Posted October 25, 2023
Public Hearing #1
All interested persons please take notice that a public hearing will be held by the Granville County Board of Commissioners pursuant to North Carolina General Statute (N.C.G.S.) § 158-7.1(c) on November 6, 2023, at 7:00 p.m. or as soon thereafter as the matter may be heard. The meeting will be held at the Granville Convention & Expo Center, located at 4185 Highway 15, Oxford, NC 27565.
The purpose of the public hearing is to hear the views of the public on the potential sale by Kerr-Tar Regional Economic Development Corporation (“KTREDC”), pursuant to a Contract for the Purchase of Real Property (the “Contract”), of approximately 127.16 acres of land, as further defined below as the Site, which Site is currently owned by KTREDC and in which Granville County has an economic interest, to Portman Industrial, LLC or its permitted assign (“Portman”). Pursuant to the Contract, Portman would construct on the Site at least two separate buildings together comprising no less than Nine Hundred Forty Thousand square feet (940,000 sq. ft.) in the aggregate for manufacturing, research and development, life sciences, warehouse, distribution, logistics, or similar purposes (the “Project”). Subject to comments received at the public hearing, the Board of Commissioners intends to approve the sale.
Specific details of the proposed conveyance, as set forth in the proposed final version of the Contract negotiated by KTREDC and Portman, are as follows:
– The interest to be conveyed is fee simple ownership of an approximately 16-acre site consisting of two tracts (the “Site”) to be subdivided from a larger 510.97-acre parcel owned by KTREDC (the “Property”). The Site is located off Tabbs Creek Road and is a portion of the Property, and the Site is located exclusively in Granville County. The total Property from which the Site is being subdivided consists of approximately 510.97 acres as described at Deed Book 1223, Page 131, Granville County Registry and Deed Book 1238, Page 841, Vance County Registry, and is located in Granville County and Vance County (the “Property”). The portion of the Property located in Granville County is also identified as Granville County Tax Map Number 193302865830 and the portion located in Vance County is known as Vance County Tax PIN numbers 0409 01038 and 0409 01001.
– The purchase price for the Site (the “Purchase Price”) shall be $35,000.00 per acre, based on the total acreage of the Site as determined by a subdivision plat to be recorded subdividing the Site from the Property. Based on the estimated acreage of the Site, it is expected that the Purchase Price will be approximately $4,450,600.
– KTREDC will also grant Portman a right of first refusal (the “ROFR”) in the portion of the Property not included in the Site (the “ROFR Property”). The ROFR provides that if KTREDC receives a written offer from a bona fide third party that is not an Exempt Industrial End User regarding a transfer of all or any portion of the ROFR Property (the “Subject Property”) for speculative development and such offer is acceptable to KTREDC and the County, Portman shall have the right to purchase the Subject Property. “Exempt Industrial End User” means a third-party Industrial End User that intends to (A) acquire the Subject Property for the development (either directly or through an affiliate or one or more third party contractors) of an Exempt Project, (B) receive a tax incentive from the State, the County, or applicable local municipality in connection with such development, and (C) directly operate such Exempt Project following completion. “Industrial End User” means an end user or occupier of commercial industrial space. “Exempt Project” means an industrial project to be built on a non-speculative basis, excluding projects to be used primarily for warehousing or distribution purposes. The ROFR will start on the Effective Date of the Contract and will continue until the first to occur of: (i) the termination date of the Contract, (ii) the date of any Exempt Transfer with respect to the Subject Property, (iii) a default beyond any applicable notice and cure period by Portman under any definitive agreement between KTREDC and Portman regarding the sale of Subject Property, or (iv) 540 days after the Effective Date of the Contract. Portman may extend the ROFR for up to two (2) periods of one (1) year each by depositing $100,000 earnest money for each extension, which would be applied to the Purchase Price at closing.
