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

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~3 Commissioner Nelson asked about the annual fees after the startup. is complete and if $150,000: would cover it. The representative :from Smithson Mills said that in Asheville the operating expenses .there are. app. roximately $:130,000 a year; and $70,000 of that is the Facility Rirector (salary of $50,000 with benefits). Th.e community college receives rent of about $35,000 a :year. The balance is dedicated to equipment repairs, minor equipment acquisition, cleaning fees; etc. He said that., based on the demand measured in this region, which is substantially liigherthan Asheville., he believes that the project can approach or meet a break- evenstatus within a few years. Commissioner Nelson asked about the Valley Forge site and said that,.. if grange County were chipping hat in, whatwould'the othercounties be contributing. Noah Ranells said that those- discuss9ns have not occurred yet: Chair Jacobs said that this :could be brought up once everyone is brought to -the table. He is sure that there. is a willingness to contribute: Commissioner Nelson made reference to the management entity and asked who would: set this up a'n'd if it would spin off into its own authority. Noah Ranells said that the options for development of the management authorifiy laywith the commissions. of each county as well as the stakeholder group.. These. two entities. would come together and form this administrative becly. The repre. 5entative from Smithson Mills strongly recommended establishing a 501 (c) 3 with appointees from various commissions because it is more flexible. and works: better. Commissioner Nelson asked abotat the lease arrangement and said that his main concern is that he does 'not believe in giving space :away: However,. this is an exciting project and he would. like to find a way to do this. He would prefer tliat.this entity pay rental, even if it means the County is contributing financially owards the operating expenses for thefirst few years. He does not think hat it is a wise idea from a business standpoint to set up a business and not have them paying all of the op.eratio'n:costs that a real. business would pay. He said thatit is hard to justify giving properly away. Char`r Jacobs. suggested f .tying to scale it up to the. place thafi the County wants: By process of elimination, it is going to be way more convenient to CGrange County producers: So Orange; County will have the biggest advantage for the economic-development opportunity: With that understanding, he thinks that something equitable could be built in. Noah Ranells made reference to a previous question and said that there is about $300,000 in e'quipm'ent and $400,000 in renovation costs for the. initial phase.. He said that this is a business incubator and would spawn economic develapment. Laura Blackmon said fihat there will be concerns from other counties about the County getting the building renovated and the value that would be added to that. The representative from Smithson Mills said that there is a way to structure it so that the value of-the building can beta match.. The agreement in Asheville is $1 a year, with a $35,000 a year utilities and maintenance fee, Commissioner Gordon said that this is an exciting opportunity, She asked if there was a hope to do marethan break even. Noah Ranells said that this is an incubator and it will graduate people :out. The long-term financial planning is a little uncertain. Commissioner Gordon said. that she thinks that the County'should be able to get some. money back. She.said that the value of the building, would be about $50.0,000. She does nat think that the. County is affluent enough to be able to afford to give this property.away. In order to get he costs down, she would like to assess whaYthe property is really worth and then ask the other counties to subsidize ittoa. She thinks that every ather county involved in this has a lower tax rate. She. also has a concern aboutgiving space away. She wants to talk to the other counties, factor it in, and make it fair. Chair Jacobs said that he has heard that the Board has no objections with proceeding, no objections with :allocating. the building, no objections to seeing the board become a 501 (c) 3,