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10 <br /> Slide #8 <br /> Manager Recommendation <br /> 1) 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, I nc.'s operation s in Orange <br /> County; <br /> 2) Open and conduce the Public Hearing and receive BOCC and <br /> public comments, <br /> 3} Close the Public Hearing,and <br /> 4) Approve the"performance-based"economic development incentive <br /> agreement and the lease by adopting the resol ution authonzi ng the <br /> lease between Orange County and Well Dot. Inc <br /> ORANGE COUNTY <br /> 3 MOR71[CARDLEWL <br /> Commissioner Fowler asked how the $2 million in performance-based incentives would <br /> be funded and was it reflected in the budget. <br /> Travis Myren, Deputy County Manager, said the county would borrow the funds for the <br /> incentive payments at $137,000 a year and the rent for the facility would pay for that debt <br /> service. <br /> Commissioner Richards asked if the $2 million was based on actual expenditures and if <br /> that was the county's max. <br /> Travis Myren said it was based on actuals but they are in full belief that the costs will be <br /> at least $2 million. <br /> Commissioner Richards asked if that was the county's max. <br /> Travis Myren said the county's max was $2 million with proof of expenditure. <br /> Commissioner Richards asked if it had to be paid within two years of the first <br /> installment. <br /> Travis Myren said yes. <br /> Commissioner Richards asked about the market rate rent and the difference in what <br /> they will be charged. <br /> Travis Myren said that the 400,000 amount was based on the current condition and the <br /> $850,000 amount is what it will be after improvements. He said it will be Class A office space in <br /> downtown Chapel Hill at that time. <br /> Commissioner Richards asked if the company were to fix it up in year two, if they would <br /> still pay the $400,000 as if they had not made the improvements. <br /> Travis Myren said yes. <br /> Commissioner Richards asked if that is true for the first six years. <br /> Travis Myren said yes. <br /> Commissioner Richards noted that they are getting $2 million to fix it up from the county <br /> and asked if the county should adjust the rent after the improvements. <br /> Travis Myren said that they would have to renegotiate that point. <br /> Commissioner Richards asked if the recommendations are a result of the negotiations. <br />