September 6, 2022 - 6:00 pm - County Board of Commissioners Meeting Minutes

10 116 Meeting of the Johnston County Board of Commissioners September 6 , 2022 6 00 pm The Johnston County Board of Commissioners met in regular session Tuesday , September 6 , 2022 at 6 00 pm in the Commissioners Meeting Room , Johnston County Courthouse Annex , Smithfield , North Carolina The following members were present Present Chairman RS “ Butch ” Lawter , Jr , Vice Chairman Patrick E Harris , Tony Braswell , Fred J Smith , Jr , Richard D Braswell , and April Stephens Absent Commissioner Ted G Godwin Also Present County Manager Rick J Hester , County Attorney Jennifer J Slusser , Clerk to the Board Paula Woodard , and Executive Assistant Deputy Clerk Dana Cuddington Chairman RS “ Butch ” Lawter , Jr called the meeting to order at 6 00 pm and the following business was transacted 1 Approval Discussion of Agenda Upon a motion by Vice Chairman Patrick E Harris , seconded by Commissioner Tony Braswell , and carried by unanimous vote , the Board approved the agenda with the following amendments ? Tabled Cases 22 - 17 and 22 - 18 until the November 7 , 2022 6 00 pm meeting ; ? Tabled Case 22 - 19 until the October 3 , 2022 6 00 pm meeting ; and ? Removed the Public Hearing for Project Neyer from the agenda 2 Public Comment A Citizen Comments – John Saluppo John Saluppo , Clayton , addressed the Board and expressed his concerns as it relates to Johnston County Schools funds transfers as well as comments made by Board of Education members on an audio tape that was reported on by The Johnston County Report media website Mr Saluppo stated he is concerned that the Commissioners did not appear to be upset regarding the comments in the recording Mr Saluppo also shared his concerns regarding the Critical Race Theory stating it is still being taught in schools Mr Saluppo expressed his dissatisfaction with some of the Board of Education members stating he hopes for a change in November B Citizen Comments – Brad McHatton Brad McHatton , Selma , shared his concerns with the Board regarding comments made on the audio tape as previously referenced by Mr Saluppo and stated the trust of the people has been abused Mr McHatton stated he believes actions were taken to deceive the County Commissioners into believing Johnston County Schools had less money than was actually available Mr McHatton spoke on the importance of public trust C Citizen Comments – Dale Lands Dale Lands , Garner , Johnston County , expressed his disappointment to the Board stating only one County Commissioner has stood up to hold the Board of Education accountable for their actions Mr Lands spoke on his concerns with the members of the Board of Education stating he does not trust them and he feels they have lost the confidence of the citizens Mr Lands stated he hopes for new Board of Education members in November and would like the Board of Commissioners to demand finance information from Johnston County Schools regarding all expenditures on a monthly basis Mr Lands spoke on the need for total transparency and for the Board of Commissioners to hold the Board of Education accountable D Citizen Comments – Mark Lane Mark Lane , Smithfield , expressed his support for Johnston County Schools stating at a recent Johnston County Board of Education Meeting , Johnston County Schools Finance Officer Stephen Britt provided an explanation for the comments regarding funds transfers that were made in the audio tape as previously referenced Mr Lane stated no money has been hidden from anyone and he feels the Board of Education is being attacked He shared information as it relates to where the public can access financial audit statements ,Page117 September 6 , 2022 – 6 00 pm Continued budget documents , emails and other financial information for Johnston County Schools as well as recordings of Board of Education and Board of County Commissioners meetings E Citizen Comments – Jan Whitley Jan Whitley , Brogden Community , addressed the Board regarding the proposed Grabtown Road Subdivision and stated her concerns are not just about the proposed subdivision , but the process in general Ms Whitley stated some developers are responsible while others are not and she would like the Board to protect the citizens from the developers that are not responsible in their communities Ms Whitley spoke on her concerns that developers are not following the County’s ordinance stating a moratorium needs to be put into place to slow growth Ms Whitley stated the existing Comprehensive Land Use Plan adopted in 2009 needs to be enforced until such time as the new plan is adopted F Citizen Comments – Jim Wiesner Jim Wiesner , Wilson’s Mills , stated all of his children graduated from Johnston County Schools and they are all successful