Selling 26.025 acres of land where the Center for Energy for Education at the old Halifax County Airport is located would negatively impact the county’s ability to leverage the property for better offers or partnerships in the future.
That’s the consensus of a memo written by County Attorney Glynn Rollins in response to C4EE’s proposal to buy the property at 460 Airport Road outside Roanoke Rapids it currently leases from the county for $75,000.
The memo is contained in the agenda packet for the board of commissioners’ January 21 meeting last week, a meeting which was canceled due to inclement weather.
The issue is now expected to be discussed at the board’s meeting on February 3. That meeting is scheduled to begin at 9:30 a.m. at the Historic Courthouse on King Street in Halifax.
County staff directed rrspin.com to this information in response to a series of questions by the website in response to earlier discussions which occurred during the board’s first meeting of the month.
Also, C4EE Executive Director Mozine Lowe, in response to questions submitted on January 12 and again after the cancellation of the meeting last week, said in an email received by rrspin.com Sunday that “several board members met Friday evening to discuss board matters. Regarding the offer, we prefer not to make a statement until after (February) 3.”
The issue
At its January 6 meeting the board deferred action on the offer by the Center for Energy Education to purchase county property for $75,000 and directed county staff to provide additional information to aid in its decision.
There are three key issues regarding this offer:
The legal issues involved in the offer and upset bid process.
The offered price by the Center for Energy Education.
A discussion of the long-term benefit of this property to Halifax County.
Background
C4EE is a North Carolina nonprofit corporation formed by officials of Geenex LLC in 2014. C4EE currently leases 26.025 acres of land from the county located at 460 Airport Road as well as 1.163 acres of land on the south side of Sam Powell Dairy Road.
This land was originally leased to Geenex under the terms and conditions of an economic development agreement dated January 24, 2013. Geenex assigned the lease to C4EE in July of 2019.
Under the economic development agreement, Geenex was given a lower than market price annual rent for the property.
In arriving at the amount of annual rent, the county took into consideration the tax revenues that would be received from the improvements that Geenex was required to build on the property, that being the solar center now occupied by C4EE.
Pursuant to the lease agreement that was assigned to C4EE, the center is required to maintain and continue to operate the solar center throughout the lease term, which runs through June 30, 2040.
On the other hand, if the county intends to accept an offer from a third party to purchase the property, C4EE, as lessee, has a right of first refusal to purchase the property at the same price that is offered.
The offer and upset bid process
“As you know,” Rollins wrote in the memo, “C4EE has submitted an offer to purchase this land for a price of $75,000. If you intend to accept this offer, you must first advertise the property for upset bids.”
The purpose of the upset bid process is to ensure that the county is receiving the best price possible for the property. “However, because there is a lease on the property, and because C4EE holds a right of first refusal under the terms of the lease, potential upset bidders will not have the same footing as C4EE in the bidding process.
“Potential upset bidders will either be discouraged from bidding or will bid at a discount if they must accept the property subject to the lease or subject to C4EE’s right of first refusal — which C4EE could invoke once the upset bid process is over. C4EE will not have to concern itself with the lease or the right of first refusal, since the lease will automatically terminate if C4EE takes ownership of the property.”
Rollins wrote that in order to avoid an unfavorable upset bid process, C4EE must first agree to the following:
Terminate the lease if another bidder eventually becomes the owner of the property.
Release its right of first refusal so that the ultimate high upset bidder is not thwarted in its efforts to purchase the property.
“It is unlikely that C4EE will agree to such terms,” the memo says.
Inadequacy of the price offered by C4EE
“As mentioned, C4EE has offered a purchase price of $75,000,” Rollins wrote.
The county assessor has estimated that the assessed tax value of the property, once it is separated from the larger tax parcel, will be a total of $148,204 — $140,114 for the 26-acre tract and $8,090 for the 1-acre tract on Sam Powell Dairy Road, an estimated assessed value that is nearly twice the amount offered by C4EE.
“In addition, the offer by C4EE does not take into account the present value of the improvements on the property that will accrue to the county upon termination of the lease on June 30, 2040,” the memo says. “The current assessed tax value of the improvements is $560,600. Bear in mind that C4EE is required to maintain the property throughout the term of the lease, which will ensure its value in the future, less normal wear and tear. Failure to take this additional value into consideration makes this offer even more inadequate.”
