BC 2008 08 15 Recessed - Continuation of Incentives

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August 15, 2008 (Recessed Meeting) Page 926 It was noted the new contract is identical to the old one, except for the dates. Further discussions ensued, with the following topics being addressed: the terms of the contract with the EDC; a 90-day termination clause within the contract; etc. Chairman White suggested the Board review the previous contract and make note of any modifications that need to be made by September 8, 2006. Further, each Board member stated their individual desire to execute the contract. By consensus, the Board directed the County Manager to execute the contract with the Cabarrus Economic Development Corporation. Next, a discussion was held concerning the EDC Confidentiality Agreement. John Day, County Manager, reported that it has been his personal practice to not sign such an agreement, and that the Board of Commissioners had not given him any direction regarding the execution of said agreement. Further discussion continued, Further, Richard Koch, County Attorney, addressed the issue concerning the execution of legal agreements for incentive grants. He reported there are several factors that affect the execution of legal agreements, such as further negotiations and entity name changes. He also addressed the past issue of grant recipients' attorneys trying to redraft the grant agreements. A general and lengthy discussion ensued. Recess of Meeting The Board took a short break at 10:05 a.m. The meeting reconvened at 10:21 a.m. Economic Development Grants - Continued Following the break, the Board continued discussions with John Cox, Ryan McDaniels, and Nicole Arnold regarding incentive grants in Cabarrus County. Topics addressed included: efforts by the EDC to determine why the County lost major projects, like IKEA, to surrounding counties; businesses that have received incentive grants within the County; how the process of rebranding the Countyaffects the EDC; the benefits of the County's existing tagline: "Center of American Motorsports"; updating the County seal and moving away from having a logo and tagline; Cabarrus County Schools' ranking as it relates to amount of educational funding; economic development in Cabarrus County as compared to similar counties in South Carolina; market advantages of lowering the grant threshold from $1.5 million to $1 million; the expansion of the transit system in Cabarrus County; light rail; etc. In addition, a draft copy of the Economic Development Grant Program guidelines was distributed. Chairman White stated Board action on the proposed guidelines would likely occur in October and asked to have the guidelines reviewed in the meantime. Recess of Meeting The Board took a short break at 11:27 a.m. The meeting reconvened at 11:37 a.m. Jail Housing Unit - Turner Construction Company Chairman White recognized Scott Milligan and Monty Taylor with Turner Construction Company (TCC). He also reminded Board members that at the August 9, 2008 Agenda Work Session, Turner Construction Company presented the Guaranteed Maximum Price (GMP) No. 4 of $57,962,999.00 for construction of the jail housing unit in a notebook. The notebook also included savings generated by entering into a contract for pre-cast cells and a report from Faithful + Gould, a consulting firm that reviewed the GMP and made suggestions as to the reduction of costs. He further reported that TCC has prepared a response to Faithful + Gould's comments in the form of a matrix. Mr. Milligan reviewed the matrix which identified the difference in cost between Turner's estimate of $57,962,999.00 and Faithful + Gould's response of $57,705,776.00. Painting and plumbing services, a difference of $83,000.00 and $102,753.96 respectively, were specifically addressed. Mr. Milligan responded to a variety of questions from the Board related to subcontractors, "holds", potential savings by locking in contracts, safety, etc. A general discussion ensued. Topics addressed included the following: