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MINUTES
WILKES COUNTY BOARD OF COMMISSIONERS
JULY 7, 2009
PUBLIC HEARING - ROAD NAME REQUEST - Chairman Zach Henderson declared the Public Hearing open concerning a road name request at 5:00 P. M. on Tuesday, July 7, 2009, with the following members present: Chairman Zach Henderson, Vice Chairman Keith Elmore, Commissioner Gary Blevins, Commissioner Luther Parks, and Commissioner Charlie Sink.
Also present were Tony Triplett, County Attorney; County Manager John Yates; and Alene Faw, Clerk to the Board.
Chris Huffman, Zoning Enforcement Officer, stated this Public Hearing is for the purpose of receiving public input on naming a private drive located off of Traphill Road in the Rock Creek Township. He stated the proposed name for the private drive is Springfield Drive. He stated this request meets the Wilkes County Road Naming Ordinance and all property owners and residents have been notified of the Public Hearing.
There being no further comments regarding the road name request, Chairman Zach Henderson declared the Public Hearing closed at 5:03 P. M.
PUBLIC HEARING - SUNCREST FARMS ECONOMIC INVESTMENT AGREEMENT - County Attorney Tony Triplett advised the owners of Suncrest Farms have requested the Public Hearing be postponed to a date in August as they were both unable to be here for the meeting tonight. He stated he will wait until the first meeting in August and reset the Public Hearing for the second meeting in August.
PUBLIC HEARING - MXR TECHNOLOGIES ECONOMIC INVESTMENT AGREEMENT - Chairman Zach Henderson declared the Public Hearing open concerning an Economic Investment Agreement for MXR Technologies at 5:05 P. M. on Tuesday, July 7, 2009, with the following members present: Chairman Zach Henderson, Vice Chairman Keith Elmore, Commissioner Gary Blevins, Commissioner Luther Parks, and Commissioner Charlie Sink.
Also present were Tony Triplett, County Attorney; County Manager John Yates; and Alene Faw, Clerk to the Board.
County Attorney Tony Triplett stated Economic Development Director Don Alexander and Assistant Economic Development Director Robin Hamby are here and can certainly answer any questions the Board might have. Mr. Triplett stated the Board has been discussing an Economic Investment Agreement with MXR Technologies for a considerable period of time. He stated the County has been in discussions and negotiations with MXR over that period of time both on an Economic Investment Agreement and for a Lease and Operations Agreement for a seven acre parcel at the new Industrial Park at the Airport. He stated the purpose of tonight’s Public Hearing is to hear comments on the proposed Economic Investment Agreement and the proposal to render economic assistance to MXR and the form that assistance would take. He stated that is embodied in an Economic Investment Agreement and the Commissioners all have copies of that agreement and it has been discussed for quite a period of time. Mr. Triplett stated he has worked quite a bit with both the Board and MXR on that agreement. He stated MXR’s CEO and President Chris Meyer, as well as Corky Meyer, his father, are here tonight. Mr. Triplett stated he and Corky Meyer have worked quite a lot on this Economic Investment Agreement as well as he and Chris Meyer. He stated the basic provisions of the agreement as called for by its terms is for the County to offer several different kinds of economic assistance to MXR in return for their agreement to construct a facility in the new Airpark. He stated under the agreement the County will lease approximately seven acres in the Airpark to MXR. He stated there is a survey being performed of the property. He stated one corner of the property will be cut off just a little bit by a right of way for the new access road being constructed at the Airport. Mr. Triplett stated seven acres would be leased under a Lease and Operations Agreement to MXR. He stated they will construct a permanent facility on that seven acres in which they would operate their aircraft manufacturing operation. Mr. Triplett stated in return for that the County will render economic assistance in the development of infrastructure in the park which is already being undertaken with the assistance of grant funds. He stated the County would make Economic Development payments to MXR based on their number of employees and the capital investment they produce for the County. He stated the County would make an additional payment to MXR of $175,000. He stated that payment would be made upon conclusion of the construction of their permanent facility. He stated the $175,000 will only be paid when a Certificate of Occupancy is issued by the Wilkes County Building Inspections Department upon completion of the facility. He stated upon completion in accordance with the requirements of the Economic Investment Agreement which calls for a minimum of 10,000 square feet, the payment would be made. Mr. Triplett stated MXR has agreed to various levels of capital investment and employment that are set forth in the agreement. He stated payments would not begin until they make those investments which will start when the building is completed. He stated the building will have to be completed within two years of the time the lease is entered into. He stated MXR’s plans are to have it done sooner than that but that is contingent on the County completing their part of the infrastructure and providing infrastructure that will allow MXR to open and operate. He stated that infrastructure consists basically of power, water, and sewer or septic service, the construction of a taxi lane to connect MXR to the runway, and the access road that is currently being built into the property. Mr. Triplett handed out a diagram to the Board provided by engineers, W. K Dickson, which gives a good idea of what is proposed as to how this is laid out. He stated the contract has been awarded for the proposed access road and the contractor has mobilized and construction has already started. He stated the access road will provide access not only for MXR’s location but also for additional building sites for other future tenants at the Airpark. He stated for purposes of the Public Hearing the County would be leasing to MXR the rectangle shaped parcel on the diagram. He stated that is set back from the runway in accordance with standard FAA prescribed setback requirements for Airports.
John Reavill made the following statement: “I thank and commend the Board of Commissioners for their efforts to encourage the economic development of Wilkes County. Having aviation and manufacturing experience, I must state that the proposed activities of MXR Technologies, Inc. (a Florida corporation) provide opportunities to enhance the lifestyles of our friends and neighbors in Wilkes County and the opportunity for continued growth in this County. It is essential that we must encourage business development, at a reasonable cost to the taxpayers, coupled with honest and forthright negotiation. However, as of this morning, I find myself troubled by a few facts and circumstances. Among those are:
- MXR Technologies, Inc. (MXR) does not have a Certificate of Authority to conduct business in North Carolina. The Office of the Secretary of State has informed me that MXR does not have a Certificate of Authority and that as a foreign corporation it may not conduct business in this State until it obtains a Certificate of Authority.