Mr Wiesner stated everyone needs to standup and support Johnston County Schools Mr Wiesner stated he is a product of Johnston County Schools and he is tired of people coming into Johnston County and trying to humiliate teachers in the County G Citizen Comments – Allen Hall Allen Hall , Clayton , stated there are people that wish to cast doubt on the upcoming school bond referendum by spreading conspiracy theories , which is a concern to him Mr Hall stated he would like to congratulate Johnston County Schools on the recently released academic performance rankings that show significant improvement and should be applauded Mr Hall stated his children are enrolled in Johnston County Schools and he has personally witnessed how hard the teachers and staff work Mr Hall stated the communities must come together and he encouraged everyone to continue educating others on the importance of the upcoming bond referendum 3 Johnston County Comprehensive Transportation Plan – Request for Qualifications Planning Director Braston Newton submitted and reviewed a revised draft Request for Qualifications RFQ to update the Johnston County Comprehensive Transportation Plan and asked for feedback from the Board Mr Newton stated if there were no changes , staff would like to release the RFQ as soon as possible Chairman RS “ Butch ” Lawter , Jr stated the RFQ mentions a working group and he asked for three Commissioners to be included in that working group Upon a motion by Commissioner Tony Braswell , seconded by Commissioner Richard D Braswell , and carried unanimously , the Board approved the Request for Qualifications for the Johnston County Comprehensive Transportation Plan , as revised , for distribution 4 Planning Activity Report and Comprehensive Land Use Plan Update Planning Director Braston Newton stated the County’s consultant on the Land Use Plan will be at the September 19 , 2022 6 00 pm meeting to present the draft plan to the Board Mr Newton stated the draft plan has been distributed to the Board and encouraged the Commissioners to provide any questions or feedback they might already have to the Planning staff in advance if possible 5 Public Hearing – Economic Development Incentive Grant – Project Ace Chairman RS “ Butch ” Lawter , Jr opened the County’s public hearing for the purposes of allowing public comment on a proposed economic development incentive grant Johnston County Economic Development Director Chris Johnson stated it is an honor and privilege to again stand before the Board and present an investment and jobs growth opportunity for the citizens and residents of Johnston County Mr Johnson stated as he has pointed out many times Johnston County has nearly 60,000 residents leaving the County every day to work elsewhere , which should be alarming to everyone He continued that this evening’s project announcement allows the County to continue the jobs growth journey and again allow the residents an opportunity to have high paying jobs right here at home Page118 September 6 , 2022 – 6 00 pm Continued Mr Johnson reported it is Novo Nordisk’s desire to invest within their existing campus on Powhatan Road in Clayton He stated the future investment will be determined later , but will be in addition to the billions that the company has already invested and the thousands of jobs Novo Nordisk has already created Mr Johnson stated with this project , hundreds of new jobs will be created that will exceed the average salary of Johnston County residents Mr Johnson stated he would like to reiterate to the tax paying citizens that all economic development incentive offers come with no risk to the taxpayers and the incentives only come from and after the company’s investment Mr Johnson stated the incentives would equate to a percentage of the taxes Novo Nordisk pays on the new investment and if the required benchmarks set forth in the agreement are not met then no incentive is given Mr Johnson reported as with all Economic Development Incentive Grants , this proposal has been vetted and approved by the Johnston County Economic Development Advisory Board , which consists of 14 business , civic and community leaders that has representation from every municipality in Johnston County He stated this project has been evaluated by Dr Mike Walden , Retired Professor and Economist from North Carolina State University , and his report shows that the monetary investment as well as the jobs and ancillary job growth is projected to be in the millions annually for the County Mr Johnson requested the Board to consider an Economic Development Incentive Grant for Novo Nordisk County Attorney Jennifer Slusser presented a draft resolution for the Board’s consideration authorizing incentives for economic development for the project proposed by Novo Nordisk and