0.6 acres, more or less, lying and being in Cunningham Township, Person County, North Carolina having an address of 7391 Semora Road, Semora, North Carolina 27343 and being more particularly shown and described as “VARIABLE WIDTH LEASE AREA PARCEL ‘A’” on a survey for the project known as “HYCO LAKE SITE #HP-1130 SCO ID # 10-08820-01L” prepared by Tower Engineering Professionals (TEP #: 57546), dated February 11, 2015 (sheet 2 of 2), attached hereto and incorporated herein as Exhibit A. 2. Term. The term of this Lease shall be for a period of twenty-five (25) years, commencing on the 1st day of July, 2015 and terminating on the 30th day of June, 2040 (the “Initial Term”). This Lease shall automatically be renewed for one (1) additional twenty-five (25) year period (the “Renewal Term”) upon all the terms and conditions set forth herein; provided that Lessee, in its sole discretion, may elect not to renew this Lease by giving Lessor not less than sixty (60) days advance written notice prior to the end of the Initial Term (the Initial Term and the Renewal Term are collectively referred to herein as the “Term”). 74 Page 2 of 10 3. Rent. Lessee shall pay to Lessor as rental for the Premises, the sum of ONE DOLLAR ($1.00) for the Term. 4. Equipment / Use / Fixtures. Lessee shall use the Premises for the purpose of constructing and installing a 280' self-supporting communications tower (the “Tower”), equipment building (the “Building”), concrete generator pad, ice bridge structure, fencing and related improvements and for the purpose of installing, operating, maintaining, repairing, replacing and removing, intellirepeaters, microwave dishes, batteries, chargers, UPS, generator transfer switch(s), antennas, transmission lines, waveguides, cables, wires, receivers, generator(s) and other communications equipment (all such equipment whether located in the Building or on the Tower being collectively referred to herein as the “Communications Equipment”). Lessee intends to primarily use the Communications Equipment to support its Voice Interoperability Plan for Emergency Responders (“VIPER”) strategic communications system. Lessee shall not use or knowingly permit any part of the Premises to be used for any unlawful purpose, nor for any purpose or in any manner which is in violation of any present or future Federal, State or local governmental laws or regulations, or which will constitute a public or private nuisance, nor for any business, use, or purpose deemed disreputable or extra hazardous. Lessee agrees that the use and operation of its Communications Equipment shall be consistent with the quiet use, enjoyment, and occupancy of Lessor. Lessor agrees that the Tower, the Building, the Communications Equipment and any other items belonging to Lessee on the Premises, shall remain the property of Lessee and shall not be, become, or be deemed by Lessor to be fixtures upon the Premises. 5. Maintenance / Utilities. Lessee shall be responsible for the maintenance and operation of the Tower, the Building and the Communications Equipment, including, but not limited to all utility charges attributable to Lessee’s use of the Premises. Lessee shall repair at its own expense damage to the Tower, the Building or the Communications Equipment, which is the result of Lessee’s use of the Premises except if such cost arises out of the negligent or wrongful acts or omissions of Lessor or its agents. 6. Access. Lessor grants to Lessee an appurtenant easement for ingress and egress over and upon that portion of its property identified and being more particularly described as “25' ACCESS AND UTILITY EASEMENT PARCEL ‘B’” on a survey for the project known as “HYCO LAKE SITE #HP-1130 SCO ID # 10-08820-01L” prepared by Tower Engineering Professionals (TEP #: 57546), dated February 11, 2015 (sheet 2 of 2), attached hereto and incorporated herein as Exhibit A. Lessor warrants and represents that it has the right to convey the easement for ingress and egress hereby granted. Lessee shall be responsible for the cost of repairing any damage caused by Lessee’s use of said easement. 7. Insurance & Liability. (a) Lessor agrees that Lessee’s decision to self-insure satisfies all insurance requirements of this Lease applicable to Lessee. (b) As between Lessee and Lessor, Lessee, subject to the terms of this Lease, will be primarily liable for the negligent or intentional acts or omissions of its agents and employees. As to third parties, Lessee is an immune sovereign and is not ordinarily subject to suit. However, Lessee has enacted Chapter 143, Article 31, of the North Carolina General Statutes (the “Tort Claims Act”), pursuant to which the Lessee may be liable for the torts of its officers and employees, 75 Page 3 of 10 within the terms of the Tort Claims Act; accordingly, Lessee will be primarily liable for any claims within the coverage of the Tort Claims Act. No provision of this Lease shall be construed as constituting a waiver of Lessee’s sovereign immunity or Lessee’s immunity under the Eleventh Amendment of the Constitution of the United States. (c) As between Lessor and Lessee, Lessor, subject to the terms of this Lease, shall be primarily liable for the negligent or intentional acts or omissions of its agents and employees. As to third parties, Lessor, solely to the extent indemnified by an insurance policy such that any amounts paid by Lessor to Lessee comes from insurance proceeds and not from Lessor’s funds, agrees to save Lessee harmless from and against any and all loss, damage, claim, demand, liability, or expense, including reasonable attorney fees, by reason of damage to any person(s) or property on or about the Premises, which may arise or be claimed to have arisen as a result of the use of the Premises by Lessee, its agents or employees, except where such loss or damage arises from the willful or negligent misconduct of Lessee, its agents or employees. 8. Governmental Approvals & Compliance. During the Term, Lessee shall comply with all State and Federal laws and regulations applicable to the Premises. Lessee shall obtain any necessary State or Federal licenses or authorizations required for the installation and construction of the Tower, Building or Communications Equipment and shall comply with government regulations applicable to its operations, including those of the Federal Aviation Administration (“FAA”) and the Federal Communications Commission (“FCC”). 9. Interference. The Communications Equipment and any other equipment used by Lessee on the Tower or in the Building shall be designed, constructed, installed, maintained, and operated in compliance with the applicable rules and regulations of the FCC and good engineering practices. 