NC - Shelby: Regular Meeting

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Regular Meeting

Shelby City Council City Hall Council Chamber Regular Meeting 300 South Washington Street January 6, 2020 at 6:00 p.m. Shelby, North Carolina

Welcome and Call to Order by Mayor O. Stanhope Anthony III
Tagged Passions:council and streets

Pledge of Allegiance

A. Approval of agenda: Discussion and revision of the proposed agenda, including consent agenda; adoption of an agenda

1) Motion to adopt the agenda as proposed or amended

No additional detail provided

B.
Consent Agenda:

Prior to approval and adoption of the agenda, a Council Member may move an item from the Consent Agenda to the regular agenda. Items remaining on the Consent Agenda will be considered collectively through a single motion and vote. 1) Approval of the Minutes of the Regular Meeting of December 16, 2019 1

Tagged Passions:council

2) Approval of Special Event Permit Application: 11

No additional detail provided

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a.
Dr. Martin Luther King Jr. March, requested date:

No additional detail provided

3) Approval of a resolution honoring Coach Mike Wilbanks and the Shelby High School 2019 Golden Lions Football Team: Resolution No. 1-2020 18

No additional detail provided

Tagged Passions:recognition and education

4) Approval of a resolution approving application to Watch for Me NC: Resolution No. 2-2020 20

No additional detail provided

5) Approval of Notice of Cancellation in the Regular Meeting Schedule of Shelby City Council 23

Tagged Passions:council

C.
Unfinished Business:

1) Consideration of Fiscal Year (FY) 2019-2020 Budget Ordinance

Tagged Passions:ordinance, business, and budget

Amendment No. 10: Ordinance No. 1-2020 25

Shelby City Council Agenda January 6, 2020 Page 2

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D.
New Business:

1) Consideration of an ordinance establishing a capital project ordinance and budgets for the City of Shelby s Substation 8 Circuit Addition Project: Ordinance No. 2-2020 49 2) Consideration of an ordinance establishing a capital project ordinance and budget for the City of Shelby s Airport Layout Planning Project: Ordinance No. 3-2020 55 E. City Manager s Report 93 F. Council Announcements and Remarks 93

Tagged Passions:planning, ordinance, business, council, airport, budget, capital spending, Capital Spending, administrator, and manager

G.
Adjournment:

No additional detail provided

To adjourn a meeting of City Council, a majority of the Council members must vote for a motion to adjourn.

1) Motion to adjourn 93
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City of Shelby Agenda Item Summary

B.
Consent Agenda:

Prior to approval and adoption of the agenda, a Council Member may move an item from the Consent Agenda to the regular agenda. Items remaining on the Consent Agenda will be considered collectively through a single motion, second, and vote. Agenda Item: B-1 1) Approval of the Minutes of the Regular Meeting of December 16, 2019

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Consent Agenda Item: (Bernadette Parduski, City Clerk)

No additional detail provided

Summary of Available Information:

Please read and offer changes as you deem necessary.

No additional detail provided

Minutes of the Regular Meeting of December 16, 2019

City Manager s Recommendation / Comments Approve the minutes as presented or as amended by the Mayor and City Council via the Consent Agenda.
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M I N U T E S

Regular Meeting December 16, 2019 City Hall Council Chamber Monday, 6:00 p.m.
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Present: Mayor O. Stanhope Anthony III, presiding; Council Members Eric B.

Hendrick, David White, David Causby, Violet Arth Dukes, and Andrew Hopper, Sr.; City Manager Rick Howell, ICMA-CM, City Clerk Bernadette A. Parduski, Assistant City Manager/Director of Finance Justin S. Merritt, MPA, Assistant Director of Finance Elizabeth B. (Beth) Beam, CPA, Director of Human Resources Deborah C. (Deb) Jolly, Director of Engineering Services Benjamin (Ben) Yarboro, Police Chief Jeffrey H. (Jeff) Ledford, Fire Chief William P. Hunt, MPA, EFO, Director of Public Works Daniel C. (Danny) Darst, Jr., and Planner Alan Toney

Tagged Passions:finance, council, public safety, services, Public Works, public works, administrator, manager, and human resources

Absent: Council Member Charles Webber; City Attorney Robert W. (Bob)

Yelton Mayor Anthony called the meeting to order at 6:00 p.m. and welcomed all who were in attendance. The Mayor gave the invocation and Mr. Hopper led the Pledge of Allegiance. A. Approval of agenda:

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1) Motion to adopt the proposed agenda

ACTION TAKEN: Upon a motion made by Mr. White, City Council voted unanimously to approve the agenda as presented.

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B.
Special Presentation:

1) City of Shelby 2019 Audited Financial Statements Matthew Braswell, CPA, Audit Manager, Martin Starnes Associates, CPAs, P. A.

Tagged Passions:finance, manager, audit, and financial report

Mr. Merritt introduced Matt Braswell with Martin Starnes Associates as the presenter of the annual audit report and Comprehensive Annual Financial Report (CAFR) for Fiscal Year (FY) ended June 30, 2019. He referred to the audit report as a snapshot in time, reflecting the overall financial health of the City of Shelby. Mr. Merritt stated the audit and preparation of the CAFR are increasingly stringent due to the additional auditing standards that must be met by both the City and the auditing firm. He also recognized Assistant Finance Director Beth Beam in the lead role over the City s audit project

No additional detail provided

Tagged Passions:health, recognition, finance, audit, and financial report

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throughout the year. The audit has been submitted to the North Carolina Local Government Commission as required by the deadline of October 31, 2019 and was accepted.

Mr. Merritt clarified the City currently has a number of large construction projects in progress. The numbers in some fund balances and cash flows where these individual projects are accounted for can be multiple times larger than the operational budget of some of those funds. Projects on a reimbursement basis for expenditures, either grant or loan funded, can present timing issues for collection by the City.
Tagged Passions:funding, grant, construction, boards and commissions, budget, and audit

Next, as included in the audit highlights, Mr. Braswell stated the Martin Starnes report yielded an unmodified opinion, meaning the City s financials are not materially misstated. Martin Starnes has issued its report in which no questioned costs or findings were noted. Mr. Braswell also acknowledged the full cooperation of the Finance Department during the audit process.

Mr. Braswell commented the 2019 property tax revenues and collection rate showed an increase from the prior year of approximately 489,768 or 4.8 percent; however, the collection rate is down from 2018. Mr. Braswell summarized and compared General Fund revenues and expenditures for 2018 and 2019. In 2019, revenues increased by 1,395,283 or 7 percent and expenditures increased by 2,773,521 or 7.8 percent. He noted these amounts do not include other financing sources and uses such as transfers and capital financing.

Tagged Passions:finance, taxes, Taxes, property, audit, and property tax

Mr. Braswell stated fund balance includes these five categories: Non- spendable, restricted, committed, assigned, and unassigned classifications, and serves as a measure of the City s available financial resources. Currently, the City has:

1.75 million in Non-spendable fund balance 7.4 million in Restricted fund balance which includes Stabilization by State statute, Powell Bill, public safety funds, and unspent debt proceeds 215,000 in Committed fund balance 3.3 million in Assigned fund balance 2.9 million in Unassigned fund balance

Tagged Passions:funding, finance, and public safety

With regard to total fund balance for the General Fund, Mr. Braswell noted there was a decrease of 1,630,362 or approximately 20.2 percent from the prior year.

No additional detail provided

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Mr. Braswell stated available fund balance as defined by the Local Government Commission (LGC) is calculated as Total Fund Balance less Non- spendable, less Stabilization by State Statute (restricted) which then equals Available Fund Balance. This calculation is utilized as the basis for comparing Shelby to other units of similar size as well as calculating fund balance percentages.

