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12-04-2023 Closed Session Meeting Minutes BOC December 4, 2023, Closed Session #1 Page 1 of 3 Person County Board of Commissioners Minutes of a Closed Session DATE: December 4, 2023 MEMBERS OF BOARD OF COMMISSIONERS PRESENT: Chairman Powell, Vice Chairman Sims, Commissioner Puryear, Commissioner Palmer, and Commissioner Thomas OTHERS PRESENT: County Manager Katherine Cathey, Clerk to the Board Michele Solomon, County Attorney Ellis Hankins, County Attorney T.C. Morphis, Jr., and Economic Development Director Brandy Lynch CLOSED SESSION #1 A motion was made by Commissioner Sims and carried 5-0 to enter into Closed Session #1 at 9:25 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) with the following individuals permitted to attend: County Manager Katherine Cathey, Clerk to the Board Michele Solomon, County Attorney Ellis Hankins, County Attorney T.C. Morphis, Jr., and Economic Development Director Brandy Lynch. Chairman Powell called the Closed Session #1 to order at 9:31 p.m. Economic Development Director Brandy Lynch provided an update on the status of the Person County Mega Park (PCMP). Lynch advised at the end of 2022 the PCMP was submitted to the NC Mega Site Readiness Program. She stated the County was notified by December 31, 2022 that they did not make the cut to the top five. She stated at that time, no reason was given. She stated the County was notified that a report would be out in 2023. Lynch stated in February 2023 Person County EDC Board gave advice to the BOC to begin negotiations with the Wagstaff family to renew the option on the PCMP. She stated that the EDC Board advised the BOC to keep the cost per acre and the option price the same. She stated that the EDC Board advised a six-year extension in light of the site certification. Lynch stated that the recertification of the PCMP began in early 2023. She stated that it was discovered that the site studies were current and the only thing needed from the County was an option of two years for the PCMP. December 4, 2023, Closed Session #1 Page 2 of 3 Lynch stated that a site cannot be certified without it being under control for two years. She stated the option on the PCMP and the site certification are set to expire on December 31, 2023. Lynch stated at the March 2023 BOC meeting, the ED director presented the Board with information provided by the EDC Board. She stated that a proposal was shared with the Board to hire Sanford Holshouser to assist with negotiations. She stated at that time, the Board did not move forward with the proposal as they were waiting on the findings of the NC Mega Site Study. Lynch stated the survey of the PCMP paid for by the County, at a cost of $58,400 was completed in April 2023. She stated that the results of the state study were given to the County, by conference call, on June 2, 2023. She stated that the results were published before that date and made available to the public. She stated the conference call was more of a debrief. Lynch provided a timetable of offers as follows:  The BOC agreed to go along with the advice of the Person County EDC Board. The proposal was made to the Wagstaff family to extend the option with the same terms for six years.  The Wagstaff family responded with four options: 1. Nothing is done, option expires December 31, 2023. 2. Finance the option price of $20,000/acre for the entire PCMP, with payment of 1/3 of the price at closing. The finance term would be 6- 10 years. The rate would be recalculated every year. The rate would be the treasury rate plus 2.5%. 3. Sign a new option at $20,000/acre. The price per acre would then go up 3% every year. The option payment would be $15,000/year. The timber would still be under the Timber Management Plan. The south side of Edwin Robertson Rd. would need to be timbered. The Wagstaff family would replant timbered property. The County Club Rd. side of the creek would need to be trimmed. The Wagstaff family would continue to timber yearly. 4. Buy the entire PCMP at $20,000/acre.  In August 2023, negotiations continued with the Wagstaff family. The option on the table was to renew the option for two years, with the same price per acre. This option came with an Economic Development Agreement associated with Project Lamb with purchase price provisions that were unacceptable to the BOC.  On September 5, 2023 the BOC did not accept this option.  