2009 - 11-02-09 Regular Meeting - Laserfiche WebLink

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BOOK 23 PAGE 125 meeting with Lee County Economic Development Corporation, the Sanford City Council, and Broadway Town Commissioners. Ms. Shook stated that several of the companies that have been given incentives in the past have gone out of business or laid employees off. She further questioned how Lee County tax payers would benefit from these incentive agreements. Commissioner Reives stated he was against the process taken for incentives, not the Economic Development Corporation (EDC) Board or EDC staff. Upon a motion of the substitute motion, the results were as follows: Aye: Reives and Shook Nay: Dalrymple, Hayes, Kelly, Oldham, and Paschal The Chairman ruled the motion had been defeated by a five to two vote. Upon a vote of the original motion to approve the incentive agreement with Red Wolf, LLC, the votes were as follows: Aye: Dalrymple, Hayes, Kelly, Oldham, Paschal, and Reives Nay: Shook The Chairman ruled the motion had been adopted by a six to one vote. The Board considered an economic development agreement between Lee County Economic Development Corporation and Frontier Spinning, LLC. A public hearing had been held earlier in the meeting concerning the 5-year $144,975.00 project. Commissioner Reives moved to approve an Agreement Regarding Incentive Funds for Frontier Spinning LLC and Resolution Authorizing the Expenditure of Funds for an Economic Development Project and Approving an Agreement with the Lee County Economic Development Corporation, copies of which are attached to these minutes and by this reference made a part hereof. Upon a vote, the results were as follows: Aye: Dalrymple, Hayes, Kelly, Oldham, Paschal, and Reives Nay: Shook The Chairman ruled the motion had been adopted by a six to one vote The Board considered a Resolution Designating Lee County as a Recovery Zone for the American Recovery and Reinvestment Act (ARRA). County Manager John Crumpton stated there were two types of Recovery Zone bonds that have been allocated to Lee County - Recovery Zone Economic Development Bonds ($4,342,000) which may be used to finance certain "qualified economic development purposes", and Recovery Zone Facility Bonds ($6,513,000) which may be used to finance certain "recovery zone property". The first step in the process is for the adoption of a resolution designating the County as a Recovery Zone. The ARRA requires that the bonds be issued before January 1, 2011. In order to give the Economic Development Corporation time to find candidates for the Recovery Zone Facility Bonds, a resolution must be passed at this time and the State Office of Economic Recovery and Reinvestment must be notified of Lee County's intent to try and use the bonds. Budget impact at this time is unknown until projects are identified. Before any money can be borrowed, the project would have to come back to the Board of Commissioners for approval and public hearing. Mr. Crumpton stated since Lee County has such a high unemployment rate at this time and general distress, the entire County of Lee would be designated as a recover zone for purposes of the Recovery Zone Act. The Economic Development Bonds have potential uses for public buildings, infrastructure and training programs. The Facility Bonds have potential uses for private companies to use much the same way Industrial Revenue Bonds are used to purchase and renovate buildings and buy equipment. After discussion, Commissioner Kelly moved to accept the County Manager's report and approve a