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Mr. Braswell reviewed Shelby s Fund Balance position in the General Fund:

No additional detail provided

Total Fund Balance 7,600,511 Non-spendable (476,878) Stabilization by State statute (3,223,918)

Available Fund Balance 2019 3,899,715 Available Fund Balance 2018 5,588,373 Change in Available Fund Balance (1,688,658)

He noted a decrease of 30.2 percent from the prior year, which is due to a decrease in overall fund balance in the current year. Stabilization by State Statute refers to accounts receivable at June 30, 2019, not yet available per State statute because the money has not been received. It is not in cash spendable form. The non-spendable amount represents 135,000 in inventories and 341,000 in prepaids, reiterating these items are not in spendable form.

Mr. Braswell stated available fund balance represents 14.73 percent of total General Fund expenditures and transfers out to other funds, which represents a decrease from the prior year and approximately two months worth of fund balance. The Local Government Commission recommendation is 8 percent of fund balance or one month s worth of expenditures.

Mr. Braswell reported the top three sources of revenue include property taxes, other taxes and licenses, and other revenues which comprise 17.5 million or 82 percent of the total revenues. The total revenues equal 21,457,996. As previously mentioned with regard to property taxes, Mr. Braswell further stated there was an increase of 489,768 or 4.8 percent.

Tagged Passions:funding, boards and commissions, taxes, Taxes, property, license, and property tax

With regard to other taxes and licenses, Mr. Braswell noted an increase, stating the City had a substantial increase in local option sales tax dollars as compared to the prior year.

No additional detail provided

Tagged Passions:sale, taxes, Taxes, license, and Local Option Sales Tax

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With regard to unrestricted intergovernmental, there was an increase of 6,019 or .3 percent comparable to the prior year. Mr. Braswell explained this revenue consists mostly of utility franchise tax and alcohol beverage control (ABC) revenues.

Mr. Braswell reported the General Fund expenditures include public safety, other expenditures, cultural and recreation, and general government, including environmental protection and debt service for a total of 24,845,172.

Tagged Passions:alcohol, taxes, Taxes, utility, Utility, public safety, environment, intergovernmental, and recreation

Mr. Braswell said public safety had an increase of 2,426,985 or 23 percent due to increased expenditures for police and fire departments.

Mr. Braswell said cultural and recreation had an increase of 458,996 or 18.9 percent due to the increased spending for parks and recreation. With regard to general government, Mr. Braswell commented expenditures were stable with very little fluctuation. With regard to the City s enterprise funds, Mr. Braswell reported an increase in total net position of 17,316,620. There was an overall 17 million positive change in net position. He explained net investment in capital assets is the total capital assets less all outstanding debt related to acquiring those assets plus any unspent debt proceeds. For enterprise funds, unrestricted net position is similar to fund balance available for appropriation. With regard to the Water Fund, the unrestricted net position is down 960,000 due to an increase in net investment in capital assets. Cash flows were down 16 percent due to increases in cash paid for goods and services. Mr. Braswell stated there was an overall positive change in net position of 8 million due to capital contributions of project funds. With regard to the Sewer Fund, the unrestricted net position is up 1.1 million due to an increase in net investment in capital assets. Cash flows were down 46 percent due to an increase in cash paid for goods and services. Mr. Braswell stated there was an overall change in net position of 7.4 million, mainly due to capital contributions of the project funds. With regard to the Electric Fund, the unrestricted net position is down 542,000 due to an increase in net investment in capital assets. Cash flows were up 336 percent due to a decrease in cash paid for goods and services.

Tagged Passions:funding, sewer, utility, Utility, public safety, fire departments and districts, services, water, electric, parks, investment, and recreation

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Mr. Braswell stated there was an overall negative change in net position of 268,000 due to transfers to other funds.

With regard to the Natural Gas Fund, the unrestricted net position is up 702,000 due to an increase in capital assets. Cash flows were down 3 percent and comparable to previous year. Mr. Braswell stated there was an overall positive change in net position of 2.06 million. With regard to the Stormwater Fund, the unrestricted net position is up 90,000. Cash flows were up 383,000. Mr. Braswell stated there was an overall positive change in net position of 111,000. With regard to the Housing Fund, the unrestricted net position is down 201,000 due to asset additions. Cash flows were down 721 percent compared to the previous year due to decreased cash received from customers. Mr. Braswell stated there was an overall positive change in net position of 388,000 due to capital contributions.
Tagged Passions:funding, natural gas, stormwater, and housing

Mr. Braswell recommended reading the Management s Discussion and Analysis included in the CAFR, which provides a narrative overview and analysis of the financial activities of the City of Shelby for the Fiscal Year ended June 30, 2019.

No additional detail provided

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Upon questioning, Mr. Braswell responded the stabilization by State statute is basically the City s accounts receivable at June 30, 2019. These are funds not yet available per State statute because the money has not been received due to the 90-day revenue recognition principle. Therefore, it is not in cash spendable form.

No additional detail provided

Tagged Passions:funding and recognition

Mr. Howell reminded Council should any questions regarding the audit arise, each member should feel free to reach out to Mr. Braswell for clarification. It is important for management and staff to provide Council the information, but in performing their fiduciary responsibilities to the citizens, Council should feel confident to follow-up with the outside auditor when questions or concerns arise.

No additional detail provided

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Council received the information and took no action.

C. Public Comment: 1) Lawrence Henson who resides at 205 John E. Randall Road in Shelby, North Carolina and who represents the Neighborhood Revitalization Committee spoke against the demolition of 600 Calvary Street recommended by the Planning and Development Services Department.

Tagged Passions:planning, council, streets, development, services, Development, demolition, and neighborhood

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Mr. Henson opposed Code Enforcement s determination that the dwelling was in a dilapidated condition and due to its dilapidation failed to comply with the City s Minimum Housing Code. Mr. Henson requested an extension of time to complete the required repairs to the dwelling.

2) Melvin Clark who resides at 116 Donlynn Drive in Shelby, North Carolina spoke about his concerns related to Willie Green as a minority business owner attempting to positively impact the City of Shelby and Cleveland County. Mr. Green has proposed Cleveland County Promise, Cleveland County Training School, a sports complex, and an apartment complex at 1607 East Dixon Boulevard and East Main Street, all of which have not come to fruition. Mr. Clark and his group meet and discuss these issues, seeking a clearer understanding as to why Mr. Green cannot get his proposals to succeed. D. Public Hearings: 1) Consideration of a proposed ordinance amending the zoning map of the
Tagged Passions:ordinance, business, zoning, training, hearing, education, codes enforcement, sports, and housing

City of Shelby, North Carolina: Ordinance No. 81-2019

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Mr. Toney introduced this proposed zoning map amendment for the property located at 506 to 514 West Dixon Boulevard. Utilizing location and zoning maps, he pointed to the subject property zoned as General Business (GB)- Conditional Use (CU) District which is currently a shopping center known as Huxley Village. This particular conditional use district permits all uses in the Neighborhood Business (NB) District and thrift stores . The applicant wishes to expand the permitted uses in the shopping center. Mr. Toney stated other land uses in the area include the Residential 8 (R8) District and commercial. He further stated the proposed zoning map amendment is consistent with the Shelby Comprehensive Land Use Plan for this area designated as Corridor Revitalization.

No additional detail provided

Tagged Passions:business, zoning, property, commercial, corridor, and neighborhood

Mr. Toney concluded by stating City staff and the Planning and Zoning Board recommended approval of the proposed zoning map amendment for the property located at 506 to 514 West Dixon Boulevard from General Business- Conditional Use District to General Business District.

Mayor Anthony opened the public hearing at 6:31 p.m. and invited comments from the public: John Ferguson who resides at 221 Palmer Road in Lawndale, North Carolina spoke in support of his and his wife, Kristina Ferguson s proposed project for 506 to 514 West Dixon Boulevard. Mr. Ferguson read his prepared statement in which he said they chose Huxley Village Shopping Center as the most suitable location for their business. Mr. Ferguson added his proposition will

Tagged Passions:planning, business, zoning, property, hearing, and commercial

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add value to the City by providing job creation, retail revitalization, and sales tax revenue. He requested Council s favorable consideration of the proposed zoning map amendment.

