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010818 Megasite Property purchaseSpecial Meeting/ Megasite Property Purchase Public Hearing— January 8, 2018 The Randolph County Board of Commissioners met in a duly advertised special session at 6:00 p.m. in the 1909 Randolph County Historic Courthouse Meeting Room, 145 Worth Street, Asheboro, NC. Commissioners David Allen, Darrell Frye, Stan Haywood, Kenny Kidd and Maxton McDowell were present. Also present were County Manager Hal Johnson, Finance Officer Will Massie, County Attorney Ben Morgan, Associate County Attorney Aimee Scotton, Clerk to the Board Amanda Varner and Deputy Clerk to the Board Dana Crisco. County Manager Hal Johnson stated that the County received a letter from the Greensboro - Randolph Megasite Foundation on December 14, 2017, requesting the County acquire additional properties within the boundaries of the site to "square up" the site for a potential client. He said in his years working in local government, he had never seen a stronger project that was a real public-private partnership that worked together to create something that would make a difference in Randolph County and NC. He noted that representatives from the Foundation, the NC Railroad (NCRR), and Greensboro Chamber of Commerce were present at this meeting. Mr. Johnson said there have been difficult decisions to make in order to have a site attractive to a potential client. He introduced Garrett Walker, lead counsel for the Greensboro -Randolph Megasite Foundation to discuss the request. At 6:05 p.m., the Board adjourned to a duly advertised public hearing to consider appropriation and expenditures of County funds that under North Carolina General Statues (15 8.7. 1)(b)(2) allow county governments to acquire and hold for resale property that may be suitable for economic development purposes and County Attorney Ben Morgan reminded speakers to sign in either before or after speaking and to stay on topic as it relates to the megasite. No time limits were set. Garrett Walker, Attorney with Smith Moore Leatherwood LLP and lead counsel for the Greensboro -Randolph Megasite Foundation, stated that he was speaking in support of the request for the County to purchase the six parcels referred to as #59, 475, #76, #77, #78 and #95 which contain approximately 140 acres for $3.5 million. He said the acquisition of the additional required properties would increase the County's investment in the Megasite just as the NCRR and Foundation are committing to increase their investments. Mr. Walker commented that this purchase is about $1 million less than the amount the Foundation will have spent to acquire these properties. The Foundation has an option to purchase the parcel identified as 995 on the map and believes that it will greatly enhance the marketability of the Megasite and make it much more attractive to potential users. He said the NCRR has purchased #96 and #97 to fill the hole that was in the middle of properties they already own and have committed to the purchase of #93, #94 and #52 by the end of January. All of these properties have been rezoned accordingly. The NCRR real estate entity has assumed from the Foundation the contracts to purchase #'s 100, 103, 104, 105, and 106 when an end user commits. The Megasite Foundation has also committed to increase its investment by an additional $3.5 million which will be spent in connected to the acquisition of parcel #101 and to pay certain closing costs associated with the Railroad's purchase of their parcels. He said they have been advised that the completion of the purchase of all of the properties will be necessary in order to market the site to potential users. 01/08/2018 For reference: Property identifier Parcel # Acreage # 59 8708706808 1.31 #75 8708727822 3.40 #76 8708812608 22.27 977 8708718522 1.00 # 78 8708716649 1.43 9 95 8717687310 110.62 Total 140.03 Commissioner Frye asked for confirmation that the County was being asked to purchase the Leonard property (being referred to as #95) and obtaining the other parcels as part of the process. Mr. Walker confirmed and stated that the additional parcels were added to enhance the attractiveness of the transaction to the County in order to reduce the per acre price. If not successful in obtaining an end user, the County would have contiguous properties. 01/08/2018 Chairman Allen asked if the County would be assuming the option on 995 or purchasing the property from the Foundation and Mr. Walker said it would be a purchase from the Foundation. Chairman Allen also asked it the the County would be expected to be involved in the other agreements the Foundation has with the Leonards and Mr.Walker said those agreements were between the Leonards and the Foundation only and any other monies due the Leonards would be from the Foundation. Alan Ferguson, 4794 Troy Smith Rd., Liberty, stated he had questions about the way the expenditure is structured and also wanted to "help the Board and County for when the next ask comes along." Randolph County and its taxpayers "are in a real estate development project now." He said he had "been involved in a lot of real estate development projects in his career and they go on and on." "I'm here to tell