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01-17-2023 Closed Session #3 Meeting Minutes BOCJanuary 17, 2023, Closed Session #3 Page 1 of 2 Person County Board of Commissioners Minutes of a Closed Session DATE: January 17, 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, Brenda Reaves, and County Attorney, Ellis Hankins CLOSED SESSION #3 A motion was made by Vice Chairman Sims and carried 5-0 to enter into Closed Session #3 at 12:04pm per General Statutes 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 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 and 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 the price and other material terms of a contract or proposed contract for the acquisition of real property by purchase, option, exchange, or lease with the following individuals permitted to attend: County Attorney Ellis Hankins, County Manager Katherine Cathey, Clerk to the Board Brenda Reaves, Interim Economic Development Director Brandy Lynch and Tax Administrator Russell Jones. Chairman Powell called Closed Session #3 to order at 12:04pm. Interim Economic Development Director Brandy Lynch requested Closed Session #3 to inform the Board about Project Mars, who was requesting financial incentives as soon as possible. Ms. Lynch noted Project Mars has a partnership with NC State University and desires to be located in close proximity with the university. She added Project Mars has disclosed very little at this time but the office of EDPNC called Person County trying to assist with a site. Ms. Lynch said a previous site considered was in Holly Springs and it did not work out. Ms. Lynch noted the project would need water and sewer. Ms. Lynch stated the initial investment was $1.179B with up to $3B within 5 years. She added 660 jobs are projected in 5-years with 800 in 10-years. Project Mars average salary is $76,439 as compared to Person County’s average wage of $46,236. Ms. Lynch stated Project Mars was very interested in Person County’s Mega Park site. Ms. Lynch reminded the Board of Person County’s need to exercise the option to obtain the property at $20K/acre by the end of the 2023. Although, she was not privy for the type of business, she suspected the business to be in line with chip manufacturing or a semi-conductor industry; Vice Chairman Sims that in his experience, there was an impressive talent pool from NC State University and the RTP area. January 17, 2023, Closed Session #3 Page 2 of 2 Ms. Lynch stated Project Mars was seeking 60 acres. She illustrated a conservative financial incentives 10-year grant package using new capital investment of $3,041,000,000 and recommending 60% for the first three years, 55% for the next three years, 50% for two years and 45% for the final two years for a grand total of $56,632,691. Tax Administrator Russell Jones stated an aggressive depreciation in value was expected as justification to start at 60%. Ms. Lynch confirmed any financial incentives agreement would mandate the requirement to maintain employee numbers. It was the consensus of the Board as a starting place for the financial incentives based on the limited knowledge of Project Mars and the urgency of the request. Commissioner Palmer asked if the final survey had been completed on the Mega Park site to which Ms. Lynch said she received it on January 4th or 5th for the three tracts totaling 1,344.84 acres. A motion was made by Vice Chairman Sims and carried 5-0 to return to open session at 12:38pm.