051914mHARNETT COUNTY BOARD OF COMMISSIONERS
Minutes of Regular Meeting
May 19, 2014
The Harnett County Board of Commissioners met in regular session on Monday, May 19, 2014,
in the Commissioners Meeting Room, County Administration Building, 102 East Front Street,
Lillington, North Carolina.
Members present:
Staff present:
Joe Miller, Chairman
Gary House, Vice Chairman
Jim Burgin, Commissioner
Beatrice B. Hill, Commissioner
Gordon Springle, Commissioner
Tommy Burns, Harnett County Manager
Joseph Jeffries, Deputy County Manager
Dwight Snow, County Attorney
Kimberly Honeycutt, Finance Officer
Margaret Regina Wheeler, Clerk to the Board
Chairman Miller called the meeting to order at 7:00 pm. Vice Chairman House led the pledge of
allegiance and invocation.
Chairman Miller called for additions and deletions to the published agenda. Mr. Burns requested
the addition of Harnett County Sheriffs Office's 1) request for permission to apply for and accept
if awarded the Bulletproof Vest Partnership Grant from the U.S. Department of Justice; and 2)
request for permission to apply for and accept if awarded the FY14 Edward Byrne Memorial
Justice Assistance Grant Program in the amount of $24,008 from the Office of Justice Programs
of the U.S. Department of Justice. Mr. Burns also requested a correction of the name of
Carthage Realty LLC to Treyburn Realty LLC for the purposes of the public hearing concerning
a proposed agreement to extend economic incentives to Treyburn Realty and consideration of the
Resolution To Enter Into Economic Development Incentive Agreement With Treyburn Realty,
LLC. Vice Chairman House moved to approve the agenda as amended. Commissioner Hill
seconded the motion which passed unanimously.
Mr. Burns recognized Commissioner Hill as the 2014 recipient of the Algernon Sydney Sullivan
Award given by Campbell University. This award is presented each year at Campbell's spring
graduation service and recognizes the citizen who best exemplifies the ideal of compassion,
intellect and conduct as evidence of a spirit of love for and helpfulness to others.
Commissioner Springle moved to approve the items listed on the revised consent agenda. Vice
Chairman House seconded the motion which passed unanimously.
1. Minutes: May 5, 2014 Regular Meeting
May 19, 2014, Regular Meeting Minutes
Harnett County Board of Commissioners
Page 1 of 9
2. Budget Amendments:
379 Group Insurance Fund
Code 902-9802-410.30-30 Professional — Processing Fee
902-9802-410.21-02 Group Insurance — HRA
902-0000-353.98-03 Group Insurance — HRA
399 Parks & Recreation
Code 110-8200-450.74-74 Capital Outlay
110-8200-450.43-18 Landscaping
400 Youth Services
Code 110-7930-441.60-33 Materials & Supplies
110-0000-331.77-02 CBA/Juvenile Restitution
409 Sheriff's Office
Code 110-5100-420.43-21 Maintenance & Repair — Vehicles
110-0000-356.30-00 Insurance Claims
410 Sheriff's Office
Code 110-5100-420.43-21 Maintenance & Repair — Vehicles
110-0000-356.30-00 Insurance Claims
411 Transportation
Code 110-4650-410.60-31
110-0000-334.55-04
110-0000-331.46-01
415 Social Services
Code 110-7710-441.80-50
110-7710-441.80-85
110-7710-441.80-65
110-7710-441.80-70
110-0000-330.77-04
110-0000-330.77-01
110-0000-330.377-03
110-0000-399.00-00
110-0000-334.77-02
416 Mental Health
Code 110-7690-441.35-60
110-0000-399.00-00
Gas, Oil & Supplies
Transportation — Medical Transportation
Transportation — Mid -COG — Medical
General
Day Care Subsidy
Progress Energy -Neighbor
Title IV -E Foster Care
State Foster Care R & B
Day Care Subsidy
Social Services Administration
Foster Care IV -E
Fund Balance Appropriated
Foster Care SFHF
Good Hope
Fund Balance Appropriated
7,245 increase
11,464 increase
18,709 increase
600 increase
600 decrease
1,951 increase
1,951 increase
2,240 increase
2,240 increase
2,085 increase
2,085 increase
8,949 increase
51 decrease
9,000 increase
66,772 increase
897 increase
20,000 increase
130,000 increase
66,772 increase
897 increase
16,400 increase
68,600 increase
65,000 increase
200,000 increase
200,000 increase
May 19, 2014, Regular Meeting Minutes
Harnett County Board of Commissioners
Page 2 of 9
417 Highland Middle School
Code 331-8300-480.90-10 General Fund
331-8300-480.46-01 Residual Equity
331-0000-314.50-00 Sales Tax
3. Tax refunds, rebates and releases (Attachment 1)
90,129 decrease
475,000 increase
384,871 increase
4. Proclamation Celebrating the Centennial Anniversary of North Carolina Cooperative
Extension
5. The Juvenile Crime Prevention Council (JCPC) requested permission to submit Program
Agreements from the NC Department of Public Safety JCPC funding applications for
FY 2014-2015:
• Harnett County Restitution Program (10% local cash match required $9,418
County cash match, $6,000 restitution County In-kind)
• 4-H Teen Court and At -Risk Youth Development (County In -Kind Match)
• ReEntry Psychological Service (pass thru)
• Link to Success (pass thru)
• ReEntry Healthy Choice (pass thru)
• JCPC ADM (no match required)
6. Harnett County Public Library and the Harnett County Library Board of Trustees
requested a change in hours for the Anderson Creek Public Library for the summer
months. Beginning on Monday, June 23, 2014 and ending on August 16, 2014, the hours
for the Anderson Creek Public Library will be as follows:
• Mondays and Tuesdays - 3:00 pm to 7:00 pm
• Wednesdays, Thursdays and Saturdays — 10:00 am to 2:00 pm
7. Emergency Services requested approval of the Memorandum of Agreement between
County of Wake and County of Harnett for providing emergency management support to
property in the Town of Angier that is annexed by Wake County and to also deal with the
requirements of a rapidly escalating event at the Harris Nuclear site.
8. Cooperative Extension requested permission to accept the Race to the Top grant in the
amount of $12,237 from Child Care Networks, Inc. for the 2014-2015 fiscal year.
9. Cooperative Extension requested permission to submit an application in the amount of
$130,555 to the Lawrence Foundation to assist in funding the Harnett County Parents As
Teachers Program.
10. Sheriffs Office requested permission to apply for, and accept if awarded, a grant from
the U.S. Department of Justice Community Oriented Policing Services who has
announced the COPS Hiring Program for Fiscal Year 2014 where applicants may request
funds to hire new officers. The Sheriffs Office would like to apply for funds through
May 19, 2014, Regular Meeting Minutes
Harnett County Board of Commissioners
Page 3 of 9
this grant to fund a School Resource Deputy for a future school. This grant would fund
seventy-five percent (75%) of the salary and fringes for three years. The Sheriff's Office
asked the Harnett County Board of Education to consider funding the twenty-five percent
(25%) matching funds that is required by the grant. The Board of Education responded
that they approved the Sheriffs request to fund the initial cost of adding the new position
such as vehicle, unifoirris and weapon but having received no capital outlay funding from
the Board of Commissioners for the past two years and will need County funds for the
purchase of the vehicle.
11. Sheriff's Office requested peuuission to accept donation of $920.20 in paint and paint
materials from Automotive Transformation in Angier for the MRAP vehicle.
12. Sheriffs Office requested permission to accept a Kustom Signals Pro Laser 4, valued at
$3,800, awarded to Harnett County by the North Carolina Highway Safety Grant based
on the Traffic Safety points system.