you that you're going to be asked for more money somewhere along the way." Mr. Ferguson said he wanted to provide structure for questions the County could ask as they proceed through the project. "The project will go on regardless of what the Board decides to do tonight." Mr. Ferguson asked why the County was spending and buying more land now when every indication is that some company has interest. If this client doesn't choose this site, the County would still have the $3.5 million to buy it later. He asked why the County doesn't take "assignment" on the property and buy it directly from the Leonards? "The County didn't have anything to do with the negotiations of that contract." He said there is nothing in the agreement the County is being asked to sign about commissions being paid. "Who is paying who? Who negotiated the purchase that the County didn't have a say so in?" "Who is paying the Leonard's attorney fee?" Mr. Ferguson stated that it is important for everyone to understand that "the County is the fiduciary for its citizens. It is charged with properly managing tax dollars. It is still speculation until a company announces they are coming." He said it was hard for him to understand how the properties under contract have any effect on the marketing of the site. He said there are so many things he doesn't like about "this deal." "I don't like the county I live in being pushed around by people in Raleigh and that's what's coming your way pretty soon and the push you are getting tonight will be nothing compared to what that is" going to be. He said he had attended a lot of the County meetings and listened to a lot of requests for money and seldom failed to be impressed by how much consideration the Board gives to even the smallest request. Mr. Ferguson said he is glad his neighbors are getting $3.5 million for their property because he feels that is much more along the lines of where the original offers should have been as "they were far, far too low" in the beginning. Mr. Ferguson concluded by saying he doesn't doubt the good faith of anyone in the room and knows that everyone is trying to do the right thing for Randolph County. He said he was "trying to do the same" because it "feels different when" it is "in your back yard." He asked again why this purchase had to be now. The $3.5 million could be spent on other capital projects the County is working on until there is an end user for the site. 01/08/2018 Chairman Allen responded to the "why now" question and said that there were time constraints based on the options. "It also goes back to a potential user. It is a chicken and the egg kind of thing. Which comes first? We buy the property first and the user would be happy with that or would a user come without that property?" In regards to doing an "assignment," Chairman Allen said there were things in the contract that he didn't particularly care for and happy the County is not taking an assignment. He said there is a lot of concern about the commitment the County has made and the funds that could be spent on other things. "It is a hard decision. Is it worth it?" Walt Sprouse, Randolph County Economic Development President, asked the Board to support this important decision to purchase additional property that is being considered. He said this purchase will fill the gap and make the site complete. "It does make it more accessible for a potential client." He said this project is a true partnership, not only for jobs, but for investment in the future. "It is important and necessary." At 6:36 p.m., hearing no further comments, Chairman Allen closed the public hearing. Commissioner Frye commended Mr. Ferguson for his respect and helpful information during this five-year process. Commissioner Frye said some things have not been under the County's control. "Randolph County was the first one to actually make a purchase of property." He said his comments at that time were "if Randolph County was not committed to the project, nobody else is going to be." Since that initial step, over $90 million has been put into the project by those outside of Randolph County. "The NCRR is approaching $50 million invested in this project. The Foundation has about $15 million invested. The water and sewer project is around $28 million with some help from the Golden LEAF Foundation." The County's "investment has leveraged a lot of money and more to come." He said there are contractual dates in this process that had to be met. He added that clients watch what the County does and what is said. Commissioner Frye made a motion to approve the purchase of the Leonard property from Greensboro -Randolph Mega Site Foundation at a purchase price of $3,500, 000 to include the other properties that are part of the process, and approve the related budget amendments of $3,600, 000. Commissioner Haywood seconded the motion. Chairman Allen asked Mr. Walker if the County would be responsible for the structures on the properties in this request and Mr. Walker said it was his understanding that the County would be. Chairman Allen inquired if that was the reason the budget amendment was for $3.6 million instead of the $3.5 million purchase price. Finance Officer Will Massie replied that