Agenda - 01-22-2009 - 4p - Laserfiche WebLink

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2 $150,000 by year 3 of operation, with gross income for clients using the facility estimated at $2,651,000 per year. This facility will have the potential to serve farmers on 16,214 farms in 22 counties within a 75- mile radius of Hillsborough, North Carolina, representing almost 30% of farms statewide. Farmers and their rural communities as well as tobacco processing and marketing communities can benefit from participating in training and education programs, adding value to and marketing local farm product. Within the 22-county area, this center can enhance the capacity to process local farm products for the 3.3 million individuals who are potential customers for the products created at the center. The short-term goal of the project is to open a regional value-added shared use food and agricultural processing center in January of 2010 with a range of programs and equipment. The success of the short-term goal will be measured by client use and revenues generated by the center, as well as training and assistance to farmers and other food entrepreneurs. The long term goal is to become financially independent by 2013. This will be accomplished by building the capacity to process and market North Carolina agricultural products, thereby increasing the number and diversity of farm operations that help to sustain the Piedmont Region. Staff from Economic Development and Cooperative Extension have continued efforts to fund the implementation of the November 2007 feasibility report. A $479,000 grant was award by the Tobacco Trust Fund on October 28, 2008 and a $250,000 grant was awarded by the Golden Leaf Foundation on December 4, 2008. Both contracts are attached for BOCC review. Partnering counties (Alamance, Chatham, & Durham) have each provided $2,500 towards the feasibility report and have each passed resolutions to continue the partnership through implementation of the feasibility study. Chatham County's grant writing specialist was especially helpful in preparing grant applications to Golden Leaf Foundation and the Tobacco Trust Fund Commission. Orange County has provided $5,500 and staff support to this project. FINANCIAL IMPACT: The financial impact associated with signing this contract involves the commitment of the property and building at 500 Valley Forge Road and precludes the use of the building for other purposes. In addition, staff will continue to devote time towards the implementation of this project. Including the previous NC Agricultural Development and Farmland Preservation award of $132,000, a total of $861,000 has been committed to this project. A congressional request through the office of Representative David Price is still pending. Given the total $1,178,000 cost of establishment and first year of operation, the project needs an additional $317,000 to fully implement the feasibility study and provide funds for year 1 operations. All grant funds will be guided with assistance from a 501(c)3 non-profit group to be developed from the 40-member advisory group, and a 65-member producer group. RECOMMENDATION(S): The Manager recommends the Board approve the contracts accepting grant funds for the Tobacco Trust Fund Commission and the Golden Leaf Foundation subject to County Attorney review and authorize the Chair to sign the contract documents.