Mayor Anthony closed the public hearing at 6:34 p.m. ACTION TAKEN: Upon a motion made by Mr. Hendrick, City Council voted unanimously to approve and adopt Ordinance No. 81-2019 entitled, A PROPOSED ORDINANCE AMENDING THE ZONING MAP OF THE CITY OF SHELBY, NORTH CAROLINA .

Tagged Passions:ordinance, council, sale, taxes, Taxes, zoning, hearing, and job creation

E.
Consent Agenda:

ACTION TAKEN: Mayor Anthony presented the consent agenda. Mr. Hendrick made a motion to approve the consent agenda. The consent agenda and following items were unanimously approved: 1) Approval of the Minutes of the Regular Meeting of December 2, 2019

2) Approval of Special Event Permit Application:

No additional detail provided

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a.
Broad River European Classic, requested date: April 25, 2020

3) Adoption of an ordinance authorizing demolition of a dwelling: Ordinance

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No. 82-2019

No additional detail provided

END CONSENT AGENDA

F.
Unfinished Business: None

No additional detail provided

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G.
New Business: None

H. City Manager s Report: 1) With regard to the Uptown Shelby Streetscaping Project, Mr. Howell provided a brief update of the construction activities with plans to start on the Washington Street at Marion Street intersection on or about January 6, 2020.

Tagged Passions:construction, business, streets, administrator, and manager

2) Mr. Howell mentioned the T-Hangar Project at the Shelby-Cleveland County Regional Airport is complete and the well-attended ribbon cutting was held on December 10, 2019. He reported all 30 spaces in the T- hangars have deposits and will be at full capacity in the very near future.

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3) With regard to the construction of Shell Building No. 3, Mr. Howell stated this project is moving forward and will be advertised for bid on January 6, 2020. It is anticipated a recommendation for the award of the construction contract will be presented to Council on February 17, 2020 for consideration.

Tagged Passions:rfp, Homebuilder, RFP, construction, council, contract, and advertising

4) Mr. Howell announced that Shelby will be the host city for the North Carolina Association of Municipal Electric Systems (NCAMES) annual conference from May 12 through 14, 2020 at the LeGrand Center.

No additional detail provided

Tagged Passions:electric

5) Mr. Howell provided two dates for scheduling purposes of the City Council retreat: January 25 or February 1, 2020. By consensus, Council tentatively scheduled February 1, 2020 at 8:00 a.m. to be held at the Shelby Cleveland County Regional Airport for their annual retreat. He also requested Council s topics and subject matter for staff preparation and discussion at the retreat.

I. Council Announcements and Remarks: 1) Mrs. Arth Dukes requested the City s recycling program as a topic for the Council retreat.

Tagged Passions:council, airport, program, and recycling

2) Mr. Causby and Mr. Hopper congratulated the Shelby High School Golden Lions football team for winning their North Carolina High School Athletic Association 2019 2AA State Championship on December 14, 2019.

No additional detail provided

Tagged Passions:education and athletics

3) Mayor Anthony mentioned the Shelby Christmas parade held on December 15, 2019 had a large crowd in attendance along with a full contingent of City staff participating.

Mayor Anthony stated he intends to prepare a letter to the editor of the Shelby Star regarding the City s recycling program in order to provide some additional information on the City s intentions going forward.

Tagged Passions:program and recycling

K.
Adjournment:

1) Motion to adjourn ACTION TAKEN: Upon a motion made by Mr. White, City Council voted unanimously to adjourn the meeting at 6:44 p.m. Respectfully submitted,

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Bernadette A. Parduski, NCCMC, MMC City Clerk

O.
Stanhope Anthony III Mayor

No additional detail provided

Minutes of December 16, 2019

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City of Shelby Agenda Item Summary

Agenda Item: B-2

2) Approval of Special Event Permit Application:

No additional detail provided

Tagged Passions:events

a.
Dr. Martin Luther King Jr. March, requested date: January 20, 2020

Consent Agenda Item: (Bernadette A. Parduski, City Clerk) Summary of Available Information: Memorandum dated December 30, 2019 from Bernadette A. Parduski, City Clerk to

Rick Howell, City Manager Memorandum from Bernadette A. Parduski, City Clerk to Police Chief Jeff Ledford,

Fire Chief William Hunt, Fire Marshal Phil Lane, Parks and Recreation Director Charlie Holtzclaw, Public Works Director Danny Darst, Assistant Director Public Works Scott Black, Director of Engineering Services Ben Yarboro, Stormwater/Engineering Coordinator Tyler Brooks and Planning Director Walter Scharer Special Event Permit Application City Manager s Recommendation / Comments This event is in keeping with special event practices of the City. It is my recommendation that this item be approved by City Council at this time via the Consent Agenda.
Tagged Passions:planning, council, public safety, services, events, parks, Public Works, public works, administrator, manager, recreation, and stormwater

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12

No additional detail provided

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14

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16

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City of Shelby Agenda Item Summary

Agenda Item: B-3

3) Approval of a resolution honoring Coach Mike Wilbanks and the Shelby High School

No additional detail provided

Tagged Passions:recognition and education

2019 Golden Lions Football Team: Resolution No. 1-2020

Consent Agenda Item: (Staff Resource, Bernadette Parduski, City Clerk)

Summary of Available Information:

Resolution No. 1-2020 City Manager s Recommendation / Comments Resolution No. 1-2020 is drafted for Council consideration via the Consent Agenda. Following the championship win by Shelby High School I asked the City Clerk to dust off and update this resolution for consideration. It is in keeping with past City Council practice and custom to recognize local high school athletic teams and individuals that have achieved State Championships. It is anticipated that Coach Wilbanks and the team will be invited to a future City Council meeting so they can be formally recognized.
Tagged Passions:recognition, administrator, manager, education, and athletics

It is recommended that Resolution No. 1-2020 be adopted and approved via the Consent Agenda.

No additional detail provided

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RESOLUTION NO. 1-2020

A RESOLUTION HONORING COACH MIKE WILBANKS AND THE SHELBY HIGH SCHOOL 2019 GOLDEN LIONS FOOTBALL TEAM WHEREAS, the Shelby High School Golden Lions football teams traditionally have exemplified good sportsmanship and performance excellence wherever they have played; and, WHEREAS, Shelby High School captured its second straight 2AA State Championship on December 14, 2019 when the Golden Lions met the Salisbury High School Hornets at Wake Forest University s BB T Field in Winston-Salem, North Carolina and won the North Carolina High School Athletic Association s (NCHSAA) 2019 2AA State Championship game; and, WHEREAS, this title represents the 16th State Championship in Shelby High School history and is the sixth in the past seven years; and, WHEREAS, the Shelby Golden Lions possess the most overall football wins in the State of North Carolina and have also established playoff performance records that are astounding, including most playoff appearances; and, WHEREAS, the accomplishments of the Shelby High School 2019 Golden Lions football team have brought significant recognition to the City of Shelby and the Cleveland County School System. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY

Tagged Passions:recognition, council, performance, university, education, athletics, and history

OF SHELBY, NORTH CAROLINA:

SECTION 1. The Mayor and City Council publicly recognize and applaud the

No additional detail provided

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2019 Shelby Golden Lions, Head Coach Mike Wilbanks, and the coaching staff of Shelby High School for their outstanding season and 2AA NCHSAA Football State Championship.

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SECTION 2. That this Resolution be spread upon the permanent Minutes of the

No additional detail provided

City Council, and that an official copy of this Resolution is presented to Coach Wilbanks and the team with congratulations and pride.

Adopted and approved this 6th day of January 2020.

Tagged Passions:council

______________________________ O. Stanhope Anthony III

Mayor ATTEST: _____________________________________ Bernadette A. Parduski, NC-CMC, IIMC-MMC City Clerk

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City of Shelby Agenda Item Summary

Agenda Item: B-4

4) Approval of a resolution approving application to Watch for Me NC: Resolution No. 2-2020

Consent Agenda Item: (Staff Resource, Walter Scharer, Planning Director)

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Summary of Available Information:

Memorandum dated December 27, 2019 from Walter Scharer, Planning Director to Rick Howell, City Manager Resolution No. 2-2020 City Manager s Recommendation / Comments Resolution No. 2-2020 is presented for City Council consideration at this time via the Consent Agenda. If approved this resolution would authorize the City to make application on behalf of the City to again apply to this NCDOT program in 2020. Below is an excerpt from a 2019 press release put out by NCODT explaining the program. It is my recommendation Resolution No. 2-2020 be adopted and approved by City Council at this time via the Consent Agenda.
Tagged Passions:planning, council, program, administrator, and manager

RALEIGH North Carolina communities interested in participating in the 2019 Watch for Me NC safety program may now submit applications to the N.C. Department of Transportation.

