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Now that the county has agreed to purchase the land, the center plans to invest a minimum $25 million to develop the property, which directly abuts Lowe's Regional Distribution Center in Garysburg.
Gary Brown introduced the long-anticipated project, explaining how the county and other initial capital investments should make the project a boon for the region. Members of the public were more concerned that it may become a boondoggle.
“It appears that the county has agreed to pay $1.8 million without any public knowledge of the appraised value of the land,” Northampton County resident William Futrell said during his time to speak at the forum.
Futrell further stated that he wanted to know how the county's investment could be protected, why the public should support this endeavor, will it work, who did the feasibility study and if that person was biased.
“The public has been provided insufficient information,” he concluded.
Linda Joyner asked what exactly they will be doing at the plant, and wondered if County Manager Wayne Jenkins and Economic Development Director Gary Brown's presence on the board was a conflict of interest.
Joel Tudor, who lives near the proposed site, asked how the location would be accessed, since there was currently no road, and wondered if there would be a noise issue.
Given a chance to reply to all the questions, Brown said the land had been appraised by a Raleigh-based firm for approximately $2,400 per acre, which equals approximately $1.5 million.
Asked later why the county would be paying $300,000 more, Brown said the county only authorized the purchase for “up to” $1.8 million and that the price was still being negotiated.
Regarding Futrell's question on how the investment would be protected, Brown said the county intends to convey to the AVRC a capital lease, which means the county would continue to own the property until it is given to AVRC.
The transfer would include a “reversion clause” that would most likely state that if the AVRC were to either fail, or change its status from not-for-profit to for-profit, the land would revert back to the county.
He confirmed that Lotus Engineering has pledged $3 million to the project. Also, he said, the Vehicle Certification Agency of America is considering an on-site location and will provide services that are yet to be defined.
“It's important to remember that this is not a plant,” Brown said, adding that it is a research center, a facility that will not just be utilized by one automaker but by any number.
Brown noted that many automakers are increasingly looking for outside resources to do research and development work, which could mean more business for the Northampton center.
He said the county has been working to make the project a reality for more than three years and named the number of experts involved, such as former product development manager for General Motors Dr. Fred Gallasch and Rick Gildow, president of the Transportation Research Center in Ohio.
These and others have guided the development of the project, Brown said, adding that all seem to believe there is a “latent demand” from companies outside North Carolina as well as those in-state for a facility like AVRC.
“Why should the county invest? I think we as a government have an obligation to not just protect and defend but encourage and enable economic development,” Brown said, adding that without interest and investment on the local government's part, companies would look elsewhere and “we'll miss out.”
“Can I give you an ironclad guarantee (that the company will succeed)?” Brown asked rhetorically. “No.”
But, he said, he and others have been very careful in giving due diligence.
“The public investment is well-grounded,” Brown said. Northampton County is traditionally an agriculture and natural resource based industry, but “if we're going to succeed and compete in the changing times, the county needs to open its horizons.”
Brown confirmed the facility will be managed by the AVRC Board of directors which includes himself, County Manager Wayne Jenkins and Vann Rogers, marketing director for the North Carolina's Northeast Partnership.
Brown said he does not believe his position on the board is a conflict of interest, and said other lawyers have agreed.
As for the feasibility study, Brown confirmed that it had been conducted by Dick Dell, whom he described as a resident of Raleigh, a former IBM employee and a lifelong automobile industry enthusiast. It was Dell who approached the state years ago with the idea of an automotive improvement ground.
In response to the question about bias, County Manager Wayne Jenkins said whether or not Dell was biased would be a opinion on Brown's part and allowed it to go unanswered.
Dell is now executive director of AVRC.
Brown told the Herald following the hearing, however, that he believed Dell was able to perform the study in an unbiased manner, and that at the time he had no idea he would later become executive director.
As for himself, he said he did not feel there was a conflict of interest between his position as a board member of the AVRC and being Northampton County economic developer. He noted that a number of lawyers, including those at the General Assembly, have already looked into the issue. He also said there was a file at the Attorney General's Office.
The AG's office was unable to answer questions on the issue by press time.
In response to Tudor's question about noise, Brown noted the facility is not a “race track” and he does not expect it to be noisy. However, the center will fall under all other noise abatement laws, which will be regulated by the sheriff.
Following the question and answer period, Commissioner Robert Carter moved to approve the acquisition under terms spelled out by the county's already-approved loan from Southern Bank, convey the land in a capital lease to AVRC and grant Commission Chair Virginia Spruill the power to sign all documents pertaining to those transactions, save any that would need to go before the board. The motion was approved by all board members.
Brown said the approval is yet another step that will help get this project out of the ground. He said AVRC still hopes to have a groundbreaking for the center sometime in January.
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