Agenda -11-06-2008 - Info - Laserfiche WebLink

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Memorandum Date To: From: October 28, 2008 Laura Blackmon Willie Best Brad Broadwell Noah Ranells .~.>n~oron I~ Subject: Piedmont Value-Added Shared-Use Food & Agricultural Processing Center C Economic Development Commission At the October 7, 2008 BOCC meeting there was a request from staff to provide information on the value of the Valley Forge Road facility. This memo provides that and additional information including 1) previous contributions of partner counties; 2) BOCC actions related to the 500 Valley Forge Road property; 3) current 2008 and proposed 2009 valuation; and 4) factors the BOCC may consider for developing stakeholder equity in the project. 1. There were shared financial contributions to the feasibility study phase for the Piedmont Value-Added Shared-Use Food & Agricultural Processing Center. Alamance, Chatham, and Durham Counties provided $2,500; Weaver Street Market and Whole Foods provided $1,000 each; Orange County provided $5,500 and staff resources. The total of $15,000 was used to complete the 2007 feasibility study available at htto~//www oranaecountyfarms org/documentsNASUPfeasrpt11dec07 odf. At the February 19, 2008 regular meeting of the BOCC, a resolution was unanimously approved "...formally allocating the former Orange Enterprise Building on Valley Forge Road in Hillsborough for development of a regional value-added shared-use food and agricultural processing center". In addition, it was resolved that "...the shared monetary compensation for the Valley Forge property will be determined later and request that equitable fiscal support among partners be pursued that recognizes the allocation of the Orange Enterprise building owned by Orange County." In 2008, the 500 Valley Forge Road building was valued at $250,973 and the 4.7-acre parcel was valued at $176,847. The proposed 2009 valuation is $250,973 for the building and $310,020 for the land (breakdown requested from tax assessor). A currently available comparable warehouse space on Elizabeth Brady Road is offering 17,000 at $0.50 per square foot. This comparable provides a $60,000 per year lease value for the 500 Valley Forge Rd building. It is worthwhile to note that the processing center renovations will likely improve the building and relate to an enhanced asset owned by Orange County. 4. There are many considerations for reaching a sense of equity among the four counties. Most importantly, it is clear that farmers in Orange County are most likely to represent the majority of farmer clients of the processing center given that the location is the geographic center of the county. Yet, in the interest of reaching positive cash flow, the center will consider working with all paying clients in the 75-mile radius of Hillsborough which includes 22 counties even if the counties in which center clients reside are not formally involved in the feasibility study or its implementation. During the feasibility study phase, there was considerable discussion about a fee schedule that provides rates that encourage local farmers and/or food entrepreneurs that local farm products. Such a fee schedule could also consider location of the farmer or food entrepreneur and be modified to provide relative discounts based on contributions of the home county of the farmer or the food entrepreneur. In summary, Orange County's efforts have been recognized in initiating and providing staff support for development of a processing center. The processing center will provide a needed resource for local farms and food entrepreneurs, as well as encourage economic development in the region especially to rural communities. It is critical that the effort to establish equity among the original four partner counties be discussed and developed in a manner that does not compromise the short-term and long-term success of the processing center. P Q BoX 117'T ~ Hr Isbc~roug ~ 7$ ~~ x . - ~'fa~ane'~9f9)"~45.2~2~ F~x~j~is~~4=3f}08 Y}_ s ,. etlcrr~atlc'~cca_dr , ~ ~C. '~ .: k :... ."