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4 <br /> Year Payment Due <br /> 1 $250,000 initial deposit <br /> 1 $404,576 <br /> 2 $404,576 <br /> 3 $404,576 <br /> 4 $404,576 <br /> 5 $404,576 <br /> 6 $404,576 <br /> 7 Market Rent Established <br /> 8 2% Increase <br /> 9 2% Increase <br /> 10 2% Increase <br /> Based on current commercial rates, the market rent for the facility would total approximately <br /> $850,000 annually. If the company continues to rent the facility for the ten year lease term, the <br /> County will have collected approximately $6.2 million in lease revenue. If the company exercises <br /> the option to purchase during the term of the lease, it will pay property taxes starting at <br /> approximately $85,000 annually and increasing according to market value following each <br /> revaluation. <br /> Performance Agreement <br /> The performance agreement between Orange County and Well Dot, Inc. offers up to to $2 million <br /> for the company to use to offset facility development and remodeling costs. The payment would <br /> be based on actual expenditures incurred by the company and will be paid over a period of not <br /> more than two (2) years from the first installment. These funds would be borrowed with an average <br /> annual debt service payment of approximately $137,000. Proceeds from the lease would be used <br /> to pay the debt. <br /> As part of the performance agreement, the company agrees to create at least 360 new full time <br /> jobs, at an annual salary of $63,665 plus benefits. If job creation targets are not met, penalties of <br /> $500 per job will accrue annually and will be added to the purchase price of the facility. <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 /> ENVIRONMENTAL IMPACT: There is no direct Orange County Environmental Responsibility <br /> Goal impact associated with this item. <br /> RECOMMENDATION(S): The Manager recommends that the Board: <br /> 1) Receive the proposal to consider entering a lease agreement and the issuance of <br /> incentives to a private company for the recruitment & expansion of Well Dot, Inc.'s <br /> operations in Orange County; <br /> 2) Open and conduct the Public Hearing and receive BOCC and public comments; <br /> 3) Close the Public Hearing; and <br /> 4) Approve the "performance-based" economic development incentive agreement and the <br /> lease by adopting the resolution authorizing the lease between Orange County and Well <br />