10. Condition of Tower. Lessee has the right and responsibility to repair and maintain the Tower. Subject to other provisions contained in this Lease, Lessee, at its sole cost, except if such cost arises out of a negligent or wrongful acts or omissions of Lessor, its contractors or agents, shall maintain and repair the Tower, including, without limitation, the Tower lighting system and markings and the structural integrity of the Tower. Installation, maintenance and repair of the Tower must comply with all State and Federal, ordinances, rules and regulations, applied in a manner consistent with standard industry practices. Such duties include, without limitation, but subject to the other provisions contained in this Lease, the maintenance of appropriate records and notifications to the FAA of any failure on Lessee’s part and repairs and correction of the same. Subject to the terms of this Paragraph, Lessee assumes all responsibility for any fines, levies and /or other penalties imposed as a result of non-compliance with said requirements of said authorities. 11. Security. Lessor agrees and acknowledges that the Tower and the Building will be secured by a locked fenced. 12. Taxes. If applicable, Lessee will pay any personal property taxes assessed on, or any portion of the taxes attributable to its interest in the Tower, the Building or the Communications Equipment. 13. Right to Terminate. Lessee may terminate this Lease, at its option, after giving not less than thirty (30) days notice to Lessor, if: 76 Page 4 of 10 (a) Any governmental agency denies a request by Lessee for or revokes a permit, license or approval, which is required for Lessee to install or operate the Tower, the Building or the Communications Equipment on the Premises; or (b) Lessee determines that technical problems or radio interference problems from other antennas or from nearby radio transmitting facilities, which problems cannot reasonably be corrected, preclude Lessee from using the Premises for its intended purpose; or (c) Utilities necessary for Lessee’s use of the Premises are not available to the Premises; or (d) The Premises or Tower is damaged or destroyed to an extent, which prohibits or materially interferes with Lessee’s use of the Premises; or (e) Lessee determines, in its sole discretion, that the Premises is no longer needed. 14. Termination. Upon termination of this Lease, Lessee will peaceably surrender the Premises in as good order and condition as when received, reasonable use and wear and damage by fire, war, riots, insurrection, public calamity, by the elements, by act of God, or by circumstances over which Lessee had no control or for which Lessor is responsible pursuant to this Lease, excepted. It is understood and agreed that Lessee shall have the right to remove from the Premises: (i) the Tower; (ii) the Building and (iii) the Communications Equipment and any other items belonging to Lessee. Lessee hereby agrees to repair to the reasonable satisfaction of Lessor any portion of the Premises damaged by the removal of the Tower, Building or Communications Equipment. 15. Title & Quiet Possession. Lessor agrees that Lessee, upon keeping and performing the covenants and agreements herein contained, shall at all times during the existence of this Lease peaceably and quietly have, hold, and enjoy the Premises free from the adverse claims of any person. Lessor represents and warrants to Lessee that Lessor has the full right to make this Lease and that Lessee shall have quiet and peaceful possession of the Premises throughout the Term. 16. Holdover. Any hold over after the expiration of the Term, shall be construed to be a tenancy from month to month, and shall otherwise be on the terms and conditions herein specified, so far as applicable; however, either Party shall give not less than sixty (60) days written notice to terminate the tenancy. 17. Hazardous Materials. (a) For purposes of this Lease: (i) “Hazardous Material” or “Hazardous Materials” means and includes, without limitation, (1) solid or hazardous waste, as defined in the Resource Conservation and Recovery Act of 1980, or in any applicable state or local law or regulation, (2) hazardous substances, as defined in the Comprehensive Environmental Response Compensation and Liability Act of 1980 (“CERCLA”), or in any applicable state or local law or regulation, (3) gasoline, or any other petroleum product or by-product, (4) toxic substances, or rodenticides, as defined in the Federal Insecticide, Fungicide, and Rodenticide Act of 1975, or in any applicable 77 Page 5 of 10 state or local law or regulation, as each such Act, statute, or regulation may be amended from time to time; (ii) “Release” shall have the meaning given such term, in Environmental Laws, including, without limitation, CERCLA; and (iii) “Environmental Law” or “Environmental Laws” shall mean “Super Fund” or “Super Lien” law or any other federal, state, or local statute, law, ordinance, or code, regulating, relating to or imposing liability or standards of conduct concerning any Hazardous Materials as may now or at any time hereafter be legally in effect, including, without limitation, the following, as same may be amended or replaced from time to time, and all regulations promulgated and officially adopted thereunder or in connection therewith: Super Fund Amendments and Reauthorization Act of 1986 (“SARA”); the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (“CERCLA”); The Clean Air Act (“CAA”); the Clean Water Act (“CWA”); the Toxic Substance Control Act (“TSCA”); the Solid Waste Disposal Act (“SWDA”), as amended by the Resource Conservation and Recovery Act (“RCRA”); the Hazardous Waste Management System; and the Occupational Safety and Health Act of 1970 (“OSHA”). All obligations and liabilities arising under this Paragraph 17 which arise out of events or actions occurring prior to the expiration or termination of this Lease shall survive the assignment of this Lease and the expiration, termination, cancellation or release of record of this Lease. (b) Lessee agrees that it will conduct its activities on the Premises in compliance with all applicable Environmental Laws. As between Lessor and Lessee, Lessee, subject to the terms of this Lease and to the extent permitted by the Tort Claims Act, will be primarily liable for the existence or discovery of any Hazardous Materials on the Premises or for the migration of any Hazardous Materials to other properties or for the release of any Hazardous Materials into the environment in violation of applicable Environmental Laws, arising solely from Lessee’s use of the Premises. Lessor represents warrants and agrees that it has in the past and during the term of this Lease will conduct its activities on the Premises in compliance with all applicable Environmental Laws and that the Premises is free of Hazardous Materials as of the date of this Lease. Lessor shall be responsible for, and promptly conduct any investigation and remediation as required by any Environmental Law or common law, of all spills or other release of Hazardous Materials on the Premises, not caused solely by Lessee, that have occurred in the past or which may occur during the Term. To the extent permitted by applicable law, Lessor agrees to be liable and hold Lessee harmless from and against any and all liens, demands, defenses, suits, proceedings, disbursements, liabilities, losses, litigation, damages, judgments, obligations, penalties, injuries, costs, expenses (including, without limitation, attorneys’ and experts’ fees) and claims of any and every kind whatsoever paid, incurred, suffered by, or asserted against Lessee with respect to, or as a direct or indirect result of the violation of any Environmental Laws applicable to the Premises, caused by or within the control of Lessor. 