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HomeMy WebLinkAbout051914mHARNETT 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 2 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 3 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. 5 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. 6 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.] 7 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 8 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 9 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 10 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 3 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. 4 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 6 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 7 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 8 operation and of any other governmental authority whose approval is required for the execution and performance of this Agreement. [Signature pages follow.] 9 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 10 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 11