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02-05-2024 Closed Session Meeting Minutes BOC- Redacted February 5, 2024, Closed Session #1 Page 1 of 2 Person County Board of Commissioners Minutes of a Closed Session DATE: February 5, 2024 MEMBERS OF BOARD OF COMMISSIONERS PRESENT: Chairman Powell, Vice Chairman Sims, Commissioner Palmer, Commissioner Puryear, and Commissioner Thomas OTHERS PRESENT: County Manager, Katherine Cathey, Clerk to the Board, Michele Solomon, County Attorney, T.C. Morphis, Jr., General Services Director, Ray Foushee, and Finance Director, Amy Wehrenberg CLOSED SESSION #1 A motion was made by Commissioner Palmer and carried 5-0 to enter into Closed Session # 1 at 9:02 p.m. per General Statute 143-318.11(a)(5) to establish, or to instruct the public body's staff or negotiating agents concerning the position to be taken by or on behalf of the public body in negotiating (i) the price and other material terms of a contract or proposed contract for the acquisition of real property by purchase, option, exchange, or lease; or (ii) the amount of compensation and other material terms of an employment contract or proposed employment contract with the following individuals permitted to attend: County Manager Katherine Cathey, Clerk to the Board Michele Solomon, County Attorney T.C. Morphis, Jr., General Services Director Ray Foushee, and Finance Director Amy Wehrenberg. Chairman Powell called the Closed Session #1 to order at 9:03 p.m. Commissioner Palmer advised that he visited the Human Services Building with General Services Director Ray Foushee. He stated that the pipes are copper, the asbestos check was clean, and the building seems to be structurally sound. County Attorney T.C. Morphis Jr. provided clarification on the eminent domain process in relation to the County acquiring title to the Human Services Building that is owned by Brixmor. He stated that the lease on the building is set to expire on August 1, 2025. He stated that before the County begins an eminent domain lawsuit, it needs to be sure that it has a current appraisal, survey, and title work for the Human Services Building. February 5, 2024, Closed Session #1 Page 2 of 2 Morphis stated that the County could enter the Human Services Building for these purposes or to complete other necessary testing, with thirty days written notice to Brixmor, even though County employees already have a right to enter the building under the existing lease. He stated that the County qualifies as a local public condemner, and may acquire the property by eminent domain per NC General Statute 40A-3(b) (6). He stated that the County must provide written notice to Brixmor of its intent to file the lawsuit at least thirty days prior to the filing of the complaint. He stated after sending notice to Brixmor, the County would begin the eminent domain proceeding by filing a lawsuit in the Person County Superior Court. He stated that the County would deposit with the Clerk of Court the estimated value of the property immediately prior to the filing of the lawsuit, which is usually determined by an appraisal of the property. He stated that if the County were to acquire the Human Services Building, title would not vest immediately; that it could be several months, likely no more than 150 days after the complaint was filed. He stated that it would likely be sent to mediation. He stated that his recommendation, if the County were to pursue eminent domain, is to begin proceedings no later than August 1, 2024. County Manager Katherine Cathey stated that her concern is the public perception of eminent domain. She stated Brixmor is not likely to challenge the County’s authority of eminent domain; however, they would most likely challenge the value that the County places on it, such as the appraised $6.1M and then Brixmor’s asking price of $8.325M. She stated that with the purchase of the building, or if acquired by eminent domain, there is a potential in savings, as the County would not be obligated to pay lease payments of $120K monthly. She stated that she has had numerous conversations with Doug and Andrew Carter of DEC Associates to discuss how to fund projects that have been proposed. She stated she does not know how the LGC would respond. She stated that it is in the County’s best interest to obtain another appraisal of the building, if the County decides to pursue purchase of the building. She advised that we are coming down to the wire on how long we can debate on this, and it is at a point where she would sign the MOU if authorized by the Board to do so. It was the consensus of the Board that they do not like the idea of acquiring the property by eminent domain. The Board agreed that an appraisal is needed. It was the consensus of the Board to authorize the County Manager to go back to Brixmor with a counter offer of $8M. A motion was made by Commissioner Sims and carried 5-0 to return to open session at 9:40 p.m. February 5, 2024, Closed Session #2 Page 1 of 1 