2006 NS EDC - Consent for New Indebtedness for OE Enterprises, Inc.

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OE Enterprises closed on the property on April 13, 2005. However, because of extensive renovations, OE did not move into the property until January 30, 2006, and was therefore unable to implement its expansion plans in the timetable envisioned in its original business plan. As a result, OE Enterprises has fallen short of its employment goals as follows: 2005-2006 Actually Achieved Projection as of 3/31/06 Employees 225 19?_ Orange County 166 175 Residents Employees with 164 127 Disabilities New jobs for employees 11 8 With disabilities New jobs for non- 9 5 Disabled em to ees It should be noted that the projection numbers are for the end of the fiscal year, which occurs June 30. As of the end of March, OE Enterprises has exceeded its projection for the number of Orange County residents employed but has not reached the projected numbers in the other four categories. While additional job creation is projected for the second quarter, these employment goals may not be achieved. OE Enterprises, Inc. has not yet conveyed to Orange County a Conservation Easement extinguishing all development rights on the property in the flood hazard area of the Eno River. County staff has now received a survey of the premises which will be utilized to identify the conservation easement area; staff and the County Attorney will proceed with developing the easement agreement. Attachment A summarizes all other performance obligations. The Economic Development Commission will monitor the conditions of the Agreement as described in the summary. FINANCIAL IMPACT: None RECOMMENDATION(S): The Manager recommends that the Board consider the request by OE Enterprises for new indebtedness and communicate same to First National Bank.