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10 <br /> 1 Slide #8 <br /> Manager Recommendation <br /> 1 p Receive the proposal to consider entering into a lease agreement <br /> and the issuance of incentives to a private company for the <br /> recruitment&expansion of Well Dot, Inc,'s operation in Orange <br /> County, <br /> 2) Open and conduct the Public Hearing and re-ceive 80C and <br /> public corn men(s <br /> 3) Close the Public Hearing,and <br /> 4) Approve the"performance-based"economic development incentive <br /> agreement and the lease by adopting the resolution authorizing the <br /> lease between Orange County and WelI Dot, Inc. <br /> ORANGE COUNTY <br /> a N10F'T]f CILR YLINA <br /> 2 <br /> 3 Commissioner Fowler asked how the $2 million in performance-based incentives would <br /> 4 be funded and was it reflected in the budget. <br /> 5 Travis Myren, Deputy County Manager, said the county would borrow the funds for the <br /> 6 incentive payments at $137,000 a year and the rent for the facility would pay for that debt <br /> 7 service. <br /> 8 Commissioner Richards asked if the $2 million was based on actual expenditures and if <br /> 9 that was the county's max. <br /> 10 Travis Myren said it was based on actuals but they are in full belief that the costs will be <br /> 11 at least $2 million. <br /> 12 Commissioner Richards asked if that was the county's max. <br /> 13 Travis Myren said the county's max was $2 million with proof of expenditure. <br /> 14 Commissioner Richards asked if it had to be paid within two years of the first installment. <br /> 15 Travis Myren said yes. <br /> 16 Commissioner Richards asked about the market rate rent and the difference in what they <br /> 17 will be charged. <br /> 18 Travis Myren said that the 400,000 amount was based on the current condition and the <br /> 19 $850,000 amount is what it will be after improvements. He said it will be Class A office space in <br /> 20 downtown Chapel Hill at that time. <br /> 21 Commissioner Richards asked if the company were to fix it up in year two, if they would <br /> 22 still pay the $400,000 as if they had not made the improvements. <br /> 23 Travis Myren said yes. <br /> 24 Commissioner Richards asked if that is true for the first six years. <br /> 25 Travis Myren said yes. <br /> 26 Commissioner Richards noted that they are getting $2 million to fix it up from the county <br /> 27 and asked if the county should adjust the rent after the improvements. <br /> 28 Travis Myren said that they would have to renegotiate that point. <br /> 29 Commissioner Richards asked if the recommendations are a result of the negotiations. <br /> 30 Travis Myren said yes. <br />