Person County Board of Commissioners Minutes of a Closed Session DATE: February 5, 2024 MEMBERS OF BOARD OF COMMISSIONERS PRESENT: Chairman Powell, Vice Chairman Sims, Commissioner Palmer, Commissioner Puryear, and Commissioner Thomas OTHERS PRESENT: County Manager, Katherine Cathey, Clerk to the Board, Michele Solomon, and County Attorney, T.C. Morphis, Jr. CLOSED SESSION #2 A motion was made by Commissioner Palmer and carried 5-0 to enter into Closed Session #2 at 9:42 p.m. per General Statute 143-318.11(a)(6) for the purpose to discuss personnel with the following individuals permitted to attend: County Manager Katherine Cathey, Clerk to the Board Michele Solomon, and County Attorney T.C. Morphis, Jr. Chairman Powell called the Closed Session # 2 to order at 9:42 p.m. County Manager Katherine Cathey provided an update on the Consolidated Health Services Agency (CHSA) Director. She stated that if the Assistant County Manager was designated as the CHSA Director, that DSS would still have a DSS Director. She stated that the DSS Director and Veteran Services Officer would report directly to the CHSA Director. She stated that the additional role and responsibilities of the CHSA Director would be categorized under, other duties as assigned for the Assistant County Manager. It was the consensus of the Board to give advice and consent to the County Manager for the Assistant County Manager to be designated as the CHSA Director. The CHSA Board is effective on April 15, 2024, and would do the formal appointment of the CHSA Director. A motion was made by Commissioner Thomas and carried 5-0 to return to open session at 9:45 p.m. February 5, 2024, Closed Session #3 Page 1 of 3 Person County Board of Commissioners Minutes of a Closed Session DATE: February 5, 2024 MEMBERS OF BOARD OF COMMISSIONERS PRESENT: Chairman Powell, Vice Chairman Sims, Commissioner Palmer, Commissioner Puryear, and Commissioner Thomas OTHERS PRESENT: County Manager, Katherine Cathey, Clerk to the Board, Michele Solomon, County Attorney, T.C. Morphis, Jr., and Economic Development Director, Brandy Lynch CLOSED SESSION #3 A motion was made by Commissioner Palmer and carried 5-0 to enter into Closed Session #3 at 9:48 p.m. per General Statute 143-318.11(a)(3) for the purpose to consult with the county attorney in order to preserve the attorney-client privilege with the following individuals permitted to attend: County Manager Katherine Cathey, Clerk to the Board Michele Solomon, County Attorney T.C. Morphis, Jr., and Economic Development Director Brandy Lynch. Chairman Powell called the Closed Session # 3 to order at 9:48 p.m. Economic Development Director Brandy Lynch provided an update on the North Park site. She stated that Person County won the Golden Leaf Grant in June 2022, which was just over $900K. She stated that the biding process began in late 2022, and the contract bid was awarded to Mainstream. She stated that contract was for $769,899.26. She stated that the contract was signed on March 26, 2023 and that the construction meetings took place on March 30, 2023. She stated that Paul Stimpson with LaBella is the Developer of the site plan and that Mainstream has had contact with Stimpson since March 2023. February 5, 2024, Closed Session #3 Page 2 of 3 Lynch stated that Mainstream was allowed to communicate with Stimpson and had full access to his files. She stated that this was the same person that the County paid to do permits, and everything else with this site plan. She stated that on June 9, 2023 ECS noted noncompliance on field report number four. She stated that ECS was brought in to the picture as the contractor should be responsible for correcting any issues, having any testing done, and must construct all the work under the supervision of a qualified Geo- Tech Firm, ECS. She stated that the County has used ECS multiple times in the past, and has a good relationship with them. She stated on July 18, 2023, ECS noted noncompliance on field report number nine. She stated that on or about August 16, 2023, a project became active on the North Park site. She stated that meant that she had a very interested client in the site and conducted a site visit. She stated that she met with Mainstream on August 24, 2023. She stated that Stimpson with LaBella requested a letter from an engineer on September 9, 2023, and stated, before final payment is made, he suggested a professional engineer with ECS that is familiar with this project write a brief letter that the work is now in accordance with the approved plans. If the professional engineer’s summary letter can confirm that ECS’s concerns with the project have been addressed, then you would be good to file for final payment and retainage for the contractor. She stated that she emailed Nathan Carter with Mainstream on September 5, 2023 to inform him of LaBella’s request. She stated that Carter responded on that same day and stated that he would get her that letter ASAP. She stated that on September 13, 2023 she