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05-27-2025 Meeting Minutes EDCMinutes of the PCEDC Regularly Scheduled Meeting Person County EDC Board Room 303 S. Morgan St., Roxboro, NC 27573 May 27, 2025 Voting Board Members Present: Dr. Scott McKinney- Chairman Mr. Donald Long The Honorable Sherry Wilborn Mr. Phillip Allen- Vice-Chairman Mr. Jay Poindexter Mr. Kenneth Perry Dr. Claudia Berryhill, Agricultural Representative Mr. Jody Blackwell The Honorable Merilyn Newell Ex Officios Present: Ms. Katherine Cathey, County Manager Mr. Brooks Lockhart, City Manager Dr. Rodney Peterson, PCS Superintendent Ex Officios Absent: Dr. Kenneth Boham, PCC Interim President ED Staff Present: Others Present: Ms. Brandy Lynch, Director Mr. George Willoughby Mr. Bryan Eatmon, Existing Industry Specialist Ms. Kim Strickland Ms. Briana Whitt, ED Specialist (Minutes) Mr. Bo Freeman Ms. Dana Blackwell Ms. Julie Maybee Mr. TC Morphis EDC Welcome and Invocation: At 4:00 p.m., Chairman McKinney called the meeting to order. Mr. Donald Long gave the invocation. 1 of 27 Ethics Training: TC Morphis, the county attorney, stated that according to the bylaws, the board is required to undergo ethics training every year. Mr. Morphis was not present last year, so one of his colleagues conducted the ethics training instead. Therefore, this is his first time participating in the EDC. From what has been gathered from Ms. Lynch, many of the members have served on the board for quite a while. This isn't your first rodeo. Mr. Morphis thought that instead of repeating an ethics training we have already conducted, we could discuss conflicts of interest, as you are required to sign a conflict of interest statement each year, and then also talk a little bit about quasi-initial procedure. And because I understand that there is going to be a closed session, we're going to be talking about that issue, so it's something that doesn't typically come up from the board. Essentially, EDC bylaws, Article Two, outline the scope and duties of the EDC, closely following state statutes 158-13. Therefore, the activities permitted by the statutes, along with what your bylaws specify, include receiving an economic development program, which involves both receiving and implementing it. You can formulate projects, conduct industrial surveys, and advertise. You can provide advice and assistance. You can promote the formation of private business development corporations, and you can engage in other necessary activities. Basically, the two ways you all might encounter a conflict of interest as an advisory board, according to your own standards, are as follows: first, you could have a general conflict, which involves using your position for personal or private gain, giving preferential treatment, compromising independence or impartiality, or adversely affecting public confidence and the integrity of the commission. If you can avoid at least two of those, you'll also steer clear of any criminal issues. Mr. Morphis believes our By-laws are precise and easy to read. Consider that you signed this, and then just sign it at the end of the meeting; give it to the economic development director, and she will keep it on file. Ms. Wilborn asked if Mr. Morphis could discuss the exception for counties with municipalities of fewer than 20,000 regarding close business dealings, where everyone conducts business. So, the exception that Ms. Wilborn is referring to is 14-234, and Mr. Morphis has a copy of the statute. Actually, I'll provide these statutes for anyone who wants them and can email them to you afterward. It essentially states that you can't be an elected official or a member of any public body and make or administer a contract—that means voting on it or, you know, being part of the board that oversees it—if you also have an interest in the entity with which you are contracting. Mr. Perry mentioned that the EDC recently faced a situation in which information was shared beyond the intended recipients. Would that be considered a misuse of confidential information by passing it on to unauthorized individuals? Mr. Morphis stated, "It is unlawful for any officer, employee of the state, or an officer or employee of any political subdivision, you all be an officer in your appointed position and contemplate an official action by himself or governor unit which he's associated or in reliance on information which is made known to him in his official capacity, 2 of 27 which is not made public, to commit any of the following acts, acquire a pecuniary interest in any property transaction or enterprise, or gain any pecuniary benefit which may be affected by such information or official action, or intentionally aid another to do any of the above acts." Therefore, don't see it happening as much with a board like EDC, but find that our county commissioners are quite good about this. However, Mr. Morphis observed this in other jurisdictions where you have what's called a leaky board: they enter a closed session, and five minutes later, everyone on the street knows what was discussed. Well, that is not illegal, and it's not a violation of the statute. Ms. Wilborn stated that she was a little confused about why the SUP information was presented to this board. Mr. Morphis expressed, "because I've been