The nationally-recognized program focuses on bicycle and pedestrian safety, education and enforcement. The 2019 campaign is supported by the Governor s Highway Safety Program in partnership with the NCDOT Division of Bicycle and Pedestrian Transportation. Watch for Me NC delivers hands-on training to law enforcement while also educating the public as both must be engaged and informed in the process to improve bicycle and pedestrian safety, said Ed Johnson, Watch for Me NC program manager. Our goal is to reduce severe crashes and injuries in our communities through law enforcement training, public education, materials and technical support. Communities selected to participate will receive free law enforcement training, technical assistance and safety tools provided by NCDOT and the UNC Highway Safety Research Center.

Tagged Passions:recognition, public safety, transportation, materials, program, training, manager, education, Bicycles, Pedestrian, and bicycles

Some materials include bicycle lights, reflective arm bands, bumper stickers, brochures, posters and banners with pedestrian and bicycle safety messages. Communities may also be eligible to receive advertising such as radio, transit ads, and sidewalk stencils. Local government applicants should be able to demonstrate support from local law enforcement agencies, and if applicable campus police, plus the capacity to participate fully in the program.

No additional detail provided

Tagged Passions:radio, streets, public safety, materials, advertising, program, Bicycles, Pedestrian, and bicycles

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Memorandum

No additional detail provided

To: Rick Howell - City Manager

No additional detail provided

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From: Walter Scharer Planning Director

Tagged Passions:planning

Date: December 27, 2020

Subject: Watch for Me NC Program

Executive Summary of issue Background Communities throughout North Carolina have begun to place more emphasis on providing facilities for biking and walking. A desire for improved modal choices, the demand for more bikeable and walkable communities and a focus on smart growth initiatives have combined
Tagged Passions:program and growth

to highlight the need for better, more complete bicycle and pedestrian transportation

systems. However, each year, approximately 3,000 pedestrians and 850 bicyclists are hit by
Tagged Passions:transportation, Bicycles, Pedestrian, and bicycles

cars on North Carolina Streets. Watch for Me NC is a comprehensive program, run by the

North Carolina Department of Transportation (NCDOT) in partnership with local
Tagged Passions:streets, transportation, and program

communities, aimed at reducing the number of pedestrians and bicyclists hit and injured in

crashes with vehicles. The Watch for Me NC program involves two key elements: 1) safety and educational

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messages directed toward drivers, pedestrians and bicyclists, and 2) high visibility

enforcement efforts by area police to reduce violations of traffic safety laws. Local programs
Tagged Passions:public safety, program, Pedestrian, and traffic

are typically led by municipal, county, or regional government staff with the involvement of

many others, including pedestrian and bicycle advocates, city planners, law enforcement agencies, engineers, public health professionals, elected officials, school administrators, and others. Review and Comments The City of Shelby was accepted into the Watch for Me NC program in 2019. The rail trail will provide a great opportunity to incorporate bicycle facilities into the transportation

Tagged Passions:health, transportation, program, trails, administrator, education, Bicycles, Pedestrian, and bicycles

thread of the community. Staff recommends continuing the Watch for Me NC program to

continue education of safely being a Bicyclist and Pedestrian as well as a safe Driver. Policy 1.7 of the Strategic Growth Plan (2005) supports bicycle and pedestrian safety. Pedestrian and bikeway facilities shall be encouraged as energy-efficient, healthful, and environmentally sound alternatives to the automobile. The Watch for Me NC program is also consistent with the policies and recommendations
Tagged Passions:strategic, transportation, program, education, policy, Bicycles, Pedestrian, energy, growth, and bicycles

found in the Comprehensive Pedestrian Plan as well as the Comprehensive Land Use Plan.

Staff recommends this resolution authorizing an application for the Watch for Me NC Program in 2020.
Tagged Passions:program and Pedestrian

Please place this item on the agenda for the January 6, 2020 City Council meeting.

Attachment: Resolution

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RESOLUTION NO. 2-2020

A RESOLUTION APPROVING APPLICATION TO WATCH FOR ME NC

WHEREAS, The Watch for Me NC program is aimed at reducing the number of pedestrians and bicyclists hit and injured in crashes with vehicles; and,

WHEREAS, Watch for Me NC will assist the City in meeting Goal 6 of the Shelby Comprehensive Land Use Plan; and, WHEREAS, Watch for Me NC will assist the City in meeting the goals of the Shelby Comprehensive Pedestrian Plan; and, WHEREAS, Watch for Me NC will assist the City in meeting the Strategic Growth Plan Policy 1.7. Pedestrian and bikeway facilities shall be encouraged as energy-efficient, healthful, and environmentally sound alternatives to the automobile in the SGP; and, WHEREAS, Watch for Me NC will assist the City in meeting the Strategic Growth Plan Policy 13.3. The City of Shelby shall encourage growth and development patterns that work to reduce dependence on the automobile, thereby reducing air pollution emissions in the SGP; and, WHEREAS, Watch for Me NC will assist the City in meeting the NC Vision Zero initiative of eliminating roadway deaths and injuries. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SHELBY, NORTH CAROLINA: Section 1. The City Manager of the City of Shelby is authorized to execute all documents necessary to apply to Watch for Me NC.
Tagged Passions:council, strategic, development, transportation, program, Development, administrator, manager, policy, Bicycles, Pedestrian, energy, growth, and bicycles

ADOPTED AND APPROVED this the 6th day of January 2020.

No additional detail provided

O.
Stanhope Anthony III

Mayor ATTEST: Bernadette A. Parduski, NC-CMC, IIMC-MMC City Clerk

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City of Shelby Agenda Item Summary

Agenda Item: B-5

5) Approval of Notice of Cancellation in the Regular Meeting Schedule of Shelby City Council

Consent Agenda Item: (Staff Resource, Bernadette Parduski, City Clerk)
Tagged Passions:council

Summary of Available Information:

Notice of Cancellation

City Manager s Recommendation / Comments
Tagged Passions:administrator and manager

After reviewing with staff the upcoming agenda schedule and any upcoming items requiring action by City Council it is my recommendation that the regular meeting slated for Monday, January 20, 2020 (Dr. Martin Luther King Jr. Day) be cancelled via the Consent Agenda. As a matter of practice agenda items are scheduled and planned weeks in advance for most items to allow the appropriate review process to occur. I would note that in the event an issue arises that would require immediate action by City Council a special meeting could be called in accordance with the NC General Statutes. If approved by City Council your next regularly scheduled meeting would be held on Monday, February 3, 2020. Also, note that City offices and some services exclusive of public safety will be closed on Monday, January 20, 2020 in observance of Dr. Martin Luther King, Jr. Day.

No additional detail provided

Tagged Passions:council, public safety, services, and events

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No additional detail provided

City of Shelby Agenda Item Summary

C.
Unfinished Business

Agenda Item C-1 1) Adoption of Fiscal Year (FY) 2019-2020 Budget Ordinance Amendment No. 10: Ordinance No. 1-2020

Tagged Passions:ordinance, business, and budget

Unfinished Business Item: (Rick Howell, City Manager and Justin Merritt, Assistant City Manager/Finance Director) Summary of Available Information:

Memorandum dated December 17, 2019 from Justin Merritt, Assistant City

Tagged Passions:business, finance, administrator, and manager

Manager/ Director of Finance to Rick Howell, City Manager Copy of Resolution No. 62-2013 with Incentive Agreement and other supporting

documents Letter dated October 7, 2019 from The Greenheck Group to City Manager with Tax Rebate Request 5 and Incentive Grant Payment Schedule Ordinance No. 1-2020 City Manager s Recommendation / Comments
Tagged Passions:grant, ordinance, finance, taxes, Taxes, administrator, manager, and incentive

This item is presented for City Council consideration at this time. If approved this amendment would formally appropriate the incentive grant for Tax Year 2019. Future payments will be made as the grant recipient requests payment after complying with the provisions of the adopted agreement. This is year five of a seven year agreement with Greenheck Fan Corporation at their location (2000 Partnership Drive) in the Foothills Commerce Center. The approved grant covers a seven year period at 65 grant incentive payment back to the company.