received an email from Mainstream that ECS would be coming back to the site for another test and requested that she have the gate unlocked. She stated that ECS completed that study on September 14, 2023. She stated that Mainstream requested final payment on September 15, 2023. She stated that she had been withholding the payment for the final test, so that she can have the whole job completed, and the final payment, including retainage made. She stated that Mainstream was issued a check, minus the ten percent retainage, for their last invoice on September 22, 2023. She stated that she held ten percent retainage from every invoice received from Mainstream. She stated that Mainstream received a letter each time from her explaining why. She stated that on September 28, 2023 she received an email stating that Mainstream believes that they have completed the North Park project according to specs. She stated that on October 3, 2023 she responded back to Mainstream that the job was not complete according to the specs and the site was not marketable. She stated that on October 4, 2023 Mainstream requested final payment again. She stated that on October 5, 2023 she contacted ECS and requested that they give their opinion on the site and studies. She stated that on October 11, 2023 Josh Baddenfield, an employee of ECS, notified her that they would be conducting another test for expansion and swelling, and requested that the gate be unlocked. She stated that on October 31, 2023 she emailed ECS in reference to the lab test results. She stated that she was notified on November 1, 2023 by ECS, that the chief engineer would review the results and would provide her with more information. She stated that on November 5, 2023 she was informed by telephone call by ECS that they could not release the results of the final test to the County per the contractor, Mainstream. She stated that on November 15, 2023 she emailed Josh Baddenfield with ECS. She stated that on November 16, 2023 she received an email stating that all communications from Mainstream should come from Nathan Carter, and that a letter would be sent to the County Manager that week. February 5, 2024, Closed Session #3 Page 3 of 3 Lynch stated that on December 15, 2023, the Person County Attorney sent a letter to Mainstream. She stated that on January 12, 2024 the County received a response to the letter from Mainstream’s attorney Lex Erwin, with Maynard Nexsen. County Attorney T.C. Morphis Jr. stated that the site is not marketable. He stated that Mainstream would not give us that final test from ECS. He stated they are saying that the County needs to pay or they will sue. He stated that he wrote back and advised that the County could do one of two things. The County could take the retainage, which is about $75K to finish the site and make it marketable, which includes the studies, or Mainstream can finish the work and provide reports from ECS or another engineer that shows that the site is suitable for the County’s purposes. He stated that Mainstream has declined to do either. He stated that the contract with Mainstream states that the work has to be suitable, which it is not. He stated that the County is well within its rights to fix the problem. Lynch stated that she went back to ECS, and she now has all the reports except the last one that was completed. She stated that ECS is under contract with Mainstream; however, they have done multiple jobs for Person County to include the preliminary geo tech study on the North Park site, when it was done originally in June 2022. She stated that the workaround would be to contract with ECS to do a final geo tech study, which should have been done before construction started, per ECS. She stated that lab testing needed to be completed, find out what the issues are, and obtain letter from ECS stating what the issues are, with recommendations of how to fix it, and then hire a contractor to go fix the issue(s). She stated that she has spoken to Aubrey Lankford, who provided a rough summary of the process moving forward. She stated that she was given a proposed estimate of $14,500 for ECS to complete the final report for the project. Commissioner Sims asked where the money would come from to fund this estimate. Lynch stated that the money would come out of contract services and would need Board approval. A motion was made by Commissioner Sims and carried 5-0 to return to open session at 10:18 p.m. February 5, 2024, Closed Session #4 Page 1 of 4 Person County Board of Commissioners Minutes of a Closed Session DATE: February 5, 2024 MEMBERS OF BOARD OF COMMISSIONERS PRESENT: Chairman Powell, Vice Chairman Sims, Commissioner Palmer, Commissioner Puryear, and Commissioner Thomas OTHERS PRESENT: County Manager, Katherine Cathey, Clerk to the Board, Michele Solomon, County Attorney, T.C. Morphis, Jr., Economic Development Director, Brandy Lynch, PCBIC President, Phillip Allen, and Real Estate Broker/Consultant with Rural Advantage, LLC, Sherry