Agenda - 12-13-2022; 8-c - Proposed Eighteen-Month Extension of the State of North Carolina’s “Building Reuse Grant” Incentive for Industrial Connections & Solutions-ABB Inc.

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