13. Resolution Supporting NC DOT's Improvements To Buffalo Lake Road (Attachment 2)
14. The Harnett County Sheriffs Office requested pemiission to apply for, and accept if
awarded, the Bulletproof Vest Partnership Grant from the U.S. Department of Justice.
This grant will provide funds for the Sheriffs Office to receive reimbursement for 50% of
the cost of bulletproof vests purchased for the next three years.
15. The Harnett County Sheriffs Office requested permission to apply for, and accept if
awarded, the FY14 Edward Byrne Memorial Justice Assistance Grant in the amount of
$24,008 from the Office of Justice Programs of the U.S. Department of Justice. The
funds will be used to purchase Mobile Computer, CAD Software and Mapping Software
for deputies. This equipment/software will enable deputies to respond to calls and to
complete other tasks more efficiently.
Chairman Miller read and presented the Proclamation Celebrating the Centennial Anniversary of
North Carolina Cooperative Extension to Gary Pierce and other Cooperative Extension staff
present.
Charman Miller opened the floor for informal comments by the public, allowing up to 3 minutes
for each presentation up to 30 minutes.
- Al Williams, a Harnett County resident, discussed issues with exploding targets in
residential areas. Mr. Williams, who said he has a petition signed by folks in his
neighborhood and surrounding area, stressed they are pro -gun and are not looking to ban
the targets however they would like to require that the targets not be exploded within
1500 feet of a home. He said house windows were recently broken as a result of an
exploding target and people have the right to peace and quiet in their home. Mr.
Williams said an individual near his home is exploding targets, behind trees, 75 feet from
a road. He also said cars, mowers or other equipment that may make noise serve a
purpose where the exploding targets are for enjoyment only.
May 19, 2014, Regular Meeting Minutes
Harnett County Board of Commissioners
Page 4 of 9
- Deborah Underwood Brown, a lifetime resident of Harnett County, also discussed
issues with exploding targets. Mrs. Brown said she lives half a mile, through the woods,
from where the targets are exploding. She said the targets have been banned in many
states and asked commissioners to look at this very seriously. She requested some
regulations regarding explosive targets to give them back their peace on Sunday
afternoons.
- Jerold Allison of Angier, who has lived in Harnett County for the past 10 years, spoke
about the Parents As Teachers Program. Mr. Allison said the program provides an
educator to visit and teach his two children in their home once a month as well as other
activities. Mr. Allison said the program is an all-encompassing benefit for his family as
raising children can be overwhelming. He asked the group to consider the impact the
program has on the community.
- Amy Hickson also spoke about the Parents As Teachers Program and all she believes
the program has done for her family. She said her son's therapist suggested the program
for her son and it is a weight off of her shoulders that the Parents As Teachers staff take
the time with her child at their home. Mrs. Hickson asked commissioners to not take this
program away from the families.
There were no appointments.
Mark Locklear, Director of Planning Services, petitioned the board for a public hearing on a
proposed zoning change: Landowner/Applicant: Calvin Hardy, Jr/Pat Ellis; 1.1+/- acres; from
Commercial to RA -20R Zoning, 5442 NC 87 N; Barbecue Township. Mr. Locklear noted the
site is currently occupied by two residences and an accessory building and surrounding land uses
are several commercial uses and residential structures. Mr. Locklear reported the Harnett
County Planning Board, during their May 5, 2014 meeting, voted unanimously to recommend
approval of this rezoning application. Mr. Locklear said he believes the rezoning request is due
to a refinancing issue as the original land -owner has passed away.
Mr. Locklear reported staff evaluation as:
- The IMPACT to the adjacent property owners and the surrounding community is
reasonable, and the benefits of the rezoning outweigh any potential inconvenience or
harm to the community. REASONING: The impact to the surrounding community is
reasonable, as the requested zoning district is similar in nature to much of the existing
development of the area and it would not cause any inconvenience or harm to the
community.
- The requested zoning district is COMPATIBLE with the existing Land Use
Classification. REASONING: The requested zoning district, RA -20R, is compatible
with the existing Land Use Classification, Rural Development Node. The
classification is meant to encourage a combination of different/mixed uses, including
but not limited to commercial and residential.
- The proposal does ENHANCE or maintain the public health, safety and general
welfare. REASONING: The requested zoning to RA -20R would maintain the public
health, safety and general welfare due to the other residential uses in the area.
May 19, 2014, Regular Meeting Minutes
Harnett County Board of Commissioners
Page 5 of 9
This request is NOT for a SMALL SCALE REZONING and should not be evaluated
for reasonableness. REASONING: This request does not need to be evaluated for a
small scale rezoning because it is contiguous to an RA -20R zoning.
Suggested Statement -of -Consistency: Staff concludes that the requested rezoning to
RA -20R is compatible with Harnett County regulatory documents and would not
have an unreasonable impact on the surrounding community and will enhance the
public health, safety, and general welfare for the reasons stated in the evaluation. It is
recommended that this rezoning request be approved.
Chairman Miller called to order a public hearing on the matter and opened the meeting for
comments from the public. Seeing no one move, Chairman Miller closed the public hearing.
Commissioner Burgin moved to approve the rezoning as presented. Vice Chaimian House
seconded the motion which passed unanimously.
Nick Dula, Harnett County Economic Development Director, petitioned the Board for a public
hearing regarding a proposed agreement to extend economic incentives to Treyburn Realty, LLC,
which intends to purchase real property in the Town of Lillington, Harnett County, NC for the
construction of an approximate 8,000 square foot facility which will operate as a Quick Lane
Tire & Auto Center and consider approval of Resolution To Enter Into Economic Development
Incentive Agreement With Treyburn Realty, LLC. Mr. Dula gave an overview of the proposed
project along with a brief slide show. Mr. Dula recognized representatives present from
Treyburn Realty, LLC as Harold Nunn, Horace Bethune, Jay Gilleece and Al Goodrich. Mr.
Dula noted the 8,000 square foot facility will include nine bays where vehicles will be serviced.
Mr. Snow noted that state law, under the Local Development Act under N.C. General Statutes
§158-7.1, allows counties and municipalities to make appropriations for the purpose of aiding
and encouraging the location and/or expansion of manufacturing enterprises and industrial and
commercial facilities in the County. Mr. Snow reminded the Board that they have participated in
these types of projects before with the latest being the Rooms To Go project in the Dunn area of
Harnett County. Regarding this project, Mr. Snow said an economic incentive is still being
given to Treyburn Realty LLC, but is different in that the incentive grant is being given upfront
in the form as a discount in the sale of real property. The 4.70 acre tract being purchased by
Treyburn Realty LLC is part of a larger 65 acre tract purchased by the County of Harnett
approximately 10 years ago. The Harnett County Public Utilities headquarters is located on part
of the tract. The fair market value of the 4.70 acres of property is $700,000. Mr. Snow outlined
the proposed economic development incentive agreement with Treyburn Realty LLC which
would require $600,000 to the County upon the purchase of the 4.70 acre tract with execution of
a $100,000 120 month term Promissory Note to the County secured by a Deed of Trust on the
4.70 acre Facility tract.
Other incentive conditions include the construction of an approximate 8,000 square foot auto tire
and maintenance facility, with an ad valorem tax listing of at least $1.5 million and timely
payment of County and Town of Lillington ad valorem taxes during the Note teiiii; and The
ownership and operation of a Quick Lane Tire & Auto Center on the Facility tract which
May 19, 2014, Regular Meeting Minutes
Harnett County Board of Commissioners
Page 6 of 9
includes the creation and maintenance of at least eight (8) full-time jobs of which four (4) pay
110% of the Harnett County average weekly wage and four (4) pay the County average weekly
wage.
