Loading...
01-16-2024 Closed Session #2,3 Meeting Minutes BOC January 16, 2024, Closed Session #2 Page 1 of 3 Person County Board of Commissioners Minutes of a Closed Session DATE: January 16, 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, General Services Director, Ray Foushee, Finance Director, Amy Wehrenberg, 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 10:26 a.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., Finance Director Amy Wehrenberg, and General Services Director Ray Foushee. Chairman Powell called the Closed Session #2 to order at 10:27 a.m. County Manager Katherine Cathey stated that at the last meeting, the Board directed her to draft a letter of intent (MOU) to proceed with the purchase of the Carolina Pride Carwash Building for $7M, and to speak with Dr. Senegal. She stated that the owner of the Carolina Pride Carwash Building, Dale Reynolds, has received the MOU and has provided some changes. She stated that the changes referenced in the MOU were as follows:  The Buyer acknowledges that the Seller is selling the Property “As Is”.  The Closing Date will be no later than May 1, 2024; provided, the Closing Date may extended by Buyer so long as Buyer makes the payments required in Section 14(d). January 16, 2024, Closed Session #2 Page 2 of 3  In reference to Hazardous Substances, if any hazardous materials are found, and a Phase II assessment is called for in the Phase I assessment, Buyer shall have the option to either cause the Phase II assessment to be performed or terminate the Contract during the Feasibility Period. If Phase II assessment is called for in the Phase I assessment, Buyer shall pay the cost of the Phase II assessment cost.  In reference to Legal Effect, except as provided in Paragraph 12 concerning Confidentiality, neither Buyer nor Seller will be legally bound in any manner unless and until the Contract has been executed by both parties.  Under Additional Terms for the Contract, 14(a) states the Buyer may, following the full execution of the Contract, examine Seller’s title to the Property and notify Seller before the expiration of the Feasibility Period of any defects in our encumbrances upon Seller’s title to the Property. If buyer timely notifies Seller of any Objections during the Feasibility Period, then seller shall have the option in Seller’s sole discretion within ten days after such Objection(s) of either curing such Objection(s) or not curing such Objection(s). If Seller elects not to cure any Objection(s) or is unable to cure such Objection(s), then the Buyer shall have the option of waiving the Objection(s) and closing on the Property, or terminating the Contract and receiving a refund of the Earnest Money, and upon such termination neither Seller nor Buyer will have any further liability or obligation to the other pursuant to this Agreement. Notwithstanding the foregoing, Seller, at its cost, will be obligated to remove, prior to or at Closing, all mortgages deeds of trust, tax liens, mechanic’s liens, and similar financial liens that can be cured by payment of a sum certain.  Under Additional Terms for the Contract, 14(b) states At Closing, Seller shall convey fee simple Title to the Property to Buyer by special warranty deed subject to easements, encumbrances, restrictions, and any other matters of record.  Under Additional Terms for the Contract, 14(d) states Seller has a tenant on the Property who has moved out of the Property but is currently paying rent. A condition to Seller closing on the Property is that Seller enters into a lease termination agreement with the Tenant. In order to prevent Tenant from trying to sublease the Property, Buyer will reimburse Tenant $21,000 per month beginning May 1, 2024 until Buyer closes on the Property or terminates this Memorandum of Understanding or the Contract. Cathey stated that the MOU is a non-binding agreement. She stated that Dr. Senegal would be meeting with the PCC Board of Trustees today. She stated that Dr. Senegal advised that the PCC Board of Trustees is supportive of the idea of using some of the $5M grant money received from the State towards the purchase price. She stated that Finance Director Amy Wehrenberg sent this information to the Carter’s with DEC, with no response. Wehrenberg stated that the studies, and the acquisition of the property should not take that long, and feels that the County should be able to meet the May 1, 2024 deadline. She stated that traditional financing usually takes about three months. She stated that risks are associated, and there could be unknown issues. It was the consensus of the Board that they do not want to pay the $21K monthly lease payment. January 16, 2024, Closed Session #2 Page 3 of 3 Cathey stated that she would provide MOU to Reynolds so he could draft a purchase agreement, to be presented to the Board at the February 5, 2024 BOC Meeting. No action was taken by the Board on this matter. Cathey provided an update on Brixmor with the potential purchase of the Human Services Building. She stated that Brixmor came back with a counter-offer on January 11, 2024 for $8.35M for both parcels with no commission to be paid to Doug Brock with Newmark. She stated the counter-offer is subject to committee vote (Brixmor). She stated that the current monthly lease payment to Brixmor is $102,678.50. She stated that the lease expires in August 2025. She stated that if the County purchases the property and closes on May 1, 2024, it would save $1,642,856(16 months’ rent), if it closes on June 1, 2024, it would save $1,540,178(15 month’s rent), and if it were to close on July 1, 2024, it would save $1,437,499(14 month’s rent). She stated that if the Brixmor does not agree to pay a commission and a sale or lease of the property is consummated, Person County would pay a commission. If the property is acquired by eminent domain, Person County is not responsible for paying a commission. She stated that Newmark has requested 1/3 of what commission would have been if eminent domain was exercised successfully. She stated that there has been no mention of eminent domain to Brixmor. She stated that once the Brixmor committee comes back to her, she would bring back to the Board at the next BOC meeting. Wehrenberg stated that Brixmor property is more complex, and it is not likely to meet the May 1, 2024 closing date. She stated that the LGC would likely allow financing. It was the consensus of the Board to gather more information on eminent domain. County Attorney T.C. Morphis Jr. explained the process of eminent domain. No action was taken by the Board on this matter. A motion was made by Commissioner Puryear and carried 5-0 to return to open session at 11:14 a.m. January 16, 2024, Closed Session #3 Page 1 of 1 Person County Board of Commissioners Minutes of a Closed Session DATE: January 16, 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 #3 A motion was made by Commissioner Sims and carried 5-0 to enter into Closed Session #3 at 11:14 a.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 #3 to order at 11:15 a.m. County Manager Katherine Cathey provided the Board with three examples of management structures for CHSA’s. They are as follows:  Structure A, the County Manager would directly supervise the CHSA Director/Social Services Director, which is currently Carlton Paylor, and the VSO would report to him  Structure C, the County Manager would directly supervise the CHSA Director( a new position), and the CHSA Director would supervise the Social Services Director and the VSO  Structure D, the County Manager would directly supervise the Assistant County Manager/CHSA Director, which is currently Brian Hart, and the Social Services Director and VSO would report to him Cathey advised the Board that the CHSA would go into effect April 15, 2024. It was the consensus of the Board that they are in agreement with Structure D. Cathey stated that she would provide the Board with more information on Structure D, how it would work, as far as roles and responsibilities, and job titles, at the next Board meeting on February 5, 2024. No action was taken by the Board on this matter. A motion was made by Commissioner Puryear and carried 5-0 to return to open session at 11:23 a.m.