the additional amount is there for closing costs, taxes, title insurance, etc. He plans to only transfer the actual amount needed to fund the land purchase costs and related expenses. The $3.6 million is setting a limit. Commissioner McDowell asked for confirmation on who is paying for what in the transaction. County Attorney Ben Morgan said the County would pay the title insurance, attorney fee and the $26.00 recording fee. 01/08/2018 Commissioner Kidd asked Mr. Morgan to confirm that 9s 59, 75, 76, 77, and 78 are being conveyed to the County in addition to the purchase of 995 but the $3.5 million is for the Leonard property primarily. Mr. Morgan agreed with Mr. Kidd's assessment. Commissioner McDowell stated that properties would be conveyed to an end user whether it is now or several years from now. He said the people of Randolph County need to understand all the aspects of this project. They need to know what it is that the Board is doing and what the ramifications are for what is being done. Chairman Allen said it is pretty clear the County has limited resources and this process has been very expensive. Chairman Allen said he did not vote for the initial purchase of property "but the County is further down the road now." If no potential user comes by the end of the agreement, this purchase does enhance the marketability for each owner. This gives the County road frontage along Troy Smith Rd. and Julian Airport Rd. He said the purchase price per acre of 995 is essentially higher than the average farmland price and appreciated the Foundation making it a little cheaper for the County by offering those other properties. Commissioner McDowell said he didn't realize the General Assembly was going back into session this week. Commissioner Frye said this special session was set at the end of their last session. Chairman Allen said they would be working on redistricting and was unsure what else was on their agenda. Commissioner Frye said he had been informed that Senators Tillman and Wade were involved in drafting whatever bill details the General Assembly may consider regarding the Megasite but he was unsure when they would introduce it for discussion. Commissioner McDowell stated that the State had been behind this project more than he had ever seen happen before. After discussion, the Board voted unanimously to approve the purchase of 140.03 acres ofproperty from Greensboro -Randolph Mega Site Foundation at a purchase price of $3,500,000 for the properties being considered; approve $3,600, 000 of fund balance from the General Fund to the Site Development Fund; and approve Budget Amendment 922 to the General Fund and Budget Amendment 99 to the Site Development Capital Project Fund, as follows: 1. Parcel currently owned by Frank Robert Leonard and wife, Linda D. Leonard and comprised of 110.62 acres more or less. The parcel is identified by Parcel Identification Number (PIN) 8717687310 and is more particularly described in a deed recorded in Deed Book 1109, Page 349 in the Randolph County Registry. 2. Parcel currently owned by the Greensboro Randolph Megasite Foundation, Inc. and comprised of 1.31 acres more or less. The parcel is identified by Parcel Identification Number (PIN) 8708706808 and is more particularly described in a deed recorded in Deed Book 2476, Page 459 in the Randolph County Registry. 3. Parcel currently owned by the Greensboro Randolph Megasite Foundation, Inc. comprised of 3.4 acres more or less. The parcel is identified by Parcel Identification Number (PIN) 8 708 72 7822 and is more particularly described in a deed recorded in Deed Book 2570, Page 1014 in the Randolph County Registry. 01/08/2018 4. Parcel currently owned by Greensboro Randolph Megasite Foundation, Inc. and comprised of 22.27 acres more or less. The parcel is identified by Parcel Identification Number (PIN) 8708812608 and is more particularly described in deed recorded in Deed Book 2474, Page 1761 in the Randolph County Registry. 5. Parcel currently owned by the Greensboro Randolph Megasite Foundation, Inc. and comprised of 1.0 acres more or less. The parcel is identified by Parcel Identification Number (PIN) 8 708 718522 and is more particularly described in deed recorded in Deed Book 2489, Page 833 of the Randolph County Registry. 6. Parcel currently owned by the Greensboro Randolph Megasite Foundation, Inc. comprised of 1.43 acres more or less. The parcel is identified by Parcel Identification Number (PIN) 8708716649 and is more particularly described in a deed recorded in Deed Book 2511, Page 484 of the Randolph County Registry. 2017-2018 Budget Ordinance General Fund—Budget Amendment #22 Revenues Increase Decrease Appropriated Fund Balance $3,600,000 Appropriations Increase Decrease Transfer to Site Development Fund $3,600,000 2017-2018 Budget Ordinance Site Development Capital Project Ordinance Budget Amendment 49 Revenues Increase Decrease Transfer from General Fund $3,600,000 Appropriations Increase Decrease Purchase of Land $3,600,000 Adjournment At 6: 48 p. m., on motion of Frye, seconded by Haywood, the Board voted unanimously to adjourn. David L. Allen, Chairman Darrell Frye Stan Haywood Maxton McDowell Kenny Kidd Amanda Varner, Clerk to the Board 01/08/2018