As a reminder to Council you will recall that companies awarded incentive grants must pay in full all tax and other bills owed to the City prior to making a request. It is the responsibility of the company to certify to the City they have done so with written verification coming from the Cleveland County Tax Office. Council must then approve this budget amendment appropriating the amount due. Only then will the City pay the incentive grant.
Tagged Passions:grant, council, budget, taxes, Taxes, and incentive

It is my recommendation Ordinance No. 1-2020 be adopted and approved by City Council at this time.

No additional detail provided

Tagged Passions:ordinance and council

25
To: Rick Howell, City Manager

No additional detail provided

Tagged Passions:administrator and manager

From: Justin Merritt, Asst. City Manager/Dir. of Finance

No additional detail provided

Tagged Passions:finance, administrator, and manager

Date: December 17, 2019

Subject: Greenheck Fan Corporation Industrial Incentive Grant Distribution

Background:
Tagged Passions:grant, industrial, and incentive

As you are aware, the City of Shelby entered into an agreement with Greenheck Fan

Corporation to provide Industrial Incentive Grants upon completion of certain grant

Tagged Passions:grant, industrial, and incentive

requirements. The agreements are attached and detail the guidelines of the grant program.

Greenheck Fan Corporation has now met the requirements for year five of the grant
Tagged Passions:grant and program

payment and has asked for the distribution to be made.

Recommendation: The recommendation from staff is to approve the attached budget amendment, which will allow for distribution of year five of the grant incentive.
Tagged Passions:grant, budget, and incentive

26
RESOLUTION NO. 62-2013

A RESOLUTION CONFIRMING THE CITY OF SHELBY INTENT TO OFFER AN ECONOMIC DEVELOPMENT INCENTIVE GRANT AND RELATED INCENTIVES

Tagged Passions:grant, economic development, development, Development, and incentive

WHEREAS, on the City of Shelby has established the practice of offering

economic development incentives for the purpose of promoting the economic health

and vitality of the community, and,

Tagged Passions:health, economic development, development, Development, and incentive

WHEREAS, the Cleveland County Economic Development Partnership has

presented a qualifying economic development project named Project Lakewood (the Project ) with an total expected investment valued at 26 Million of net new investment which shall be eligible for incentives through the policy and create 177
Tagged Passions:economic development, development, Development, investment, policy, and incentive

new full time jobs; and,

WHEREAS, the City Council believes that Project Lakewood will stimulate
Tagged Passions:council and jobs

and provide stability for the local economy, will provide local economic benefits for

the citizens of the City of Shelby through an increase in sales tax revenues,

Tagged Passions:sale, taxes, Taxes, and economy

increased personal property tax revenues, increased purchases of local goods and

services, increased revenues from having the project as a new customer of the City

Tagged Passions:taxes, Taxes, services, purchasing, property, and property tax

for water and sewer services and natural gas service, and will result in the creation

No additional detail provided

Tagged Passions:sewer, utility, Utility, services, water, and natural gas

of a substantial number of new full-time permanent jobs; and

WHEREAS, the City Manager and the Cleveland County Economic
Tagged Passions:administrator, manager, and jobs

Development Partnership have determined that the Project meets the goals set

forth by City Council including job creation and capital investment.

Tagged Passions:council, development, Development, investment, and job creation

27
Resolution No. 62-2013 October 7, 2013 Page 2

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY

Tagged Passions:council

OF SHELBY, NORTH CAROLINA:

Section 1. In accordance with the City's economic development incentive

practices, the City Council extends to the Project by agreement the offer to provide annual grants with an amount equal to an estimated 514,000 paid over a period of

Tagged Passions:grant, council, economic development, development, Development, and incentive

7
years along with an upfront, one-time cash grant in the amount of 150,000.

Additionally, the City Council approves the City's extensions of the existing street

Tagged Passions:grant, council, and streets

system within the Foothills Commerce Center ( FCC ), the gifting of approximately

20
acres within the FCC as well as the option by the company to be gifted an

No additional detail provided

additional 12 acres within the FCC under the terms of the agreement. The grant

award is subject to execution of a legal agreement drafted in accordance with the

Tagged Passions:grant and legal

provisions of North Carolina General Statute 158-7.1, said agreement describing

the Project and stating expected benchmarks and recourse for non-compliance. The
Tagged Passions:compliance

City Manager and City Attorney were hereby authorized and directed to negotiate

the language of said legal agreement for presentation to and final approval by the

Tagged Passions:legal, administrator, and manager

City Council, and to record the approved agreement in the Office of the Register of

Deeds for Cleveland County.

Tagged Passions:council

Section 2. The Mayor and City Clerk of the City of Shelby are hereby

authorized and directed to execute the agreement specified in Section 1 of this resolution on behalf of the City.

28
Resolution No. 62-2013 October 7,2013 Page 3

Section 3. This resolution shall become effective upon its adoption and approval. Adopted and approved this the 7th day of October 2013. ATTEST: Bern dette A. Parduski, NCCMC, MMC City Clerk

O.
Mayor

No additional detail provided

29
INCENTIVE AGREEMENT

This Incentive Agreement (the Agreement ) is made and entered into as of the 7th day of October, 2013, by and between CITY OF SHELBY, NORTH CAROLINA, a municipal corporation of the State of North Carolina (the City ) and GREENHECK FAN CORPORATION, a business corporation of the State of Wisconsin (the Company ). The City and the Company may from time to time hereinafter be referred to individually as a Party and collectively as the Parties. WITNESSETH: WHEREAS, the Local Development Act of 1925, as amended, (Article 1 of Chapter 158 of the North Carolina General Statutes) grants cities the authority to make appropriations for the purposes of aiding and encouraging the location or expansion of certain business enterprises in the city or for other purposes which the city's governing body finds in its discretion, will increase the population, taxable property base and business prospects of the city; and, WHEREAS, the City council of the City of Shelby (the Council ), pursuant to North Carolina law, has adopted the City of Shelby Industrial Incentive Program (the Program ), dilly adopted and enforced at the time of this Agreement, in order to induce existing industry to expand in the City and target new industries to locate in the City, through the provision of various incentives including the payment of a stipulated incentive grant amount from the City's General Fund (the General Fund ), as determined in accordance with the provisions of the Program; and, WHEREAS, the Company contemplates the construction and equipping of an approximately 150,000 square foot building in Phase I of its Project, to be located in the Foothills Commerce Center Park located in the City of Shelby, North Carolina, (the Project ); and, WHEREAS, the Company intends to create approximately one hundred seventy seven (177) new, permanent full-time jobs during the first five (5) years of this Agreement at the Project; and, WHEREAS, the entire Project will include buildings and the installation of machinery and equipment with a total initial investment of approximately Twenty Six Million Dollars ( 26,000,000.00) in the County; and, WHEREAS, the Council has determined following a public hearing on October 7, 2013, that the Company meets the criteria for participation in the Program due to the planned construction and operation of the Project, which will increase the popillation, taxable property base and business prospects of the City, and that certain incentives for the Project (the Incentives ) will encourage the Company to expand its operations in the area, and that it is in the public interest to provide assistance as authorized by the North Carolina General Statutes 158-7.1; and

Tagged Passions:Homebuilder, funding, grant, construction, business, equipment, council, expansion, grocery, development, industrial, program, parks, Development, property, investment, hearing, incentive, and jobs

30
WHEREAS, the Company acknowledges that the Incentives will serve as an inducement for the Company to construct and operate the Project in the City;

NOW, THEREFORE, in consideration of the reasons recited above, and the mutual covenants and agreements hereinafter set forth, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties hereto do each contract and agree as follows: Incentive Number One The City shall make a one-time Grant to the Company of One Hundred Fifty Thousand Dollars ( 150,000.00) to be used by the Company for site preparation at the Project. This Grant shall be made to the Company within fifteen (15) days of commencement of grading at the Project site. If the Company does not begin operation of the Project within twenty four (24) months of the date of this Agreement, then the Company shall repay the One Hundred Fifty Thousand Dollars ( 150,000.00) to the City within fifteen (15) days of the expiration of the twenty four (24) months. Incentive Number Two 2.1 Incentive Grant Criteria The Company shall comply with the following conditions (the Grant Criteria ) in order to qualify for Incentive Grants pursuant to this Agreement.