18. Availability of Funds. Lessor and Lessee agree and understand that the continuation of this Lease for the Term is dependent upon and subject to the appropriation, allocation or availability of funds for this purpose to the agency of Lessee responsible for payment of rent or the maintenance and operation of the Tower, Building and Communications Equipment. Lessor and Lessee also agree that in the event the agency of Lessee or that body responsible for the appropriation of said funds, in its sole discretion, determines, in view of its total local operations that available funding for the payment of rent or the maintenance and operation of the Tower, Building and Communications Equipment are insufficient to continue the lease of the Premises, it may choose to terminate this Lease by giving Lessor written notice of said termination, and this Lease shall terminate immediately without any further liability to Lessee. 78 Page 6 of 10 19. Assignment and Subletting. Lessee shall not assign this Lease without the prior written consent of Lessor, which consent shall not be unreasonably withheld or delayed. Lessee, in its reasonable discretion, shall have the right to sublet the Premises in whole or in part. 20. Prohibition on Gifts. North Carolina General Statute §133-32 and Executive Order 24 prohibit the offer to, or acceptance by, any employee of Lessee of any gift from anyone with a contract with Lessee, or from any person seeking to do business with Lessee. By execution of this Lease, Lessor attests, for its entire organization, including its employees or agents, that it is not aware that any such gift has been offered, accepted, or promised by any employees of its organization. 21. Modification. No modification of any provision hereof and no cancellation or surrender hereof shall be valid unless made in writing and signed and agreed to by both Parties. 22. Binding Effect. Subject to the provisions herein, this Lease shall extend to and bind the Parties and their heirs, executors, administrators, successors and assigns. 23. Applicable Law. This Lease shall be governed by, construed under and interpreted and enforced in accordance with the laws of the State of North Carolina, regardless of conflict of law principles. 24. Effect of Waiver. The failure of either Party to insist in any instance upon strict performance of any of the terms and conditions set forth in this Lease shall not be construed as a waiver of the same in any other instance. 25. Complete Agreement. This Lease represents the entire agreement between the Parties covering everything agreed upon or understood in this transaction. There are no oral promises, conditions, representations, understandings, interpretations or terms of any kind as conditions or inducements to the execution hereof or in effect between the Parties. 26. Severability. In case any one or more of the provisions contained in this Lease shall for any reason be held to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provision hereof and this Lease shall be construed as if such invalid, illegal, or unenforceable provision had never been contained herein. 27. Construction. No provision of this Lease shall be construed against or interpreted to the disadvantage of any Party by any court or other governmental or judicial authority by reason of such Party’s having or being deemed to have prepared or imposed such provision. 28. Interpretation. The use of headings, captions and numbers in this Lease is solely for the convenience of identifying and indexing the various provisions in this Lease and shall in no event be considered otherwise in construing or interpreting any provision in this Lease. Feminine or neuter pronouns shall be substituted for those of the masculine form, and the plural may be substituted for the singular number in any place or places herein in which the context may require such substitution or substitutions. 79 Page 7 of 10 29. Terms. Capitalized terms used in this Lease shall have the meanings ascribed to them at the point where first defined, irrespective of where their use occurs, with the same effect as if the definitions of such terms were set forth in full and at length every time such terms are used. 30. Authority. Each person executing this Lease on behalf of Lessor does hereby represent and warrant that, if applicable: (a) Lessor is duly organized and in good standing in the State of its organization and, if different, qualified to do business and in good standing in the State of North Carolina, (b) Lessor has full lawful right and authority to enter into this Lease and to perform all of its obligations hereunder, and (c) each person signing this Lease on behalf of Lessor is duly and validly authorized to do so. 31. Counterparts. This Lease may be executed in two or more counterparts, each of which shall be deemed an original, and all of such counterparts together shall constitute one and the same instrument. 32. Memorandum of Lease for Recording. At the request of either Party, Lessor and Lessee shall execute a memorandum of this Lease for recording in the public records at the requesting Party’s sole cost and expense. The memorandum of Lease shall set forth the Parties, provide a description of the Site, specify the Term and incorporate this Lease by reference. 33. Notices. All notices herein provided to be given, or which may be given by either Party to the other, shall be deemed to have been fully given when made in writing and deposited in the United States mail, certified and postage prepaid and addressed as follows: to Lessor: County of Person Attn: County Manager 304 South Morgan Street, Room 212 Roxboro, North Carolina 27573 to Lessee: North Carolina Department of Public Safety Attn: VIPER Coordinator 3318 Garner Road Raleigh, North Carolina 27610 with copy to: State Property Office Attn: Manager, Leasing and Space Planning Section 1321 Mail Service Center Raleigh, North Carolina 27699-1321 Nothing herein contained shall preclude the giving of such notice by Personal service. The address to which notices shall be mailed as aforesaid to either Party may be changed by written notice. 