- MXR Technologies, Inc. is not an Assumed Name registered with the office of the Register of Deeds of Wilkes County. There are circumstances where such a filing is possible. MXR has filed a ‘Certificate of Assumed Name for Corporation’ for MX Aircraft, Inc.
- MXR filed a change of address with the Florida Department of State Division of Corporations on April 15, 2009, which changed its place of business to North Wilkesboro.
- The facts as I understand them, will commit MXR and Wilkes County to hundreds of thousand, if not millions, of dollars to this economic development venture.
Your consideration of the facts stated above will be appreciated.” Mr. Reavill stated he is taking no position on this but the facts need to be disclosed for the Board’s consideration.
Mr. Triplett stated Mr. Reavill raises some good points. He stated MX does operate as MX Aircraft, Inc. right now. He stated MX is in the process of transferring their right to do business to the State of North Carolina. He stated the only hold up on that is the form of entity they are going to take. He stated that in turn depends on some tax considerations that are being discussed by MXR. He stated MXR will be established in North Carolina either as a corporation or perhaps a limited liability company. He stated they do have a Certificate of Assumed Name as MX Aircraft and that in all likelihood will be the name they will continue to operate under in Wilkes County and that is being addressed. Mr. Triplett stated the actual Economic Investment Agreement is in the name of MXR Technologies, Inc. and that is the name of the current corporation. Mr. Triplett stated by its terms the Economic Investment Agreement extends to any successor entity so if MX decides to operate in North Carolina and become either a corporation or a limited liability company under the name of MX Aircraft this agreement will apply to that entity the same as MXR Technologies. He stated that has been built into the terms of the agreement knowing this needed to happen and was going to happen. He stated that is in progress and Mr. Reavill raises a good point in bringing it up. He stated that is a detail that needs to be taken care of and will be.
Jerry Swaim stated he lives on Walt Brewer Road which is parallel to the runway at the Airport. He asked if it is appropriate to make his remarks and those of several of his neighbors with concerns about the activities of the MX Company. He asked if this Public Hearing is the place to reiterate their concerns and plead for consideration or is it just about economic development. Chairman Henderson stated what the Board is hearing tonight is specifically about economic development. He stated as Mr. Swaim is aware there is a meeting set up for those concerned citizens between them and the owners of MXR Aircraft. He stated that will be held Thursday afternoon at 5:30 P. M. He stated the Board has heard those concerns. He stated if there are new concerns, the Board will be happy to hear about them but if there are not, the other concerns will be addressed on Thursday afternoon. Mr. Swaim stated he wondered if those concerns might enter into the Board’s decision as the Board will vote on the agreement later in the agenda. Chairman Henderson stated they may or may not vote on the agreement.
County Manager John Yates stated he received an email from Gary Daemer and he gave the Board a copy for their consideration.
There being no further comments regarding the Economic Investment Agreement for MXR Technologies, Chairman Zach Henderson declared the Public Hearing closed at 5:15 P. M.
The Wilkes County Board of Commissioners met on Tuesday, July 7, 2009 at 5:15 P. M. with the following members present: Chairman Zach Henderson, Vice Chairman Keith Elmore, Commissioner Gary Blevins, Commissioner Luther Parks, and Commissioner Charlie Sink.
Also present for the meeting were Tony Triplett, County Attorney; County Manager John Yates; and Alene Faw, Clerk to the Board.
The meeting was called to order by Chairman Henderson who welcomed those in attendance.
INVOCATION & PLEDGE OF ALLEGIANCE – The Invocation and Pledge of Allegiance were led by Commissioner Luther Parks.
MINUTES - Motion was made by Commissioner Charlie Sink, seconded by Vice Chairman Keith Elmore and unanimously adopted to approve the Minutes of the Board Meeting held on June 16, 2009.
ROAD PETITION - Motion was made by Commissioner Charlie Sink seconded by Commissioner Luther Parks and unanimously adopted to approve the following road petition:
Poplar Trail
REQUEST: Addition to State System
RESOLUTION IN HONOR OF THE MEMORY OF KYLE P. BARBER - Trooper Joe Rankin stated he and his fellow troopers are here with heavy hearts. He stated Trooper Kyle Barber became a trooper in 1985 and came to Wilkes County in 1995. He stated a year after that he had a vehicle stopped on US Highway 421 East and was hit in the rear by another vehicle while on duty. He stated through that accident he had severe back injuries and had quite a few operations and was out of work for almost two years. Trooper Rankin stated his main goal was to come back as a trooper. He stated that is all he ever wanted to do in his life and he did that. He stated in 2007 Trooper Barber was involved in another accident. He stated he was helping another Trooper investigate an accident and was struck by a four wheeler. He stated through that accident he received numerous surgeries again and was out of work quite a while and eventually as a result of those injuries had to have his leg amputated at Baptist Hospital. Trooper Rankin stated through that surgery and complications of that surgery Trooper Barber lost his life. He stated in essence he gave his life for the citizens of Wilkes County and for North Carolina. Trooper Rankin stated they respectfully request that the Board of Commissioners approve a resolution asking the Department of Transportation to name the bridge at US Highway 421 over Red, White, and Blue Road as the Kyle Barber Memorial Bridge.
Chairman Zach Henderson thanked Trooper Rankin and his fellow troopers for the work they have done on this in trying to remember a fallen comrade and for the work he did for the citizens of this County and the State. He stated he thinks this is a good effort on their part.
Commissioner Charlie Sink made a motion to approve the resolution. The motion was seconded by Commissioner Luther Parks and unanimously approved.
Chairman Henderson stated he will sign the resolution and forward it to Arnold Lackey, Road Commissioner for the Department of Transportation to do what is necessary.
RESOLUTION IN HONOR OF THE MEMORY OF
KYLE P. BARBER
WHEREAS, Kyle P. Barber served as a trooper for the North Carolina Highway Patrol, Troop F, District 2 Patrol Office in Wilkesboro North Carolina from January 1995 until his untimely death on May 19, 2009; and
WHEREAS, Kyle P. Barber was a member of the Wilkes Telephone Board of Directors, was a member of the Shepherds Crossroads Volunteer Fire Department Board of Directors, and coached girls soccer at East Wilkes High School; and
WHEREAS,Kyle P. Barber was a leading citizen, an outstanding law enforcement officer and was always dedicated to the welfare of the citizens of Wilkes County and sincerely committed to the fundamental principals of good government.
