Agenda - 04-12-2005-8a - Laserfiche WebLink

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z The building OE proposes to purchase was previously the location for the FB .Johnston Company and is one of two manufacturing buildings located on a 20 acres site, OE proposes to purchase Building #2 and 10 acres of the property. Building #2 is located toward the back of the property. The building contains 25,400 square feet, including 3,000 square feet of office space and 22,400 square feet of manufacturing and warehouse space, The building, which was constructed in late 1979, has been well maintained and, with the exception of some needed Americans with Disabilities Act (ADA) and OE operations needed upfit, is favorably matched to the OE operation. OE has provided a business plan that demonstrates its ability to meet the higher financial demands that would be required by the new facility, As discussed further below, OE's capacity to compete for additional contracts is severely limited by the current facility. OE has two subsidiary enterprises, a custodial business and a landscaping business, Through a relationship with National Industries for the Severely Handicapped (NISH), an organization that manages the federal set-aside programs under the ,Davits-Wagner-O'Day Act, OE has been awarded two custodial contracts this year, valued at almost $850,000 annually, which helps contribute to the fiscal stability of the organization. The mail fulfillment work performed in-house by persons with disabilities has been limited by space constraints. This component employs approximately 100 persons a day with production sales of about $450,000 per year, Additional space will enable OE to expand this division and compete for NISH manufacturing projects (products manufactured by disabled persons for use in government agencies), Financial projections prepared by OE indicate that the organization will be able to maintain support and revenue in excess of expenses over the next five years, including debt service, The additional space will enable OE to expand employment and aver the next six years, OE projects that it will provide 57 new jobs for disabled persons and 43 new jobs for non-disabled persons. The attached agreement spells out the employment projections and the expectation of payment of living wages for OE staff and commensurate wages for all other employees. The agreement also provides that OE will convey a Conservation Easement to the County for the land in the flood hazard area of the Eno River, Kathy Bryant, OE Executive Director, and Dianne Reid, Orange County Economic Development Director, will present additional information during the public hearing, FINANCIAL IMPACT: The purchase price of the building and ten acres to OE is $950,000, Orange County is being asked to contribute $525,000 in the 2004-2005 fiscal year and $100,000 in each of the 2005-2006, 2006-2007 and 2007-2008 fiscal years. Further, the County is being asked to increase its operational support in an amount equal to $120,000 over the period ending with the 2009-2010 fiscal years. The specific annual operating appropriations are set forth in the agreement. RECOMMENDATION(S): The Manager recommends that the Board: • Receive public comment regarding the agreement between Orange County and OE; and • Approve the agreement with OE; and • Approve the reallocation of capital funds to be used by OE toward the purchase of the facility as outlined herein; and Authorize the Chair to sign the agreement on behalf of the Board,