Mr. Snow noted Treyburn Realty's adherence to the incentive conditions would be monitored by
the County through its Economic Development Depai tment. At such time that all of the
incentive conditions have been satisfactorily completed by Treyburn Realty during the Note term
then upon the Note 120 month telin maturity date, the County shall acknowledge that the Note is
paid and satisfied and shall cancel the Deed of Trust as evidence of the final payment of the EDI
Grant. Mr. Snow reiterated that this grant will be paid back in taxes over 10 years and if the tax
listing turns out to be higher than expected then obviously more taxes will paid throughout the
Note term.
Commissioner House questioned what Fund the $600,000 would go in to. Mr. Snow assumed
the General Fund however it was suggested that the money go toward making the last two
payments left on that Note to purchase the original tract. Mr. Snow reported PNC has agreed to
waive the prepayment penalty and release this property. Mr. Burns said staff suggests paying the
$306,716 payoff amount prior to the closing on the sale of the 4.70 tract.
Chairman Miller called to order a public hearing on the matter and opened the meeting for
comments from the public.
- Kevin Klump of 46 Sunrise Court in Cameron suggested that the County put the money
left over after paying off the Note into the capital fund for building schools.
Seeing no one else move, Chairman Miller closed the public hearing. Commissioner Burgin
moved to approve the Resolution To Enter Into Economic Development Incentive Agreement
With Treyburn Realty, LLC. Commissioner Springle seconded the motion which passed
unanimously. (Attachment 3)
Mr. Dula petitioned the Board for a public hearing regarding a proposed agreement to extend
economic incentives to Dunn Hospitality Ventures, LLC, which intends to purchase real property
off Interstate 95, Exit 72, in the City of Dunn, Harnett County, NC for the construction and
operation of an approximate 56,000 square foot Fairfield Inn & Suites facility and consider
approval of Resolution To Enter Into Economic Development Incentive Agreement With Dunn
Hospitality Ventures, LLC. Mr. Dula recognized John Sandlin present as a representative of
Dunn Hospitality Ventures, LLC. Mr. Dula gave an overview of the proposed project along with
a brief slide show. The facility will be a Fairfield Inn & Suites, which is in the Marriott group,
and will contain 88 rooms.
Mr. Snow noted this incentive was similar to the Rooms To Go incentive as you "earn as you
go". Dunn Hospitality's incentive package includes an incentive to be paid to them in the form
of a grant of a maximum 50% of the County ad valorem taxes paid by Dunn Hospitality over a
five year period dependent on Dunn Hospitality performance of various incentive conditions.
Other incentive conditions include (a) the purchase of the Facility 3.63 acre site; (b) the
development of the site with an approximate 56,000 square foot, 88 room hotel facility, with an
May 19, 2014, Regular Meeting Minutes
Harnett County Board of Commissioners
Page 7 of 9
ad valorem tax listing of at least 8.2 million; (c) the ownership and operation of this Facility
during the five year teiui of the EDI grant payments; and (d) the creation and maintenance of at
least five full-time jobs that pay 110% of the Harnett County average weekly wage. The "EDI
Payment" will be $7,000 per full time job created and/or maintained by Dunn Hospitality in the
operations of the Facility. If any created and/or maintained full-time job does not meet the 110%
weekly wage level then the full incentive of $7,000 shall be reduced by the equivalent
percentage.
Mr. Snow reported that the City of Dunn has agreed to match the 50% incentive but nothing
faunal has been provided by the City of Dunn. Commissioner Burgin asked what the
Averasboro Tourism tax was and said that would generate a lot more money. Mr. Snow also
noted, in the interest of full disclosure, that Dunn Hospitality Ventures, LLC, is made up of
seven investors with all but one being local.
Chaiiiiian Miller called to order a public hearing on the matter and opened the meeting for
comments from the public. Seeing no one move, Chairman Miller closed the public hearing.
Commissioner Hill moved to approve the Resolution To Enter Into Economic Development
Incentive Agreement With Dunn Hospitality Ventures, LLC subject to the City of Dunn
matching the incentive. Commissioner Springle seconded the motion which passed
unanimously. (Attachment 4)
Mr. Burns presented the following reports:
- Veteran Affairs Activities Report - April 2014
- Community Development Monthly Perfoiinance Report — April 201
- Planning Services Report — April 2014
- Interdepartmental Budget Amendments and Change Order
- Harnett County Schools Current Expense Financial Statement
Mr. Burns said he has communicated with the Board of Education regarding the additional
infoinuation we would like to see included in their monthly financial statement. Mr. Burns
announced Mrs. Honeycutt would distribute a budget overview to the commissioners following
the meeting. Mrs. Honeycutt responded that the proposed budget is currently $9.9 million short.
Mr. Burns said they have three big departments left to meet with that could make a significant
different in the budget and noted the cost of insurance is still a big variable.
Regarding exploding targets, Mr. Burns reported that some time back staff drafted a Discharge
Ordinance that would address this issue. Mr. Jeffries will share a draft of the language with
commissioners for their review. Mr. Burns said he could sympathize with Mr. Williams as he
has the same issue where he lives.
Regarding the City of Dunn's communication and dispatch operations, Mr. Burns said in the
absence of direction from the Board the Communication Committee used a numeric formula to
determine the number of dispatchers needed to sustain the current level of services and average
calls per County dispatcher. Mr. Burns said if the consolidation happens we do not want to
May 19, 2014, Regular Meeting Minutes
Harnett County Board of Commissioners
Page 8 of 9
negatively impact the calls per dispatcher or overload the communication system. He said that is
why they have asked the City of Dunn to help with the additional expense for at least the next 18
months on that Center. Mr. Burns said he recently met with the Dunn City Manager and believes
the concept is okay but they are still negotiating numbers. He said the Committee has met
numerous times and will soon bring a recommendation to the Board.
Chairman Miller called for any new business. Commissioner Hill said she is concerned about
what she is hearing about Harnett Health and the job loss at the two hospitals. She was told they
borrowed money to make payroll. Commissioner Hill asked what the problems are and if we
could help in any way. Mr. Burns said Harnett Health has alluded to issues with
Medicaid/Medicare reimbursements.
There was no need for closed session.