80 Page 8 of 10 IN TESTIMONY WHEREOF, this Lease has been executed by the Parties, in duplicate originals, as of the dates set forth in the notary acknowledgements below. LESSOR: COUNTY OF PERSON By: __________________________________________ Print Name: Kyle Puryear Title: Chairman, Person County Board of Commissioners ATTEST: __________________________________ Brenda B. Reaves, Clerk (Seal) STATE OF NORTH CAROLINA COUNTY OF PERSON I, __________________________________, a Notary Public in and for the aforesaid County and State do hereby certify that Brenda B. Reaves personally came before me this day and acknowledged that she is Clerk of the COUNTY OF PERSON and that by authority duly given and as an act of the COUNTY OF PERSON, the foregoing instrument was signed by Kyle Puryear, its Chairman of the Person County Board of Commissioners, attested by herself as Clerk and sealed with the common seal. IN WITNESS WHEREOF, I have hereunto set my hand and Notarial Seal, this the _____ day of ______________________, 2015. ____________________________________ Notary Public My Commission Expires: ______________ Print Name: _________________________ 81 Page 9 of 10 LESSEE: STATE OF NORTH CAROLINA By: ________________________________ Governor ATTEST: __________________________________ Secretary of State APPROVED AS TO FORM: ROY COOPER, Attorney General By: __________________________________ Assistant Attorney General STATE OF NORTH CAROLINA COUNTY OF WAKE I, __________________________________________, a Notary Public for ____________________ County, North Carolina, do certify that ELAINE F. MARSHALL, Secretary of State of the State of North Carolina, personally came before me this day and acknowledged that she is Secretary of State of the State of North Carolina, and that by authority duly given and as an act of the State, the foregoing instrument was signed in its name by PAT MCCRORY, Governor of the State of North Carolina, sealed with the Great Seal of the State of North Carolina, and attested by herself as Secretary of State. IN WITNESS WHEREOF, I have hereunto set my hand and Notarial Seal, this the _____ day of ______________________, 2015. ____________________________________ Notary Public My Commission Expires: _______________ Print Name: _________________________ 82 Page 10 of 10 EXHIBIT A Premises Description Survey 83 Page 1 of 12 STATE OF NORTH CAROLINA SUBLEASE AGREEMENT COUNTY OF PERSON THIS SUBLEASE AGREEMENT (“Sublease”) made and entered into as of the last date set forth in the notary acknowledgements below, by and between, the STATE OF NORTH CAROLINA, a body politic and corporate, hereinafter referred to as “Sublessor”, and the COUNTY OF PERSON, a political subdivision of the State of North Carolina, hereinafter referred to as “Sublessee” (Sublessor and Sublessee each individually referred to herein as a “Party” and collectively referred to herein as the “Parties”); W I T N E S S E T H: THAT WHEREAS, Sublessor and Sublessee entered into a ground lease agreement dated ___________________, 2015 (the “Ground Lease”), attached hereto and incorporated herein as Exhibit A, in which the Sublessee leased to Sublessor that certain parcel or tract of land containing 0.6 acres, more or less, lying and being in Cunningham Township, Person County, North Carolina having an address of 7391 Semora Road, Semora, North Carolina 27343 and being more particularly shown and described as “VARIABLE WIDTH LEASE AREA PARCEL ‘A’” on a survey for the project known as “HYCO LAKE SITE #HP-1130 SCO ID # 10-08820-01L” prepared by Tower Engineering Professionals (TEP #: 57546), dated February 11, 2015 (sheet 2 of 2), attached hereto and incorporated herein as Exhibit B (the “Site”). WHEREAS, pursuant to the terms of the Ground Lease, Sublessor may use the Site to construct a communications tower, an equipment building and other infrastructure to support a coordinated State-wide communications network known as the Voice Interoperability Plan for Emergency Responders (“VIPER”); and WHEREAS, Sublessor, subject to the terms and conditions set forth herein, now desires to sublet the Premises, as defined herein, to Sublessee; and WHEREAS, the North Carolina Department of Public Safety, Division of Law Enforcement, State Highway Patrol has requested and approved the execution of this instrument for the purposes herein specified; and WHEREAS, the execution of this Sublease for and on behalf of the State of North Carolina has been duly approved by the Governor and Council of State at a meeting held in the City of Raleigh, North Carolina, on the 2nd day of June, 2015; and WHEREAS, the Parties have mutually agreed to the terms of this Sublease as hereinafter set out. NOW THEREFORE, in consideration of the Ground Sublease, the rental hereinafter agreed to be paid and the terms and conditions hereinafter set forth, Sublessor does hereby let and sublease unto Sublessee and Sublessee hereby takes and subleases from Sublessor for and during 84 Page 2 of 12 the period of time and subject to the terms and conditions hereinafter set forth the Premises, as more particularly described herein. 1. Premises. The “Premises” shall consist of non-exclusive space to accommodate: accommodate seven (7) antennas located at the 200’-250' height level, one (1) antenna at the 280' height level, one (1) microwave at the 175' height level, and three (3) microwaves at the 150' height level on that certain 280' self-supported communications tower (“Tower”) constructed by Sublessor on the Site (the non-exclusive space on the Tower for the location of said antennas and microwaves being referred to herein as the “Tower Space”), along with sufficient space in Sublessor’s equipment building (“Building”) to house five (5) 19" racks. The exact location of the Tower Space on the Tower and space in the Building where Sublessee may locate its Communications Equipment, as said term is defined herein, shall be designated by Sublessor in its reasonable discretion. 2. Ground Lease Term. Pursuant to the Ground Lease, Sublessor leased the Site from Sublessee for a term of twenty-five (25) years, commencing on the 1st day of July, 2015 and terminating on the 30th day of June, 2040 (“Ground Lease Initial Term”) with an automatic renewal option for one (1) additional twenty-five (25) year period (the “Ground Lease Renewal Term”). The Ground Lease Initial Term and the Ground Lease Renewal Term are collectively referred to herein as the “Ground Lease Term.” 3. Term. The term of this Sublease shall be for a period of twenty-five (25) years, commencing on the 1st day of July, 2015 and terminating on the 30th day of June, 2040 (the “Initial Term”). If at the end of the Ground Lease Initial Term the Sublessor elects not to terminate the Ground Lease, this Sublease shall automatically be renewed for one (1) additional twenty-five (25) year period (the “Renewal Term”) upon all the terms and conditions set forth in this Sublease. The Initial Term and the Renewal Term are collectively referred to herein as the “Term.” 4. Rent. Sublessee shall pay to Sublessor as rental for the Premises, the sum of ONE DOLLAR ($1.00) for the Term. 5. Condition of Premises. Sublessor represents, subject to the terms of this Sublease, that the Premises are suitable for the uses described in Paragraph 6 below. 