described by Mr Johnson Ms Slusser explained that when reviewing incentive grant opportunities , there are several factors to consider in making a determination those being job creation , capital investment , competition , and diversifying the economy She stated this project is a renovation , repurposing , and expansion of an existing facility to accommodate a new product line and while the exact amount of the investment will be based on market conditions during the term of the agreement , this will be a significant investment with significant net new job creation Ms Slusser reviewed with the Board the following schedule of grants within the project summary of the proposed resolution Table A Improvements Incentive Grant Applicable Percentage Based on Ad Valorem Taxes on Net New Taxable Value of Improvements as of January 1 90 Grant Year 1 90 Grant Year 2 90 Grant Year 3 90 Grant Year 4 90 Grant Year 5 80 Grant Year 6 80 Grant Year 7 80 Grant Year 8 70 Grant Year 9 70 Grant Year 10 60 Grant Year 11 50 Grant Year 12 Table B Business Property Incentive Grant Applicable Percentage Based on Ad Valorem Taxes on Net New Taxable Value of Business Property as of January 1Page119 September 6 , 2022 – 6 00 pm Continued 50 Grant Year 1 50 Grant Year 2 50 Grant Year 3 50 Grant Year 4 50 Grant Year 5 50 Grant Year 6 50 Grant Year 7 50 Grant Year 8 50 Grant Year 9 50 Grant Year 10 50 Grant Year 11 50 Grant Year 12 ? Investment by Company o Invest , or induce and cause to be invested eligible investments of real and personal property not less than millions of dollars no later than December 31 , 2031 o Attain and certify the required Current and Additional Employment of new permanent full - time employees at an average annual wage of no less than 69,06500 o Continue in business and full - time operation in the Facility on the Project Site at all times during the Grant Period , subject to temporary interruptions of operations as a result of force majeure , repairs following casualty damage and routine maintenance o Retention of those facility improvements , business property , and net new jobs counts through Year 12 of the final Tranche ? Other Incentives for Completion and Operation of Investment by Company o Payment and performance of incentives by County are conditional on reporting and verification of eligible investments and on Company not being in default of obligations to County , including the taxes and contracts o The County shall have no obligation to pay any Grants if the First Tranche of capital investment has not been made by December 31 , 2025 ? Incentives for investment in real and personal property will be adjusted for then - current economic trends in Johnston County , correlated dollar for dollar to changes in the County’s ad valorem tax rate Ms Slusser stated in order to receive incentives Novo Nordisk is required to meet certain performance commitments that will be verified by the County She stated the grant payments are conditioned upon the company paying in full its ad valorem tax bills for that year for all of its property situated in the County that is subject to ad valorem taxation The company must be current on all payments owed to County , current on the filing of annual property tax listings , have no current appeal pending regarding the valuation of the property at the project site , and not be in violation of any other obligation to the County including all county ordinances and regulations Ms Slusser reminded the Board of the criteria to be considered when deciding upon the economic development incentives proposal and she offered to answer any questions Shaylah Nunn - Jones , Government and Public Affairs Lead for Novo Nordisk in North Carolina , thanked the Board for their support to Novo Nordisk over the years She stated Novo Nordisk has doubled its workforce over the past several years to more than 1,700 employees , with most of those employees residing in Johnston County Ms Nunn - Jones stated Novo Nordisk is continuing their work to defeat diabetes and they are thrilled to celebrate each milestone of this project over the coming months PagePage pageNumber5120 September 6 , 2022 – 6 00 pm Continued The Chairman called for anyone else in the audience that wished to speak to come forward There being no further comments , the Chairman closed the public hearing Commissioner Fred J Smith , Jr moved the Board adopt the following resolution , including project summary , for an economic development incentive grant to Novo Nordisk and authorize the County Manager and the County Attorney to finalize the corresponding agreement Vice Chairman Patrick E Harris seconded the motion , which carried by unanimous vote RESOLUTION OF THE JOHNSTON COUNTY BOARD OF COMMISSIONERS AUTHORIZING INCENTIVES FOR ECONOMIC DEVELOPMENT WHEREAS , Johnston County , NC County seeks to promote economic growth and development within its jurisdiction and the social and economic improvement of its citizens , and desires to accelerate the quality and quantity of economic growth and employment opportunities in its jurisdiction by encouraging business enterprises satisfying the aforementioned public purposes and hereby reduce physical , economic and social distress resulting from unemployment and underemployment existing in its jurisdiction ; and WHEREAS , the County is in discussions to induce Novo Nordisk Pharmaceutical Industries , LP the Company to expand renovate , repurpose and expand its facility Facility to accommodate the Company’s manufacturing product demand by the addition of new product lines and the additions of a new warehouse building with cold storage capacity , and other site improvements on that tract of real property consisting of approximately 53 acres on which the Facility is located , east of Powhatan Road and north of the NCRR Norfolk Southern railroad line with Johnston County real property ID 05E99010G and on which the Company plans to construct the expansion Project Site ” ; and WHEREAS , the County has presented the Company with various incentives in order to induce the Company’s commitment to locate the Facility in Johnston County ; and WHEREAS , in partial consideration of the incentives to be paid and delivered by County to the Company , the Company will expand the Facility on the Project Site and in connection therewith , construct or cause to be constructed and up - fit improvements comprising the expanded Facility and other site improvements and install or cause to be installed on the Project Site industrial , machinery , equipment , and other real and personal property improvements subject to ad valorem taxation by Johnston County , by including the construction of new buildings and other real property improvements , as well as installation of new manufacturing equipment at the Facility in exchange for the grant by the County of certain economic incentives set forth below and in the Project Summary attached to this resolution the Incentives ; and WHEREAS an economic impact review of the proposed Facility on the Project Site prepared for the Johnston County Economic Development Commission in indicates that at full buildout the proposed project would result in a substantial increase in direct property tax revenues for the County and the direct and indirect creation of a substantial number of new jobs ; and WHEREAS , North Carolina General Statute 158 - 71 a authorizes the County to make appropriations to aid and encourage the location of manufacturing enterprises , industrial and commercial plants within the County and other purposes which will increase the population , taxable property and business prospects of the County ; and WHEREAS , the Board has determined that granting the incentives Incentives in exchange for the commitment of the Company to expand and operate the Facility in Johnston County would be beneficial to the County’s efforts to increase economic opportunities for its residents , its population , ad valorem tax revenues , sales tax revenues , and business prospects in general , including the creation of a substantial number of net new jobs ; and WHEREAS , the Board has , pursuant to the notice and hearing requirements of North Carolina General Statute 158 - 71 , held a public hearing to consider whether to grant the Incentives in exchange for the commitment of the Company to expand and operate the Facility at the Project Site in Johnston County on terms not materially inconsistent with the Project Summary attached to this resolution the Summary ; NOW THEREFORE , the Board Authorizes the Chairman of the Board and , alternatively , the County Manager , to enter into an economic development agreement on behalf of the County for the County to grant Incentives on terms not materially inconsistent with the Summary in exchange for the commitment by the Company to 1 expand its operation on the Project Site , and in connection therewith , construct or cause to be constructed and up - fit improvementsPagePage pageNumber6121 September 6 , 2022 – 6 00 pm Continued comprising the expanded Facility and install or cause to be installed on the Project Site industrial machinery , equipment and other real and personal improvements subject to ad valorem taxation by Johnston County with a non - depreciated capital investment cost of millions of dollars and place such real and personal property in service on the Project Site , 2 retain current employment and employ a significant number of new permanent full - time employees at an average annual wage of no less than Sixty - Nine Thousand Sixty Five and 00 100 Dollars 69,06500 to operate the