Wilborn CLOSED SESSION #4 A motion was made by Commissioner Sims and carried 5-0 to enter into Closed Session #4 at 10:25 p.m. per General Statute 143-318.11(a)(4) for the purpose of discussion of matters relating to the location or expansion of industries or other businesses in the county (economic development) and per General Statute 143- 318.11(a)(3) for the purpose to consult with the county attorney in order to preserve the attorney-client privilege with the following individuals permitted to attend: County Manager Katherine Cathey, Clerk to the Board Michele Solomon, County Attorney T.C. Morphis, Jr., Economic Development Director Brandy Lynch, Economic Development Chairman Phillip Allen., and Real Estate Broker/Consultant with Rural Advantage, LLC Sherry Wilborn. Chairman Powell called the Closed Session # 4 to order at 10:32 p.m. Commissioner Sims advised that he and the Board had concerns about Project Log, and wanted to ensure that things are being done the right way, and wants to know what is the hold up with this project. Sims voiced concerns about PCBIC and where the money is being spent. He stated that PCBIC is reporting that they are broke. He stated that he would like to know where the money is. He stated that the project is a positive for the County, and for the growth of economic development. Real Estate Broker and Consultant Sherry Wilborn stated that Project Log, is a project brought to PCBIC by Rural Advantage, LLC to establish and operate a transloading facility to serve imminent industry need in and around Person County. February 5, 2024, Closed Session #4 Page 2 of 4 Wilborn stated that the project summary scope for the first phase was based on immediate and near-future needs for CertainTeed and Polywood, which would help with job retention and industry support. She stated that both companies have provided letters of support for the project to both PCBIC and Norfolk Southern. She stated that PCBIC owns the 30 acres that is the site of Project Log. She stated that Rural Advantage, LLC requested site conveyance of the PCBIC property to offset costs for her client, Hot Rock Haulers, LLC, to grade extensively. She stated that there are a lot of wetlands on this site and the topography is not the best. She stated that the client’s attorney advised that they may clear the property prior to closing, and was given approval to timber and clear cut the property, as PCBIC approved the timber clearing plans. She stated that no permits were required for the timbering. Commissioner Sims asked Wilborn how much money was made on the timbering and where did the money go. Wilborn did not answer the question that was presented by Sims and stated that it was immaterial and irrelevant. Wilborn stated that CertainTeed wanted to work with Hot Rock Haulers, LLC and not get into the transloading business themselves. She stated that CertainTeed thought it was an opportunity and were happy to share the site with Polywood and other industries. She stated that on behalf of her client, she wants to advocate for good zoning. She stated that the land is currently zoned RC, and hopes with the new UDO being presented that it does not change. She stated that the Planning and Zoning Director, Chris Bowley advised her that transloading is a permitted use by right in the RC zoning district for a railroad yard and does not require a Special Use Permit (SUP). She stated that Bowley did however recommend a SUP for stockpiling. She stated that she and the client thought everything was good to go. She stated that her client cannot present the full transloading site plan until they get the studies back. She stated that it takes a while to get a survey and a geo tech study completed. She stated that they received permission from Phillip Allen, Chairman of the PCBIC to put the liner down and stockpile the gypsum. She stated that they were not aware that this process would not be considered an accessory use to the transloading site. She stated that as soon as the civil engineers can do the other stockpiling areas, roads, and future expansions, then they would submit the site plan to Planning and expect them to expedite the site plan administratively and approve the transloading operation. She stated that when Economic Development Director Brandy Lynch got the information about the stockpiling, she took it to Bowley as she did not know if this was an approved use. She stated that Bowley advised Lynch that it is outdoor storage that requires an SUP. She stated that an SUP is a 30-day public hearing notice, and that makes absolutely no sense to her. She stated that there are two uses in the ordinance, that she believes that could be approved right now. She stated that it can be approved as an accessory use to the railroad joint operations or an accessory use to truck terminal hauling storage. She stated that there is no definition in the ordinance, and it is open to interpretation. She reminded the Board that it is their ordinance. She stated that before 