Agenda - 02-18-2010 - Joint Meeting Discussion Items

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There is no cost to the County for this action. Presently Builder's First Source, leaseholder of the larger 12.68-acre parcel, is paying for out-of-town water rates of $14.14 per 1,000 gallons. When annexed, they will pay in-town water rates of $7.25 per 1000 gallons. Their typical water usage is 10,000 gallons a month. Although their water rates will decrease, Town of Hillsborough policy is to have businesses tie into public sewer, which is available. Therefore, the monthly combined water and sewer rate may eventually be approximately 14.83 per 1,000 gallons, excluding the one time capital costs of the sewer connection ($6,930). The party responsible for paying for the sewer connection will likely be Builder's First Source but timing on these costs has not been discussed. After annexation, the town taxes on the old Orange Enterprises building would not be applicable whether remaining in Orange County ownership or possible future 501 3(c). However, the Builders First Source's property (valued at approximately $2.9 million) has provisions within the lease with Orange County to pay applicable taxes which would include payment to Orange County, as it does now, and Town of Hillsborough after annexation which could be proposed later this year. This additional town tax amount would be approximately $18,000, less the fire district tax of approximately $1,500. Staff will provide any other information at the meeting, and the Boards can discuss this item as necessary. Attachment 10 - a -Orange County Property on Valley Forge Road -Hillsborough Municipal and ETJ Areas Attachment 10 - b -Orange County Property on Valley Forge Road -Orthography FINANCIAL IMPACT: There is no direct financial impact associated with discussion of these topics. There are no action items requiring formal Board decisions. RECOMMENDATION(S): The Managers recommend the Boards discuss the topics listed and provide appropriate direction to the respective staffs.