TITLE
Title
PUBLIC HEARING: NC DEPARTMENT OF COMMERCE RURAL BUILDING REUSE GRANT - GUERRILLA RF, INC./PROJECT AMPLIFY
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SPONSOR
Sponsor
J. Leslie Bell
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BACKGROUND
Background
During its June 3, 2021 regular meeting, the Guilford County Board of Commissioners (Board) adopted a resolution supporting the submission of an application to the NC Department of Commerce (Department) for a Rural Building Reuse Grant to assist Guerrilla RF, Inc. and the Koury Corporation in renovating a vacant building in Greensboro, NC (see attached). The Department has awarded the County a grant in an amount not to exceed $475,000 that will support the reuse of an approximately 58,970 sq. ft. building located at 2000 Pisgah Church Road, Greensboro, NC. The building was constructed in 1981 and has been vacant for two (2) years. Guerrilla RF, Inc. is a wireless semiconductor company that provides monolithic microwave integrated circuits for the automotive, 5G Infrastructure, and cellular booster markets.
The Board is being requested to:
1) conduct a public hearing to receive public input regarding this grant funding;
2) approve this Building Reuse Grant in an amount not to exceed $475,000; and
3) authorize the County Manager (in lieu of the Chair of Board of County Commissioners), following approval of said grant, to sign all NC Dept. of Commerce required close-out documents.
If approved, this grant would be distributed in the form of pass-through funding as a loan to the property owner, Koury Corporation. The loan would be fully forgivable upon achieving the following requirements: satisfactory reporting and documentation of payment of eligible upfit/renovation expense invoices; creation of and maintaining for six (6) consecutive months fifty (50) new full-time jobs (a full-time job is defined as employment of at least thirty-five hours per week and eligibility for all benefits generally available to the company's full-time employees) by Guerrilla RF, Inc. (above its baseline 35 jobs); and, paying wages at least equal to minimum wage for each of the eligible fifty (50) new full-time employees.
These grant 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 investment, job creation and maintenance requirements imposed upon Guerrilla RF, Inc. are satisfied and verified by the NC Department of Commerce. Guilford County will work with Koury Corporation and/or Guerrilla RF, Inc. to meet required reporting requirements in addition to job verification, eligible expenditures and final reporting requirements, as needed.
In order to receive all or a portion of said grant amount up to $475,000, documentation of eligible expenditures will be required (Exhibit B). The NC Department of Commerce reimburses 50% of eligible expenditures, up to the total grant amount if reimbursement requirements are achieved. (A lower level of eligible expenses or job creation would reduce the reimbursement.) A 5% local government cash match is included in the 50% from local resources, which will be met by funds contributed by Koury Corporation and/or Guerrilla, RF, Inc. Thus, no County funds are required for the local government cash match.
While the effective period of the grant agreement is two (2) years, with an effective date of August 19, 2021 and an end date of August 19, 2023 (unless terminated at an earlier date under the terms of the grant agreement or extended, in writing, by Guilford County), Guerrilla RF, Inc. and Koury Corporation opted not to move forward at the time of award notification. With the two companies reporting in August 2023 that final close-out of the project is pending submission of the final report, job verification documentation, any other reporting requirements, and final review and approval by NC Department of Commerce, Board approval of this grant will allow execution of the grant and preparation of final close-out requirements.
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BUDGET IMPACT
Budget Impact
Grant Projects Fund
FY24 NC Department of Commerce Rural Economic Development Grant (FY24 NC Rural ED Grant)
$475,000 appropriation to Grant Project
$475,000 in Federal/State funds
NO ADDITIONAL COUNTY FUNDS REQUIRED
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REQUESTED ACTION
Requested Action
Conduct a public hearing, approve receipt of NC Department of Commerce Rural Building Reuse Grant #2022-009-3201-2587, approve this Building Reuse Grant in an amount not to exceed $475,000, authorize staff to execute the Grant Agreement (and Exhibits) and Supplemental Agreement, in substantial form, and authorize the County Manager to sign required close-out documents. Adopt grant project ordinance for FY24 N.C. Department of Commerce Rural Economic Development Grant in the amount of $475,000, with $475,000 in federal/state funds.
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