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<br />program supports the renovation or expansion of vacant buildings, or other facilities occupied by <br />a company having operated for at least 12 months. <br /> <br />The State requires this program to be administered by a local municipal government, and <br />requires that the local government temporarily hold a Deed of Trust on the building. As the <br />private industry incurs actual construction costs associated with structural improvements made <br />to the existing building, and creates new employment, it can request the State grant. The <br />State’s funds are first passed through the local government (being the grant administrator) <br />before the funds reach the company. Under the program’s guidelines, this structure poses a <br />potential financial obligation on the local government (Orange County) in the event the private <br />corporate entity (ABB, Inc.) does not perform as expected. <br /> <br />The Building Reuse Grant eventually converts to a forgivable loan once the Company meets all <br />investment and job creation requirements, and the repayment obligation to the State ends. <br /> <br />Through negotiations intended to remove Orange County’s potential financial risk, an agreement <br />was reached in late 2019 and into early 2020 between the County, ABB and the North Carolina <br />Department of Commerce. This agreement, as outlined in the two contracts (Attachments 2 & 3 <br />requiring the BOCC Chair’s signatures) outlines ABB’s decision to delay its request for State <br />funds until after all investment and new job creation criteria had been met. This strategy <br />enables the State grant to convert to a forgivable loan, and Orange County will then receive and <br />transfer the State funds to ABB, Inc. without any potential financial risk. <br /> <br />FINANCIAL IMPACT: There is no financial obligation or cost to the County by participating with <br />ABB, Inc. and the North Carolina Department of Commerce in the State’s “Rural Economic <br />Development Grant Agreement Building Reuse Program” <br /> <br />SOCIAL JUSTICE IMPACT: The following Orange County Social Justice Goal is applicable to <br />this item: <br />• GOAL: ENSURE ECONOMIC SELF-SUFFICIENCY <br />The creation and preservation of infrastructure, policies, programs and funding necessary <br />for residents to provide shelter, food, clothing and medical care for themselves and their <br />dependents. <br /> <br />ENVIRONMENTAL IMPACT: There is no Orange County Environmental Responsibility Goal <br />impact associated with this item. <br /> <br />RECOMMENDATION(S): The Manager recommends that the Board approve the contract <br />between Orange County, ABB, Inc. and its affiliate Industrial Connections & Solutions LLC, and <br />the contract between Orange County and the North Carolina Department of Commerce, subject <br />to final review by the County Attorney, and authorize the Chair to sign both contracts on behalf <br />of the County. The two contracts allow the County to facilitate the State of North Carolina’s pass <br />through of $500,000 “Rural Division Building Reuse Grant” (forgivable loan) funds to ABB, Inc. <br />with no potential financial risk to the County. <br /> <br /> <br /> <br /> <br />2