Vice Chairman House moved to adjourn the meeting at 8:12 pm. Commissioner Hill seconded
the motion which passed unanimously, �W O ' }dam
Joe ►- it er, Chai an
May 19, 2014, Regular Meeting Minutes
Harnett County Board of Commissioners
Page 9 of 9
ATTACHMENT 1
Approved by the HsiTsett
":o, mty Board 4f CommiSsioneno
Date : 05/19/2014
TO : HARNETT COUNTY BOARD OF CQM`MISSIONE'S
RE: CONSIDERATION OF REFUND FOR TAXES, INTEREST AND PENALTIES FOR ALL MUNICIPALITIES
'if/
Approved By : 1-/ (1_ 6 OC -5 /9-/i/
1 HOOKS, DAVID SHAWN
HOOKS, DIANE MICHELLE
2 HOOKS, DAVID SHAWN
HOOKS, DIANE MICHELLE
3 MCLEOD, JAMES MITCHELL
MCLEOD, JANET N
4 MCLEOD, JAMES MITCHELL
MCLEOD, JANET N
5 MCLEOD, JAMES MITCHELL
MCLEOD, JANET N
6 MCLEOD, JAMES MITCHELL
MCLEOD, JANET N
7 MCLEOD, JAMES MITCHELL
MCLEOD, JANET N
8 ROLLAND, LEVIN DERAY SR
9 VA U L TRUST
S. KEITH FAULKNER
Revenue Administrator
CC:
S. KEITH FAULKNER
0002078317- 2012- 2012- 000000
0002093633- 2013- 2013- 000000
0000021763- 2009- 2009- 000000
0000021763- 2010- 2010- 000000
0000021763- 2011- 2011- 000000
0000021763- 2012- 2012- 000000
0000021763- 2013- 2013- 000000
0001983283- 2013- 2013- 000000
0002101195- 2013- 2013- 000000
City 0.00
County 61.25
City 0.00
County 193.77
Military
Exemption
Military
Exemption
No home on
City 0.00 property;
45.00 Refund released Solid
Waste fee
County 45.00
No home on
City 0.00 property;
45.00 Refund released Solid
Waste fee
County 45.00
City 0.00
County 50.00
City 0.00
County 70.00
50.00 Refund
70.00 Refund
No home on
property;
released Solid
Waste fee
No home on
property;
released Solid
Waste fee
No home on
City 0.00 property;
70.00 Refund released Solid
Waste fee
County 70.00
City 0.00
County 104.44
City 0.00
County 71.20
City Total
County Total
Total to be
Refunded
104.44 Refund
71.20 Refund
0.00
710.66
710.66
Military
Exemption
Value Decrease
ATTACHMENT 2
Harnett
COUNTY
RESOLUTION BY THE HARNETT COUNTY BOARD OF COMMISSIONERS
SUPPORTING NC DEPARTMENT OF TRANSPORTATION'S
IMPROVEMENTS TO BUFFALO LAKE ROAD
www.harnett.org
WHEREAS, the NC Department of Transportation (NCDOT) has requested a resolution
from the County of Harnett supporting improvements to Buffalo Lake Rd (SR -1115); and
WHEREAS, NCDOT proposes to widen Buffalo Lake Rd (SR -1115) at its intersection
with NC 87 to accommodate dual left turn lanes and a right turn lane; and
WHEREAS, such improvements are needed to enhance the safety and the operational
efficiency of the intersection as western Harnett continues to experience rapid growth; and
WHEREAS, the construction of these improvements will be at no cost to the County of
Harnett.
NOW, THEREFORE, BE IT RESOLVED that the Harnett County Board of
Commissioners supports and encourages NCDOT's improvement to Buffalo Lake Rd (SR -1115)
which will include the widening of Buffalo Lake Rd (SR -1115) at its intersection with NC 87 to
accommodate dual left turn lanes and a right turn lane. The Harnett County Board of
Commissioners appreciates NCDOT's continued efforts to improve safety and reduce congestion
in the County.
Adopted the 19th of May, 2014.
Attest:
,06111111
o
17.
Mar _% et Regina
eeler, Clerk
strong roots a new growth
Joe er, Chairman
ATTACHMENT 3
NORTH CAROLINA
HARNETT COUNTY
RESOLUTION TO ENTER INTO ECONOMIC
DEVELOPMENT INCENTIVE AGREEMENT
WITH TREYBURN REALTY, LLC
THAT WHEREAS, the County of Harnett ("County") has made economic development in
Harnett County a major priority in an effort to recruit new industry and businesses to the County, to
replace displaced industry previously located in the County, to retain and/or expand current industry
located in the County, to provide local job opportunities for citizens of the County, and to increase
the County tax base; and
WHEREAS, Treyburn Realty, LLC ("Treyburn Realty") is a limited liability company with
its principal headquarters located in Cary, North Carolina; that after working with Harnett County
and its Economic Development Department, Treyburn Realty has decided to locate and operate an
auto tire and maintenance business (the "Facility") to be located on North Main Street in Lillington,
NC, west of the Precision Ford dealership with the intent to apply for the County's economic
development incentives. Treyburn Realty intends to purchase an approximate 4.70 acre site from the
County upon which will be located its Facility operating as a Quick Lane Tire & Auto Center which
is projected to become operational no later than March, 2015. In developing this Facility in Harnett
County, Treyburn Realty plans to invest $1.6 million and create 8 full-time jobs; and
WHEREAS, based upon Treyburn Realty's location of a new Quick Lane Tire & Auto
Center facility in Harnett County, the establishment of a tax base, and the creation of 8 full-time jobs,
the County is willing to appropriate a certain economic incentive to Treyburn Realty pursuant to the
provisions of N.C. General Statutes §158-7.1 which allows counties to make appropriations for the
purpose of aiding and encouraging the location and/or expansion of manufacturing enterprises and
industrial and commercial facilities in the County; and
WHEREAS, the County and Treyburn Realty have negotiated an economic development
incentive package which includes an incentive to be paid to Treyburn Realty in the form of a
discount grant in the purchase price for the 4.70 acre Facility site tract which is being purchased from
the County with said incentive grant to be earned by Treyburn Realty over a 120 month period
depending on Treyburn Realty's performance of various incentive conditions including:
a) Payment of six hundred thousand dollars ($600,000.00) to the County upon the
purchase of the 4.70 acre tract with the execution of a one hundred thousand dollar ($100,000.00)
120 month term Promissory Note to the County secured by a Deed of Trust on the 4.70 acre Facility
tract;
b) The construction of an approximate eight thousand (8,000) square foot auto tire and
maintenance facility, with an ad valorem tax listing of at least $1.5 million and timely payment of
County and Town of Lillington ad valorem taxes during the Note term;
c) The ownership and operation of a Quick Lane Tire & Auto Center on the Facility tract
which includes the creation and maintenance of at least eight (8) full-time jobs of which four (4) pay
110% of the Harnett County average weekly wage and four (4) pay the County average weekly wage.
That an instrument entitled Economic Development Incentive Agreement between the
County and Treyburn Realty which is attached to this resolution as Exhibit "A" has been prepared for
agreement between the parties to comply with the provisions of N.C. General Statutes §158-7.1; that
pursuant to N.C. General Statutes §158-7.1(c) and a published notice of hearing, a public hearing
was held on May 19, 2014 concerning the terms of the proposed Economic Development Incentive
Agreement; that subsequent to the close of said public hearing and after deliberations, it is the desire
of the Harnett County Board of Commissioners to approve the appropriation of this Economic
2
Development Incentive Agreement with Treyburn Realty subject to those terms contained within said
Agreement.
NOW, THEREFORE, BE IT RESOLVED by the Harnett County Board of
Commissioners that the Economic Development Incentive Agreement attached hereto as Exhibit
"A" between the County and Treyburn Realty is hereby approved, and that the proper officials of the
County are hereby authorized to enter into the Economic Development Incentive Agreement with
Treyburn Realty.
This the j' day of May, 2014.
