Agenda - 10-07-2008 - 6c - Laserfiche WebLink

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center to engage rural farm communities with the opportunities offered by the center. Revenue projection from user fees that provide incentives for sourcing locally grown farm products is $150,000 by year 3 of operation, with gross income for clients using the facility estimated at $2,651,000 per year. This facility will have the potential to serve farmers from 16,214 farms in 22 counties within a 75-mile radius of Hillsborough, North Carolina, representing almost 30% of farms statewide. Farmers and their rural communities as well as tobacco processing and marketing communities can benefit from participating in training and education programs, adding value to and marketing local farm products. Within the 22-county area, this center can enhance the capacity to process local farm products for the 3.3 million individuals who are potential customers for the products created at the center. The short-term goal of the project is to open a regional value-added shared use food and agricultural processing center in January of 2010 with a range of programs and equipment. The success of the short term goal will be measured by client use and revenues generated by the center, as well as training and assistance to farmers and other food entrepreneurs. The long term goal is to become financially independent by 2013. This will be accomplished by building the capacity to process and market North Carolina agricultural products, thereby. increasing the number and diversity of farm operations that help to sustain the Piedmont region. Staff from EDC and Cooperative Extension have continued efforts to fund the implementation of the November 2007 feasibility report. A $132,000 Agricultural Development and Farmland Preservation Trust Fund grant was awarded to this project on June 20, 2008, and the contract is attached. Partnering counties (Alamance, Chatham, & Durham) have each provided $2,500 towards the feasibility report and have each passed resolutions to continue the partnership through implementation of the feasibility study. Chatham County's grant writing specialist was especially helpful in preparing grant applications to Golden Leaf Foundation and the Tobacco Trust Fund Commission. Orange County has provided $5,500 and staff support to this project. FINANCIAL IMPACT: The financial impact associated with signing this contract involves the commitment of the property and building at 500 Valley Forge Road and precludes the use of the building for other purposes. In addition, staff will continue to devote time towards the implementation of this project. Given the total $1,218,500 cost of establishment and first year of operation, the project needs an additional $1,046,000 to fully implement the feasibility study. All grant funds will be guided with assistance from a 501(c)3 non-profit group to be developed from the 40-member advisory group and a 65-member producer group. A $567,000 request to Golden Leaf Foundation would fund $268,000 for renovation costs of the facility and $299,000 for purchase and installation of equipment necessary for the center to function. The Tobacco Trust Fund request would fund $357,000 for purchase and installation of equipment and $122,000 of first year operating costs. Staff met with Golden Leaf Foundation representatives to discuss the proposal on September 16, 2008. Both grant programs will announce recipients in October or November of 2008. The Golden LEAF grant is to be used in 12 months and the Tobacco Trust Fund grant is for up to 24 months. RECOMMENDATION(S): The Manager recommends the Board approve the contract for a $132,000 grant for the Regional Value-Added-Shared-Use Food and Agricultural Processing Center, subject to final review by staff and the County Attorney, and authorize the Chair to sign the contract document.