07-17-2023 Closed Session #1 Meeting Minutes BOCJuly 17, 2023, Closed Session #1 Page 1 of 2
Person County Board of Commissioners
Minutes of a Closed Session
DATE: July 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,
County Attorney Ellis Hankins,
Economic Development Director Brandy Lynch, and
Economic Development Commission Chairman/PCBIC President Phillip Allen
CLOSED SESSION #1
A motion was made by Commissioner Puryear and carried 5-0 to enter into Closed
Session #1 at 11:13am 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: County Attorney Ellis
Hankins, County Manager Katherine Cathey, Clerk to the Board Brenda Reaves, Economic
Development Director Brandy Lynch and Economic Development Commission Chair Phillip
Allen.
Chairman Powell called the Closed Session #1 to order at 11:21am. Economic
Development Director Brandy Lynch stated she had two updates to provide the Board:
1) A meeting with the Wagstaff representatives took place where the group discussed the positive
and negative findings of the recent mega site study as well as discussed the Wagstaffs’ concerns
related to the current option that is imminent for renewal or will expire at the end of the calendar
year; the Wagstaffs’ concerns included a discrepancy related to the acreage as evaluated on the
survey that was completed by surveyor Puckett. Other concerns of the Wagstaffs relate to
stopping their forestry plan, i.e., logging/timbering and replanting trees due to the interest by
Project Lamb who requested the timber remain intact. Ms. Lynch said she has put the surveyor
in touch with the Wagstaffs to further discuss the noted discrepancy and assured them that
Project Lamb was still very much interested in the site. She noted the Wagstaffs were not happy
with the option and wanted more control of the timber in a renewal option.
Ms. Lynch noted without a renewal option in place by January 1, the site cannot be recertified
and this will make it challenging to respond to project requests.
2) Project Log, a project brought to PCBIC by Rural Advantage to establish and operate a
transloading facility to serve imminent industry need in and around Person County. The initial
phase would be to construct four or more lengths of track to support 100 or more rail cars of
different types onsite at once, as well as an approximate 7-acre concrete pad for onsite
stockpiling. This initial phase would create 10-15 full-time jobs with an average hourly wage
of $20-$25 with $3M for site prep, machinery and equipment and track installation. The project
July 17, 2023, Closed Session #1 Page 2 of 2
summary scope for the first phase was based on immediate and near-future needs for
CertainTeed and Polywood which would help with job retention and industry support. Both
companies have provided letters of support for the project to both PCBIC and Norfolk
Southern. The site identified in Person County are the parcels owned by PCBIC, Tax Map and
Parcel numbers A57 99, A57 78, and A57 80. The combined acreage of the three parcels is
approximately 34 acres. Rural Advantage requests site conveyance to offset costs for the client,
Hot Rock Haulers, LLC, to grade extensively, noting the site has been a dump site, which needs
to be addressed. In addition, a lease assignment will need to be obtained from Norfolk Southern
for areas that cross the right-of-way as well as PCBIC assign its lease for access to Woodsdale
Road.
In summary, the client will build a transloading facility to support industry needs in the
Person/Granville and South VA region, as well as other parts of NC. In order for the operation
to take place in Person County, a request is being made for site conveyance of the PCBIC
property adjacent to the Norfolk Southern mainline. The client will invest several million
dollars, which will increase the tax base, likely to the highest and best use of these parcels, and
directly create about a dozen well-paying jobs becoming a valuable industry support and
recruitment tool for Person County.
Ms. Lynch noted the rail upgrade would have significant costs to the client; she further
noted the client anticipated funds from the state. She said the lease expires in October with the rail
and she was working to renew the lease regardless of the outcome of Project Log.
Phillip Allen, PCBIC President, stated support of Project Log; he said following the
presentation to PCBIC, he asked the PCBIC attorney to draft the two draft Letters of Intent: one
letter of intent is for conveyance and the other is for a ground lease. He added the project addresses
the needs for existing and future industry. Mr. Allen recalled Project Log serves the same purpose
as the original intent of the parcels when attained by donations (no public funds were used) and
thereby no restrictions on the parcels. He added the parcels have no water, no sewer; no record of
a perk and topography issues noting the costs of the due diligence exceeds the tax value of the
property. Mr. Allen asked the Board to review for consensus for support for him to deliver one of
the letters of intent to the client.
County Attorney Ellis Hankins stated the letters of intent were negotiation documents; he
opined a ground lease for 50 years was similar but not actually conveying. He suggested adding a
reversion clause when not used for the purpose intended and/or ceases operations to revert to
PCBIC. Mr. Hankins stated enforceable obligations should be included as well.
Mr. Allen said PCBIC had not given him authority to sign and as the county attorney noted,
it is a negotiation instrument. He said he wanted the Board of Commissioners’ blessing as it was
important to him that the Board was comfortable with this transaction.
Commissioners Puryear, Thomas, Palmer and Sims were all in support and comfortable
with both options. Chairman Powell stated preference for a ground lease over conveyance. The
Board desired Mr. Allen to negotiate for the best interest of the county.
A motion was made by Commissioner Puryear and carried 5-0 to return to open session
at 12:36pm.