ATTEST:
M
Mar. et Regina eeler, Clerk
COUNTY OF HARNETT
By:
3
Joe 1, if er, ha i an
Ha ett County Board of Commissioners
EXHIBIT "A"
NORTH CAROLINA ECONOMIC DEVELOPMENT
INCENTIVE AGREEMENT
HARNETT COUNTY
THIS ECONOMIC DEVELOPMENT INCENTIVE AGREEMENT (hereinafter referred
to as the "Agreement"), is made and entered into this the day of May, 2014, by and between the
County of Harnett, a body politic of 102 E. Front Street, Lillington, North Carolina 27546 (the
"County") and Treyburn Realty, LLC of 101 Baines Court, Cary, NC 27511 ("Treyburn Realty");
WITNESSETH:
THAT WHEREAS, the County is empowered pursuant to the provisions of North Carolina
General Statutes § 158-7.1 (commonly known as the "Local Development Act") as amended, to make
appropriations for the purposes of aiding and encouraging the location and/or expansion of certain
business operations, including the Facility (as defined below), in the County; and
WHEREAS, Treyburn Realty is a North Carolina limited liability company with its principal
place of business in Wake County, North Carolina; and
WHEREAS, after working with the County and its Economic Development Department,
Treyburn Realty has decided to locate and construct an approximate 8,000 square foot auto tire and
maintenance business ( the "Facility"), to be located in the Town of Lillington, Harnett County
which will operate as a Quick Lane Tire & Auto Center; and
WHEREAS, Treyburn Realty intends to purchase an approximate 4.70 acre site from the
County (the "Land"), upon which will be constructed the Facility, which is currently projected to
become operational no later than March, 2015; and
WHEREAS, Treyburn Realty expects to invest approximately $1.6 million in connection
with the opening of the Facility (the "Total Estimated Project Cost") inclusive of the cost to acquire
the Land and related attorneys', architects' and engineers' fees, hard and soft development and
construction costs, costs of furniture, fixtures and equipment, and all other costs and expenses
incurred by Treyburn Realty (or its affiliates) in connection with the acquisition of the Land,
obtaining all related permits, approvals and agreements, and the construction and opening of the
Facility (collectively, the "Project Costs"); and
WHEREAS, as a result of owning and operating the Facility, Treyburn Realty expects to
create approximately 8 full-time jobs; and
WHEREAS, as an inducement for Treyburn Realty to proceed with its decision to locate the
Facility in Harnett County which will create new jobs, establish a new tax base through the location
and establishment of the Facility building and improvements and the purchase of equipment and
machinery which will be used as part of the Facility, the County is willing to provide a certain
incentive to Treyburn Realty in the form of the conveyance of the 4.70 acre Facility site at a
discounted sales price, all upon the terms and conditions set forth in this Economic Development
Incentive Agreement.
NOW, THEREFORE, in consideration of these premises and the mutual covenants and
promises set forth below, the County and Treyburn Realty hereby agree as follows:
1. ECONOMIC DEVELOPMENT INCENTIVE GRANT:
The parties acknowledge that the Economic Development Incentive Grant (the "EDI Grant")
is in the Rhin of a discount in the sales price of the 4.70 acre Facility site by the County as current
owner of the Land to Treyburn Realty. The parties further acknowledge that the fair market value
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of said 4.70 tract is $700,000.00. That Treyburn Realty shall pay $600,000.00 toward the Land
purchase with the remaining $100,000.00 to be designated as an EDI Grant to be earned by Treyburn
Realty pursuant to those incentive conditions set forth herein.
2. TREYBURN REALTY INCENTIVE CONDITIONS:
In order to fully receive the County's EDI Grant, Treyburn Realty is required to complete the
following (the "Incentive Conditions"):
a. Purchase the Land, which is depicted on that map attached hereto as Exhibit "A" and
more particularly described on Exhibit "B" attached hereto. The Land shall be the site
for the Facility and purchased from Harnett County for a total purchase price of seven
hundred thousand dollars ($790,000.00). Six hundred thousand dollars ($600,000.00)
shall be paid in cash to the County at closing and the balance of one hundred
thousand dollars ($100,000.00) shall be paid pursuant to the terms of a Purchase
Money Promissory Note ("Note") secured by a Purchase Money Deed of Trust
("Deed of Trust") on the 4.70 acre tract Facility site; the Note shall have a 120 month
(10 years) term with interest at 5.00% per annum with the principal and accrued
interest to be paid in a lump sum on the Note maturity date; the Note principal and
interest amount shall be forgiven and waived by the County as an EDI Grant to
Treyburn Realty on the Note maturity date specifically subject to Treyburn Realty's
full performance of the Incentive Conditions during the Note 120 month term as set
forth in this Agreement which shall be incorporated in the Note. At such time that
the Land purchase is closed, the County shall be responsible for the preparation of the
General Warranty Deed and the release or cancellation of the current mortgage on the
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Land tract; Treyburn Realty shall be responsible for the survey preparation and all
other closing expenses.
b. Develop the Facility which will include the construction of an approximate 8,000
square foot Quick Lane Tire & Auto Center business facility that will be listed for
real property and business personal property County ad valorem taxes in an amount
of at Least $1.5 million for the applicable tax year that the fully completed Facility
value is listed for ad valorem taxes; that Treyburn Realty shall pay in a timely manner
the Harnett County and Town of Ellington ad valorem taxes on the business Facility
during the 120 month term of the Note.
c. At such time that construction of the Facility is completed, begin the business
operations of the Facility as a Quick Lane Tire & Auto Center and continue business
operations throughout the remaining portion of the 120 month term of the Note.
d. At such time that the business operations of the Quick Lane Tire & Auto Center
commence (on or before March 2015) Treyburn Realty shall create and maintain for
the remaining portion of the Note term at least six (6) full-time jobs of which at least
three (3) jobs shall pay an average weekly wage of at least 110% of the Harnett
County average weekly wage and the remainder of the initial six (6) jobs shall pay at
least the Harnett County average weekly wage. (Note: In 2012 the Harnett County
average weekly wage was $589; therefore 110% is $648). Furthermore, within one
year of beginning its business operations at the Quick Lane Tire & Auto Center,
Treyburn Realty shall add at least two (2) additional full-time jobs to its Facility
operation work force for a total of eight (8) full-time jobs that will be maintained for
the remaining portion of the Note term. Of the minimum eight (8) full-time jobs, at
least four (4) jobs shall pay 110% of the Harnett County average weekly wage and
the remaining full-time jobs shall pay at least the Harnett County average weekly
wage.
e. Treyburn Realty's adherence to the above listed Incentive Conditions shall be
monitored by the County through its Economic Development Department. Treyburn
Realty shall fully cooperate with the County's request for information that evidences
Treyburn Realty's compliance with the Incentive Conditions.
f. If any of the above listed Incentive Conditions are not met by Treybum Realty during
the Note term then the County shall notify Treyburn Realty pursuant to the Note
provisions and if Treyburn Realty shall continue to fail to meet any of the Incentive
Conditions than the County may declare Treyburn Realty to be in default and demand
full payment of the Note principal and accrued interest. Upon Treyburn Realty's
failure to pay the Note then the County may instigate foreclosure proceedings
pursuant to the terms of the Note and Deed of Trust.
3. PAYMENT CREDIT OF ECONOMIC DEVELOPMENT INCENTIVE
GRANT:
At such time that all the above listed Incentive Conditions have been satisfactorily
completed by Treyburn Realty during the Note teen then upon the Note 120 month
term maturity date, the County shall acknowledge that the Note is paid and satisfied
and shall cancel the Deed of Trust as evidence of the final payment of the EDI Grant.
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4. ASSIGNMENT:
The assignment of the incentive benefits of this Agreement by Treyburn Realty is prohibited
except with the written consent of the County, which may be withheld in the sole and absolute
discretion of the County; provided that Treyburn Realty may assign this Agreement and the benefits
hereunder, following notice to the County, to an affiliated entity for purposes of acquiring,
constructing and/or operating the Facility.
5. NOTICES:
All notices and other communications hereunder shall be in writing and shall be deemed to
have been given on the date of actual delivery by: (i) registered or certified mail, return receipt
requested, postage prepaid, (ii) hand delivery, or (iii) nationally recognized overnight carrier, to the
following respective addresses:
To the County: Harnett County
Attn: County Manager
Post Office Box 759
102 E. Front Street
Lillington, NC 27546
To Treyburn Realty;
Treyburn Realty, LLC
Attn: Harold P. Nunn, Manager
101 Baines Court
Cary, NC 27511
Either the County or Treyburn Realty may change the address to which all notices shall be
sent by addressing a notice of such change in the manner provided in this Section.
6. AMENDMENTS, CHANGES AND MODIFICATIONS:
Except as otherwise provided in this Agreement, this Agreement may not be amended,
changed, modified or altered, except by written agreement of the parties hereto.
