2016/08/15 ECONOMIC DEVELOPMENT INCENTIVE AGREEMENT WITH DUPREE FARMS PRODUCE, LLC NORTH CAROLINA RESOLUTION TO ENTER INTO ECONOMIC
DEVELOPMENT INCENTIVE AGREEMENT
HARNETT COUNTY WITH DUPREE FARMS PRODUCE, 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
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and business located in the County,to provide local job opportunities for citizens of the County, and
to increase the County tax base; and
WHEREAS. Dupree Farms Produce, LLC, a North Carolina Limited Liability Company
(Dupree Farms Produce) located at 1308 Pearidge Road, Angier, Harnett County, North Carolina
27501 was formed on January 1, 2016 to finance, construct and operate a year round sweet potato
processing plant to cure, store, wash/sort, package and distribute whole sweet potatoes grown in the
Harnett County area; that Dupree Farms Produce is in the process of constructing this processing
plant which is projected to become operational by January 2017. In developing this processing plant
in Hamett County, Dupree Farms Produce plans to invest S2 million, create approximately twenty-
five (25) full-time jobs, and enhance economic activity in Harnett County; and
WHEREAS, the mechanized equipment that has been purchased by Dupree Farms Produce
to be used at the processing plant will utilize approximately 36,000 gallons of water per cleaning
shift: The 4 inch Harnett County public water main located on Pearidge Road does not have the
capacity to meet this demand. Water main improvements to include the installation of 4,000 linear
feet of 6 inch water main extending from NC Highway 210 along Pearidge Road to the processing
plant site will meet the new plant's water demands. The estimated construction cost of the 6 inch
water main extension is 5132,000.00; and
WHEREAS. Dupree Farms Produce has identified a financial source for the water
infrastructure improvements through an application for a grant from the Economic Infrastructure
Program(EIP) with the NC Department of Commerce. The grant requires a unit of local government
to be the primary applicant. Dupree Farms Produce would be eligible to receive a grant award of
5125,000.00 which would require a 5% match from the local government. Dupree Farms Produce
has requested that the County participate in this grant application; that the County is willing to
appropriate certain economic incentives to Dupree Farms Produce pursuant to the provisions of N.C.
General Statutes 155-7.1 which allows County to make appropriations for the purpose of aiding and
encouraging the location and/or expansion of manufacturing enterprise and industrial and
commercial business facilities in the County: and
WHEREAS, the County and Dupree Farms Produce have negotiated an initial economic
development incentive package which includes the obligations by the County to a)submit the project
grant application to the rural Economic Development Division Economic Infrastructure Grants
Program for the benefit of Dupree Farms Produce, and b) if the grant is approved, the County shall
pay the required 5% program match or the balance of the 6 inch water main construction costs not
paid by the grant up to a maximum of S7,000.00 The incentive obligations by the County are
conditional on the performance by Dupree Farms Produce of its commitments stated in the EIP grant
application. That an instrument entitled Economic Development Incentive Agreement between the
County and Dupree Farms Produce 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) the County published a notice of
hearing, and a public hearing was held on August 15. 2016 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 Dupree Farms Produce
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 Dupree Farms Produce is hereby approved, and that the proper
officials of the County are hereby authorized to enter into the Economic Development Incentive
Agreement with Dupree Farms Produce.
This the 1.5`h day of August. 2016.
ierr tat,
DEirOMMIS, .