6. Use and Equipment. Sublessee shall use the Premises for the purpose of installing, operating, maintaining, repairing, replacing and removing antennas, microwave dishes, transmission lines, cables, wires, receivers, generator(s), transmitter(s), transfer switch(es) and accessories necessary to broadcast radio waves (all such equipment whether located in the Building or on the Tower being collectively referred to herein as the “Communications Equipment”) and for no other purpose without the prior written consent of Sublessor. Sublessee shall not use or knowingly permit any part of the Premises to be used for any unlawful purpose, nor for any purpose or in any manner which is in violation of any present or future Federal, State or local governmental laws or regulations, or which will constitute a public or private nuisance, nor for any business, use, or purpose deemed disreputable or extra hazardous. Sublessee shall not drill, cut, saw, burn, add to or remove any part of the Tower without the prior written consent of Sublessor. Sublessee agrees that the use and operation of any Communications Equipment installed on the Premises shall be consistent with the quiet use, enjoyment, and occupancy of Sublessor. 85 Page 3 of 12 7. Fixtures. Sublessor hereby acknowledges and agrees that the Communications Equipment and any other items belonging to Sublessee on the Premises, shall remain the property of Sublessee and shall not be, become or be deemed by Sublessor to be fixtures upon the Premises. 8. Conditions Precedent to Installation or Modification. Notwithstanding anything to the contrary herein, the Parties agree that Sublessee’s right to install its Communications Equipment or to make any modifications to its Communications Equipment at the Premises shall not commence until Sublessee, at its sole cost and expense, completes the following: (i) tenth order inter-modulation study; (ii) update of the most recent Tower loading analysis; (iii) provision for commercial electric service and emergency power to operate its Communications Equipment; and (iv) receipt of all required permits (if any) for the installation of, or modification to, its Communications Equipment and all required regulatory or governmental approvals of Sublessee’s proposed use of the Premises. Sublessor shall have the right to review said inter-modulation study, Tower loading analysis and governmental permits to determine if Sublessee’s Communications Equipment will cause a degradation in Sublessor’s VIPER system or adversely affect the physical and structural capacity of the Tower. After reviewing said inter-modulation study, Tower loading analysis and governmental permits, if Sublessor determines in its sole discretion that the installation of, or modification to, Sublessee’s Communications Equipment will result in a degradation of the VIPER system or adversely affect the physical and structural capacity of the Tower, Sublessee shall, at its sole cost and to the satisfaction of Sublessor, make any modifications, upgrades or improvements to its Communications Equipment necessary to prevent any disruption to the VIPER system or any impairment to the structural integrity of the Tower. 9. Governmental Approvals and Compliance. Sublessor agrees that the Tower and its operations shall meet applicable rules and regulations of the Federal Communications Commission (“FCC”), the Federal Aviation Administration (“FAA”), as well as all applicable State codes and regulations. Sublessee, at its sole cost and expense, shall obtain any necessary governmental licenses or authorizations required for installation, repair, alteration, improvement, or expansion of its Communications Equipment and shall comply with government regulations applicable to its operations, including those of the FCC and FAA. 10. Sublessor’s and Sublessee’s Rights in the Event of Interference. The Communications Equipment shall be designed, constructed, installed, maintained, and operated in compliance with the applicable rules and regulations of the FCC and good engineering practices. Sublessee confirms to Sublessor that the installation and use of its Communications Equipment will not interfere with the operation of the VIPER system or any other equipment on the Tower. In the event the Communications Equipment causes interference with the VIPER system or other equipment on the Tower, Sublessee shall proceed immediately to correct and eliminate the interference. Sublessee shall cease operation of its Communications Equipment until the cause of such interference is removed. Should interference reasonably objectionable to Sublessee be caused by Sublessor’s equipment, Sublessor shall cooperate with Sublessee to eliminate such interference. Sublessee expressly agrees to pay for such equipment as may be necessary to prevent its interference with any radio transmissions by Sublessor, and will also be responsible for purchasing any equipment to correct any interference that Sublessor’s equipment may cause in Sublessee’s use and operation of its Communications Equipment. If interference caused by the 86 Page 4 of 12 Communications Equipment is not corrected and eliminated within thirty (30) days after Sublessee is notified of the interference, then Sublessor may terminate this Sublease forthwith without liability to Sublessee. 11. Repair and Maintenance. Sublessor shall, at all times during the Term, at its own expense, put and maintain in thorough repair and in good and safe condition the Tower, the Building and the Site, whether such maintenance is necessitated by wear, tear, obsolescence, government regulation, or defects, latent or otherwise. Sublessee shall, at all times during the Term, at its own expense, maintain its Communications Equipment. 12. Utilities. Sublessor shall permit Sublessee access to its electric power source so that Sublessee may obtain all electrical energy required to operate its Communications Equipment. Sublessor shall pay for all electricity needed to power and operate Sublessee’s Communications Equipment. 13. Sublessor’s Right of Access. Sublessor or its agents shall have the right to enter the Premises at all times in order to examine it, or to make such alterations, repairs, improvements, or additions to the Premises as Sublessor may deem necessary or desirable without the same constituting an eviction of Sublessee in whole or in part, or a breach of this Sublease. 