Loading...
11-06-2023 Closed Session Meeting Minutes BOC November 6, 2023 Closed Session #1 Page 1 of 3 Person County Board of Commissioners Minutes of a Closed Session DATE: November 6, 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, Finance Director, Amy Wehrenberg, Piedmont Community College President Dr. Pamela G. Senegal, and Piedmont Community College Trustee, Phillip Allen CLOSED SESSION #1 A motion was made by Commissioner Sims and carried 5-0 to enter into Closed Session # 1 at 8:22 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, Finance Director Amy Wehrenberg, PCC President Dr. Pamela G. Senegal, and PCC Trustee Phillip Allen. Chairman Powell called the Closed Session #1 to order at 8:24 p.m. Piedmont Community College (PCC) President Dr. Pamela Senegal presented the Board with an update from the September 5, 2023 meeting. Senegal stated that PCC has been presented with a time-limited opportunity to lease over 100,000 square feet at the Carolina Pride Carwash Building, which is located at 225 Crown Boulevard in Timberlake, in the Person County Business and Industrial Center. She stated there is a need for updated facilities. Senegal presented the Board with four options and with those options, incremental increases in operating costs. November 6, 2023 Closed Session #1 Page 2 of 3 Senegal presented option one, which would be to build. She advised as part of PCC’s 2023-2031 Campus Master Plan, a building feasibility study was completed. Senegal stated the estimated cost to construct a new facility would be $40M at a rate of 4.75% for 20 years for a total paid of $62,037,468. She advised estimated time to develop from approval to occupation of the newly constructed facility would be five years. Senegal presented option two, which would be a long- term lease. She stated the building would provide sufficient space to address all needs of the health, advanced technology and trades programs. Senegal stated the base lease would be $30K per month for 20 years for a total paid of $7.2M. She explained the lease would be $30K per month for 10 years with four five- year extensions. Senegal stated the estimated time to complete the upfit work is nine months. Senegal advised the owner is responsible for all major building systems to include roof, HVAC replacement, and parking lot repairs, estimated at $1.5M over the life of the lease. Senegal presented option three, which would be a lease to purchase option. She stated the base lease would be $40K per month for 20 years for a total paid of $10,752,000. Senegal stated the right to purchase could not be exercised until the initial 20-year lease period expired. Senegal advised during the lease, PCC and the County would be responsible for all major building systems, to include roof, HVAC replacement, and parking lot repairs, unlike option 2, where the owner is responsible for all major building systems. She noted that based on the purchase terms proposed by the building owner, if the seller has combined federal and state income tax exceeding 45% at time of purchase, the buyer would be responsible for paying all additional taxes for the seller. Senegal presented option four, which would be to purchase the existing building or site. She stated there were not enough buildings with comparable square footage, in visible locations, in Person County; however, there are numerous sites that could be purchased for a new facility to be built. Senegal advised there is a challenge with new site and new construction as without an engineering study for that particular location, construction costs and timelines cannot be estimated. Senegal stated that PCC believes the best option to address the current workforce needs is to proceed with the long-term lease option, as it will enable PCC to transition to the newly renovated space in nine months. She stated it is an investment in the workforce needs of our community. Senegal advised PCC received a $5M legislative allocation to support this project for upfit and equipment needs. PCC Trustee Phillip Allen reiterated all that Senegal spoke about. Allen stated the need for the PCC Advanced Technology Center to enhance and provide growth to the future economic development of Person County. He stated the site in consideration is the perfect location, situated in southern Person County. Allen urged the Board to consider option two. Commissioner Thomas stated the current facility needed to be updated and something needed to be done. Commissioner Puryear agreed with Thomas that the facility needed to be updated. Commissioner Palmer had multiple questions that were unanswered and had concerns. Palmer asked about the former Helena School. Chairman Powell stated the Helena School site upfitting cost is expensive and there are too many unknowns at this location. Powell recognized the need for updating the PCC facility. Vice Chairman Sims also recognized the needs for updating the current PCC facility. Sims stated he is not in favor of a long-term lease option, as he would prefer to purchase the building rather than lease. County Manager Cathey advised that purchasing the building fits in the debt model. She stated that new construction of $14M would max out the debt model. November 6, 2023 Closed Session #1 Page 3 of 3 Cathey reminded the Board of other operating expenses and requests currently received that could impact the debt model. She advised that the owner of the building, Dale Reynolds, is expecting an answer from the Board on the proposed lease option. It was the consensus of the Board, to remove the lease option from the table and interest was in favor of purchasing and updating the building, which was option four. If Reynolds is not willing to sell the building, the Board indicated a willingness to commit up to $10M towards new construction. Cathey advised she would discuss both options with Senegal. A motion was made by Commissioner Sims and carried 5-0 to return to open session at 9:41 p.m. ADJOURNMENT: A motion was made by Commissioner Palmer and carried 5-0 to adjourn the meeting at 9:44 p.m.