S Co-EDC- Regional Value Added Processiong Center Feasibility Study Appropriation & Agreement Approval

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~3-D 7 .~/ S /U NORTH CAROLINA ORANGE COUNTY • FEASIBILITY STUDY AGREEMENT THIS AGREEMENT, made and entered into the day of April , 2007, by and between Orange County, North Carolina, 200 S. Cameron Street, Hillsborough, North Carolina, on behalf of the Orange County Economic Development Commission (hereinafter referred to as "County") and Smithson Mills, Inc., of Asheville, North Carolina, (hereinafter referred to as "Mills"). WITNESSETH: WHEREAS, the on-going work of the Orange County Economic Development Commission strives to seek agricultural economic development through innovative and market appropriate initiatives; and WHEREAS, the local and regional farming community has evolved to meet local market opportunities and the tremendous increase in consumer interest in locally grown, healthy, nutritious, and fresh farm products; and WHEREAS, the increase in farmers selling at farmers' markets, direct to consumers, from farm stands, and through local coops and conventional grocers; and WHEREAS, there is strong interest from local school districts, universities, hospitals, and other institutional food buyers to obtain locally grown or raised farm products; and • WHEREAS, in 2005, the Orange County Board of County Commissioners appointed interested citizens and farmers to an Agricultural Center Working Group that examined, among other issues, the need and justification for avalue-added, shared use processing facility; and WHEREAS, the Agricultural Center Work Group presented their findings to the commissioners on 25 May 2006 and recommended that the Board move to conduct a feasibility study for avalue-added, shared-use processing facility; and WHEREAS, two-thirds of the funding to conduct avalue-added shared-.use processing facility feasibility study has been raised from partnerships with Alamance, Chatham, & Durham Counties and Weaver Street Market and Whole Foods. NOW THEREFORE, in consideration of the mutual covenants and considerations hereinafter set forth, the parties hereto agree as follows: Article 1. Mills will conduct a feasibility study that will address and/or contain each of the following items, and Mills shall complete the items contained in this Article 1 no later than the ~ Q ~L day of do ~ob¢ i , ~o n 1 1. Provide third-party verfication of research methodologies and analysis of primary data gathered by participating counties, including potential client surveys and market surveys. 2. Identify production lines that respond to the documented need/desire to produce given products. • 3. Provide guidance on legal organization structure such as, incorporation, acquisition of product liability and personal injury insurance.