Tagged Passions:grant, contract, grading, and incentive

a.
The Company shall begin construction of the Project within twelve (12) months of the execution of this Agreement.

No additional detail provided

Tagged Passions:construction

b.
The Company shall maintain its investment in the City for the duration of the Grant Term (hereinafter defined).

No additional detail provided

Tagged Passions:grant and investment

c.
The Company shall operate the Project substantially in compliance with all laws, rules, regulations, ordinances, and orders of all governmental bodies, agencies, authorities, and courts having jurisdiction.

No additional detail provided

Tagged Passions:regulation, ordinance, legal, compliance, and court

d.
The City shall not be responsible for any aspect of the design or equipping of the Project.

No additional detail provided

e.
The Company shall be current in the payment of all ad valorem taxes and fees imposed on the Company by the City of Shelby and Cleveland County.

No additional detail provided

Tagged Passions:impact fee, taxes, Taxes, and ad valorem

f.
The Company shall conduct operations at the Project in such manner as to be in material compliance with applicable Federal, State and local environmental regulations.

Tagged Passions:regulation, environment, and compliance

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2.2 Certification of Grant Criteria by the Company.

No additional detail provided

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a.
In each year of the Grant Term, the Company shall request payment of an Incentive Grant from the City. This request for payment can be made at any time after the Company has paid all local ad valorem taxes for the current tax year. In connection with each request for payment of the Incentive Grant, the Company shall deliver to the City's Finance Director a performance letter certifying that in the prior year, (or the current year if the request is made between July 1 and December 31 of the tax year) the Company (i) satisfied all of the Grant Criteria, (ii) agreed to the Assessed Value (hereinafter defined) of the Project as determined by the Cleveland County Tax Assessor; and (iii) paid all applicable local taxes on the Assessed Value of the Project. If in any year of the Grant Term, the Company fails to request payment from the City of the Incentive Grant for that year, the Company forfeits absolutely its right to the Incentive Grant for that year.

No additional detail provided

Tagged Passions:grant, finance, taxes, Taxes, performance, ad valorem, and incentive

b.
Upon receipt of such certification from the Company, the Cleveland County Tax Assessor shall determine, as of January 1st for each year of the Grant Term, the total new property invested in the Project that is subject to ad valorem property taxes in the City (the Taxable Investment ) and the assessed value of the Taxable Investment (the Assessed Value ).

No additional detail provided

Tagged Passions:grant, taxes, Taxes, property, investment, ad valorem, and property tax

c.
The Company agrees to cooperate with the Cleveland County Tax Assessor and the City by providing such information and access to the Company's records as may be necessary to verify and substantiate initial and ongoing compliance with the Grant Criteria. If the City is unable to independently verify compliance with the Grant Criteria upon exercise of reasonable effort, then the City shall provide thirty (30) days written notice to the Company of the additional information needed to ascertain compliance. If the Company does not provide such additional information, and such additional information is necessary to ascertain its compliance with this Agreement, to the City before the expiration of this thirty (30) day period, the City may immediately terminate this Agreement. To the full extent allowed by law, such information shall be kept confidential by the City and shall remain the property of the Company to be returned after the City'S reVIew.

No additional detail provided

Tagged Passions:grant, taxes, Taxes, property, and compliance

d.
The Company acknowledges that it has been informed by the City that the City is required by law, upon request, to disclose Public Records as that term is defined by N. C. Gen. Stat. 132.1. Notwithstanding the immediately preceding sentence, the City acknowledges that some or all of the information made available by the Company to the City pursuant to this Agreement may be exempt from disclosure as a Public Record pursuant to N. C. Gen. Stat. 132-1.2, 132-6(d), and that all such information is proprietary. Some or all of the information made available to the City pursuant to this Agreement may be designated by the Company as confidential and as a trade secret at the time of disclosure to the City. The City, to the fullest extent allowed by state law, will hold such designated information as confidential. The City shall, if it receives

No additional detail provided

Tagged Passions:trade and public records

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32

a
request for disclosure of any such information, notify the Company of such request so that the Company may defend any claims or disputes arising from efforts of others to cause such trade secrets to be disclosed as a Public Record, and the City shall refrain from making any such disclosures unless or until it (i) receives the Company's written permission to do so; or (ii) is compelled to do so by the final order of a court of competent jurisdiction. The Company shall have the right to direct any litigation of such dispute and shall indemnify the City for any legal fees and expenses incurred by the City in opposing such request for disclosure. The Company acknowledges that the City has met the disclosure requirements set forth in N. C. Gen. Stat. 132-1.11 (b).

2.3 Grant Term and Payment of Incentive Grants.
Tagged Passions:impact fee, grant, legal, trade, incentive, and court

a.
Grant Term. The Grant Term will begin upon the issuance of a certificate of occupancy for the Project and upon verification that the Company has (i) satisfied all Grant Criteria, (ii) agreed to the Assessed Value of the Project as determined by Cleveland County's Tax Assessor, and (iii) paid all applicable local ad valorem taxes and fees. The Grant Term will continue for seven (7) calendar years following initial verification as long as the Grant Criteria remain satisfied.

No additional detail provided

Tagged Passions:impact fee, grant, taxes, Taxes, and ad valorem

b.
Between January 1 st and March 31 st of each year of the Grant Term, the City shall make an Incentive Grant payment to the Company in an annual amount equal to sixty five per cent (65 ) of the City ad valorem taxes (with the current rate being 0.435 per 100.00 valuation) on real and personal property paid on the Project by the Company to the City during the preceding calendar year, as long as the Company remains compliant with this Agreement.

2.4 Termination upon Failure to Pay Ad Valorem Taxes. If the Company at any time during the Grant Term fails to pay all applicable ad valorem taxes when due, then the City shall provide thirty (30) days written notice to the Company stating that the ad valorem taxes are delinquent. If the taxes have not been paid upon the expiration of such thirty (30) day period of the Company's receipt of notice, then the City may terminate this Agreement and have no further obligation to the Company for the payment of any Incentive Grant.

Tagged Passions:grant, taxes, Taxes, property, ad valorem, and incentive

Incentive Number Three

Tagged Passions:incentive

3.1 Conveyance of Real Property. Within sixty (60) days of the execution of this Agreement by both parties, the City will convey to the Company by General Warranty Deed, and free of all encumbrances (with the exception of utility easements) an approximately twenty (20) acre tract of land located in the Foothills Commerce Center Park (the Property ), said tract to be surveyed at the expense of the City.

The Company shall have no obligation to accept title to the Property unless and until (a) The Company is satisfied in all respects with its due diligence investigation of the

Tagged Passions:utility, Utility, parks, property, and easement

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No additional detail provided

Property including, without limitation, all title, survey, geotechnical and environmental matters related thereto; (b) the City is not in default of the performance of any covenant or agreement to be performed as of the date of Closing by the city as set forth in this Agreement; and (c) the Company has confirmed that its use of the Property for the Project will not violate any private restrictions, zoning ordinances or governmental regulations then in effect on the date of Closing. Once the Company has determined that the conditions set forth in clauses (a), (b) and (c) preceding have been satisfied (or have been waived in whole or in part by the Company in its sole discretion), the Company shall give notice (the Closing Notice ) to the City that it is ready to close on the conveyance of the Property. The Company must give the Closing Notice within sixty (60) days of the execution of this Agreement by both parties. The City agrees to deliver the General Warranty Deed to the Property in the manner set forth in this Section 3.1 on a date that is no more than ten (10) business days following the date of the Closing Notice (the Closing ).