expanded Facility , and 3 continue in business and full - time operation the Facility and employ that number of full - time workers during the term of the agreement th Adopted this the 6 day of September , 2022 PROJECT SUMMARY COMPANY – COUNTY September 2022 ? The Project The Company plans to renovate , repurpose and expand its facility Facility to accommodate the Company’s manufacturing product demand by the addition of new product lines and the additions of a new warehouse building with cold storage capacity , and other site improvements on that tract of real property consisting of approximately 53 acres on which the Facility is located , east of Powhatan Road and north of the NCRR Norfolk Southern railroad line with Johnston County real property ID 05E99010G and on which the Company plans to construct the expansion Project Site ” While the exact amount of capital investment will be based on market conditions during the term of the agreement , the Company expects a new total capital investment of millions of dollars The Company expects the Project to require the creation of a significant number of net new jobs ? Schedule and Grants Provided that the required minimum capital investment has been made and that the applicable current employment level is maintained and the additional employment has been attained , and further provided the Company is in compliance with terms of the written economic development agreement , grants will be paid only upon ad valorem taxes actually paid and received with respect to eligible investments placed on the Project Site By way of the incentive structure set forth in Tables A and B , any incentives paid will be proportional to the benefit received by the County through increased property taxes , thereby assuring a high return on investment for the County The capital investment may be made in up to four 4 segments , each designated a “ Tranche ” Each Tranche shall consist of a minimum capital investment of not less than millions of dollars which shall be made and reported to the County no later than December 31 , 2031 Table A Improvements Incentive Grant Applicable Percentage Based on Ad Valorem Taxes on Net New Taxable Value of Improvements as of January 1 90 Grant Year 1 90 Grant Year 2 90 Grant Year 3 90 Grant Year 4 90 Grant Year 5 80 Grant Year 6 80 Grant Year 7 80 Grant Year 8 70 Grant Year 9 70 Grant Year 10 60 Grant Year 11 50 Grant Year 12PagePage pageNumber7122 September 6 , 2022 – 6 00 pm Continued Table B Business Property Incentive Grant Applicable Percentage Based on Ad Valorem Taxes on Net New Taxable Value of Business Property as of January 1 50 Grant Year 1 50 Grant Year 2 50 Grant Year 3 50 Grant Year 4 50 Grant Year 5 50 Grant Year 6 50 Grant Year 7 50 Grant Year 8 50 Grant Year 9 50 Grant Year 10 50 Grant Year 11 50 Grant Year 12 ? Investment by Company o Invest , or induce and cause to be invested eligible investments of real and personal property not less than millions of dollars no later than December 31 , 2031 o Attain and certify the required Current and Additional Employment of new permanent full - time employees at an average annual wage of no less than 69,06500 o Continue in business and full - time operation in the Facility on the Project Site at all times during the Grant Period , subject to temporary interruptions of operations as a result of force majeure , repairs following casualty damage and routine maintenance o Retention of those facility improvements , business property , and net new jobs counts through Year 12 of the final Tranche ? Other Incentives for Completion and Operation of Investment by Company o Payment and performance of incentives by County are conditional on reporting and verification of eligible investments and on Company not being in default of obligations to County , including the taxes and contracts o The County shall have no obligation to pay any Grants if the First Tranche of capital investment has not been made by December 31 , 2025 ? Incentives for investment in real and personal property will be adjusted for then - current economic trends in Johnston County , correlated dollar for dollar to changes in the County’s ad valorem tax rate 6 Manager Reports and Comments A Resolution Approving the Amount for Real Property for a School Project Site County Attorney Jennifer Slusser presented and reviewed a draft resolution with the Board approving the amount to acquire real property for a school project site adjacent to the existing Thanksgiving Elementary School Ms Slusser noted that this site is large enough that it offers opportunities for other governmental purposes including parks , open space , and greenways She offered to answer any questions PagePage pageNumber8123 September 6 , 2022 – 6 00 pm Continued Upon a motion by Commissioner Fred