THEREFORE,on behalf of Wilkes County, the Wilkes County Board of Commissioners do hereby issue this resolution in honor of the memory of Kyle P. Barber and in support of the naming of the bridge overpass on U. S. Highway 421 over Red, White & Blue Road (SR 2325) in Wilkes County the Trooper Kyle P. Barber Memorial Bridge.
Adopted this 7th day of July, 2009
WILKES COUNTY BOARD OF COMMISSIONERS
/s/ Zach Henderson, Chairman
Attest:
/s/ Alene E. Faw, County Clerk
ROAD NAME REQUEST - Chris Huffman, Zoning Enforcement Officer, stated earlier this evening a Public Hearing was held to name a private drive. He stated the proposed drive name is Springfield Drive. He stated at the Public Hearing no opposition was voiced. He stated the road request meets the requirements of the Wilkes County Road Naming Ordinance.
Commissioner Luther Parks made a motion to approve the road name request. The motion was seconded by Commissioner Charlie Sink and unanimously approved.
WILKES TRANSPORTATION AUTHORITY - Bruce Eilert, Wilkes Transportation Authority Executive Director, stated normally the Public Transportation Authority provides him information about grants six months prior; however, this year due to their commitments to the stimulus packages and getting those distributed, this grant is late. He stated they are moving with all due expediency trying to get it accomplished. Mr. Eilert stated the Rural Operating Assistance Program Grant is one the County must ask for. He stated he is the facilitator for that through Wilkes Transportation Authority. He stated in years past they have gotten quite a bit of money. He stated last year they received over $211,000 in grant monies to help the general public for Elderly and Disabled Transportation and the Work First Transportation. Mr. Eilert stated this year the grant is going to be about $21,000 higher than last year for a total of $232,554. He stated that can go a long way toward helping the citizens of Wilkes County. He requested the Board of Commissioners set a Public Hearing on August 3, 2009 to review with the general public anyone interested in making comments about this grant. He stated after that he will submit the grant to the State and hopefully he will have that by the upcoming fiscal year. Mr. Eilert stated WTA will continue to honor all existing grant transportation that would have fallen underneath this until such time the grant is finally approved.
Vice Chairman Keith Elmore made a motion to set a Public Hearing as requested on August 3, 2009 at 7:00 P. M. The motion was seconded by Commissioner Luther Parks and unanimously approved.
POPLAR SPRINGS WATERLINE PROJECT - Grants Administrator Paul Robinson stated on June 25th West Consultants opened bids on the Poplar Springs Waterline Project. He stated the low bid for construction of the waterline outside of Ronda was $71,618.40 with the low bidder being Neill Grading & Construction Company, Inc. of Hickory, NC. He stated they had about nine bidders. He stated the bids were spread out and went up to $101,000. He asked the Board to approve the low bid as presented.
Commissioner Charlie Sink stated he would have thought there would have been a local bidder on the project. Mr. Robinson stated he was also surprised by that. He stated they advertised in the local paper and the Winston-Salem Journal and they got bids from as far away as Asheville but did not get any local bidders.
Commissioner Luther Parks asked if this company has done any work in Wilkes County. Mr. Robinson stated he does not know. He stated they have done work with West Consultants being the engineer. He stated in his understanding from West this is a reputable firm.
Vice Chairman Keith Elmore asked how many homes will be served. Mr. Robinson stated their goal right now is sixteen. Vice Chairman Elmore asked if money is budgeted for this. Mr. Robinson stated this is a grant and no County money at all is involved.
Commissioner Gary Blevins asked if the grant is for the amount of the final bid selected. Mr. Robinson stated the grant he received from the North Carolina Housing Finance Agency was $117,455. He stated that includes other costs such as administration and engineering which on this project was $9,000. He stated on this project the administration is around $7,000 so the rest is for actual construction. Commissioner Blevins asked if there is enough money in the grant to cover everything. Mr. Robinson stated based on estimates given by the engineering firm on construction costs of the waterline, he is well within that price range barring any real catastrophes such as hitting a lot of rock, etc. He stated in the projects he has had in the past, he has never had that problem but there is always the first time. Mr. Robinson stated right now as it stands he is well within the grant amount.
Commissioner Parks asked when this project is started, what is the anticipated time it will take. Mr. Robinson stated they hope if they can get started right after tonight, it will be August or September.
Commissioner Luther Parks made a motion to approve the low bid of $71,618.40 to Neill Grading and Construction Company, Inc. of Hickory, North Carolina. The motion was seconded by Commissioner Gary Blevins and unanimously approved.
URGENT HOUSING REPAIR PROGRAM - Grants Administrator Paul Robinson stated this past Spring the Board of Commissioners approved the submission of a grant application to the North Carolina Housing Finance Agency for the Urgent Repair Program for housing. He stated this impacts mostly the disabled and elderly and makes critical repairs on the dwellings which they own and live in. He stated he put that in and it did get funded. Mr. Robinson stated to get that project started the Board of Commissioners have to approve a Grant Project Ordinance. He stated the grant amount is $65,000. Mr. Robinson stated in conjunction with this same project the County has to have a Program Assistance Policy. He stated this is something that has been done with every project like this the County has had. He stated the Program Assistance Policy lays out how the project and program is going to be initiated, run, and operated. He stated it a fairly detailed document but it has to be adopted by the Board of Commissioners to protect the program for guidelines for the North Carolina Housing Finance Agency on how the program is run. He asked the Board’s approval of that also.
Commissioner Charlie Sink made a motion to approve the Grant Project Ordinance and the Program Assistance Policy as requested. The motion was seconded by Commissioner Luther Parks and unanimously approved.
GRANT PROJECT ORDINANCE
Be it ordained by the Board of Commissioners of Wilkes County that, pursuant to Section 13.2 of Chapter 159 of the General Statutes of North Carolina, the following Grant Project Ordinance is hereby adopted:
Section 1. The project authorized is the Urgent Repair Project described in the work statement contained in the Grant Agreement URP0941 between this unit and the N. C. Housing Finance Agency. This project is more familiarly known as the URP Project.