C4EE stands in the shoes of Geenex
The construction, maintenance and operation of the solar center is an express condition of the economic development agreement and lease agreement between the county and Geenex, according to the memo. “As assignee, C4EE is bound by all of the terms and conditions of the lease agreement, including the requirement that the solar center be maintained and operated as a solar energy education and training facility for the entire lease term.”
This is part of what Geenex bargained to do in consideration of reduced annual rent for the county’s property. C4EE is now required to meet those obligations arising from the economic development agreement with Geenex.
“The final question then,” Rollins wrote, “is this: If Geenex was still the lessee and it approached the county with this offer to purchase, what would you do?”
Strategic location and future economic potential
The 27 acres in question are part of a larger 300-acre property located just off Highway 158 between Roanoke Rapids and Littleton. “With infrastructure in place, this area is prime for future development,” the memo says.
There are “two transformational investments” planned for this area that impact opportunities for the future that coincide with the end of the lease for the solar farm located at the former airport site and “there is limited reliable data to support the local economic impact of solar development. This is due, primarily, to the fact that the majority of direct jobs created are during the construction phase and are short-term, typically spanning six to 18 months depending on electrical capacity.”
First there is the express design for the four-laning of Highway 158 which Rollins wrote is well underway by NCDOT with draft concepts currently in the review process. “Completion of design will increase the opportunity for prioritization of funding of upgrades for this strategic highway and will significantly enhance transportation and logistics for the region, providing four-laned access to Interstate 85. This improved connectivity will serve as a major economic catalyst for Halifax County, strengthening our competitive position for business and industry.”
Then there is the proposed Weldon-to-Raleigh passenger rail project, “which is poised to boost connectivity, attract new businesses, and support workforce mobility.”
NCDOT, the memo says, has purchased the former S-Line and SA Line rights of way and has identified 12 corridors for development, one of which is the Weldon-To-Raleigh passenger rail service. “NCDOT will begin the associated Rail Mobility Hub plan for Weldon by March 1 to support the location of passenger rail along with other services that can benefit the citizens of Halifax County.”
The county attorney wrote: “Selling this 27-acre tract will limit the county’s ability to leverage these infrastructure improvements to attract higher-value economic opportunities in the future such as industrial, commercial, or mixed-use developments that generate permanent, sustainable jobs and significant tax revenue when the current solar leases expire.”
Limited economic impact of renewable energy jobs
Once operational, the memo says, solar farms require very few ongoing staff, resulting in little to no long-term job creation for the community.
This is further documented in a recent Economic Analysis for the Sweetleaf Solar Project approved for construction in the Enfield area of Halifax County.
The 2024 Renewable Energy Jobs Fact Sheet published by E2 and presented by the NC Sustainable Energy Association reports 161 renewable energy jobs in Halifax County. The 161 jobs projected are based on data and multipliers linked to construction costs and/or expenditures. “These multipliers do not translate into clear or sustained local employment or broader economic growth, offering negligible local economic ripple effects for local supply chains, services or businesses,” the document says. “In comparison, the 2020 Clean Jobs North Carolina study reported 168 jobs in Halifax County in the clean energy sector.”
In tracking employment in Halifax County in the NAICS industry classification solar power generation, there is only one job classification that exists in Halifax County — solar photovoltaic installers. An occupation report provided by JOBsEQ shows one employee in Halifax County with a forecast for growth of 1.1 percent.
Opportunity to retain ownership
The memo states the following:
Selling the land limits the county’s ability to capitalize on emerging businesses and economic trends, particularly in sectors with proven growth in Halifax County.
By retaining ownership, the county can prioritize developments that generate higher tax revenue, permanent jobs, and offer broader economic benefits.
Infrastructure investments enhance land value
The memo states the following:
The anticipated infrastructure improvements have the potential to increase the value of the land, making it a valuable asset for attracting higher-quality development projects.
Selling now negatively impacts the county’s ability to leverage these enhancements for better offers or partnerships in the future.