oPe % COUNTY OF HARNETT
J Burgin. Ch an
ATTEST: rnett County t oard of Commissioners
. <•a' ♦ '.'!. .: All It
Marg ret Regina Sheeler, Clerk
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EXHIBIT "A"
NORTH CAROLINA ECONOMIC DEVELOPMENT
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INCENTIVE AGREEMENT
HARNETT COUNTY
THIS ECONOMIC DEVELOPMENT INCENTIVE AGREEMENT(hereinafter referred to ,
as the"Agreement"). is made and entered into this the day of August, 2016,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 Dupree Farms Produce. LLC of 1308 Pearidge Road, Angier, North
Carolina, NC 27501 ("Dupree Farms Produce"):
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
industry or business operations, including the processing plant(as defined below). in the County: and
WHEREAS, Dupree Farms Produce, LLC, a North Carolina Limited Liability Company
(Dupree Farms Produce) located at 1308 Pearidge Road. Angier, Harnett County, North Carolina
27501 was formed on January 1, 2016 to finance, construct and operate a year round sweet potato
processing plant to cure, store, wash/sort, package and distribute whole sweet potatoes grown in the
Harnett County area; that Dupree Farms Produce is in the process of constructing this processing
plant which is projected to become operational by January 2017. In developing this processing plant
in Harnett County, Dupree Farms Produce plans to invest S 2 million, create approximately twenty-
five (25) full-time jobs, and enhance economic activity in Harnett County: and
WHEREAS, the mechanized equipment that has been purchased by Dupree Farms Produce
to be used at the processing plant will utilize approximately 36,000 gallons of water per cleaning
shift. The 4 inch Harnett County public water main located on Pearidge Road does not have the
capacity to meet this demand. Water main improvements to include the installation of 4.000 linear
feet of 6 inch water main extending from NC Highway 210 along Pearidge Road to the processing
plant site will meet the new plant's water demands. The estimated construction cost of the 6 inch
water main extension is $132,000.00; and
WHEREAS. Dupree Farms Produce has identified a financial source for the water
infrastructure improvements through an application for a grant from the Economic Infrastructure
Program(EIP) with the NC Department of Commerce.The grant requires a unit of local government
to be the primary applicant. Dupree Farms Produce would be eligible to receive a grant award of
S125,000.00 which would require a 5% match from the local government. Dupree Farms Produce
has requested that the County participate in this grant application; that the County is willing to
appropriate certain economic incentives to Dupree Farms Produce pursuant to the provisions of N.C.
General Statutes 158-7.1 which allows a County to make appropriations for the purpose of aiding
and encouraging the location and/or expansion of manufacturing enterprise and industrial and
commercial business facilities in the County.
NOW, THEREFORE, in consideration of these premises and the mutual covenants and
promises set forth below, the County and Dupree Farms Produce hereby agree as follows:
1. THE COUNTY'S ISSUANCE OF THE ECONOil'HIC DEVELOPMENT INCENTIVE
GRANT ("EDI GRANT"):
The County shall issue the EDI Grant to and for the benefit of Dupree Farms Produce as
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follows:
a) The County shall act as the local government lead applicant in the submission of that
grant application to the Rural Economic Development Division Economic Infrastructure Grants
program of the NC Department of Commerce in the grant request amount of SI25.000.00 for the
Dupree Farms Produce water infrastructure project. This application shall include the Authorizing
Resolution with a 5% program commitment match by the County.
b) The County shall adhere to and perform those local government requirements of the
grant application as set forth in the "Authorizing Resolution By Governing Body of the Applicant"
document a copy of which is attached to this Agreement as Schedule No. I. Specifically included in
said Authority Resolution is the requirement that the County commit to the payment of a 5%
program match of any grant amount awarded.
c) If the grant application is approved and funded, the County shall pay the required 5%
program match or the balance of the 6 inch water main construction cost not paid by the grant funds,
whichever amount is greater, up to a maximum of 87,000.00.
2. RECAPTURE OF APPROPRIATIONS EXPENDED BY COUNTY:
The parties acknowledge and agree that if the EIP grant is awarded by the N.C. Department
of Commerce Rural Economic Development Division that the award will require various
commitments to be met by Dupree Farms Produce. Dupree Farms Produce does hereby agree with
the County to meet the following commitment requirements:
a) Dupree Farms Produce shall complete the construction of the sweet potato processing
plant at 1308 Pearidge Road. Angier. NC 27501 and begin some level of operations at said plant no
later than January 2017.
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b) Dupree Farms Produce shall create twenty-five(25)new full-time job positions at the
new plant within eighteen(1 S) months of the grant award date and it shall retain this number of new
jobs for at least a six (6) month time period.
