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001 <br /> ORANGE COUNTY <br /> BOARD OF COMMISSIONERS <br /> ACTION AGENDA ITEM ABSTRACT <br /> Meeting Date: August 21, 2012 <br /> Action Agenda <br /> Item No. 5-k <br /> SUBJECT: Lease of the County-Owned Building at 500 Valley Forge Road to the <br /> Piedmont Food and Agricultural Processing Center, Inc. <br /> DEPARTMENT: Economic Development PUBLIC HEARING: (Y/N) No <br /> County Attorney <br /> ATTACHMENT(S): INFORMATION CONTACT: <br /> Lease Agreement Steve Brantley, 245-2300 <br /> John Roberts, 245-2318 <br /> PURPOSE: To enter into a lease agreement with the Piedmont Food and Agricultural <br /> Processing Center, Inc., regarding the occupation and lease of the building at 500 Valley Forge <br /> Road, Hillsborough. <br /> BACKGROUND: In 2011 the Piedmont Food and Agricultural Processing Center ("PFAPC") <br /> began operations as a County entity, part of the Economic Development Department. The <br /> initial intent was for the PFAPC to be a standalone nonprofit entity. For various reasons the <br /> PFAPC was not initially incorporated as a nonprofit entity. Operations were and remain housed <br /> in the County-owned building at 500 Valley Forge Road. In July 2012 the PFAPC was <br /> registered with the North Carolina Secretary of State as a nonprofit entity. Operations are <br /> ongoing and to date the PFAPC has experienced substantial growth and success in its current <br /> location. The County and PFAPC desire to have operations remain in the 500 Valley Forge <br /> Road location. Because PFAPC is no longer a County entity, the County and PFAPC must <br /> enter into a lease of the premises to establish the rights and responsibilities of each party. <br /> FINANCIAL IMPACT: The fair rental value of the Leased Premises as stated in the Lease <br /> Agreement is estimated at $2,166.67 per month ($26,000 per annum). The fair rental value is <br /> subject to a five percent (5%) annual percentage increase. <br /> The County will receive one dollar ($1) per month for the first two (2) years. The County will <br /> receive payment equal to thirty-three percent (33%) of the fair rental value for the third year of <br /> the term commencing on September 1, 2014. The County will receive payment equal to sixty- <br /> six percent (66%) of the fair rental value including the annual percentage increase for the fourth <br /> year of the term commencing on September 1, 2015. The County will receive the fair rental <br /> value including the annual percentage increase for the fifth year of the term commencing on <br /> September 1, 2016. <br /> RECOMMENDATION(S): The Manager recommends the Board approve the Lease Agreement <br /> and authorize the Chair to sign. <br />