2014/05/19 RESOLUTION TO ENTER INTO ECONOMIC DEVELOPMENT INCENTIVE AGREEMENT W/TREYBURN REALTY, LLCNORTH CAROLINA RESOLUTION TO ENTER INTO ECONOMIC
DEVELOPMENT INCENTIVE AGREEMENT
HARNETT COUNTY 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, Treybum Realty, LLC ( "Treybum 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, Treybum 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. Treybum 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, Treybum Realty plans to invest S 1.6 million and create 8 full -time jobs; and
WHEREAS, based upon Treybum 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 Treybum 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 Treybum Realty have negotiated an economic development
incentive package which includes an incentive to be paid to Treybum 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 Treybum Realty over a 120 month period
depending on Treybum Realty's performance of various incentive conditions including:
a) Payment of six hundred thousand dollars (5600,000.00) to the County upon the
purchase of the 4.70 acre tract with the execution of a one hundred thousand dollar (5100,000.00)
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 S 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 Treybum 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 Hamett County Board of Commissioners to approve the appropriation of this Economic
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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 /4 ryday of May, 2014.
,��.� �F ,C O M p�jSS •,�
ATTEST:
Marg et Regina Peeler, Clerk
COUNTY OF HARiNETT
By: L
Joe,pAilrer, Nairman
Hainett 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 ( "Treybum 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, Treybum 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,
Treybum 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, Treybum 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, Treybum Realty expects to invest approximately S 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 Treybum 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, Treybum Realty expects to
create approximately 8 full -time jobs; and
WHEREAS, as an inducement for Treybum Realty to proceed with its decision to locate the
Facility in Harnett County which will create newjobs, 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 Treybum 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 Treybum 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 form of a discount in the sales price of the 4.70 acre Facility site by the County as current
owner of the Land to Treybum Realty. The parties further acknowledge that the fair market value
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of said 4.70 tract is $700,000.00. That Treybum 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 Treybum
Realty pursuant to those incentive conditions set forth herein.
2. TREYBURN REALTY INCENTIVE CONDITIONS:
In order to fully receive the County's EDI Grant, Treybum 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 (5600,000.00)
shall be paid in cash to the County at closing and the balance of one hundred
thousand dollars (5100,000.00) 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
Treybum Realty on the Note maturity date specifically subject to Treybum 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
k]
Land tract; Treybum 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 S 1.5 million for the applicable tax year that the fully completed Facility
value is listed for ad valorem taxes; that Treybum Realty shall pay in a timely manner
the Harnett County and Town ofLillington 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 S648). Furthermore, within one
year of beginning its business operations at the Quick Lane Tire & Auto Center,
Treybum 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
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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 Hamett County average weekly wage and
the remaining full -time jobs shall pay at least the Harriett County average weekly
wage.
e. Treybum Realty's adherence to the above listed Incentive Conditions shall be
monitored by the County through its Economic Development Department. Treybum
Realty shall fully cooperate with the County's request for information that evidences
Treybum 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 Treybum Realty pursuant to the Note
provisions and if Treybum Realty shall continue to fail to meet any of the Incentive
Conditions than the County may declare Treybum Realty to be in default and demand
full payment of the Note principal and accrued interest. Upon Treybum 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 Treybum Realty during the Note term 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. ASSIGNNIENT:
The assignment of the incentive benefits of this Agreement by Treybum 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 Treybum 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 carver, 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: Treybum Realty, LLC
Attn: Harold P. Nunn, Manager
101 Baines Court
Cary, NC 27511
Either the County or Treybum 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. ANIENDNIENTS, CHANGES AND NIODIFICATIONS:
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.
8. APPROVALS AND AUTHORITY:
Treybum 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 Treybum 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.
ATTEST:
Margaret Regina Wheeler, Clerk
NORTH CAROLINA
HARNETT COUNTY
COUNTY OF HARNETT
M
Joe Miller, Chairman
Harnett County Board of Commissioners
I, a notary public, certify that Joe Miller, who being by me duly swom, says that he is
Chairman of the Harnett County Board of Commissioners, and that Margaret Regina Daniel is
Clerk to the Hamett 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 Hamett 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.
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 Officer
IN WITNESS WHEREOF, Treybum Realty has caused this Agreement to be executed in
duplicate originals, by its duly authorized representative.
TREYBURN REALTY, LLC
M
STATE OF NORTH CAROLINA
COUNTY OF
Harold P. Nunn, Member/Manager
1, 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.
Notary Public
My Commission Expires:
TREYBURN REALTY, LLC
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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 Treybum 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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EXHIBIT "B"
Bennett Surveys F -1304
1662 Clam Road
Lillington, 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, page 367 Harnett County Register of
Deeds; thence as the line of Precision Realty, LLC South 45 ^07'09" East 534.49 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 Harnett
County Public Utility Building and as a new line with County of Harnett, deed book 2147, page
433, North 47 ^ 16 ' 15" West 189.33 feet to a new set iron; thence as a new line with County
of Harnett and approximately parallel with Public Utility access road North 37 ^ 39' 29" West
322.21 feet to a new set iron; thence continuing as a new line with County of Harnett and along
an existing chain link fence North 40 ^ 55' 04" East 373.55 feet to place of beginning.
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 and south
of existing fence for Public Utility building and grounds. Being a portion of County of Harnett
property call for in, deed book 2147 , page 433