Dupree Farms Produce hereby agrees that if it fails to meet any of the above listed
commitment requirements, then any monetary appropriation sums expended by the County as part of
its Economic Development Incentive Agreement shall be recaptured by the County, and Dupree
Farms Produce shall be obligated to reimburse the County the full appropriated amount. In
confirming whether the commitment requirements are met, Dupree Farms Produce agrees to convey
and transfer to the County any verification documentation that is requested by the County or that is
made available to the N.C. Department of Commerce Rural Economic Development Division.
3. ASSIGNMENT:
The assignment of the incentive benefits of this Agreement by Dupree Farms Produce is
prohibited except with the written consent of the County, which may be withheld in the sole and
absolute discretion of the County.
4. 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 Jackson Enterprises : Dupree Farms Produce, LLC
Attn: Nick Dupree •
1308 Pearidge Road
Angier, NC 27501
Either the County or Dupree Farms Produce 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.
5. 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.
6. 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.
7. APPROVALS AND AUTHORITY:
Dupree Farms Produce 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 Dupree Farms Produce 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
operation and of any other governmental authority whose approval is required for the execution and
performance of this Agreement.
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: B_v:
Jim Burgin. Chairman
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Harnett County Board of Commissioners
Margaret Regina Wheeler, Clerk
NORTH CAROLLNA
HARNETT COUNTY
I, a notary public, certify that Jim Burgin. who being by me duly sworn, says that he is
Chairman of the Harnett County Board of Commissioners, and that Margaret Regina Wheeler is
Clerk to the Harnett County Board of Commissioners, that the seal affixed to the foregoing
attested instrument is the seal of Hamett 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
Jim Burgin, 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 August, 2016.
Notary Public
My Commission Expires:
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, Dupree Farms Produce has caused this Agreement to be
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executed in duplicate originals, by its duly authorized representative.
DUPREE FARMS PRODUCE, LLC
Bv:
Nicholas H. Dupree, Manager
STATE OF NORTH CAROLINA
COUNTY OF
I, a Notary Public, do hereby certify that Nicholas H. Dupree, Manager, personally came
before me this day and acknowledged that he is the Manager of Dupree Farms Produce. LLC, a
North Carolina limited liability company, and that they 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 August, 2016.
Notary Public
My Commission Expires:
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Schedule No . 1
AUTHORIZING RESOLUTION BY GOVERNING BODY OF THE APPLICANT
Economic Infrastructure Grants Program
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WHEREAS, the North Carolina Rural Infrastructure Authority (RIA) has authorized the awarding of grants from
appropriated funds to aid eligible units of government in financing the cost of infrastructure activities needed to
create jobs; and
WHEREAS, the County of Harnett needs assistance in financing an infrastructure project that may qualify for Rural
Grants/Programs funding; and
WHEREAS, the County of Harnett intends to request grant assistance for the Dupree Farms Water Improvements
project from the Economic Infrastructure Grants Program;
NOW THEREFORE BE IT RESOLVED, BY THE HARNETT COUNTY BOARD OF COUNTY COMMISSIONERS:
That the County of Harnett will arrange financing for all remaining costs of the project, if approved for a grant, with
Hamett County providing the required 5% program match with Dupree Farms Produce, LLC being the source of
remaining County funds. That Jim Burgin, Chairman and successors so titled, is hereby authorized to execute and
file an application on behalf of the County of Harnett with the Rural Grants/Programs Section for a grant to assist in
the above-named infrastructure project.
That Jim Burgin, Chairman, and successors so titled, is hereby authorized to execute and file an application on
behalf of the County of Harnett with the Rural Grants/Programs Section for a grant to assist in the above named
infrastructure project.
That Joseph Jeffries, Manager, and successors so titled, is hereby authorized and directed to furnish such
information as Rural Grants/Programs Section may request in connection with an application or with the project
proposed; to make assurances as contained in the application; and to execute such other documents as may be
required in connection with the application.
That the County of Harnett has substantially complied or will substantially comply with all federal, state, and local
laws, rules, regulations, and ordinances applicable to the project and to the grants pertaining thereto.
Adopted this date oho/(et Lillington, North Carolina.
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(Sia ; ulre of Chief ec:tive O`f1ficl-e
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