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7. SITUS AND SEVERABILITY:
This Agreement shall be construed and governed according to the laws of the State of North
Carolina. If any provision of this Agreement is held invalid or unenforceable by any court of
competent jurisdiction, such holding shall not invalidate or render unenforceable any other provision
hereof.
S. APPROVALS AND AUTHORITY:
Treyburn Realty represents and warrants to the County that it has obtained any required
approval of its members, officers, managers or any other approval that may be required under the
documents and laws governing its existence and operation for the execution and performance of this
Agreement. The County represents and warrants to Treyburn Realty that it has obtained any required
approval of the County Board of Commissioners and any other approval that maybe required under
applicable documents and laws governing the County's existence and operation and of any other
governmental authority whose approval is required for the execution and performance of this
Agreement.
[Signature pages follow.]
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IN WITNESS WHEREOF, the County has caused this Agreement to be executed in
duplicate originals, by its duly authorized representative, and has sealed the same on the day and year
first above written.
COUNTY OF HARNETT
ATTEST: By:
Joe Miller, Chairman
Harnett County Board of Commissioners
Margaret Regina Wheeler, Clerk
NORTH CAROLINA
HARNETT COUNTY
I, a notary public, certify that Joe Miller, who being by me duly sworn, says that he is
Chairman of the Harnett County Board of Commissioners, and that Margaret Regina Daniel is
Clerk to the Harnett County Board of Commissioners, that the seal affixed to the foregoing
attested instrument is the seal of Harnett County, North Carolina, and that said instrument was
signed by him as Chairman of the Harnett County Board of Commissioners and by the Clerk of
said Board, who affixed the official seal of Harnett County to said instrument; and that the said
Joe Miller, Chairman, acknowledged said instrument to be the act and deed of Harnett County,
North Carolina.
Witness my hand and official stamp or seal, this day of May, 2014.
My Commission Expires:
Notary Public
This instrument has been preaudited in the manner required by the Local Government Budget and
Fiscal Control Act.
Kimberly Honeycutt, County of Harnett Finance Officer
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IN WITNESS WHEREOF, Treyburn Realty has caused this Agreement to be executed in
duplicate originals, by its duly authorized representative.
TREYBURN REALTY, LLC
By:
STATE OF NORTH CAROLINA
COUNTY OF
Harold P. Nunn, Member/Manager
I, a Notary Public, do hereby certify that Harold P. Nunn personally came before me this day
and acknowledged that he is Member/Manager of Treyburn Realty, LLC, a North Carolina limited
liability company, and that he in said capacity being authorized to do so, executed the foregoing
instrument on behalf of the limited liability company.
Witness my hand and official stamp or seal, this day of May, 2014.
My Commission Expires:
Notary Public
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TREYBURN REALTY, LLC
By:
STATE OF NORTH CAROLINA
COUNTY OF
Deborah J. Nunn, Member/Manager
I, a Notary Public, do hereby certify that Deborah J. Nunn personally came before me this day
and acknowledged that she is Member/Manager of Treyburn Realty, LLC, a North Carolina limited
liability company, and that he in said capacity being authorized to do so, executed the foregoing
instrument on behalf of the limited liability company.
Witness my hand and official stamp or seal, this day of May, 2014.
My Commission Expires:
Notary Public
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Bennett Surveys F-1304
1662 Clark Road
Lilli-ngton, N.C. 27546
910-893-5252
April 7, 2014
Land Description for County of Harnett
Beginning at an existing iron stake northwest corner of Precision Realty, LLC property as shown
on map no. 2000-628 and called for in deed book 3085,
egister of
Deeds; thence as the line of Precision Realty, LLC South 45"07'09" East 34 9 feet to a new set
iron in the north right of way of US 421, US 401, NC 27 and NC 210 ; thence as north right of
way of US 421, US 401, NC 27 and NC 210, South 41 ^ 13 ` 31" West 54.25 feet to a new set
iron ; thence continuing with said right of way North 48^41'08" West 24.57 feet to an existing
concrete right of way monument; thence continuing with said north right of way South 41 ^ 27'
11" West 352.36 feet to a new set iron in the north right of way of US 421, US 401, NC 27 and
NC 210 ; thence leaving said right of way and approximately Parallel with access road to Elarnett
County Public Utility Buildingnew
433, North 47 " 16 ' 15" West 189.33 feet to a new set iron ; thencene with County of Harnett,
s a new book with Co ntye
of Harnett and approximately parallel with Public Utility access road North 371A 39e 29 C West
322.21 feet to a new set iron ; thence continuing as a new line with County of Harnett and aloe
an existing chain link fence North 40 ^ 55' 04" East 373.55 feet to place of beginnin . g
g
Tract containing 4.70 acres and lying west of Precision Realty, LLC , north of right of way US
421, US 401, NC 27 and NC 210 , east of access road to Harnett County Public Utility
of existing fence for Public Utility building and grounds. Being a portion of County oand Harnett
property call for in, deed book 2147 , page 433
ATTACHMENT 4
NORTH CAROLINA
HARNETT COUNTY
RESOLUTION TO ENTER INTO ECONOMIC
DEVELOPMENT INCENTIVE AGREEMENT
WITH DUNN HOSPITALITY VENTURES, LLC
THAT WHEREAS, the County of Harnett ("County") has made economic development in
Harnett County a major priority in an effort to recruit new industry and businesses to the County, to
replace displaced industry previously located in the County, to retain and/or expand current industry
located in the County, to provide local job opportunities for citizens of the County, and to increase
the County tax base; and
WHEREAS, Dunn Hospitality Ventures, LLC ("Dunn Hospitality") is a limited liability
company with its principal headquarters located in Dunn, North Carolina; that Dunn Hospitality has
decided to locate a hotel facility (the "Facility") to be operated as a Fairfield Inn & Suites, a member
of the Marriott Hotel group, which will be located off Interstate 95, Exit 72 in the City of Dunn with
the intent to apply for the County's economic development incentives. Dunn Hospitality has
obtained an option to purchase an approximate 3.63 acre real property tract upon which will be
located its Facility which is projected to become operational no later than September, 2015. In
developing this Facility in Harnett County, Dunn Hospitalityplans to invest $9.0 million and create
approximately eight (8) full-time jobs and seventeen (17) part-time jobs, and enhance travel and
tourism economic activity in the Dunn area of the County; and
WHEREAS, based upon Dunn Hospitality's location of a new hotel facility in Harnett
County, the establishment of an S8.2 million tax base, and the creation of approximately eight (8)
full-time jobs and seventeen (17) part-time jobs, the County is willing to appropriate certain
economic incentives in the form of monetary grants to Dunn Hospitality pursuant to the provisions of
N.C. General Statutes §158-7.1 which allows counties to make appropriations for the purpose of
aiding and encouraging the location and/or expansion of manufacturing enterprises and industrial and
commercial facilities in the County; and
WIIEIFAS, the County and Dunn Hospitality have negotiated an economic development
incentive package which includes an incentive to be paid to Dunn Hospitality in the form of a grant
of a maximum fifty percent (50%) of County ad valorem taxes paid by Dunn Hospitality over a five
(5) year period dependent on Dunn Hospitality's performance of various incentive conditions
including:
(a) the purchase of the Facility 3.63 acre site (b) the development of the site with an approximate
56,000 square foot, 88 room hotel facility, with an ad valorem tax listing of at least $8.2 million (c)
the ownership and operation of this Facility during the 5 year term of the EDI grant payments and (d)
the creation and maintenance of at least five (5) full-time jobs that meet certain wage levels. That an
instrument entitled Economic Development Incentive Agreement between the County and Dunn
Hospitality which is attached to this Resolution as Exhibit "A" has been prepared for agreement
between the parties to comply with the provisions ofN.C. General Statutes § 158-7.1; that pursuant to
N.C. General Statutes §158-7.1(c) and a published notice of hearing, a public hearing was held on
May 19, 2014 concerning the terms of the proposed Economic Development Incentive Agreement;
that subsequent to the close of said public hearing and after deliberations, it is the desire of the
Harnett County Board of Commissioners to approve the appropriation of this Economic
Development Incentive Agreement with Dunn Hospitality subject to those terms contained within
said Agreement.