The City represents to the Company that the Property now is, and at Closing will be, in full compliance with all applicable zoning and land use laws and other local, state and federal laws and regulations and the City does not have knowledge of any proposed change in any such code, law or regulation which would interfere with the Company's proposed use of the Property for the Project. The City represents to the Company that no person, firm or entity has any rights to acquire or to lease all or any portion of the Property or to otherwise obtain any interest therein and there are no outstanding options, rights of first refusal or negotiation, rights of reverter or rights of first offer relating to the Property or any interest therein.
Tagged Passions:regulation, ordinance, business, leasing, zoning, performance, environment, property, and compliance

Upon Closing and conveyance of the Property from the City to the Company, the City shall indemnify, defend and hold the Company harmless from any claim, liability or cause of action that relates to a period of time prior to the Closing and the Company shall indemnify, defend and hold the City harmless from any claim, liability or cause of action that relates to any period of time following the Closing.

All representations, warranties and indemnities made and given by the Parties in this Agreement shall survive the Closing.
Tagged Passions:public safety and property

3.2 Commencement and Completion of the Project. The Company agrees to commence construction of the Project within twelve (12) months of the execution of this Agreement by both parties, and to complete construction of the Project within twenty four (24) months of the execution of this Agreement by both parties. For the purposes of the foregoing (a) the term commence construction shall mean that applicable permits for the Project have been obtained and the Company's chosen contractor has begun grading the site of the Project and (b) the term complete construction means that the Project has been completed and the Company has received a certificate of occupancy.

Tagged Passions:contractor, construction, and grading

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3.3 Re-conveyance of Real Property. In the event the Company does not comply with the provisions of paragraph 2.2 above, the Company agrees to either (a) re-convey to the City by General Warranty Deed, and free of all contractual obligations, claims, liens proceeding and encumbrances (with the exception of utility easements and any matter consented to by the City), the Property conveyed by the City to the Company as described in paragraph 3.1 above; or (b) pay to the City an amount equal to the appraised value of the Property by the City (the Agreed Price ). The option to select the remedy in clauses (a) or (b) preceding may be made by the Company in its sole and absolute discretion; provided, that the Company may not select option (b) if it has, in fact, on the date of non-compliance with the provisions of paragraph 3.2 above, abandoned the Property and notified the City that it will not use the Property for the Project.

No additional detail provided

Tagged Passions:utility, Utility, events, property, compliance, and easement

3.4 Option to Obtain Additional Real Property. The City hereby grants to the Company an option for three (3) years from the date of this Agreement to obtain an additional approximately twelve (12) acre tract adjacent to the twenty (20) acres described in paragraph 3.1. The twelve (12) acre tract will be surveyed at the expense of the City at the same time the twenty (20) acres are surveyed.

No additional detail provided

Tagged Passions:grant and property

If, within the three (3) year option period, the Company makes a capital investment of at least Eight Million Dollars ( 8,000,000.00) in the Project and starts construction of at least a one hundred thousand (100,000) square-foot building on said twelve (12) acres, the City will convey to the Company by General Warranty Deed, and free of all encumbrances (with the exception of utility easements), the said twelve (12) acre tract.

If the Company does not start construction on the twelve (12) acre tract within the three (3) year option period, then, and in that event, the City grants to the Company an additional three (3) year option to purchase the said twelve (12) acre tract for Eighteen Thousand Dollars ( 18,000.00) per acre. Incentive Number Four.
Tagged Passions:Homebuilder, grant, construction, utility, Utility, events, purchasing, investment, incentive, and easement

Building permit and inspection fees will not be charged to the Company.

Incentive Number Five. Water and Sewer tap and service fees will not be charged to the Company. Incentive Number Six.

Tagged Passions:Homebuilder, impact fee, sewer, utility, Utility, water, and incentive

Partnership Way and Commerce Center Drive will be extended by the City, at its expense, to an agreed upon point at the Property.

No additional detail provided

Tagged Passions:property

7
Notice. Formal notices, demands, and communications between the City and the Company shall be sufficiently given if personally delivered or if dispatched by registered or certified mail, postage prepaid, return receipt requested, or by a

No additional detail provided

Tagged Passions:911, communications, and Communications

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nationally recognized overnight courier to the principal offices of the City and the Company. Such written notices, demands and communications may be sent in the same manner to such other addresses as either Party may from time to time designate by formal notice hereunder. If to City:
Tagged Passions:recognition, communications, and Communications

City of Shelby Shelby City Hall Attn: City Manager 300 South Washington Street Shelby, NC 28150

Tagged Passions:streets, administrator, and manager

If to the Company:

Greenheck Fan Corporation Attn: leffLamer 400 Ross Avenue Schofield, WI 54476

With copy that shall not constitute notice to:

Robert W. Yelton Yelton, Farfour Fite, P.A. POBox 1329 Shelby, NC 28151-1329

No additional detail provided

8
Parties. This Agreement shall inure to the benefit of and be binding upon the Parties hereto, and their successors in interest.

9
Complete Agreement. This Agreement contains the entire agreement between the Parties and there are no other representations, inducements, or other provisions other than those expressed in this writing. If this Agreement or any provision hereof is determined to be invalid, unlawful or otherwise null and void by any court of competent jurisdiction, then the remainder of this Agreement will remain valid and enforceable.

Tagged Passions:legal and court

10
Amendments to Agreement. This Agreement may only be modified, altered or amended by mutual written consent of the Parties.

No additional detail provided

11
Termination. Except as otherwise provided herein, this Agreement shall terminate on December 31 5t of the last year of the Grant Term.

No additional detail provided

Tagged Passions:grant

12
Assignment. No Party shall assign, sublet or transfer any rights under or interest in this Agreement (including, but without limitation, monies that may become due or monies that are due) without the prior written consent of the other Party, which consent shall not be unreasonably withheld. Unless specifically stated to the contrary in any written consent to assignment, no assignment shall release or discharge the assignor from any duty or responsibility under this Agreement.

No additional detail provided

13
Event of Default. It shall be an Event of Default if anyone or more of the following events shall occur for any reason whatsoever (and whether such occurrence shall be voluntary or involuntary or come about or be effected by operation of law or pursuant

No additional detail provided

Tagged Passions:events

7
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to or in compliance with any judgment, decree or order of any court or any order, rule or regulation of any administrative or governmental body):

Tagged Passions:regulation, legal, compliance, and court

a.
If the Company shall fail to observe and perform any material provision of this Agreement and such failure shall continue for a period of thirty (30) or more days after the giving by the City of written notice of such failure to the Company; or

b.
If any material representation, warranty or other statement of fact contained in this Agreement or in any writing, certificate, report or statement furnished by the Company to the City in connection with the transaction described in this Agreement shall be false or misleading in any material respect when given; or

No additional detail provided

c.
If the Company shall be unable to pay its debts generally as they become due; files a petition in bankruptcy; makes an assignment for the benefit of creditors; commences a proceeding for the appointment of a receiver, trustee, liquidator or conservator of itself or of the whole or a substantial part of its property; files a petition or answer seeking reorganization or arrangement of similar relief under the federal bankruptcy laws; or

No additional detail provided

Tagged Passions:appointments and property

d.
If a court of competent jurisdiction shall enter an order, judgment, or decree appointing a custodian, receiver, trustee, liquidator, or conservator of the Company or of the whole or any substantial part of its properties, or approve a petition filed against the Company under the federal bankruptcy laws; or if, under the provisions of any other law for the relief or aid of debtors, a court of competent jurisdiction shall assume custody or control of the Company or of the whole or any substantial part of its properties.

