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1 <br />ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: November 19, 2013 <br />Action Agenda <br />Item No. 5 -a <br />SUBJECT: Orange County Community Development Block Grant (CDBG) <br />DEPARTMENT: Planning and Inspections PUBLIC HEARING: (Y /N) Yes <br />ATTACHMENT(S): INFORMATION CONTACT: <br />1. Public Hearing Notice Craig Benedict, 919 - 245 -2592 <br />2. Draft Resolution (Not for Approval) Steve Brantley, 919 - 245 -2326 <br />3. Morinaga Site Map <br />PURPOSE: To receive comments from the public regarding a proposed CDBG- Economic <br />Development project including Morinaga America Foods, Inc. <br />BACKGROUND: The grant project being proposed would provide critical infrastructure <br />improvements in the Buckhorn Economic Development District ( Buckhorn EDD) that would <br />allow Morinaga America Foods, Inc. to build and staff a U.S. production facility in Orange <br />County. The improvements consist of a 2,500 linear foot roadway design that would create a <br />east -west access along Ben Wilson Road extension, and construction of a 3,700 -foot, 12 -inch <br />water line and a 1,500 -foot, 8 to 10 -inch sewer line to the site. In addition, the project will <br />include survey work, an environmental assessment, and grant administration services. The <br />facility will be located within the City of Mebane and receive water and sewer service from the <br />City per the interlocal utility service agreement. The proposed access road will be constructed <br />by the North Carolina Department of Transportation. In return for these incentives, Morinaga <br />America Foods, Inc. will commit to investing in the community and creating jobs. <br />Orange County (Martin - McGill Associates as consultant) is submitting a CDBG application to <br />support these site improvements requesting $750,000. The CDBG program provides grants to <br />local governments for creating and retaining jobs. Funding for projects is based on the number <br />of jobs created and the level of distress in the community applying for the funds. Sixty percent <br />of jobs created or retained in the project must be for persons qualifying as prior low and <br />moderate income (LMI). CDBG funds granted to local governments are to be used for various <br />types of infrastructure improvements to assist for - profit businesses in creating or retaining jobs. <br />A match upwards of $250,000 will be required from the County's Article 46 (One - Quarter Cent) <br />Sales and Use Tax. Funds provided from the County will be utilized primarily in conducting <br />engineering design work. <br />Morinaga is recognized as one of the largest candy and confection manufacturers in Japan with <br />$1.75 billion in global sales revenue and more than forty different product lines. The company <br />began operations in 1899 and has over 1,500 employees worldwide. The candy is currently <br />manufactured in Taiwan and distributed in the U.S. through distribution channels based in <br />