14. Sublessee’s Right of Access. Sublessee, with Sublessor’s prior approval, shall have the right of access to the Premises throughout the Term for the purposes of installing, inspecting, maintaining, operating, repairing, and removing its Communications Equipment; provided, however, that Sublessee and its agents and employees shall not compromise the security of the VIPER system or disturb or interfere with Sublessor’s operations during such time as they are on the Premises. 15. Sublessor’s Right to Terminate. In the event that Sublessor should elect, pursuant to the Ground Lease, to abandon its use and possession of the Tower, Building and Site, this Sublease shall terminate without liability to Sublessor. Sublessor shall give Sublessee not less than thirty (30) days written notice of its intent to so terminate this Sublease. Upon such abandonment and termination, Sublessee shall have the option to remain in possession of the Premises, provided that Sublessee shall assume and be responsible for all costs associated with the operation and maintenance of the Tower, Building and Site. 16. Surrender Upon Termination of Sublease. Upon termination of this Sublease, Sublessee shall surrender the Premises in as good condition as they were at the beginning of the Term, reasonable use and wear and damage by fire, war, riots, insurrection, public calamity, by the elements, by act of God, or by circumstances over which Sublessee had no control or for which Sublessor is responsible pursuant to this Sublease, excepted. It is understood and agreed that Sublessee shall have the right to remove from the Premises, at Sublessee’s own expense and without damage or injury to the Tower, the Building or any other property of Sublessor, the Communications Equipment and all items of personal property, trade fixtures, and other items belonging to Sublessee used in connection with Sublessee’s operations on the Premises. 17. Fire or Other Casualty Loss. 87 Page 5 of 12 (a) If the Premises is totally or partially destroyed by wind, explosion, fire, or casualty of any kind, either Sublessor or Sublessee shall have the option of terminating this Sublease or any renewal thereof, upon giving written notice at any time within thirty (30) days from the date of such destruction, and if this Sublease be so terminated, any rent payable hereunder shall cease as of the date of such destruction. (b) If the Premises should be partially damaged by wind, explosion, fire, or casualty (or if totally and completely destroyed) and neither Party elects to terminate this Sublease within the provisions of subparagraph (a) above, then in either event, Sublessor agrees, at Sublessor’s sole cost and expense, to restore the Tower and the Building, as may be applicable, to a condition substantially similar to that immediately prior to such destruction or damage. Sublessor shall not be liable for any interruption of Sublessee’s operations occasioned by electrical interference, wind, explosion, fire or other cause or casualty of any kind. (c) If Sublessor undertakes to restore, rebuild, or repair the Tower and the Building in accord with the provisions of subparagraph (b) above, and such restoration, rebuilding or repair is not accomplished within one hundred eighty (180) days from the date of the casualty, Sublessee shall have the right to immediately terminate this Sublease by written notice to Sublessor. 18. Insurance. Sublessee shall obtain adequate insurance coverage in accordance with all applicable laws for (i) workers’ compensation, (ii) automobile liability and (iii) fire and extended coverage with regard to the Sublessee’s activities on or about Premises and its Communications Equipment located on the Premises. Sublessee shall require any of its contractors or agents entering the Premises to obtain and keep in place with well rated insurers, licensed to do business in the State of North Carolina, adequate insurance coverage, as applicable, for (i) statutory workers’ compensation including employers’ liability; (ii) comprehensive general liability including personal injury, broad form property damage, independent contractor, products/completed operations and, only if applicable, XCU (explosion, collapse, underground) and; (iii) automobile liability; and (iv) fire and extended coverage insurance. Notwithstanding the rights of any insurer, nothing herein shall affect the authority of the Attorney General of North Carolina, including but not limited to, the Attorney General’s authority to represent Sublessor in any and all litigation. 19. Liability. (a) To the extent permitted by applicable law, Sublessee shall be liable for the negligent or intentional acts or omissions of its agents and employees and shall save Sublessor harmless from and against any and all loss, damage, claim, demand, liability, or expense, including reasonable attorney fees, by reason of damage to person or property on or about the Premises or the Site, which may arise or be claimed to have arisen as a result of the use of the Premises by Sublessee or which may arise out of the installation, operation, repair, maintenance, inspection, or removal of Communications Equipment by Sublessee, its agents or employees, except where such loss or damage arises from the willful or negligent misconduct of Sublessor, its agents or employees. (b) As between Sublessor and Sublessee, Sublessor, subject to the terms of this Sublease, will be primarily liable for the negligent or intentional acts or omissions of its agents 88 Page 6 of 12 and employees. As to third parties, Sublessor is an immune sovereign and is not ordinarily subject to suit. However, Sublessor has enacted Chapter 143, Article 31, of the North Carolina General Statutes (the “Tort Claims Act”), pursuant to which Sublessor may be liable for the torts of its officers and employees, within the terms of the Tort Claims Act; accordingly, Sublessor will be primarily liable for any claims within the coverage of the Tort Claims Act. No provision of this Sublease shall be construed as constituting a waiver of Sublessor’s sovereign immunity or Sublessor’s immunity under the Eleventh Amendment of the Constitution of the United States. 