Section 2. The officers of this unit are hereby directed to proceed with the Grant Project within the terms of the Grant documents(s), the rules and regulations of the Department of Commerce, Division of Community Assistance and the budget contained herein.
Section 3. The following revenues are anticipated to be available to complete this project:
North Carolina Housing Finance Agency $65,000
Section 4. The following amounts are appropriated for the project:
Urgent Repair of Homes and associate support $65,000
Section 5. The Finance Officer is hereby directed to maintain within the Grant Project Fund, sufficient specific detailed accounting records to provide the accounting to the grantor agency required by the Grant Agreement(s) and Federal and State regulations.
Section 6. Funds may be advanced from the General Funds for the purpose of making payments as due. Reimbursement requests should be made to the Grantor Agency in an orderly and timely manner.
MXR TECHNOLOGIES – ECONOMIC INVESTMENT AGREEMENT - County Attorney Tony Triplett stated a Public Hearing was held earlier for the purpose of receiving comment on a proposed Economic Investment Agreement between Wilkes County and MXR Technologies. He stated the matter is now before the Board for a decision on whether to proceed and if so how they wish to proceed. He stated Economic Development Director Don Alexander, Assistant Economic Development Director Robin Hamby and Jack Goff are here to answer any questions. He stated Mr. Goff has been instrumental in the process of the completion of the infrastructure at the Airport. He stated he or County Manager John Yates can answer any questions concerning infrastructure. He stated concerning general operations Chris Meyer and Corky Meyer are also here.
Vice Chairman Keith Elmore stated the agreement cannot go through until the infrastructure is out there. He stated one of the things needed is three phase power and asked if that is out there. He asked if the County knows what all the costs can be. He asked if the security fence encompasses the whole back side of the Airport. Mr. Goff stated he does have some costs. Vice Chairman Elmore asked what the cost is. Mr. Goff stated Jimmy Luther with W. K. Dickson put that together. County Manager John Yates stated he and Mr. Goff talked about the fence yesterday. He stated he does not have a quote on how much it will cost. He stated they will use some of the existing fence but it will be expensive. He stated he thinks it will cost around $50,000. Vice Chairman Elmore asked if Duke Energy will require the County to pay anything to get the three phase power or will that be at their expense. Commissioner Luther Parks stated that is one of the things being discussed today. He stated he will know more about that a little later. Mr. Alexander stated in speaking with Harry Povey, Duke Energy Engineering Supervisor in Winston-Salem this afternoon, if while the County is digging the tunnel for the sewer lines to go underneath the runway as proposed, the equipment can be used to dig a parallel tunnel that will be a no cost solution rather than digging the tunnel and putting in a six inch pvc pipe for the three phase power underneath the runway.
Vice Chairman Elmore asked how much it will cost the County with the all the grant money and what the cost will be if the County does not get any grant money. Mr. Yates stated the cost up to June 30, 2009 for land is $450,312.50 and the construction cost up to this point is $447,692. He stated this has been called Phase 1 and Phase 2 and he feels it is safe to say they are just about done with Phase 2. He stated the County has gotten grant money to cover the relocation of the road from the North Carolina Department of Transportation. He stated they have agreed to reimburse the County for the road construction. Mr. Yates stated he is trying to get grants for the water and sewer. He stated three of the grants have gotten to the County but he is waiting on the IDF and the EDA grants. He stated he and Ms. Hamby have scheduled a conference call tomorrow morning with Duncan Cavanaugh. He stated they think all of the paperwork has been submitted. He stated they plan to set up another meeting with Chris Meyer, Mr. Cavanaugh, and the IDF people and he hopes that is the last hurdle. He stated the County has gotten about one half of the grant money for this project for water and sewer already committed. Mr. Triplett stated the County was informed on the land purchases by the Department of Transportation Aviation Division in Raleigh, the County is eligible for a 90% reimbursement. He stated that reimbursement will come over a period of several years and is not a lump sum. He stated the Division of Aviation does not make reimbursements that way but makes them over a period of several years. Mr. Triplett stated he talked with Jimmy Luther with W. K. Dickson last week to verify the County is still going to receive the reimbursement for the land purchases and Mr. Luther says we are. He stated that will be 90% of the land purchases by DOA.
Mr. Yates stated there is $900,000 that will come in over the next three years for the taxiway through the Division of Aviation also. He stated as soon as the project is ready, Mr. Goff will go to bid on that also. He stated a certain amount of dirt has to be moved before they can go to bid on the taxiway. He stated from yesterday it will take about forty-five days weather permitting to have the dirt moved.