hearing a lot from citizens in the community." He had talked to several elected officials and staff, asking, "Well, are you doing this? Are you doing that?" He’s been speaking to the attorneys, both from the applicant and the folks involved in the project. Additionally, due to the considerable discussion surrounding that conversation, he wanted everyone to understand what our Board of Commissioners can and can't do because he thinks it's important, especially since it is an application for business. He also wanted to take this opportunity to inform you all about that. So, if you're asking the community, you can say, "well, this is why they're not talking about it." That was really the purpose of it. Housing Supply Gap Analysis: This is one of the potential topics that we identified more broadly in the name of new housing units or affordable housing, which is relevant to that subject area. Dr. McKinney came across this information, and you have been provided with four pages of details here in your packet. The first page is a colorful one-pager labeled ‘North Carolina Housing Supply Gap Analysis.’ At the bottom of that page is a QR code. If you scan it, you’ll access the extensive report, which is supported by the names listed near the bottom. It was commissioned by the North Carolina Chamber Foundation, the North Carolina Builders Association, and the North Carolina Realtors, along with the independent research group, National Research Group. Dr. McKinney attempted to summarize for you in the first two pages, and then on the third page, we're going to share the reason why so much effort went into the study and why they incurred these expenses. They want to take this information to your local area, adapt it, and expand upon it. There are limitations since this study was based on census data and information from BRSI, an organization that many of our groups utilize for economic data and similar purposes. However, they are strongly encouraging us, as highlighted in those bullet points, to maintain our composure during the joint meeting in October with the commissioners and city council, ultimately aiming to develop a local housing policy. Now, one of the major factors Dr. McKinney believes they overlooked in their study, simply because it's such a significant unknown for all of us, was the effect of Microsoft and its transition from a dormant status to a more active climate. This, of course, will impact our community. However, if you examine that small table at the bottom of the third page, that's the crux of the 3 of 27 matter. They categorized the data by income levels, which is the standard practice in the housing industry, and they provided the household income range and rent range. For the first two categories, we believe there's a housing gap in the next five years, with 158 units at the lowest income level and the next step up. They don't perceive that people in these income levels would have the ability to buy or sell housing. The gap in those first two columns may be a reasonable assumption, or maybe not. As things get assessed, you then move up the scale to the next two columns: 51 to 80% of area median income and 81 to 120% of median income. These are the two segments often served when a community has any kind of subsidized housing or when a large development comes in and commits to having a certain percentage of affordable housing. Typically, they're aiming to serve those two columns of individuals. I know some of the elected officials and administrative staff here, along with members of our community, who say, "Oh, we need more affordable housing." Dr. McKinney was speaking with Commissioner Wilborn ahead of the meeting, trying to recall where she had made this comment. However, she did make a comment at some point during a public meeting that, in our community, the home builders and elected officials may not all be entirely on the same page regarding what our community needs. We're driving toward that goal, having a meaningful joint meeting in October where folks can discuss various issues. There are many topics between the city and the county, such as water, sewer, and infrastructure problems, which are much more significant than just a few issues. Closed Session: Chairman McKinney requested a motion to enter into Closed Session pursuant to NC General Statues 143-318.11(a)(5) A motion was made, seconded and unanimously passed to go into closed session. Chairman McKinney requested a motion to enter into Closed Session pursuant to NC General Statues 143-318.11(a)(4) A motion was made, seconded and unanimously passed to go into closed session. Motion: The Honorable Sherry Wilborn Second: Mr. Jody Blackwell Closed Session was entered into at 4:31 pm. 4 of 27 Strategic Plan Update: Commissioner Wilborn had just inquired about the strategic plan that was presented to us. She believes it was our first meeting of the year, and the direction from the chairman was to send recommendations to Ms. Lynch regarding what we would like changed. Commissioner Wilborn assumed that we would come back to the next meeting to discuss these issues, adopt the plan, and receive updates on the goals we've set; however, we haven't talked about it since. Commissioner Wilborn stated, “we still have a month now to do that, to send things that