Agenda 10-15-19 Item 6-b - Authorization to Proceed with Phase 1 of the Proposed Eno River Mill Arts Project and Associated Lease Agreement with Hedgehog Holdings

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4 HEDGEHOG HOLDINGS Hedgehog Holdings is a family-run, historic preservation development firm based in Raleigh. For the last 40 years, its focus has been the acquisition and adaptive reuse of properties listed on The National Register of Historic Places or located within a National Register Historic District.Their score of properties vary from the 189os Farrens'Stable located in Washington, D.C.'s Capitol Hill Historic District,to Pilot Mill, a historic Raleigh textile mill. In 2015,Alex Gold invited Hedgehog to partner with the family in the redevelopment of the Eno River Mill("ERM"). Currently, ERM houses Weaver Street Market's commissary,the Expedition School,The Cloth Room Events Space and several small businesses. ERM Mill has vast amounts of raw,vacant space begging for revitalization. In the spring, after a series of email conversations, OCAC Director Katie Murray and Board Chair Fred Joiner met with Mark O'Neal and later with Hedgehog's founder Frank Gailor and Hedgehog's historic preservation specialist, Carrie Ehrfurth.The initial meetings were to discuss a recently vacated office space that OCAC could use as artist studios. What emerged from a series of follow up discussions was the vision of Eno River Mill as the County's hub for the arts. The Hedgehog Team understands the potential of the arts to redefine the Eno Mill.They are willing to serve as an active participant by offering below-market rental rates and the expertise that has come with years of experience in historic preservation and upfitting.They are unique in that they are long-term, patient developers who invest in their communities and often work with non-profit tenants. Among Hedgehog's past and present tenants are the headquarters of the North Carolina Partnership for Children,The Washington DC office of US Public Interest Research Group and Family Services of Wake County. The best evidence of the Hedgehogs tenant-centered focus is its remarkably high retention rate. Of its existing tenants, more than 80%have been renewed or extended their lease beyond the initial terms. The Company supports the arts with artist studios incorporated into their Glencoe Mill in Burlington and Artisans Space at ERM.The opportunity to collaborate with and draw on the experience of a team like Hedgehog, combined with the OCAC's know-how of the arts and arts space management,will be transformational for the town and county. PHASE 1 : ART MILL STUDIOS (SUITE 27) Suite 27 is a move-in ready, 2,970 square foot,former office space. It would allow private and communal studio space for up to 13 artists at affordable prices.The restored exposed brick hallwayjust outside of the space would allow for exhibit space for tenants. Potential Economic Impact: • Money spent on studio space would stay local, rather than being spent in surrounding counties. • Artists and visitors would provide new patrons for West Hillsborough businesses. • Opening artist receptions would allow West Hillsborough expansion of Last Fridays Art Walk. • The presence of artists and creative space will continue to grow the property value of ERM, and therefore tax revenue for the county. Following restoration work at ERM, property tax grew from $26,80o in 2015 to$52,600 in 2018. Implementation plan: 1. Following county approval,the OCAC would require one-year commitments from a minimum of ten artists. (In the event that 13 artists are not confirmed, a large communal space will be used as classes instead of studios to supplement income until three additional artists are found). The OCAC will use its artist database, arts partner organizations, and social media base to notify artists of the available space. 2. Minor up-fitting (a commercial sink and private restroom)will be provided by Hedgehog following a commitment from the OCAC.