Vice Chairman Elmore stated he met Corky Meyer for the first time tonight and he has met Chris Meyer on several occasions and they are wonderful people. He stated Chris Meyer is young, smart, and energetic and he thinks a lot of the Meyers, Chris especially. Vice Chairman Elmore stated one problem he has is with the $175,000 lump sum payment. He stated once that is paid it is not tied to anything. He stated the only thing that is tied to is once the estimated $425,000 hangar is built, there will be a lump sum payment and essentially there is no recourse if MXR decides to move in a couple of years. He stated they can sell the hangar and the County will be out a hangar. He stated the County will probably buy it back because they have bought all of the others back. He asked if there is any way to write the Economic Investment Agreement so the County will not lose the $175,000 lump sum. He stated he wants something to protect the County from the $175,000 lump sum payment. He stated that is the biggest problem he has with this. Mr. Triplett stated he, Chris Meyer, and Corky Meyer discussed the $175,000 over a long period of time. He stated the genesis of that figure is the original discussions between the County and MXR and the verbal agreement with MXR was the County would convey seven acres of property at no charge. He stated that started at five acres and went to seven. He stated originally the County was to develop an Airpark just like North Wilkesboro is doing their Industrial Park and convey property as an economic incentive out of that Airpark. Mr. Triplett stated he was subsequently informed by the FAA that they would not consent to a situation where the County did a “through the fence” operation. He stated that means the County would own the land, convey seven acres to MXR, and then give them the right to have an operation that comes from property they own through the boundary of the Airport onto the runway. He stated that is called a “through the fence operation” because the Airport literally has a fence around the boundaries of the property and the FAA does not condone “through the fence operations”. He stated they want to see all operations within the perimeter of the Airport property. Mr. Triplett stated that left the Board with having to renegotiate. He stated they talked about that and arrived at the only alternative they could see which was a lease for the County to develop the Airpark, own the property and lease to MXR much as is done on all the other property at the Airport to other tenants out there so they entered into that arrangement. He stated a lease is a different thing from a conveyance. He stated MXR will not own the property but lease it and when the lease is over the building on it will become the County’s because it is part of the real estate. He stated that is what led to the discussions of a monetary incentive to replace what was lost by MXR through the County’s inability to convey property to them. He stated that is where the $175,000 came from. Mr. Triplett stated the County does not pay that until a Certificate of Occupancy is issued and that building is completed. He stated the agreement calls for a minimum tax value of $675,000. He stated the $425,000 was the initial figure but eventually to fully satisfy the Economic Investment Agreement it became 10,000 square feet for $675,000. He stated this will be a hangar on County property that is a finished facility. He stated if MXR defaults under their lease with the County, the default would cause a reversion of that real estate to the County including the hangar. He stated if MXR were to sell the hangar, the preferable thing the County would want to see is a hangar constructed at MXR’s expense on that property in private hands generating tax revenue for the County and hopefully housing another industry much as Lowe’s sold their hangar to Dove Air. He stated Dove Air came in, bought the hangar, pays taxes on it, and has operations in it. He stated this is the same general idea. He stated that is what drove the County in the direction of the $175,000. Mr. Triplett stated he understands what Vice Chairman Elmore is saying about protection for the County and the only thing he can say is the protection is the items he just stated, they do not get the money until the hangar is completed in that minimum amount. He stated their plans are to actually construct a hangar worth much more than that. He stated that will be on property owned by the County and if the lease is defaulted under, it becomes the County’s. He stated if they sell the hangar, it has to have the County’s permission but when the County gives their permission like when Lowe’s sold to Dove Air that is another tax paying entity that is occupying a hangar that was not built at the County’s expense generating tax revenue for the County and hopefully jobs. He stated that was the thinking process that went into this.
Vice Chairman Elmore stated he does not fully understand the third party lease. He stated the County’s agreement is with MXR and the lease of the property will be held by a third party. He asked what the purpose of that is. Mr. Triplett stated this is a standard business type arrangement he has seen many times in his career. He stated most attorneys that deal in anything involving business or real estate will see this typically with any type of manufacturing operation like MXR where the company does not typically want all of its assets owned by the operating company. He stated most concerns will create a separate holding company to hold title to the real estate and lease it to the operating company. He stated the operating company is the company that is out there generating activity on the property and that tends to be exposed to the greatest liability. He stated the operating company will typically not want all of its assets in its name but will want to lease its assets instead of owning them. He stated MXR made that request of the County and that was run by the Airport Board. He stated the Airport Board recognized that is a very standard type of business arrangement. He stated he will be surprised if the County does not have other tenants in the Airpark that do not want to do the same thing. He stated that is why the transaction is set up the way it is. Mr. Triplett stated Meyer Business Properties will actually be the lessee or tenant for the ground space lease. He stated both Meyer Business Properties and MXR will be bound so if there is a default by either one under the provisions of the lease, they both have the same obligations. Mr. Triplett stated a minor technical change has been made in the lease to cover that very point. He stated if there were to be a default since both are on the hook, both need to have the right to cure that default and that change was made in the lease. He stated that is the reason for the business arrangement being what it is. He stated it is very standard and is seen all the time in the business world. He stated he feels like the County will be asked to structure a number of agreements this way as businesses move to the Airpark.
Vice Chairman Elmore stated the County applied for the grants based on certain employment criteria submitted and the County is responsible if that is not met and there is a claw back to the State. Mr. Triplett stated that is correct. Vice Chairman Elmore stated he has a problem with that. Mr. Triplett stated that is built in because the County is receiving the money. He stated the companies are required to sign the agreement saying they are going to create a certain number of jobs but they are not getting the money. He stated the County is getting the money so it was felt the only appropriate thing is for the County to be responsible for that. Mr. Alexander stated the Golden Leaf and the Rural Center Grants have claw back provisions. He stated the claw back provisions are $10,000 per job not met by MX but the County is the benefactor of the jobs created by MX to get the infrastructure. Mr. Alexander stated if the County gets $1 million worth of infrastructure and have to claw back $10,000 because of being off by one job the County is still getting a bargain. He stated they deliberately lowered the bar on job creation to be well within the threshold of what Chris Meyer expects to hire. He stated they have safety cushions built in this so they do not expect to get clawed back but if they do, the County still is getting an incredible bargain. He stated as Mr. Triplett said the County is the benefactor of them bringing their business here to get all of this infrastructure to establish an Airport Industrial Park. Mr. Alexander stated without them the County could not do this. He stated the final analysis is in five years from now, if MXR decides to move somewhere else, which is unlikely, the County still has the water, the sewer, and the three phase power which is everything the County needs plus will have a very modern manufacturing space and hangar. He stated in the last twenty months they have looked at virtually every contingency that can happen and the County is protected in every way possible. Mr. Yates stated on all the grants the claw backs would be prorated and the County would not owe the whole thing. Vice Chairman Elmore asked the number of jobs that were submitted with the grants. Mr. Yates stated they tried to lower the jobs as low as they could. Ms. Hamby stated Golden Leaf and Rural Center are the only ones that have claw backs and they are at ten jobs. Vice Chairman Elmore stated the County could only lose $100,000. Mr. Alexander stated the jobs have already been created. Vice Chairman Elmore stated he thought it was one hundred jobs. Ms. Hamby stated it is $10,000 per jobs or a maximum of $100,000. She stated they tried to minimize the risk of claw backs to the County.
Commissioner Charlie Sink made a motion to approve the Economic Investment Agreement. The motion was seconded by Commissioner Gary Blevins.
Vice Chairman Elmore stated he truly hopes success and nothing but the best for MXR. He stated he does respect and thinks a lot of the Meyers family and welcomes them.