J Smith , Jr , seconded by Vice Chairman Patrick E Harris , and carried unanimously , the Board adopted the following resolution RESOLUTION APPROVING THE AMOUNT TO BE SPENT BY THE JOHNSTON COUNTY BOARD OF EDUCATION TO ACQUIRE REAL PROPERTY TO BE USED FOR A SCHOOL PROJECT SITE WHEREAS , the provisions of NC Gen Stat Sect 115C - 426 f require the approval by the Board of County Commissioners as to the amount spent by the Board of Education for the purchase of a site or the expenditure of funds therefore ; and WHEREAS , the Johnston County Board of Education desires to purchase that certain tract or parcel of land located on the west side of Lynch Road and the north side of NC Highway 42 , Selma , Johnston County , North Carolina , being part of Johnston County Tax ID 16L05033C and more particularly identified as a portion of NC PIN 2060900 - 06 - 0845 , consisting of approximately one hundred thirty acres “ the Site ” ; and WHEREAS , the Johnston County Board of Education requests the Johnston County Board of Commissioners approve the purchase amount of Three Million and 00 100 Dollars 3,000,00000 which shall be spent to purchase the certain tract or parcel of land mentioned above ; and WHEREAS , the Johnston County Board of Commissioners and the Johnston County Board of Education agree to collaboratively review the Site for opportunities for parks , open space , and greenways ; and WHEREAS , the Johnston County Board of Education will confirm the suitability of the Site as a future school site and determine the acreage needed to accommodate necessary buildings , structures , fields , and other improvements ; and WHEREAS , upon confirmation of suitability of the Site as a future school site and upon determination of the acreage needed on the Site to accommodate a future school project site including necessary buildings , structures , fields and other improvements , the Johnston County Board of Education and the Johnston County Board of Commissioners shall work collaboratively to divide the Site between them for i Johnston County Board of Education to acquire a future school project site ; and ii Johnston County Board of Commissioners to acquire property for governmental purposes , including parks , open space , and greenways ; and WHEREAS , upon closing the Johnston County Board of Education will receive a deed for the future school project site and the Johnston County Board of Commissioners will receive a deed for the property identified as future parks , open space , and greenways NOW , THEREFORE , BE IT RESOLVED that the Johnston County Board of Commissioners , relying on the recitals above , hereby approves the total amount of Three Million and 00 100 Dollars 3,000,00000 to be spent by the Johnston County Board of Education for the purchase of approximately one hundred thirty 130 acres located on the west side of Lynch Road and the north side of NC Highway 42 East , Selma , Johnston County , North Carolina and is further described as NC PIN 260900 - 06 - 0845 or Johnston County Tax ID 16 - L - 05 - 033 - C on the Johnston County Registry The purchase of this tract shall be for the purposes of a future school project site and parks , open space , and greenways th Adopted this the 6 day of September , 2022 7 Board Reports and Comments Commissioner Tony Braswell commented on the day’s two economic development announcements stating this is what the Board wants to continue doing in an effort to provide good jobs for the citizens Commissioner T Braswell commended Economic Development Director Chris Johnson and his team along with the Economic Development Advisory Board for their excellent work to recruit industry for the County Commissioner T Braswell stated this is an exciting time for Johnston County Chairman RS “ Butch ” Lawter , Jr agreed and stated he believes that people recognize Johnston County for what it brings to the table , not only in services , but also for the quality workforce Vice Chairman Patrick E Harris also agreed that this is an exciting time and there are many positive things happening Vice Chairman Harris recognized the recent announcement of Johnston County SchoolsPagePage pageNumber9124 September 6 , 2022 – 6 00 pm Continued st improving their ranking to 41 in the State Vice Chairman Harris stated Johnston Community College is also setting new records and everyone is focused on serving the citizens Vice Chairman Harris stated he is thankful for those who are willing to roll up their sleeves and work to make good things happen There being no further business , Vice Chairman Patrick E Harris moved the Board adjourn Commissioner Tony Braswell seconded the motion , which carried by unanimous vote The meeting adjourned at 6 45 pm RS “ Butch ” Lawter , Jr , Chairman Paula G Woodard , Clerk to the BoardPage