No additional detail provided

Tagged Passions:legal, appointments, and court

14
Statutory Authority for Incentive Grant. Both the Company and the City acknowledge that any and all monies appropriated and expended by the City for local economic development incentives as provided in this Agreement are for a bona fide public purpose and are expended in good faith reliance on N. C. Gen. Stat. 158-7.1. In the event a court of competent jurisdiction, after final appeal, rules in a lawsuit to which either the Company or the City is a party, that the monies expended by the City pursuant to this Agreement were not offered and accepted in good faith and pursuant to and in compliance with N. C. Gen. Stat. 158-7.l and, further, that such monies must be repaid, the Company will make such repayment. Further, if any elected officials of the City are found by a court of competent jurisdiction, after final appeal, to be personally liable for any of the monies so expended, and such liability is not covered by the City's public officials' liability insurance, then the Company will indemnify such elected officials individually to the extent of the monies received by the Company pursuant to this Agreement, but exclusive of court costs and attorney fees. The City agrees to maintain adequate public official liability coverage, consistent with that maintained by other similarly situated cities in North Carolina. The City agrees to require that its insurer(s) providing such coverage waive any subrogation rights it or they may have against the Company in connection with such coverage, and the City waives (on behalf of itself and its insurer) any claim or

No additional detail provided

Tagged Passions:impact fee, grant, legal, economic development, development, events, insurance, Development, compliance, incentive, and court

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subrogation rights against the Company to the extent covered by such insurance coverage. In the event any lawsuit is brought against the City or any elected official of the City challenging the legality of this Agreement, then the City shall exercise its best efforts to defend against any such lawsuit, including appealing any adverse judgment to the appropriate court. The indemnification arising under this Article shall survive this Agreement's termination. The indemnification by the Company shall not apply if neither the Company nor any of its representatives participated in the improper acts of the City officials.
Tagged Passions:legal, events, insurance, and court

15
Governing Law. This Agreement shall be construed and enforced in accordance with the laws of the State of North Carolina. Exclusive venue for any disputes arising hereunder is conferred upon the General Courts of Justice of the State of North Carolina sitting in Cleveland County.

No additional detail provided

Tagged Passions:legal and court

16
Captions, Heading, Titles. Any paragraph headings contained in this Agreement are for convenience only and in no way enlarge or limit the scope or meaning of the various and several paragraphs contained herein.

(The remainder a/this page has been intentionally left blank)

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IN WITNESS WHEREOF, the parties hereto, acting under authority of their respective governing bodies, have caused this contract to be duly executed, this the day and year first above written.
Tagged Passions:contract

BeadetteAPaTdUS, MMC, City Clerk

[Remaining signature page to follow.] lO

39
ATTEST: GREENHECK FAN CORPORATION

BY ilL

11
40

Post Office Box 207 Shelby, NC 28151-0207

Mr. Jeff Lamer Greenheck Fan Corporation 400 Ross Avenue Schofield, WI 54476

No additional detail provided

Office of the City Clerk

Re: Incentive Agreement between the City of Shelby and Greenheck Fan Corporation

Dear Mr. Lamer: Welcome to Shelby and Cleveland County, North Carolina Shelby City Council officially approved the enclosed Incentive Agreement on October 7, 2013. Please fully execute all three original agreements on Page 11 and return two to me at your earliest convenience. Kindly retain one agreement, along with a copy of Resolution No. 62-2013, for your file. Upon receipt of the agreements, I will record one with the Cleveland County Register of Deeds Office.
Tagged Passions:council and incentive

If you need further assistance or information, please do not hesitate to contact me.

Thank you for your time and attention. We look forward to Greenheck Fan's expansion and progress in North Carolina. Best regards, t2. . Enclosures www.cityofshelby.com

Tagged Passions:expansion

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CLEVELAND COUNTY

News Release iI( Ir ECONOMIC DEVELOPMENT PARTNERSHIP CLEVELAND COUNTY FOR IMMEDIATE RELEASE: October 4,2013 1i1F.1 I;' 11 ClEVElANDCHA MBER.DRG Fan Manufacturer Expansion Brings 184 Jobs to Cleveland County SHELBY, NC - Gov. Pat McCrory and North Carolina Commerce Secretary Sharon Decker were in Cleveland County today to announce that Greenheck Fan Corporation, a leading manufacturer of air movement and control equipment, will expand its operations and locate a new facility in Cleveland County. The announcement was made possible in part by a 300,000 grant from the One North Carolina Fund. Our first priority is creating jobs. North Carolina's workforce continues to be a selling point for advanced manufacturers like Greenheck, said Governor McCrory. We must continue to support education and job training programs in order for North Carolina to compete in this global economy. Greenheck Fan Corporation is a broad spectrum manufacturer of commercial and industrial air movement and control equipment headquartered in Schofield, Wisconsin. Greenheck brand products including; fans and ventilators, centrifugal and vane axial fans, dampers, louvers, laboratory exhaust systems, energy recovery products, indoor air handling units and coils are shipped to customers around the globe. Cleveland County has a proud manufacturing heritage, said Rep. Tim Moore. Helping our region's manufacturing industry grow is an important part of mine and Governor McCrory's overall economic development strategy. The company plans to invest 30 million and create 184 new jobs during the next five years in Shelby. Greenheck Fan Corporation will establish a new manufacturing facility on Artee Road in Shelby. While salaries will vary by job function, the average annual payroll is estimated to be more than 5.7 million plus benefits. Greenheck currently employs more than 116 people in North Carolina at their current manufacturing facility in Kings Mountain. Companies like Greenheck Fan Corporation know Cleveland County's skilled workforce gives them a competitive edge, said Sen. Warren Daniel. I'm confident the company has made a good choice, and the good folks of Shelby and the surrounding areas can provide a productive work force.
Tagged Passions:grant, equipment, facility, expansion, economic development, strategic, streets, development, industrial, Telecommunications, program, training, telecommunications, Development, commercial, education, energy, workforce, economy, jobs, and job creation

Other partners who helped make this announcement possible include the N.C. Department of Commerce, N.C. Community Colleges, Cleveland County, City of Shelby, Cleveland County Economic Development Partnership and Gardner Webb University.

For more information about Greenheck Fan Corporation, including job opportunities, go to www.greenheck.com.
Tagged Passions:economic development, development, Development, and university

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PROJECT LAKEWOOD (GREENHECK FAN CORPORA TION) Economic Development Announcement

No additional detail provided

Tagged Passions:economic development, development, and Development

Friday - October 4,2013 Press Conference Begins: 1:00 pm (or uvon Goyernor's arrivaV

Location: Foothills Commerce Center, Shelby

Welcome Opening Remarks . .. .. . . .. Stan Anthony Mayor, City of Shelby

Introduction of Governor Pat McCroy . Eddie Holbrook Cleveland County Board of Commissioners

Job Announcement Gift Presentation Pat McCroy Governor of North Carolina

Unrolling of Banner Building Site Plans Client Remarks ..................................................................................................................................................... Ti m Kilgore

President, CVI Business Unit Jon Krueger
Tagged Passions:Homebuilder and business

Executive VPjHR

Introduction of State Elected Officials . ... .. .. . ... ... ........... .... .. . .. Eddie Holbrook

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Senator Kay Hagan Senator Richard Burr US Representative Patrick McHenry Senator Phil Berger Speaker Thom Tillis

State Senator Warren Daniel State Rep Tim Moore State Rep Kelly Hastings

Please include the following: -County Elected Officials -Mayors and City Elected Officials -Former State Rep Jack Hunt -NCDOC (Secretary Sharon Decker and Uconda Dunn)

County Commissioner

Presentation of Gift From County ..... ........... ............. ............ .. . .................. Ronnie Hawkins Chair, Cleveland County Board of Commissioners

Congratulatory Comments I Presentation of Gift from City Stan Anthony Mayor, City of Shelby

Closing Remarks .. . . .. . ... .. .. .... ... .. . .. ... Eddie Holbrook Cleveland County Board of Commissioners

**Champagne Toast followed by ceremony - Mayor Anthony will initiate toast

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