TITLE
Title
PUBLIC HEARING: NC DEPARTMENT OF COMMERCE RURAL BUILDING REUSE GRANT - BETHANY MEDICAL CENTER, P.A.
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SPONSOR
Sponsor
J. Leslie Bell
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BACKGROUND
Background
During its August 18, 2022 regular meeting, the Guilford County Board of Commissioners adopted a resolution supporting the submission of an application to the NC Department of Commerce for a Rural Building Reuse Grant to assist Peters Development, L.L.C. and Bethany Medical Center, P.A. in renovating a vacant building in Jamestown, NC (see attached). The Department has awarded the County a grant in an amount not to exceed $300,000 to renovate the 4,912 sq. ft. space located at 108 W. Main St., Jamestown, NC, to be occupied by Bethany Medical Center, P.A. The Board has been requested to conduct a public hearing to receive public input regarding this grant funding.
If approved, this grant would be distributed in the form of pass-through funding as a loan to the property owner, Peters Development, L.L.C. The loan would be forgivable upon achieving the following requirements: an investment of $615,000; creation of thirty (30) new full-time jobs by Bethany Medical Center, P.A. above its baseline; and paying wages at least equal to minimum wage. These funds would reimburse the property owner for eligible project expenses, contingent upon performance review and verification by the State (see attached Supplemental Agreement). In lieu of encumbering the property with a Deed of Trust, the parties agree by the Supplemental Agreement that Guilford County will not request grant funds from the NC Department of Commerce until the entirety of the investment, job creation and maintenance requirements imposed upon Bethany Medical Center are satisfied and verified by the Department. Guilford County will be responsible for and will work with Peters Development, LLC and/or Bethany Medical Center, PA to meet annual reporting requirements twice per year (January 15 and July 15), in addition to job verification, eligible expenditure and final reporting requirements, as needed.
In order to receive $300,000 in grant funding, the company would be required to document eligible expenditures in the amount of $600,000 (Exhibit B). The NC Department of Commerce reimburses 50% of eligible expenditures, up to the total grant amount if reimbursement requirements are achieved. A 5% local government cash match in the amount of $15,000 is included in the 50% from local resources, which will be met by funds contributed by Peters Development, LLC and/or Bethany Medical Center. No County funds are required for the local government cash match. Bethany Medical Center is projected, and required, to create and maintain thirty (30) new full-time jobs for six (6) months. Full-time is defined as employment of at least thirty-five (35) hours per week and eligibility for all benefits generally available to the company's full-time employees. Bethany Medical Center is required to pay a wage at least equal to minimum wage and projects its annual average wage will be $54,453 along with 89.5% employer-paid health insurance. Per the NC Department of Commerce, the average private sector wage for 2022 in Guilford County is $53,994.
Bethany Medical Center is an independent group of healthcare providers with a mission to provide excellent care through a multi-specialty approach from prevention of to intervention in potentially life-threatening health problems. The company has been an NC-based business for thirty-five years and has eighteen locations in the Piedmont Triad area, the majority of which are located in Guilford County. Per the NC Department of Commerce, Bethany Medical Center reported a total of 452 full-time jobs (baseline) on their NCUI 101 Employer's Quarterly Tax and Wage Report at the time the grant application was submitted.
The effective period of the grant agreement is two (2) years, with an effective date of October 20, 2022 and an end date of October 20, 2024, unless terminated at an earlier date under the terms of the grant agreement or extended, in writing, by Guilford County.
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BUDGET IMPACT
Budget Impact
Grant Projects Fund
FY23 N.C Department of Commerce Rural Economic Development Grant (FY23 NC Rural ED Grant)
$300,000 appropriation to grant project
$300,000 in federal/state funds
NO ADDITIONAL COUNTY FUNDS REQUIRED
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REQUESTED ACTION
Requested Action
Conduct a public hearing, approve receipt of the FY 2022-23 NC Department of Commerce Rural Building Reuse Grant, and authorize staff to execute the Grant Agreement (and Exhibits) and Supplemental Agreement, in substantial form, with an effective date of October 20, 2022 through October 20, 2024. Adopt grant project ordinance for FY 2022-23 Commerce Rural Building Reuse Grant in the amount of $300,000, with $300,000 in federal/state funds.
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