Agenda - 06-06-2017 - 8-a - Minutes

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9 1 Craig Benedict said there are other development activities that may occur in this area, 2 but such development is not related to this agreement. 3 Craig Benedict reviewed the minor revisions in the agreement, found highlighted in 4 yellow on the gray sheet. He said all changes must be palatable to both parties. 5 Craig Benedict referred to page 4 of the agreement, and said Hillsborough is 6 contributing to a water main loop that is outside of the EDD. He said this loop would improve 7 the water pressure within the EDD, as well as a major enhancement for a sub-regional system 8 in Hillsborough, and probably increase pressure in the school zones on Grady Brown Road. He 9 said the Town would be responsible for the cost of this loop. 10 Craig Benedict said the agreement has an initial term of five years, with a possible five- 11 year extension thereafter. He said there are termination clauses included in the agreement. He 12 said the duration of the agreement is consistent with the time of the agreement. He said the 13 County is the asking party, and would be the first signer of the agreement. He said 14 Hillsborough will have this on a meeting agenda later this month. 15 Commissioner Marcoplos asked if there is a timeline on this project, and when it will be 16 possible for businesses to be developed. 17 Craig Benedict said the next item on the agenda will address these questions. He said 18 the corner of this intersection is of interest to developers, but all are waiting for utilities to be 19 present. He said this agreement is a great first step in the process. 20 Commissioner Jacobs thanked staff for presenting this agreement that protects the 21 County's Article 46 funds. 22 Commissioner Jacobs asked if it is expected that Hillsborough will annex this area. 23 Craig Benedict said yes. He said as part of the County's economic planning with 24 Hillsborough, there has been an urban service boundary established which includes areas 25 under Orange County jurisdiction, at this point. He said the agreement does not cause any 26 development that occurs in this area to be annexed outright, prior to a development application; 27 but any development application that comes forward to the County would have to be 28 accompanied by a voluntary annexation agreement, which could be acted upon by Hillsborough 29 in the future. He said Hillsborough may not annex for x years, to offer an incentive to 30 developers of not paying a Hillsborough tax. 31 Commissioner Jacobs asked if Hillsborough is going to charge exorbitant water rates 32 and would that be another reason to go for annexation. 33 Craig Benedict said out of Town water rates are 195% of the in-town rates, but potential 34 businesses in this area are not expected to be large water users. He said, however, it will be 35 important to consider water usage when looking at potential development. 36 Commissioner Jacobs said since the County is providing most of the infrastructure and 37 capital investment, that Hillsborough does need to charge 195% increase of water rates, and 38 could negotiate a lower water rate in order to lure in development. He asked if part of the 39 reasoning behind the high rate is to recover their cost of the capital infrastructure. 40 Craig Benedict said yes and no. He said Hillsborough's water and sewer treatment 41 plants are part of the infrastructure that is city wide and out of town rate wise. He said the 42 additional cost is for those areas that are not gaining city taxes, yet still need utility crews to 43 maintain the lines. 44 Craig Benedict said he will discuss this with Hillsborough for this area and other areas, 45 such as Churton Grove, who is still paying 195% rate in water and they have been there for 10 46 years. 47 Commissioner Jacobs said a lower rate would be an incentive for economic 48 development.