we'd like to see amended or added to it and discuss it at the next meeting.” What Commissioner Wilborn has circulated is related to that, as well as the leadership summit we discussed. These are just a few thoughts that have been on my mind. Commissioner Wilborn scratched this out this morning before starting my meetings, and she would like to read through it quickly. The half-page dedicated to matters concerning the city is not a critique of the city; it's simply a recognition that most of the development will occur in the city, and this body serves both the county and the city. Even though it's appointed by the county, there are city members here, and she believes there is an agreement in place for the county to provide economic development services to the city while sharing some of those costs. Commissioner Wilborn stated its May, we don't have any concrete steps in place to hold a leadership summit, and I think we should contract out a facilitator to make sure that we're on track and have the solid information we need to present to each body and to the public by October. In many ways, the city controls our water and sewer, which affects our ability to govern the county across all sectors. The infrastructure is aging and costly to maintain and repair. The city has lost its largest water users and has been unable to replace them, leading to a decline in revenue while still incurring maintenance costs. This situation has resulted in their placement on the LGC UAL list for several years. One of their goals for this budget season is to get off that UAL list. However, the only mechanisms available to them right now to achieve this are increasing taxes and water rates. So technically, they're not raising taxes, but we've seen an increase in property values from which they will benefit. We lack a clear understanding of our infrastructure capacity or opportunities to expand it into the county. As a priority for seeking funding— whether through grants or a partnership with the county and the city—or if the county sees it as beneficial for county growth, the Hyco Lake area does not have water and sewer. That may be something we want to learn about regarding the cost to extend infrastructure out there. Should the city be more proactive in encouraging commercial and industrial development rather than focusing solely on residential development? They could achieve this through incentives and business-friendly policies, which is something this body can help them understand—tools that are available if they aren't aware of them or if they haven't considered that approach. Once city regulations guide development, they can control growth through either more stringent regulations or more growth-friendly policies. This is a consideration we often overlook. We hear 5 of 27 a lot about what the county does from social media, but it's important for us as an EDC to recognize the significance of the ordinances that are implemented by the city. Commissioner Wilborn stated that we have no available industrial sites and limited industrial buildings. We need to evaluate the ever-changing needs of industry, as well as Person County's strengths and opportunities. We need to evaluate all our infrastructure, including rail, transportation, water, sewer, fiber, and workforce. We should enhance our workforce, which we believe is already strong. We need to hear an update on our training and education needs, as our industrial landscape has changed across the county and there's a housing shortage that needs to be addressed. We also need to consider how to support other sectors of our economy, including entrepreneurship and small business support. We discuss farmland preservation often, yet we don't define what it entails. From an economic development standpoint, to me, it represents land utilized for crop production to enhance our GDP. If we are to preserve it and establish parameters, I believe we must define what it is and implement measures to actively preserve it. Member Comments and President’s Report: Dr. McKinney like to recognize Dr. Berryhill first, because she did bring some information to agriculture. Dr. Berryhill shared a handout from the NC Cooperative Extension on local farms and food profile. Mr. Poindexter stated that he has seen so many people that don't understand the deferred, this 10s of 1,000’s of dollars that could be saved can't pay the taxes because they're not in deferred. The only time you can sign up for it is in January. As long as you get 26 acres of timber and they can be in it, someone's got a hard understanding of that, but this deferred management program. Mr. Blackwell announced that there is a new small business director that started. Mr. Perry asked if we could create an organizational chart to better understand the organizations we are part of. Mr. Morphis stated that you're an appointed board member, and you respond directly to the Board of Commissioners. This is an appointed advisory board. Under state law, you can hold one elected office and one appointed public office, or two appointed public offices, and that's where that comes from. So, if you're on this board and also on the planning commission, you couldn't be on the third board. Additionally, some positions are strictly advisory and are not considered public offices. 