Voting on the motion: Ayes - Chairman Zach Henderson
Commissioner Gary Blevins
Commissioner Luther Parks
Commissioner Charlie Sink
Nays - Vice Chairman Keith Elmore
MXR TECHNOLOGIES – LEASE AND OPERATIONS AGREEMENT - County Attorney Tony Triplett advised the Lease and Operations Agreement with MXR Technologies was discussed at the last meeting and has been noticed in the newspaper as required for ten days. He stated there is a Resolution for the Board’s approval if they want to move forward with the lease. Mr. Triplett stated there are two minor changes to the lease. He stated he changed the word lessee to lessor at one point in the Lease Agreement and he also made the change that either party, MXR or Meyer Business Properties, have the right to cure the default of the other in the event there is a default and to make sure that both are notified in case there is any default. He stated other than that it is the same lease that was before the Board at the last meeting.
Commissioner Charlie Sink made a motion to adopt the Resolution as presented. The motion was seconded by Commissioner Gary Blevins.
Voting on the motion: Ayes - Chairman Zach Henderson
Commissioner Gary Blevins
Commissioner Luther Parks
Commissioner Charlie Sink
Nays - Vice Chairman Keith Elmore
RESOLUTION
AUTHORIZING LEASE
AND OPERATIONS AGREEMENT
WHEREAS, the Wilkes County Board of Commissioners at its regular meeting of June 16, 2009, authorized advertisement for a lease by negotiated offer, advertisement, and upset bid of approximately seven (7) acres of ground space located in the new airpark on the east side of the runway at the Wilkes County Airport to MXR Technologies, Inc., or such holding company or related entity as MXR may designate (hereinafter “MXR”), pursuant to a Lease and Operations Agreement as presented at said meeting (hereinafter “Agreement”);
AND WHEREAS, said advertisement was completed as required under the provisions of G.S. §160A-269, in the form of a Notice of Intent to Approve Lease and Operations Agreement (hereinafter the “Notice of Intent”) which was published in the Wilkes Journal Patrioton June 24, 2009;
AND WHEREAS, the Notice of Intent contained the basic terms of the offer received by MXR for the lease of said ground space, as negotiated between Wilkes County and MXR;
AND WHEREAS, the description of the property to be leased as set forth in the Notice of Intent was as follows:
DESCRIPTION OF PROPERTY TO BE LEASED: The Agreement is for the lease of ground space for the construction of an aircraft manufacturing and production facility, together with parking and taxi-lane access for the same, on a parcel consisting of approximately 7 acres located in the new airpark on the east side of the runway at the Wilkes County Airport, a more precise legal description of which is to be set forth in a survey obtained by the County.
AND WHEREAS, the amount and terms of the offer by MXR, to lease said ground space were set forth in the Notice of Intent as follows:
AMOUNT AND TERMS OF OFFER: MXR proposes to lease the above described property from the County of Wilkes for a period of ten (10) years with four (4) automatic ten-year renewal options, for a total maximum term of fifty (50) years, subject to the right of the parties to enter into negotiations for an additional extension or renewal of the Agreement. Rental to be paid by MXR will be $609.84 for the first year of the first ten-year term, $1,219.68 for the second year of the first ten-year term, $1,829.52 for the third year of the first ten-year term, $2,439.36 for the fourth year of the first ten-year term, $3,049.20 per year for the fifth through tenth years of the first ten-year term, $4,097.89 per year for the second ten-year term, $5,507.22 per year for the third ten-year term, $7,401.25 per year for the fourth ten-year term, and $9,946.67 per year for the fifth ten-year term. The Agreement requires MXR to construct a hangar or building on the leased premises at least 10,000 square feet in size for the operation of an aircraft manufacturing and production facility as set forth in an Economic Investment Agreement to be entered into by the parties, and further requires that MXR be responsible for all utilities, taxes, insurance, and maintenance. The Agreement and MXR’s lease of the above described property shall in all respects be subject to the Rules and Regulations for the Wilkes County Airport.
ECONOMIC INVESTMENT AGREEMENT: The County intends to enter into an Economic Investment Agreement (hereinafter “EIA”) with MXR at the same time the Agreement is approved, and the Agreement is to be subject to the terms and conditions of the EIA.
AND WHEREAS, no upset bids have been received in response to the Notice of Intent, and the time has expired in which an upset bid may be submitted;
AND WHEREAS, the Wilkes County Board of Commissioners desires to accept the above described bid, and to authorize and approve the Agreement;
AND WHEREAS, the Agreement has been duly approved by the Wilkes County Airport Board, pursuant to the requirements of the Wilkes County Airport Board Ordinance;
AND WHEREAS, the EIA has been or is being approved by the Wilkes County Board of Commissioners under the same date as approval of the Agreement;
AND WHEREAS, under the terms of the Notice of Intent, MXR was authorized to designate a holding company or related entity to serve as lessee under the Agreement; provided, that MXR shall be bound by and remain obligated under all of the terms and provisions of the Agreement;
AND WHEREAS, MXR has duly designated Meyer Business Properties, LLC, a North Carolina limited liability company having Leo E. (Corky) Meyer, or a revocable living trust with Leo E. (Corky) Meyer as its trustee, as the sole member and manager of said limited liability company;
AND WHEREAS, Leo E. (Corky) Meyer is the father of Chris Meyer, President and CEO of MXR Technologies, Inc., and is involved with Chris Meyer in said business and, in the opinion of the Wilkes County Board of Commissioners, is a holding company or related entity within the meaning of the Notice of Intent and should accordingly be authorized to serve as the lessee under the Agreement;
NOW, THEREFORE, BE IT RESOLVED, pursuant to G.S. §§160A-269 and 160A-272, that the Agreement with MXR, as presented at the June 16, 2009 meeting of the Wilkes County Board of Commissioners, and as set forth in the Notice of Intent, is hereby approved.
BE IT FURTHER RESOLVED, that Meyer Business Properties, LLC, a North Carolina limited liability company having Leo E. (Corky) Meyer, or a revocable living trust with Leo E. (Corky) Meyer as its trustee, as the sole member and manager of said limited liability company, is hereby authorized to be named as the lessee under the Agreement; provided, that MXR shall be bound by and remain obligated under all of the terms and provisions of the Agreement.
