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03-20-2023 Closed Session #2 Meeting Minutes BOCMarch 20, 2023, Closed Session #2 Page 1 of 2 Person County Board of Commissioners Minutes of a Closed Session DATE: March 20, 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, County Attorney Ellis Hankins, and Economic Development Director Brandy Lynch CLOSED SESSION #2 A motion was made by Vice Chairman Sims and carried 5-0 to enter into Closed Session #2 per General Statute 143-318.11(a)(4) at 11:31am 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 Attorney Ellis Hankins, County Manager Katherine Cathey, Clerk to the Board Brenda Reaves, and Economic Development Director Brandy Lynch. Chairman Powell called the Closed Session #2 to order at 11:31am. Economic Development Director Brandy Lynch updated the Board on recent conversations with the Wagstaff brothers related to the renewal for the Mega Site option that will expire December 31, 2023. Ms. Lynch said that she, Chairman Powell, County Manager Katherine Cathey and Economic Development Commission Chairman Phillip Allen have been involved in renegotiating the renewal of the option. She said that the county proposal was to keep the option the same for a 6-year renewal period. Ms. Lynch stated the Wagstaffs responded with the following options to the county: 1) Do nothing at the expiration on the current option, 2) County purchase of all acres at $20K per acre with 1/3 payment due at closing ($9M) with a 6-10 year-term with interest adjustment annually (current rate is 7.5%), 3) A new option with the Wagstaff family including $15K per year option fee and an increase in the per acre price rate by 2-3% annually providing a new per acre range from $24,379 per acre to $26,878 per acre. In addition, the Wagstaff family wants to remain in a timber management plan for one-year following exercise of the option (there was no time period for option 3), and 4) $20K per acre for all acres with the county providing its own financing. March 20, 2023, Closed Session #2 Page 2 of 2 Ms. Lynch said the NC State certification of the site will be affected without the required 2-year option on the parcel; however, Ms. Lynch stated they were being lenient with the county through April as they understood the county was currently in negotiations for the option renewal. Without the certification, the county could not advertise or promote as a certified site. Ms. Lynch told the Board that county officials sought advice from economic development experienced lawyers, Sheila Knight and Ernie Pearson who quickly advised to take option 1 off the table; they advised Option 2 would be best suited to have under control of a non-profit but the county would be OK noting the interest rate was rich. They surmised Option 3 timbering plan should provide leeway on the price. The economic development experienced lawyers suggested purchasing 400 acres and option the remaining portion. Ms. Lynch projected the investment to date was around $1.8M on this site with another $1M of received grant funding. Additionally, Ms. Lynch told the Board she was awaiting a report from the EDPNC that may include specifics for consideration during the negotiations of the option renewal. She asked the Board to provide feedback on how the county staff should proceed at this time. Ms. Lynch provided a suggestion to have a third-party consultant (Sanford Holshauser) formulate a good, sound economic evaluation noting the cost was $13,500. When asked if the parcel has an appraisal, Ms. Lynch did not know if an appraisal had been completed. County Attorney Ellis Hankins suggested for the county and the Wagstaff family to jointly pay for an appraisal, if desired, for an objective analysis of the property. The Board was interested in the EDPNC report when Ms. Lynch receives it. It was the consensus of the Board to continue to propose to the Wagstaff family a 6-year renewal of the current option at this time. A motion was made by Vice Chairman Sims and carried 5-0 to return to open session at 12:14pm.