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21 Piedmont Value-Added Shared-Use Food and Agricultural Processing Center Section II:Project and Applicant Description 7. Proiect Justification for a Oualified Agricultural Program This project,as a Qualified Agricultural Program,seeks to fulfill the following criteria • Alleviating and avoiding unemployment in the tobacco-related sector of the state's agricultural economy; • Preserving and increasing the local tax base in agricultural areas; • Encouraging the economic stability of participants in the state's agricultural economy; This project also fulfills the following types of activities noted by Tobacco Trust Fund • Programs to finance the modernization of farming equipment or conversion of existing equipment to conform to environmental and other regulatory requirements; • Marketing incentives such as promotions or export programs; • Incentives to grow alternative crops; • Development of value-added facilities and/or resources. Escalating costs of oil and the health concerns such as e-coli and salmonella in meat and produce have increased consumer demand for locally grown food. More and more consumers are shopping at local farmers'markets,enrolling in Community Supported Agriculture programs (CSAs),and joining coop groceries,while schools,universities,and hospitals are seeking locally grown food in large amounts and at regular frequencies. One limitation to marketing local farm products is the lack of processing facilities.But the growing demand for locally grown food,considered alongside the American habit of buying `imported'produce out of season highlights the potential of processing facilities to extend the markets and increase the revenues of North Carolina farmers. This project will provide a facility for farmers and potential food-based entrepreneurs within 75 miles of Hillsborough which will increase the demand for local farm products.This 22-county region had 16,214 farms in 2002,including 2,721 tobacco farms,all of whom could benefit from the facilities and training that will be offered by the center. Within the 22-county area,there is a total population of 3.3 million individuals who are potential customers of the end product created at the facility. Many strong farmers markets and CSAs are already operating in the area and the region is situated with fairly close proximity to two of the state-run farmers markets in the Triangle and Triad.Shelf stabilized value added products are also able to be aggregated and shipped longer distances thereby increasing potential markets for North Carolina farm products, given the centralized geographic location of NC for shipping centers. A suitable building has been located that is owned by Orange County and which meets all the key criteria for the development of a regional shared use food processing facility,including being a modern building with access to all major utilities that meets code,including handicap-accessible bathrooms and entrances. The building is a 10,400 sq.ft.metal industrial structure consisting of a large warehouse-type area on concrete slab,a loading and storage room with a dock,parking lot,multiple offices,and meeting rooms. The feasibility stage of this project is complete. With the research that has demonstrated sufficient demand and a suitable location,we are well-positioned for success. Investment in the project will support the Tobacco Trust Fund's goal to fund programs that support,foster, encourage,and facilitate a strong agricultural economy in North Carolina. 11 BOCC Meeting, January 22, 2009, Page 21 /39