Negotiations have not continued since September 2023. Lynch stated the Wagstaff family was informed about the PCMP study that was performed by the state. She stated that the Wagstaff family was informed of the findings of the study that included the following, topography, employee availability, interstate/4 lane road, the price on the PCMP is 5-10 times more than the assessed value, Person County and the State of NC need to be involved, 300-400 acres is not usable, funding, mega sites are now 400-500 acres, PCMP is not a mega site it is a park, and the site has a great power source. December 4, 2023, Closed Session #1 Page 3 of 3 Lynch stated that there have been two projects on the table that have made offers. She stated that the Wagstaff family has not agreed to either. She stated that one project offered $15K/acre for 850 acres, and the Wagstaff family came back with $17.5K/acre, and the County would have to purchase the remaining acres at $20K. She stated that the County would be required to come up with the difference between $15K and $17.5K for 850 acres. She stated the other project’s offer was refused by the Wagstaff family. Lynch stated that County staff is working two active projects at this time. She stated that there have been three in-person meetings, and numerous calls and emails with the Wagstaff family in 2023. She stated the NC Site Certification can still be obtained in 2023 if the option is renewed for two years. She stated that two studies would expire in January 2024, which are the wetlands and phase one. She indicated the estimated price for renewal, if the County goes through ECS, would be $7.9K for the wetlands and $5K for phase one. She stated that the entire site would need to be walked again. She stated that the Geotech would have to be performed if there is any digging over 12 feet. She stated the boundary survey and master plan would need to be redone if any of the parcels are sold. She stated that as of today, December 4, 2023, the PCMP is the 11th most popular site on NC Certified site views. She stated that the site has had over 217 unique hits with #1 having 458. She stated that Warren and Franklin Counties are 1 and 2 respectively. She stated that the site has continued to be marketed by PCED, EDPNC, and Duke Power. She stated that the site has received numerous site visits within the last year. She stated that the option payment has been paid yearly by PCBIC and if the option is renewed, PCBIC does not have the funds to pay the yearly option. It was the consensus of the Board for the EDC Director to speak with the Wagstaff family about the options and extension time, and advise them that the County needs a response by December 7, 2023. The Board agreed to add this item to the agenda as a closed session on December 7, 2023. A motion was made by Commissioner Puryear and carried 5-0 to return to open session at 9:59 p.m. December 4, 2023, Closed Session #2 Page 1 of 2 Person County Board of Commissioners Minutes of a Closed Session DATE: December 4, 2023 MEMBERS OF BOARD OF COMMISSIONERS PRESENT: Chairman Powell, Vice Chairman Sims, Commissioner Puryear, Commissioner Palmer, and Commissioner Thomas OTHERS PRESENT: County Manager Katherine Cathey, Clerk to the Board Michele Solomon, County Attorney Ellis Hankins, and County Attorney T.C. Morphis, Jr. CLOSED SESSION #2 A motion was made by Commissioner Sims and carried 5-0 to enter into Closed Session #2 at 10:00 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 Ellis Hankins, and County Attorney T.C. Morphis, Jr. Chairman Powell called the Closed Session #2 to order at 10:00 p.m. County Manager Katherine Cathey presented to the Board an update on the status of purchasing the Human Services Building from Brixmor. She stated that following the last BOC meeting, County Attorney Hankins revised the Newmark agreement and incorporated the reference to eminent domain, to say that Doug Brock would be eligible for his commission, and that the County would be paying for that, not the seller. The agreement did stipulate no commission would be paid if the property were acquired by eminent domain. She advised that she has sent the revised agreement to Brock and it has not been finalized by Newmark’s legal department. She stated that she had a conversation with Brock about re-engaging him with Brixmor. She stated that the County is still negotiating with Brixmor on the purchase price of $6.07M. She stated that there is potential to make some headway with Brixmor, therefore the letter has not been sent to them referencing eminent domain. December 4, 2023, Closed Session #2 Page 2 of 2 A motion was made by Commissioner Puryear and carried 5-0 to return to open session at 10:07 p.m. ADJOURNMENT: A motion was made by Commissioner Sims and carried 5-0 to adjourn the meeting at 10:07 p.m.