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ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: February 19, 2013 <br />Action Agenda <br />Item No. 6 -b <br />SUBJECT: Lease of the County -owned Building at 500 Valley Forge Road to the Piedmont <br />Food and Agricultural Processing Center, Inc. <br />DEPARTMENT: County Manager PUBLIC HEARING: (Y /N) Yes <br />County Attorney <br />ATTACHMENT(S): <br />Lease Agreement <br />Exhibit A Attachment to Lease <br />Agreement <br />INFORMATION CONTACT: <br />Frank Clifton, 245 -2300 <br />John Roberts, 245 -2318 <br />PURPOSE: To conduct a statutorily required public hearing and consider entering into a lease <br />agreement with the Piedmont Food and Agricultural Processing Center, Inc. regarding the <br />occupation and lease of the building at 500 Valley Forge 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. <br />In July 2012 the PFAPC was registered with the North Carolina Secretary of State as a <br />nonprofit entity. Operations are ongoing and to date the PFAPC has experienced substantial <br />growth and success in its current location. The County and PFAPC desire to have operations <br />remain in the 500 Valley Forge Road location. Because PFAPC is no longer a County entity, <br />the County and PFAPC must enter into a lease of the premises to establish the rights and <br />responsibilities of each party. <br />The term of the lease is five years with two optional five year renewals. The County's goal is to <br />assist PFAPC in becoming a self- sustaining nonprofit organization and for that reason a <br />discounted lease rate has been negotiated. The fair market rental rate will not be charged until <br />the final year of the lease term. <br />North Carolina General Statute 160A -272 authorizes a County to enter into leases of up to 10 <br />years upon resolution of the Board of Commissioners adopted at a regular meeting after 10 <br />days' public notice. <br />