20. Hazardous Materials. (a) For purposes of this Sublease: (i) “Hazardous Material” or “Hazardous Materials” means and includes, without limitation, (1) solid or hazardous waste, as defined in the Resource Conservation and Recovery Act of 1980, or in any applicable state or local law or regulation, (2) hazardous substances, as defined in the Comprehensive Environmental Response Compensation and Liability Act of 1980 (“CERCLA”), or in any applicable state or local law or regulation, (3) gasoline, or any other petroleum product or by-product, (4) toxic substances, or rodenticides, as defined in the Federal Insecticide, Fungicide, and Rodenticide Act of 1975, or in any applicable state or local law or regulation, as each such Act, statute, or regulation may be amended from time to time; (ii) “Release” shall have the meaning given such term, in Environmental Laws, including, without limitation, CERCLA; and (iii) “Environmental Law” or “Environmental Laws” shall mean “Super Fund” or “Super Lien” law or any other federal, state, or local statute, law, ordinance, or code, regulating, relating to or imposing liability or standards of conduct concerning any Hazardous Materials as may now or at any time hereafter be legally in effect, including, without limitation, the following, as same may be amended or replaced from time to time, and all regulations promulgated and officially adopted thereunder or in connection therewith: Super Fund Amendments and Reauthorization Act of 1986 (“SARA”); the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (“CERCLA”); The Clean Air Act (“CAA”); the Clean Water Act (“CWA”); the Toxic Substance Control Act (“TSCA”); the Solid Waste Disposal Act (“SWDA”), as amended by the Resource Conservation and Recovery Act (“RCRA”); the Hazardous Waste Management System; and the Occupational Safety and Health Act of 1970 (“OSHA”). All obligations and liabilities arising under this Paragraph 20 which arise out of events or actions occurring prior to the expiration or termination of this Sublease shall survive the assignment of this Sublease and the expiration, termination, cancellation or release of record of this Sublease. (b) Sublessee agrees that it will conduct its activities on the Premises and the Site in compliance with all applicable Environmental Laws. As between Sublessee and Sublessor, Sublessee, subject to the terms of this Sublease and to the extent permitted by applicable law, will be primarily liable for the existence or discovery of any Hazardous Materials on the Premises or the Site or for the migration of any Hazardous Materials to other properties or for the release of any Hazardous Materials into the environment in violation of applicable Environmental Laws, arising solely from Sublessee’s use of the Premises. As between Sublessor and Sublessee, Sublessor, subject to the terms of this Sublease and to the extent permitted by the Tort Claims Act, will be primarily liable for the existence or discovery of any Hazardous Materials on the Site or for the migration of any Hazardous Materials to other properties or for the release of any Hazardous Materials into the environment in violation of applicable Environmental Laws, arising solely from Sublessor’s use of the Site. 89 Page 7 of 12 21. Right to Assign and Sublease. Sublessee shall not assign this Sublease or sublet the Premises or any part thereof without the prior written consent of Sublessor. 22. Prohibition on Gifts. North Carolina General Statute §133-32 and Executive Order 24 prohibit the offer to, or acceptance by, any employee of Sublessor of any gift from anyone with a contract with Sublessor, or from any person seeking to do business with Sublessor. By execution of this Sublease, Sublessee attests, for its entire organization, including its employees or agents, that it is not aware that any such gift has been offered, accepted, or promised by any employees of its organization. 23. Modification. No modification of any provision hereof and no cancellation or surrender hereof shall be valid unless made in writing and signed and agreed to by both Parties. 24. Binding Effect. Subject to the provisions herein, this Sublease shall extend to and bind the Parties and their heirs, executors, administrators, successors and assigns. 25. Applicable Law. This Sublease shall be governed by, construed under and interpreted and enforced in accordance with the laws of the State of North Carolina, regardless of conflict of law principles. 26. Effect of Waiver. The failure of either Party to insist in any instance upon strict performance of any of the terms and conditions set forth in this Sublease shall not be construed as a waiver of the same in any other instance. 27. Complete Agreement. This Sublease represents the entire agreement between the Parties covering everything agreed upon or understood in this transaction. There are no oral promises, conditions, representations, understandings, interpretations or terms of any kind as conditions or inducements to the execution hereof or in effect between the Parties. 28. Severability. In case any one or more of the provisions contained in this Sublease shall for any reason be held to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provision hereof and this Sublease shall be construed as if such invalid, illegal, or unenforceable provision had never been contained herein. 29. Construction. No provision of this Sublease shall be construed against or interpreted to the disadvantage of any Party by any court or other governmental or judicial authority by reason of such Party’s having or being deemed to have prepared or imposed such provision. 30. Interpretation. The use of headings, captions and numbers in this Sublease is solely for the convenience of identifying and indexing the various provisions in this Sublease and shall in no event be considered otherwise in construing or interpreting any provision in this Sublease. Feminine or neuter pronouns shall be substituted for those of the masculine form, and the plural may be substituted for the singular number in any place or places herein in which the context may require such substitution or substitutions. 90 Page 8 of 12 31. Terms. Capitalized terms used in this Sublease shall have the meanings ascribed to them at the point where first defined, irrespective of where their use occurs, with the same effect as if the definitions of such terms were set forth in full and at length every time such terms are used. 32. Counterparts. This Sublease may be executed in two or more counterparts, each of which shall be deemed an original, and all of such counterparts together shall constitute one and the same instrument. 33. Memorandum of Sublease for Recording. At the request of either Party, Sublessor and Sublessee shall execute a memorandum of this Sublease for recording in the public records at the requesting Party’s sole cost and expense. The memorandum of Sublease shall set forth the Parties, provide a description of the Premises, specify the Term and incorporate this Sublease by reference. 