6 of 27 7 of 27 ––––––– Date: May 27, 2025 Time: 4:00 pm Location: EDC Boardroom, 303 S. Morgan St., Roxboro, NC 27573 Regularly-Scheduled Meeting Agenda Time Item Leader 4:00 Welcome Dr. Scott McKinney, Chairman 4:02 Invocation Mr. Phillip Allen, Vice Chairman 4:02 Ethics Training Mr. TC Morphis, Jr., Person County Attorney 4:22 Housing Supply Gap Analysis Dr. Scott McKinney, Chairman 4:37 Member Comments Members and Ex Officios 4:42 Closed Session **Request motion to enter into Closed Session pursuant to NC General Statutes 143- 318.11(a)(5) Dr. Scott McKinney, Chairman 5:00 Closed Session **Request motion to enter into Closed Session pursuant to NC General Statutes 143- 318.11(a)(4) Dr. Scott McKinney, Chairman 5:15 Strategic Plan Update Ms. Sherry Wilborn, Person County Commissioner 5:25 President’s Report Dr. Scott McKinney, Chairman 5:30 Next Meeting Set for June 24, 2025, 4:00pm, EDC Boardroom, 303 S. Morgan St., Roxboro, NC 27573 Dr. Scott McKinney, Chairman 5:30 **Adjourn Dr. Scott McKinney, Chairman **Action Requested 8 of 27 Highlights April 2025 - May 2025 - Staff assisted in Small Business Week - Conducted a meeting with North American and P&A - Bryan began the Roxboro Area Chamber of Commerce Leadership Person County - Attended RTRP State of the Region - Brandy met with Golden Leaf - Made ongoing updates to the website - Met with Kerr Tar KOG to plan the upcoming health industry round table discussion Upcoming Events of Interest - Health industry round table discussion on June 5 - North American Open House and Hiring Event, May 30 - The Kerr Tar Summit is scheduled for October 9, 2025 - The NCEDA Annual Conference will be the week of June 11 9 of 27 Information for the EDC Advisory Board Person County Updates - The County conducted interviews for the Planning Director position. - The County Manager presented the 2025-2026 Budget to the Person County Commissioners 10 of 27 Person County Economic Development Commission Ethics Training March 27, 2024 T.C, Morphis, Jr. Person County Attorney 11 of 27 Overview of Presentation •Scope of EDC’s Work •Conflicts of Interest •Criminal Self-Dealing Statutes •Quasi-Judicial Procedure, Including Being a Witness •Closed Sessions 12 of 27 Scope of the EDC’s Work G.S. § 158-13 and Bylaws Article Two: •“Receive an economic development program” •“Formulate projects” for economic development. •“Conduct industrial surveys” •Advertise •“Furnish advice and assistance” •“Encourage the formation of private business development corporations” •“Carry on such other activities as may be necessary.” 13 of 27 Conflicts of Interest The EDC Conflict of Interest Policy 1.General Conflict 2.Financial Interest 14 of 27 Conflicts of Interest G.S. 160D-109(b): (b) Appointed Boards. –Members of appointed boards shall not vote on any advisory or legislative decision regarding a development regulation adopted pursuant to this Chapter where the outcome of the matter being considered is reasonably likely to have a direct, substantial, and readily identifiable financial impact on the member. An appointed board member shall not vote on any zoning amendment if the landowner of the property subject to a rezoning petition or the applicant for a text amendment is a person with whom the member has a close familial, business, or other associational relationship. 15 of 27 Criminal “Self-Dealing” Statutes NOTE: EDC members are “public officers.” G.S. §14-234: Public officers benefiting from public contracts[.] G.S. §14-234.1: Misuse of confidential information. G.S. §14-234.2: Public Officer benefitting from public position. G.S. §14-234.3: Nonprofit officials participating in contracts. 16 of 27 Quasi-Judicial Decisions in General •These decisions are made by applying the County’s Planning Ordinance to a unique set of facts and involve some discretion by the decision maker. •Quasi-judicial hearings are like miniature court hearings where the Board is the decision maker applying facts to a legal standard. •Due process rights must be preserved. •G.S. § 160D-406(j): “Every quasi-judicial decision shall be based upon competent, material, and substantial evidence in the record.” 17 of 27 Quasi-Judicial Procedure Conflicts of Interest G.S. §160D-109: “A member of any board exercising quasi-judicial functions . . . shall not participate in or vote on any quasi-judicial matter in a manner that would violate affected persons’ constitutional rights to an impartial decision maker. Impermissible violations of due process include, but are not limited to, a member having a fixed opinion prior to hearing the matter that is not susceptible to change, undisclosed ex partecommunications, a close familial, business, or other associational relationship with an affected person, or a financial interest in the outcome of the matter.” 