NOW, THEREFORE, BE IT RESOLVED by the Harnett County Board of
Commissioners that the Economic Development Incentive Agreement attached hereto as Exhibit
"A" between the County and Dunn Hospitality is hereby approved, and that the proper officials of
the County are hereby authorized to enter into the Economic Development Incentive Agreement with
Dunn Hospitality.
This the I9 rNday of May, 2014.
ATTEST:
COUNTY OF HARNETT
By:
3
Joe
H
i
ler, Chai an
ett County Board of Commissioners
EXHIBIT "A"
NORTH CAROLINA ECONOMIC DEVELOPMENT
INCENTIVE AGREEMENT
HARNETT COUNTY
THIS ECONOMIC DEVELOPMENT INCENTIVE AGREEMENT (hereinafter referred to
as the "Agreement"), is made and entered into this the day of May, 2014, by and between the
County of Harnett, a body politic of PO Box 759, 102 E. Front Street, Lillington, North Carolina
27546 (the "County") and Dunn Hospitality Ventures, LLC of PO Box 578, 100 East Cumberland
Street, Dunn, NC 28335 ("Dunn Hospitality");
WITNESSETH:
THAT WHEREAS, the County is empowered pursuant to the provisions of North Carolina
General Statutes § 158-7.1 (commonly known as the "Local Development Act") as amended, to make
appropriations for the purposes of aiding and encouraging the location and/or expansion of certain
business operations, including the Facility (as defined below), in the County; and
WHEREAS, Dunn Hospitality is a North Carolina limited liability company with its
principal place of business in Dunn, North Carolina; and
WHEREAS, after working with the County and the City of Dunn, Dunn Hospitality has
decided to locate, construct and operate an approximate 56,000 square foot 88 room hotel facility
which will operate as a Fairfield Inn & Suites, a member of the Marriott Hotel group (the "Facility"),
to be located in the City of Dunn, Harnett County; and
WHEREAS, Dunn Hospitality has an option to purchase an approximate 3.63 acre real
property tract (the "Land") located off Interstate 95, Exit 72 in the City of Dunn ("City"), upon which
will be constructed the Facility, which is currently projected to become operational by September,
2015; and
WHEREAS, Dunn Hospitality expects to invest approximately $9.0 million in connection
with the opening of the Facility (the "Total Estimated Project Cost") inclusive of the cost to acquire
the Land and related attorneys', engineers' and other professional and consultants' fees, hard and
soft development and construction costs, costs of furniture, fixtures and equipment, franchise fees
and all other costs and expenses incurred by Dunn Hospitality (or its affiliates) in connection with
the acquisition of the Land, obtaining all related permits, approvals and agreements, and the
construction and opening of the Facility (collectively, the "Project Costs"); and
WHEREAS, as a result of the Facility operations, Dunn Hospitality expects to create
approximately eight (8) full-time jobs and seventeen (17) part-time jobs; and
WHEREAS, as an inducement for Dunn Hospitality to proceed with its decision to locate the
Facility in the City of Dunn, Harnett County which will create new jobs, establish a new tax base
through the location and establishment of the Facility building and improvements, and the purchase
of business personal property which will be used as part of the Facility, the County is willing to
provide certain incentives to Dunn Hospitality in the form of monetary grants for the Facility
(collectively, the "Incentives") , all upon the terms and conditions set forth in this Agreement.
NOW, THEREFORE, in consideration of these premises and the mutual covenants and
promises set forth below, the County and Dunn Hospitality hereby agree as follows:
1. DUNN HOSPITALITY INCENTIVE CONDITIONS:
In order to fully receive the County's Economic Development Incentive Grant (the "EDI
Grant"), which is described more fully below, Dunn Hospitality is required to complete the following
(the "Incentive Conditions"):
a. Purchase the Land, which will be the site for the Facility;
b. Develop the Facility upon the Land, which shall include a listing for County ad
valorem taxes in an amount of at least $8.2 million for the first year that Dunn
Hospitality shall apply for and receive the EDI Grant annual payment; pay in a timely
manner the Harnett County and City of Dunn ad valorem tax;
c. Continue to own and operate the Facility on the Land during each subsequent year, as
a condition of the County making the applicable EDI Grant payment (as defined
below) to Dunn Hospitality for that year;
d. Once the Facility is in operation, Dunn Hospitality shall create at least five or more
full-time jobs with each job having an average weekly salary equal to one-hundred
ten percent (110%) of the average weekly wage level for Harnett County ($589 is the
2012 average weekly wage; therefore 110% is $648). For each full-time job created
by Dunn Hospitality that does not reach the 110% County average weekly wage
level, then any EDI Grant payment shall be reduced in the same percentage amount
less than the 110% County average weekly wage level. Any job created for the EDI
Grant must be maintained for a term of at least six (6) consecutive months during the
calendar year of the EDI Grant payment.
2. PAYMENT OF ECONOMIC DEVELOPMENT INCENTIVE GRANT:
(a) At such time as Dunn Hospitality has (i) acquired the Land, (ii) constructed the Facility, (iii)
begun business operations at the Facility, and (iv) created five or more full-time jobs at the
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pay level condition as previously described, Dunn Hospitality will become eligible to receive
the first of five (5) consecutive annual EDI Grant payments (each, an "EDI Payment"). The
EDI Payments described hereunder will be paid by the County, as described below.
(b) Prior to receiving the first annual EDI Payment, Dunn Hospitality shall: (i) certify that it has
an asset property listing at the Facility for ad valorem taxes with the County in an amount of
at least $8.2 million (the "Property Listing"); and (ii) timely pay the billed ad valorem taxes
for the listing to the County and the City of Dunn, through the Harnett County Tax
Department. The parties agree that Dunn Hospitality will only be required to provide a
minimum $8.2 million ad valorem tax listing for the first year in which the EDI Payment is
payable; this minimum amount shall not be required when Dunn Hospitality lists its Facility
asset property for ad valorem taxes for years 2 through 5 of the EDI Payment term.
(c) The "EDI Payment" shall be defined as an amount equal to $7,000.00 per full-time job
created and/or maintained by Dunn Hospitality in the operation of the Facility. The full-time
job must meet the 110% Harnett County average weekly wage criteria. If any created and/or
maintained full-time job does not meet the 110% weekly wage level then the full incentive
of $7,000 shall be reduced by the equivalent percentage below the 110% average weekly
wage level.
Based upon the fact that Dunn Hospitality's Facility investment is less than $10
million, the total EDI Payment shall have a capped maximum of 50% of the ad valorem tax
paid by Dunn Hospitality to the County for that year. Furthermore, the EDI annual grant
payments shall only extend over a five (5) consecutive year maximum period.
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The EDI annual grant payment shall begin with the first tax year in which both the
Facility is operational and the Facility's improvements are assessed as fully completed
improvements (i.e., the first of the five (5) years of EDI Payments shall be the year in which
the Facility improvements are fully assessed as completed and occupied for purposes of ad
valorem base tax listing purpose in the amount of at least $8.2 million).