This the 7th day of July, 2009.
WILKES COUNTY
/s/ Zach Henderson, Chairman
Wilkes County Board of Commissioners
ATTEST:
/s/ Alene Faw, Clerk
TAX ADMINISTRATOR’S APPOINTMENT - County Manager John Yates advised the Tax Administrator is appointed by the Board of Commissioners and his appointment expired July 1, 2009.
Vice Chairman Keith Elmore made a motion to reappoint Alex Hamilton as the Tax Administrator for four years. The motion was seconded by Commissioner Charlie Sink and unanimously approved.
Chairman Zach Henderson stated Mr. Hamilton is doing a good job.
Commissioner Sink stated his involvement in the tax system goes back a number of years having served on the Equalization & Review Board in the 1990’s. He stated he has had the opportunity to see the changes that have taken place in the Tax Department. He stated those folks are not very well liked but that is how government is run. Commissioner Sink stated the whole Tax Department, collections and especially the appraisers, have come so far. He stated they treat everybody the same. He stated he hates to admit that things were not always the same for everybody years ago but working in real estate he saw that. Commissioner Sink stated that is not the case now. He stated now people are treated fairly. He stated values are set fairly and the same way for everybody and that was not always the case. He stated he appreciates what Mr. Hamilton has done. He stated he has brought the County a long way and has a lot of good help. He told Mr. Hamilton to keep bringing the County along.
Mr. Hamilton stated the people he has working for him make his job a lot earlier. He stated he is proud of the progress they have made and hopes to continue to make more progress in the future.
COMMISSIONERS MEETINGS - Chairman Zach Henderson stated the Board usually cancels the second meeting in July and as a result of some conflicts in the coming days, the first meeting in August needs to be rescheduled to August 3, 2009 to follow the Public Hearing.
Commissioner Gary Blevins made a motion to approve changes to the Commissioners Meetings as recommended. The motion was seconded by Commissioner Luther Parks and unanimously approved.
CRIMINAL JUSTICE PARTNERSHIP PROGRAM - County Manager John Yates stated he received a request from Kimberlie Smith, CJPP Director, stating that due to the State budget not being approved and revision of proposed counseling services contracts, she needs approval to continue operation of the Criminal Justice Partnership Program in an emergency capacity through August 2009.
Chairman Zach Henderson stated this program saves the County a lot of money as a result of keeping people out of jail so the County does not incur that expense. He asked if this request is only for August.
Sheriff Dane Mastin stated the CJPP Board met and Commissioner Charlie Sink is a member of that Board. He stated they determined at that time that the State did not have an adopted budget and CJPP does not have any idea what real numbers are going to be with regard to the grant from the Department of Corrections. He stated there is an issue with a services contract for Behavioral Health Services that they had sent out for bids on. He stated there are some discrepancies on the types of services and amounts proposed so the CJPP Board is asking Ms. Smith to look into what all three competing vendors meant by what they wrote and what type services they are actually going to deliver at what price to make sure that is in line with what the CJPP State Area Director will allow reimbursement for.
Ms. Smith stated she did get a letter in the past week stating the CJPP Grant has been approved by the State contingent upon what the amount is after the budget is adopted but she does not know what her budget is going to be as of yet. She stated she has heard it will be reduced probably by 16% for Substance Abuse and Treatment Services. Ms. Smith asked to continue the program under an emergency basis through August at least.
Chairman Henderson asked how much this would be. Sheriff Mastin stated the services contract portion of that budget is around $30,000 for treatment matters such as anger management, dual diagnosis, and all the things the Board is well familiar with such as substance abuse treatment. Ms. Smith stated the cost is around $3,500 per month. Sheriff Mastin stated they are asking to operate on an emergency basis based on last year’s contracts with an agreement with Don-Lin Counseling who is currently doing this so they do not leave any current clients hanging. Ms. Smith stated they are not taking any new clients now. Sheriff Mastin stated they do not want to leave anybody with incomplete treatments which would cause their probation to be revoked because they did not finish or put them in a period of trouble. He stated they will not put anyone else on until this is resolved and they have a State budget and clarifications for three competing contracts their Board has been looking at to determine what is their best bet and the most economical services they can render through this CJPP Program. Sheriff Mastin stated this in nowise has an impact on the Pre-Trial Release Program so they are continuing with that. He stated they have about twenty-five clients. Ms. Smith stated last fiscal year, July 1, 2007 through June 30, 2008, that saved the County $218,000. She stated July 1, 2008 through June 30, 2009 it saved $281,900 so it is getting closer to the mark she wants it to be at.
Commissioner Gary Blevins asked Ms. Smith when she says $281,000 is that compared to if they were to have to be placed in jail. He stated that means the cost is $281,000 less for the fiscal year than the cost to keep clients in jail. Commissioner Blevins asked how much the program costs. Sheriff Mastin stated that costs the County 50% of Ms. Smith’s salary. She stated the savings will increase this year. She stated if she had to go pick people up right now and put them in jail, they would have problems. Commissioner Blevins asked if the clients are electronically monitored. Ms. Smith stated they are not. She stated no one seems to want to pay for that so that ends up on the County. Commissioner Blevins asked if that would be more effective. Ms. Smith asked if the Board is willing to put out $2.25 day. She stated that is all it costs but it adds up and the inmates do not want to pay it. She stated they will sit in jail. Commissioner Blevins stated that is probably a discussion for a different time. Sheriff Mastin stated there are also monitoring expenses in answering calls if an alarm goes off, etc. so they decided not to enter that arena with everything else up in the air as it is at this point in time.
Sheriff Mastin stated they are just asking to operate as they have for the past twelve months through possibly August per chance the State does not come up with a budget anytime soon so they can get some real number. He stated that also gives Ms. Smith an opportunity to look at the three contracts, for their Board to meet and approve them, and bring that to the Board of Commissioners for their approval. Ms. Smith stated she will get the money and there will be a 16% loss for services so in the end that is where it will come off. She stated people will have less hours for treatment, there will be less hours for assessment, etc. She stated they are just asking to run under an emergency capacity until the State budget is approved.