– Portman must commence vertical construction on one of the two tracts comprising the Site within twelve (12) months following closing (subject to Force Majeure). Portman must commence vertical construction on the second tract within twelve (12) months of completion of construction on the first tract (subject to Force Majeure). Vertical construction is deemed to have commenced upon the pouring of the foundation of the applicable structure. If Portman defaults in its obligation to commence vertical construction by the applicable deadlines, KTREDC’s sole remedy will be an agreed upon amount of liquidated damages per day, subject to an overall cap. Upon reaching the cap, KTREDC may repurchase the Property for the Purchase Price (or a portion thereof based on acreage if less than all the Property).
– The Contract is contingent on Granville County providing Portman an economic development incentive on a reimbursement basis of $1,100,000 for site development at the Site.
– Portman may assign the Contract any entity which is owned in whole or in part by, or is directly or indirectly controlled by, managed by or under common control with, Portman (including, without limitation, one or more direct or indirect wholly-owned subsidiaries of Portman) without the consent of KTREDC or Granville County, provided that Portman shall remain liable for performance of all its obligations under the Contract and shall ratify such obligations in writing in the event of any such assignment.
– The Project shall be completed in a manner and using materials consistent with a first-class industrial project, which expressly excludes prefabricated metal buildings as a principal structure (provided, however, that ancillary prefabricated metal structures, such as guardhouses and sheds, shall be permitted).
The following limitations shall apply to the Project:
– Portman shall exclusively market, lease, or sell the Project to manufacturing, life science, biotech, and/or product assembly end users until the date that is three (3) months following Portman’s completion of the first phase of the Project;
– If no such end user is secured within the three (3) month period, Portman may market, sell, or lease the Project to any industrial user (including warehouse and distribution users);
– The amount of warehouse and distribution space will be limited to 400,000 square feet for the Project and to a total of 1,000,000 square feet for the Property; and
– No portion of the Project shall be used for Last Mile Uses without KTREDC and the County’s prior consent. “Last Mile Uses” means the transportation of goods directly from a warehouse to the point of consumption.
Before approving the purchase, the Commissioners shall (1) determine the probable average hourly wage to be paid to workers by the type of businesses likely to be located at the Property and (2) the fair market value of the interest, subject to the repurchase option described above.
All interested citizens are invited and urged to attend.
Public Hearing #2
Granville County proposes to appropriate and expend county funds for the following economic development project pursuant to North Carolina General Statute (N.C.G.S.) § 158-7.1. The County Board of Commissioners intends to consider entering into a contract with Portman Industrial, LLC (the “Company”), under which the county will reimburse the Company for the cost of site preparation on land to be acquired by the Company from Kerr-Tar Regional Economic Development Corporation (“KTREDC”) consisting of an approximately 127.16-acre site (the “Site”). The Site consists of two tracts to be subdivided from a larger 510.97-acre parcel owned by KTREDC (the “Property”). The Site is located off Tabbs Creek Road and is a portion of the Property, and the Site is located exclusively in Granville County. The total Property from which the Site is being subdivided consists of approximately 510.97 acres as described in Deed Book 1223, Page 131, Granville County Registry and Deed Book 1238, Page 841, Vance County Registry, and is located in Granville County and Vance County. The portion of the Property located in Granville County is also identified as Granville County Tax Map Number 193302865830 and the portion located in Vance County is known as Vance County Tax PIN numbers 0409 01038 and 0409 01001.
The costs for which the county will reimburse the Company include clearing and grading the Site and associated erosion control and stormwater control activities. The cost of such activities to the county will not exceed $1,100,000. The county will fund the project with available revenues in the county’s General Fund. The Board believes that the Company’s development of the Site will stimulate and stabilize the local economy and result in the creation of a substantial number of new, permanent jobs in the county. As part of its contract to purchase the Site, the Company has agreed to certain restrictions on the use of the Property that the county believes will further help attract jobs that will pay at or above the median average wage in the county.
The Granville County Board of Commissioners will hold a public hearing on the county’s proposed appropriation and expenditure of funds for this project on November 6, 2023, at 7:00 p.m. or as soon thereafter as the matter may be heard. The meeting will be held at the Granville Convention & Expo Center, located at 4185 Highway 15, Oxford, NC 27565. The Commissioners invite all interested persons to attend and present their views.