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09-28-2022 Closed Session #2 Meeting Minutes BOCSeptember 28, 2022, Closed Session #2 Page 1 of 2 Person County Board of Commissioners Minutes of a Closed Session DATE: September 28, 2022 MEMBERS OF BOARD OF COMMISSIONERS PRESENT: Chairman Powell, Vice Chairman Sims, Commissioner Puryear, and Commissioner Palmer MEMBERS OF BOARD OF COMMISSIONERS ABSENT: Commissioner Gentry OTHERS PRESENT: Clerk to the Board, Brenda Reaves, Interim County Manager, Ralph Clark, and Interim Economic Development Director, Brandy Lynch CLOSED SESSION #2 A motion was made by Vice Chairman Sims and carried 4-0 to enter into Closed Session #2 at 3:43pm 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: Clerk to the Board, Brenda Reaves, Interim County Manager, Ralph Clark, and Interim Economic Development Director, Brandy Lynch. Chairman Powell called the Closed Session #2 to order at 3:44pm. He said the purpose of this Closed Session was to consider financial incentives for Project Lamb and their interest in the Mega Park site. Chairman Powell noted he along with other county officials met with representatives from Project Lamb including their President of their N. American operations. Currently Project Lamb is looking at Person County and a site in South Carolina. Interim Economic Development Director, Brandy Lynch presented for Board consensus a proposal for financial incentives spread over a period of 15-years. The grid showed grant payments 2022 through 2032 with no payments 2033 through 2038 for a total of $9.4M She also illustrated the bond debt service report prepared by PNC Capital Markets LLC for $7.6M over 20-years noting the county was very optimistic in Project Lamb’s interest noting they plan to bring a supplier and maybe another project to the site. Chairman Powell stated Project Chops who was interested in coming with Project Lamb was hesitating at this time due to economy factors. Ms. Lynch told the Board that Project Lamb would bring 150 jobs with $450M of new capital investment. Ms. Lynch stated Project Lamb was looking to buy 850 acres of the 1,350-acre site. She said the site survey was in process but did not know the completion date noting there was a timetable in the contract. She said Project Lamb would need rail but not in the first phase; the rail has been mapped out and landowners are being contacted for acquisition of right-of-way. September 28, 2022, Closed Session #2 Page 2 of 2 Ms. Lynch told the group that she has requested and in-person meeting with the Wagstaff family noting Chairman Powell and Economic Development Commission Chair, Phillip Allen would join her to discuss the possibility of decreasing the option price. The option price per acre is $20K and the representatives with Project Lamb would like to pay no more than $15K per acre. Interim County Manager, Ralph Clark, who met with the Project Lamb representatives this date stated the following were points of concern related to making a deal: 1) that $20K per acre was too high, 2) that 10-year financial grant incentives were less than other competing states, 3) the electrical utility was divided on the site, and, 4) needed railway access (although assured by county progress with right-of-way was being obtained.) He added that of the 850, they would use approximately 500 acres. Commissioner Puryear recommended that Project Lamb negotiate directly with the Wagstaff family and Ms. Lynch noted Project Lamb has indicated they would if need be. The Board had consensus to go with the 15-year financial incentives over the 10-year financial incentives with everyone willing to do everything possible to bring this prospect to Person County. A motion was made by Commissioner Puryear and carried 4-0 to return to open session at 4:13pm.