(d) After the first year's EDI Payment, the EDI Payments shall continue on an annual basis for a
term of four (4) consecutive years (i.e., a total of 5 years of EDI Payments), provided that
Dunn Hospitality continues to own and operate the Facility and meet the minimum five (5)
full-time jobs requirement during such five (5) year period. For the avoidance of doubt, Dunn
Hospitality will not be required to return EDI Payments made to Dunn Hospitality in respect
of years in which Dunn Hospitality was operating the Facility if Dunn Hospitality
subsequently ceases ownership and operation of the Facility at some point during the five (5)
year term of the EDI Payments. For example, if Dunn Hospitality receives the EDI Payment
in year 3 because it is owning and operating the Facility and meeting the full-time jobs
requirement in year 3, and Dunn Hospitality ceases owning and/or operating the Facility
and/or does not meet the full-time jobs requirement in year 4 and as a result, Dunn
Hospitality is not eligible to receive the EDI Payment for year 4, Dunn Hospitality
nonetheless will be entitled to retain the EDI Payment in respect of year 3 (and prior years).
(e) The "ad valorem base tax" shall be defined as the tax amount (for both real and business
personal property taxes) based upon the County base tax rates. Any supplemental taxes, paid
for fire district services, the Averasboro school tax or other special taxes or fees, are not
5
included in the EDI Payment calculation. As of the date hereof, the "ad valorem base tax" on
which the EDI Payment would be calculated is equal to 0.00725 Harnett County tax, which
means, for example, that on an appraised value of $8.2 million, the ad valorem tax paid by
Dunn Hospitality on which the EDI Payment would be calculated would be $59,450; any
EDI Payment associated with such an ad valorem tax payment would be capped at $29,725
(ie 50% of $59,450).
(0 The annual EDI Payment shall be paid by the County to Dunn Hospitality each year for five
(5) years, and shall be payable to Dunn Hospitality within thirty (30) days of the following:
(a) the Harnett County Tax Department's receipt on behalf of the City and the County of
Dunn Hospitality's payment of its ad valorem tax obligation on the Facility for the applicable
tax year and evidence of said payment being sent to and received by the County Manager (or
other designated official); and (b) confirmation with the County that Dunn Hospitality has
created new or maintained at least five (5) full-time jobs that existed for at least six (6)
months during the applicable tax year at the 110% weekly pay levels (this condition is
subject to a per job incentive reduction if below the 110% weekly pay level as previously
described). For the avoidance of doubt, using the example set forth in Section 2(e) above, on
an appraised value of $8.2 million, Dunn Hospitality would pay $59,450 in respect of
County ad valorem base taxes, and the County would calculate five (5) full-time jobs with a
110% average weekly wage X 57,000 per job = S35,000 to be capped at 50% of the tax paid
with an EDI payment of 529,725 to Dunn Hospitality.
3. ACQUISITION CONTINGENCY:
The County acknowledges that the Land is currently owned by a third party and Dunn
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Hospitality only has an option to purchase the Land; therefore this Agreement is contingent upon
Dunn Hospitality's acquisition of the Land under the option to purchase (the "Acquisition
Contingency"). In the event that Dunn Hospitality does not purchase the Land for any reason, Dunn
Hospitality shall provide notice to the County and this Agreement shall automatically terminate. The
Acquisition Contingency under this Section shall automatically expire and be of no further force or
effect upon the completion of the acquisition of the Land by Dunn Hospitality.
4. ASSIGNMENT:
The assignment of the incentive benefits of this Agreement by Dunn Hospitality is prohibited
except with the written consent of the County, which may be withheld in the sole and absolute
discretion of the County; provided that Dunn Hospitality may assign this Agreement and the benefits
hereunder, following notice to the County, to an affiliated entity for purposes of acquiring,
constructing and/or operating the Facility.
5. NOTICES:
All notices and other communications hereunder shall be in writing and shall be deemed to
have been given on the date of actual delivery by: (i) registered or certified mail, return receipt
requested, postage prepaid, (ii) hand delivery, or (iii) nationally recognized overnight carrier, to the
following respective addresses:
To the County: Harnett County
Attn: County Manager
Post Office Box 759
102 E. Front Street
Lillington, NC 27546
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To Dunn Hospitality:
Dunn Hospitality Ventures, LLC
Attn: Oscar N. Harris and
John M. Sandlin, Managers
107 Stokeley Road, Suite 100
Wilmington, NC 28403
Either the County or Dunn Hospitality may change the address to which all notices shall be
sent by addressing a notice of such change in the manner provided in this Section.
6. AMENDMENTS. CHANGES AND MODIFICATIONS:
Except as otherwise provided in this Agreement, this Agreement may not be amended,
changed, modified or altered, except by written agreement of the parties hereto.
7. SITUS AND SEVERABILITY:
This Agreement shall be construed and governed according to the laws of the State of North
Carolina. If any provision of this Agreement is held invalid or unenforceable by any court of
competent jurisdiction, such holding shall not invalidate or render unenforceable any other provision
hereof.
8. APPROVALS AND AUTHORITY:
Dunn Hospitality represents and warrants to the County that it has obtained any required
approval of its members, managers, officers, or board and any other approval that may be required
under the documents and laws governing its existence and operation for the execution and
performance of this Agreement. The County represents and warrants to Dunn Hospitality that it has
obtained any required approval of the County Board of Commissioners and any other approval that
may be required under applicable documents and laws governing the County's existence and
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operation and of any other governmental authority whose approval is required for the execution and
performance of this Agreement.
[Signature pages follow.]
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IN WITNESS WHEREOF, the County has caused this Agreement to be executed in
duplicate originals, by its duly authorized representative, and has sealed the same on the day and year
first above written.
COUNTY OF HARNETT
A1'IEST: By:
Joe Miller, Chairman
Harnett County Board of Commissioners
Margaret Regina Wheeler, Clerk
NORTH CAROLINA
HARNETT COUNTY
I, a notary public, certify that Joe Miller, who being by me duly sworn, says that he is
Chairman of the Harnett County Board of Commissioners, and that Margaret Regina Daniel is
Clerk to the Harnett County Board of Commissioners, that the seal affixed to the foregoing
attested instrument is the seal of Harnett County, North Carolina, and that said instrument was
signed by him as Chairman of the Harnett County Board of Commissioners and by the Clerk of
said Board, who affixed the official seal of Harnett County to said instrument; and that the said
Joe Miller, Chairman, acknowledged said instrument to be the act and deed of Harnett County,
North Carolina.
Witness my hand and official stamp or seal, this day of May, 2014.
My Commission Expires:
Notary Public
This instrument has been preaudited in the manner required by the Local Government Budget and
Fiscal Control Act.
Kimberly Honeycutt, County of Harnett Finance Director
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IN WITNESS WHEREOF, Dunn Hospitality has caused this Agreement to be executed in
duplicate originals, by its duly authorized representative.
DUNN HOSPITALITY VENTURES, LLC
By:
By:
STATE OF NORTH CAROLINA
COUNTY OF
Oscar N. Harris, Manager
John M. Sandlin, Manager
I, a Notary Public, do hereby certify that Oscar N. Harris personally came before me this day
and acknowledged that he is Manager of Dunn Hospitality Ventures, LLC, a North Carolina limited
liability company, and that he in said capacity being authorized to do so, executed the foregoing
instrument on behalf of the limited liability company.
Witness my hand and official stamp or seal, this day of May, 2014.
My Commission Expires:
Notary Public
*************************************************************************
STATE OF NORTH CAROLINA
COUNTY OF
I, a Notary Public, do hereby certify that John M. Sandlin personally came before me this day
and acknowledged that he is Manager of Dunn Hospitality Ventures, LLC, a North Carolina limited
liability company, and that he in said capacity being authorized to do so, executed the foregoing
instrument on behalf of the limited liability company.
Witness my hand and official stamp or seal, this day of May, 2014.
My Commission Expires:
Notary Public
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