34. Notices. All notices herein provided to be given, or which may be given by either Party to the other, shall be deemed to have been fully given when made in writing and deposited in the United States mail, certified and postage prepaid and addressed as follows: to Sublessor: North Carolina Department of Public Safety Attn: VIPER Coordinator 4227 Mail Service Center Raleigh, North Carolina 27699-4227 with copy to: State Property Office Attn: Manager, Leasing and Space Planning Section 1321 Mail Service Center Raleigh, North Carolina 27699-1321 to Sublessee: County of Person Attn: County Manager 304 South Morgan Street, Room 212 Roxboro, North Carolina 27573 Nothing herein contained shall preclude the giving of such notice by personal service. The address to which notices shall be mailed as aforesaid to either Party may be changed by written notice. [signatures begin on following page] 91 Page 9 of 12 IN TESTIMONY WHEREOF, this Sublease has been executed by the Parties, in duplicate originals, as of the dates set forth in the notary acknowledgements below. SUBLESSEE: COUNTY OF PERSON By: __________________________________________ Print Name: Kyle Puryear Title: Chairman, Person County Board of Commissioners ATTEST: __________________________________ Brenda B. Reaves, Clerk (Seal) STATE OF NORTH CAROLINA COUNTY OF PERSON I, __________________________________, a Notary Public in and for the aforesaid County and State do hereby certify that Brenda B. Reaves personally came before me this day and acknowledged that she is Clerk of the COUNTY OF PERSON and that by authority duly given and as an act of the COUNTY OF PERSON, the foregoing instrument was signed by Kyle Puryear, its Chairman of the Person County Board of Commissioners, attested by herself as Clerk and sealed with the common seal. IN WITNESS WHEREOF, I have hereunto set my hand and Notarial Seal, this the _____ day of ______________________, 2015. ____________________________________ Notary Public My Commission Expires: ______________ Print Name: _________________________ 92 Page 10 of 12 SUBLESSOR: STATE OF NORTH CAROLINA By: ________________________________ Governor ATTEST: __________________________________ Secretary of State APPROVED AS TO FORM: ROY COOPER, Attorney General By: __________________________________ Assistant Attorney General STATE OF NORTH CAROLINA COUNTY OF WAKE I, ________________________________, a Notary Public for ______________ County, North Carolina, do certify that ELAINE F. MARSHALL, Secretary of State of the State of North Carolina, personally came before me this day and acknowledged that she is Secretary of State of the State of North Carolina, and that by authority duly given and as the act of the State, the foregoing instrument was signed in its name by PAT MCCRORY, Governor of the State of North Carolina, sealed with the Great Seal of the State of North Carolina, and attested by herself as Secretary of State. IN WITNESS WHEREOF, I have hereunto set my hand and Notarial Seal, this the _____ day of ________________, 2015. ____________________________________ Notary Public My Commission Expires: _____________ Print Name: _________________________ 93 Page 11 of 12 EXHIBIT A Ground Lease 94 Page 12 of 12 EXHIBIT B Survey 95 Return To: Attorney General’s Office / Property Control Section, Post Office Box 629, Raleigh, NC 27602 SPO File No.: 73-N / DOJ File No.: PC-15-00106 STATE OF NORTH CAROLINA MEMORANDUM OF LEASE COUNTY OF PERSON THIS MEMORANDUM LEASE, is made as of the last date set forth in the notary acknowledgements below, by and between the COUNTY OF PERSON, a political subdivision of the State of North Carolina, hereinafter referred to as “Lessor”; and the STATE OF NORTH CAROLINA, a body politic and corporate, hereinafter referred to as “Lessee.” Lessor and Lessee entered into a Ground Lease Agreement dated ________________, 2015 (the “Lease”), the terms, covenants and conditions of which are hereby incorporated in this Memorandum of Lease, for a term of twenty-five (25) years, commencing on the 1st day of July, 2015 and terminating on the 30th day of June, 2040 (“Initial Term”). Unless terminated at Lessee’s option, upon the expiration of the Initial Term the Lease shall automatically be extended for one (1) additional twenty-five (25) year period extending the maximum possible term to the 30th day of June, 2065. In consideration of the terms, covenants, conditions and rental as set forth in the Lease, Lessor leased to Lessee that certain parcel or tract of land lying in Cunningham Township, Person County, North Carolina, being more particularly described as follows: Being all of that certain parcel or tract of land containing 0.6 acres, more or less, shown and described as “VARIABLE WIDTH LEASE AREA PARCEL ‘A’” on a survey for the project known as “HYCO LAKE SITE #HP-1130 SCO ID # 10-08820-01L” prepared by Tower Engineering Professionals (TEP #: 57546), dated February 11, 2015 (sheet 2 of 2), attached hereto and incorporated herein as Exhibit A. TOGETHER WITH an appurtenant easement for ingress and egress over and upon that area of land identified and being more particularly described as “25' ACCESS AND UTILITY EASEMENT PARCEL ‘B’” on said survey attached hereto and incorporated herein as Exhibit A. [signatures begin on following page] 96 IN TESTIMONY WHEREOF, this Memorandum of Lease has been executed by the parties hereto, as of the dates set forth in the notary acknowledgements below. LESSOR: COUNTY OF PERSON By: __________________________________________ Print Name: Kyle Puryear Title: Chairman, Person County Board of Commissioners ATTEST: __________________________________ Brenda B. Reaves, Clerk (Seal) STATE OF NORTH CAROLINA COUNTY OF PERSON I, __________________________________, a Notary Public in and for the aforesaid County and State do hereby certify that Brenda B. Reaves personally came before me this day and acknowledged that she is Clerk of the COUNTY OF PERSON and that by authority duly given and as an act of the COUNTY OF PERSON, the foregoing instrument was signed by Kyle Puryear, its Chairman of the Person County Board of Commissioners, attested by herself as Clerk and sealed with the common seal. IN WITNESS WHEREOF, I have hereunto set my hand and Notarial Seal, this the _____ day of ______________________, 2015. ____________________________________ Notary Public My Commission Expires: ______________ Print Name: _________________________ 97 LESSEE: STATE OF NORTH CAROLINA By: ________________________________ Governor ATTEST: __________________________________ Secretary of State STATE OF NORTH CAROLINA COUNTY OF WAKE I, ________________________________, a Notary Public for ______________ County, North Carolina, do certify that ELAINE F. MARSHALL, Secretary of State of the State of North Carolina, personally came before me this day and acknowledged that she is Secretary of State of the State of North Carolina, and that by authority duly given and as the act of the State, the foregoing instrument was signed in its name by PAT MCCRORY, Governor of the State of North Carolina, sealed with the Great Seal of the State of North Carolina, and attested by herself as Secretary of State. IN WITNESS WHEREOF, I have hereunto set my hand and Notarial Seal, this the _____ day of ________________, 2015. ____________________________________ Notary Public My Commission Expires: _____________ Print Name: _________________________ 98 EXHIBIT A Survey 99