18 of 27 Closed Sessions Exceptions for Closed Sessions: (1) To prevent the disclosure of confidential information; (2) The award exception; (3) Attorney-client privilege; (4) The economic development exception; (5)Instructions for the terms to acquire real estate or for an employment contract; (6) The personnel exception (7) Criminal misconduct exception; (8) School violence plans; (9) Potential terrorist activities; and (10) Police recording exception.19 of 27 Findings about the projected Person County Housing Supply 2024 -2029 Excerpts from source document shared with the Person County EDC with permission from the NC Chamber Foundation Source document 2024-2029 North Carolina Housing Supply Gap Analysis and Economic Impact Report was commissioned by the NC Chamber Foundation, North Carolina Home Builders Association, and NC REALTORS®. Bowen National Research conducted the Housing Supply Gap Analysis, and Dr. Michael Walden, Reynolds Distinguished Professor at NC State University and president of Walden Economic Consulting, conducted the economic impact analysis. Introduction and Purpose The NC Chamber Foundation retained Bowen National Research in March of 2024 for the purpose of conducting a Housing Supply Gap Analysis for rental and for-sale housing for each of the 100 counties within the state of North Carolina. This study specifically focuses on North Carolina’s five-year (2024 to 2029) projected housing needs (page I-1). In the end, this study provides key demographic and housing data that will enable housing advocates, elected officials, community leaders, residential developers and others to make data- informed decisions on establishing housing priorities, creating or modifying housing policies, and supporting housing initiatives and incentives (page I-1). 20 of 27 Demographic Characteristics and Trends (2024-2029) % Change Total Households 2.0% % Change Households <35 Years 2.7% % Change Households 35-54 Years -2.3% % Change Households 55+ 4.1% Median Household Income % Change 21.0% Rental Housing Supply Overview Overall Multifamily Vacancy Rate (2024) 0.0% For-Sale Housing Supply Overview For-Sale Availability Rate (2024) 0.6% Median List Price of Available Homes (2024) $350,000 Housing Gaps (2024-2029) Person County State Total Rental Gap 697 units 322,360 units Gap to Renter Households Ratio 18.0% 21.2% For-Sale Housing Gap 1,407 units 442,118 units Gap to Owner Households Ratio 10.8% 14.3% Total Gap 2,104 units 764,478 units Gap to Total Households Ratio 12.5% 16.6% 21 of 27 Conclusion and Recommendations (with links to resources) • Educate the Public, Including Decision-Makers, on the Housing Characteristics, Challenges and Opportunities in North Carolina • Research other Communities and States on Possible Approaches to Address Housing Issues • Encourage Municipalities and Counties to Develop Individual Housing Plans • Support Efforts to Preserve Existing Housing and Encourage New Residential Development • Encourage Local Housing Advocates to Build Organizational Capacity • Leverage Data from this Statewide Housing Study to Encourage and Attract Residential Development Housing Gap Estimates Summary This addendum includes the housing supply gap estimates for each county, both for rental and for-sale housing, at a variety of affordability levels. The supporting data used in these calculations can be found throughout the demographic and housing supply sections of this study. Methodology and assumptions used in these calculations can be found in the housing supply gap analysis portion of this report (Addendum A-1). (Addendum A-10) PERSON COUNTY Housing Gap Estimates by Income (2024 to 2029) Percent of Area Median Income ≤30% 31%-50% 51%-80% 81%-120% 121%-150% 151%+ Total Household Income Range ≤$23,550 $23,551- $39,250 $39,251- $62,800 $62,801- $94,200 $94,201- $117,750 $117,751+ N/A Rent Range ≤$589 $590-$981 $982-$1,570 $1,571-$2,355 $2,356-$2,944 $2,945+ N/A Total Rental Housing Gaps 158 130 148 124 117 20 697 Price Range ≤$76,378 $76,379- $127,297 $127,298- $203,676 $203,677- $305,514 $305,515- $381,892 $381,893+ N/A Total For-Sale Housing Gaps 0 0 173 271 554 409 1,407 22 of 27 The number of households in the state is projected to increase by 5% (218,160 households) between 2024 and 2029. is the overall for-sale availability rate in North Carolina. This is well below the 2%–3% range of a healthy market. Only nine counties, representing less than 10% of the state’s counties, have a median list price under $200,000, making it likely that many lower income households, including first-time homebuyers, have difficulty finding affordable homes to purchase. The statewide vacancy rate for multifamily rental units is 5%. This is within the healthy market range of 4%-6%, but affordable rental programs show near-zero vacancies and over 41,000 households are on waitlists for affordable rental housing. Closing both the rental and for-sale housing gaps in North Carolina could generate $489 billion in economic activity and create nearly 2.2 million jobs in the state. $489BILLION Source: 2024-2029 North Carolina Housing Supply Gap Analysis and Economic Impact Report was commissioned by the NC Chamber Foundation, North Carolina Home Builders Association, and NC REALTORS®. Bowen National Research conducted the Housing Supply Gap Analysis, and Dr. Michael Walden, Reynolds Distinguished Professor at NC State University and president of Walden Economic Consulting, conducted the economic impact analysis. Scan to access the full report. FOR SALE FOR RENT5% Five-year housing supply gap in North Carolina for 2024 – 2029 764 ,478 322,360 RENTAL INVENTORY GAP 442,118 FOR-SALE INVENTORY GAP North Carolina Housing Supply Gap Analysis and Economic Impact Report 0.8 % 10 % 23 of 27 24 of 27 25 of 27 26 of 27 27 of 27