Commissioner Blevins asked if they will operate at the full budgeted amount for last year or are they going to 16% less. Ms. Smith stated they are doing less that that. She stated they are not taking any new clients at this time. She stated they are finishing out what they have. She stated this will help clear out last year. Commissioner Blevins asked if they basically will not receive any funding until the State gets their budget approved. He asked if this will come out of the County’s general fund. Finance Director Jerry Shepherd advised the County will not get any reimbursement until the State budget is approved. Sheriff Mastin stated knowing there is going to be some money there they cannot leave the clients they are currently serving hanging, but they will not take any new clients until after the budget is approved and they have that number in hand. He stated the reason they have to extend the budget is they are asking the Board to continue the contract of 2008-2009 into the first part of this fiscal year with Don-Lin Counseling Services. He stated that is who their contract is with to deliver this product until a new contract and a new budget are approved. Ms. Smith stated that will be reimbursed off the top and after that it will be cut.
Commissioner Luther Parks asked if the Board will hear back from them in August. Ms. Smith stated she can come back to the Board in August.
Commissioner Luther Parks made a motion to approve the funding for emergency services as requested. The motion was seconded by Commissioner Charlie Sink and unanimously approved.
SHERIFF’S DEPARTMENT - NATIONAL ASSOCIATION OF DRUG DIVERSION INVESTIGATORS - Sheriff Dane Mastin stated all of the Commissioners are very familiar with the number of problems including deaths due to the diversion of prescription narcotics. He stated he has attended conference training and met with people trying to hopefully get a handle on this in some fashion that we can better our County and do something to curtail this trend. He stated it is not just in Wilkes County. He stated he does not want to give the Board the appearance that Wilkes County is the worst of the worst. He stated some of the people Wilkes County is compared to in those numbers are big metropolitan areas. He stated unfortunately our numbers are high enough that when it is looked at on a per capita basis that is per 100,000. He stated even though Wilkes County does not have 100,000 people, that gets pro rated so it jacks our numbers up. Sheriff Mastin stated without having autopsies completed so far in this calendar year from January 1st to present they suspect around twenty-four overdose deaths which puts Wilkes County on the mark to double the numbers from last year and that is unacceptable. He stated whether that may be intentional or accidental overdoses, they are all due to prescription narcotics. He stated this is well over the number of illicit drug deaths the County has ever had. Sheriff Mastin stated the Sheriff’s Department applied with the National Association of Drug Diversion Investigators in conjunction with the conference he attended last year in Nashville, Tennessee to work with these folks. He stated this grant is mainly funded by Purdue Pharma whom he was in contact with and they got them in touch with the folks at NADDI and their President. He stated in the application, they have awarded the County with $25,000 and the check is in hand for a one time seed grant to have a full time officer in place to investigate prescription drug diversion cases. Sheriff Mastin stated Wilkes County’s numbers are significant enough that they felt like a rural community can use this assistance. He stated he is asking in conjunction with that money to spend reversion money out of his budget and if necessary seizure money. He stated they are not asking for any additional money from the budget from the taxpayers to pay for this position. He stated he is just simply asking to use the money and the monies he has that may be reverted during the year, and the narcotics seizures money that is turned over to them by the State and Federal government to create a position for this Prescription Drug Abuse Investigator.
Commissioner Luther Parks stated he is sure this position will be helpful. He asked if there are other counties that have had this in force for a while and the difference it has made. Sheriff Mastin stated there are. He stated he is currently working with the DEA and the SBI in trying to take a task force approach for northwest North Carolina. He stated one of the key problems is there is a prescription monitoring program, Controlled Substance Registry, in North Carolina but there are only twelve individuals in the State of North Carolina that have access to it. He stated all of them are SBI agents that cover the entire State of North Carolina. Sheriff Mastin stated when you talk to the SBI, as he has, they will tell you that two of those people are not available so there are only ten working. He stated one is in Iraq and one is out on extended medical leave so ten people cover the entire State of North Carolina. He stated with a county with problems like Wilkes County out of the Greensboro district, how much attention can they give us. Sheriff Mastin stated the Sheriff’s Department wants to be able to help control our own fate and work this with them. He stated there is legislation pending to allow the Sheriff of the county to have access to the Controlled Substance Registry to be able to designate an officer or the Sheriff to see the registry and work these investigations. He stated that is to limit the amount of exposure that list has as it is covered under HIPPA and the Privacy Act and it can only be used for the purpose of narcotics diversion investigations. Sheriff Mastin stated this will help. He stated he has talked to the Board about this before and this is a subject he is very passionate about. He stated he has seen entirely too much of this over the last few years. He stated one of the major hurdles in working on this is this is a legal substance that is lawfully obtained, legally distributed, and then diverted somewhere along the process that makes it so difficult to tract and to keep up with. Commissioner Parks stated since there are only ten officers some of this work can bleed over into other counties even from here. Sheriff Mastin stated that is correct.
Commissioner Charlie Sink made a motion to approve the request as presented with a starting date for the position of August 1, 2009. The motion was seconded by Commissioner Luther Parks and unanimously approved.
Commissioner Gary Blevins stated the wording is the employee will be dedicated strictly to the investigation of pharmaceutical diversion cases for a minimum of one year from their start date. He asked if this sets the start day. Chairman Zach Henderson stated it does.
CLOSED SESSION - Commissioner Charlie Sink made a motion to go into Closed Session to consult with the County Attorney to discuss the location or expansion of business in Wilkes County; to consult with the County Attorney to consider and give instructions concerning one or more potential judicial or administrative actions; and to consult with County Attorney to protect the attorney-client privilege. The motion was seconded by Commissioner Luther Parks and unanimously approved.
Motion was made by Commissioner Luther Parks seconded by Commissioner Charlie Sink and by unanimous vote adopted to adjourn back into regular session.
ADJOURN - Motion was made by Commissioner Charlie Sink seconded by Commissioner Luther Parks and by unanimous vote adopted to adjourn the meeting of the Wilkes County Board of Commissioners at 7:30 P. M.
Alene E. Faw, Clerk Zach Henderson, Chairman
WILKES COUNTY BOARD OF COMMISSIONERS
Approved:
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