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03-21-2022 Closed Session Meeting Minutes BOCMarch 21, 2022, Closed Session #1 Page 1 of 2 Person County Board of Commissioners Minutes of a Closed Session DATE: March 21, 2022 MEMBERS OF BOARD OF COMMISSIONERS PRESENT: Chairman Powell, Vice Chairman Sims, Commissioner Puryear, Commissioner Gentry, and Commissioner Palmer OTHERS PRESENT: County Manager, Heidi York, Clerk to the Board, Brenda Reaves, County Attorney, Ellis Hankins, and Economic Development Director, Sherry Wilborn CLOSED SESSION #1 A motion was made by Commissioner Puryear and carried 5-0 to enter into Closed Session #1 at 11:07am per General Statute 143-318.11(a)(4) to discuss matters relating to the location or expansion of industries or other businesses in the area served by the public body, including agreement on a tentative list of economic development incentives that may be offered by the public body in negotiations with the following individuals permitted to attend: County Attorney, Ellis Hankins, County Manager, Heidi York, Clerk to the Board, Brenda Reaves and Economic Development Director, Sherry Wilborn. Chairman Powell called the Closed Session #2 to order at 11:11am. Economic Development Director, Sherry Wilborn stated the Closed Session #1 was added to discuss financial incentives of Project Lamb, Project Chops, and Project Eddie. She reminded the Board was presented on February 7, 2022 financial incentive proposal for Project Lamb, a manufacturing operation that proposes a capital investment of $300M and 150 jobs with an annual average wage of $52,557 locating a new facility on the Person County Mega Site on approximately 300 acres. Since that was presented, Project Lamb has come back to her about them bringing a privately owned supplier with extensive presence in NC, SC and GA with them, Project Chops noting one of these projects does not happen without the other. Ms. Wilborn said Project Chops proposes $170M in investment and 162 jobs with an annual average wage of $68,179 ($24,113 higher than Person County’s current average annual wage.) In February, Ms. Wilborn presented financial incentives for Project Lamb that included $6M upfront, which could go towards infrastructure needs, i.e., wastewater line and pump station that will be needed at a projected cost of $12.6M, or toward land acquisition costs for the 300 acres; she noted site conveyance has become somewhat expected for large development, as well as a performance-based cash grant incentive over 10 years for approximately $8M. With the addition of Project Chops, Ms. Wilborn said she had revised Project Lamb’s proposal to increase the performance-based incentive to $9.189M. The site for Project Chops will need to be rezoned to Industrial on 150 acres and have accessibility to rail service. March 21, 2022, Closed Session #1 Page 2 of 2 Ms. Wilborn presented financial incentives for Project Chops that included $3M upfront investment, which could be used for the remaining wastewater gap, or land acquisition for the additional acreage, plus approximately $4.36M in performance-based incentives noting she increased the percentages on Project Chops due to the significant annual average wage of the jobs. Ms. Wilborn stated both Project Lamb and Project Chops need DEQ air permits with special conditions and the site may require rail service. Ms. Wilborn stated a meeting was set with the DEQ for March 22, 2022. She noted if cost prohibitive to add rail at the Mega Site, other sites containing 500 acres would be evaluated noting to have a site pad ready, the costs is $150K (cleared to a flat form) plus $20K (land acquisition) for a total of $170K per acre. She indicated the NC Commerce Dept. would be reassessing its incentives due to the changes with Project Lamb bringing with it, Project Chops. In the meantime, Ms. Wilborn stated she had another prospect, Project Eddie with interest in the Mega Site. Project Eddie proposes $3B in capital investment and 906 jobs at an annual average wage of $73,321. Ms. Wilborn said with the proposed high investment and wage, she presented financial incentives of $217,979,557 to be spread over 25 years and that the land be conveyed at an estimate upfront cost of $6M. In addition, she proposed to pledge dedicated staff for concierge services for permitting and job recruitment noting other things may need to be developed if the site progresses. Ms. Wilborn noted an incentives consultant was involved and she heard he has asked for onsite training facilities and a satellite emergency and utilities services. County Manager, Heidi York stated the County’s Emergency Management Director was already talking about a satellite substation for emergency services on the northern end of the county. Commissioner Gentry asked what was the timeline for Project Eddie and Ms. Wilborn stated 2024. Ms. Wilborn told the Board she is evaluating other sites in the hopes of securing Project Lamb, Project Chops as well as Project Eddie. Ms. Wilborn updated the group that acquisition of property from the one property owner holdout had come to an agreement in the amount of $200,000 plus legal fees and earnest money. The Board had consensus for all the proposed financial incentives as presented by Ms. Wilborn. A motion was made by Vice Chairman Sims and carried 5-0 to return to open session at 11:37am.