Minutes 05-02-2017 - Laserfiche WebLink

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9 Craig Benedict said the area designated for this activity is at the intersection of Old highway 86 and 1-40. He said the intended focus is the southwest quadrant of this intersection, which is where the joint land-use plan has non-residential uses planned; light industrial, office, etc. He reviewed a map of the area for the Board. Craig Benedict said there are two clauses in the agreement that are inactive. He said the County is able to establish acreage fees to reimburse the cost of economic development efforts, but this provision has been left silent, as the land uses are consistent with the expenditure of Article 46 monies. He said the provision could be activated at any time by changes to the Unified Development Ordinance (UDO). Craig Benedict said there are other development activities that may occur in this area, but such development is not related to this agreement. Craig Benedict reviewed the minor revisions in the agreement, found highlighted in yellow on the gray sheet. He said all changes must be palatable to both parties. Craig Benedict referred to page 4 of the agreement, and said Hillsborough is contributing to a water main loop that is outside of the EDD. He said this loop would improve the water pressure within the EDD, as well as a major enhancement for a sub-regional system in Hillsborough, and probably increase pressure in the school zones on Grady Brown Road. He said the Town would be responsible for the cost of this loop. Craig Benedict said the agreement has an initial term of five years, with a possible five- year extension thereafter. He said there are termination clauses included in the agreement. He said the duration of the agreement is consistent with the time of the agreement. He said the County is the asking party, and would be the first signer of the agreement. He said Hillsborough will have this on a meeting agenda later this month. Commissioner Marcoplos asked if there is a timeline on this project, and when it will be possible for businesses to be developed. Craig Benedict said the next item on the agenda will address these questions. He said the corner of this intersection is of interest to developers, but all are waiting for utilities to be present. He said this agreement is a great first step in the process. Commissioner Jacobs thanked staff for presenting this agreement that protects the County's Article 46 funds. Commissioner Jacobs asked if it is expected that Hillsborough will annex this area. Craig Benedict said yes. He said as part of the County's economic planning with Hillsborough, there has been an urban service boundary established which includes areas under Orange County jurisdiction, at this point. He said the agreement does not cause any development that occurs in this area to be annexed outright, prior to a development application; but any development application that comes forward to the County would have to be accompanied by a voluntary annexation agreement, which could be acted upon by Hillsborough in the future. He said Hillsborough may not annex for x years, to offer an incentive to developers of not paying a Hillsborough tax. Commissioner Jacobs asked if Hillsborough is going to charge exorbitant water rates and would that be another reason to go for annexation. Craig Benedict said out of Town water rates are 195% of the in-town rates, but potential businesses in this area are not expected to be large water users. He said, however, it will be important to consider water usage when looking at potential development. Commissioner Jacobs said since the County is providing most of the infrastructure and capital investment, that Hillsborough does need to charge 195% increase of water rates, and could negotiate a lower water rate in order to lure in development. He asked if part of the reasoning behind the high rate is to recover their cost of the capital infrastructure. Craig Benedict said yes and no. He said Hillsborough's water and sewer treatment plants are part of the infrastructure that is city wide and out of town rate wise. He said the