30 days could pass for a public hearing notice, they could have that presented. She stated the public process is completely unnecessary. She emphasized that nothing is being stored at the site right now, and that nothing is in violation. She stated that it is much ado about nothing with the trees and the zoning. February 5, 2024, Closed Session #4 Page 3 of 4 Commissioner Sims asked for clarification on where the project stood with zoning. Wilborn stated that Bowley recommended obtaining a SUP if there was going to be stockpiling before the site plan is approved, as it would make the process cleaner. Wilborn stated that the project would not be stockpiling before the complete site plan is approved. Commissioner Puryear stated that he spoke with David Persell with CertainTeed, and he answered all questions that were presented to him. Puryear stated that he was very knowledgeable and professional. Chairman Powell stated that he has no issues with the project; however, he has issues about the site and what is going on. Powell asked if the proper permits had been obtained. Wilborn stated that project has gotten approval for everything that they have done on that site. She stated that all procedures and protocols were followed. She stated that they followed the agreement, and got the approvals. She stated that the project obtained the soil and erosion permit. She stated that once the site plan has been submitted and administratively approved, she would like to approach PCBIC in reference to closing on the property. Sims asked Wilborn, from a County Commissioner standpoint, is the Board of Commissioners holding the project up. He stated that he does not want the blame shifted to the Board of Commissioners. Wilborn stated that County staff is the hold up. She stated the opposition has come from Chairman Powell, County Manager Cathey, and EDC Director Lynch. Powell advised that he has never opposed this project; however, he is opposed to it being done the wrong way. He stated that he fully supports Planning and Zoning and what may be needed for this project. Economic Development Chairman and PCBIC President Phillip Allen stated that to his knowledge PCBIC and the client, Hot Rock Haulers, LLC acted in good faith. He stated that all parties adhered to all policies and procedures. He stated that they obtained all the necessary permits for geo tech and timber clearing. He stated that he signed the document to allow the geo tech and timbering. He stated that he has been given the authority to sign documents on behalf of PCBIC. He stated that they exercised reasonable discretion to allow for the stockpiling of gypsum. He stated that he felt that this could be an accessory use and did not realize Planning and Zoning would classify it otherwise. Economic Development Director Brandy Lynch stated that she has always been in favor of this project and not opposed. She stated that procedures were not followed in this project that should have been done, and she had to go behind and do some due diligence. She stated that she was concerned with the overlap of this project and the perception of this project and that is why she brought it to the Board of Commissioners’ attention in a closed session on July 17, 2023. She stated that she has never tried to slow this project down. She stated that she has tried to speed it up as fast as she can. She stated that this project was presented to the President of PCBIC prior to her knowledge about it. She stated that she has received complaints from the Building Inspections Department in January 2024 about the site and work being done on site. She stated that she was unaware that the timbering had occurred and has asked where the money went and has not received an answer. She stated that there are multiple issues that she feels have not been addressed by the project manager and the client as well as the PCBIC President. She stated that she has spoken with Polywood, Norfolk Southern, and Planning and Zoning. She stated that she has answered phone calls and replied to emails to the best of her ability, while doing her due diligence with this project. Wilborn stated that she disagrees with Lynch. February 5, 2024, Closed Session #4 Page 4 of 4 Chairman Powell stated that he is ready to move forward with this project and to do it properly. Cathey advised that the railroad yard is a permitted use, and the type of storage that has been constructed is an accessory use to the railroad yard. She stated that it currently exists without having a railroad yard. She stated that moving forward; the site plan would need to be submitted to Planning and Zoning for the railroad yard. Wilborn stated that she hopes to submit the site plan within the next few weeks, which at that time, this project would become public knowledge. A motion was made by Commissioner Sims and carried 5-0 to return to open session at 12:06 a.m. ADJOURNMENT: A motion was made by Commissioner Sims and carried 5-0 to adjourn the meeting at 12:07 a.m.