The Ayden Board of Commissioners unanimously approved Jan. 9 a memorandum of understanding with Origin Farms Consulting of Kansas City, Mo., to create a business concept, feasibility assessment and business plan for the project.
AYDEN — Work to plan for the proposed regional food processing center in Ayden are moving forward with the selection of a contractor to draw up documents needed for the town to apply for grant funding.
The Ayden Board of Commissioners unanimously approved Jan. 9 a memorandum of understanding with Origin Farms Consulting of Kansas City, Mo., to create a business concept, feasibility assessment and business plan for the project.
The total cost for Origin Farms’ work will be $39,000, which will be paid for from a $100,000 allocation given to the town by the N.C. General Assembly to support the project.
“I think this is something we honestly need to do,” said Mayor Pro-Tem Donald Skinner. “We need to move Ayden forward … and I would really like to thank Representative Susan Martin … she was the one who got us the $100,000 from the state, so it is not costing the town of Ayden any money whatsoever.”
Origin Farms is projected to begin work this month, complete the business concept by Feb. 28, complete the feasibility assessment by March 30 and complete the business plan by April 30.
The business concept “will detail proposed revenue streams for the proposed center, as well as propose an appropriate legal structure and operating structure,” according to Origin Farms’ proposal to the town.
The feasibility assessment will follow U.S. Department of Agriculture guidelines, which include an assessment of the current market for the center’s services, potential clients to take part in the center, technical aspects of the center, the management services needed to run the center, and the overall financial feasibility of the center, according to the proposal.
Finally, the business plan will “include a summary of the project and business concept, the proposed revenue stream, a review of the market and a summary of the economic impact,” according to the proposal.
These documents to be created by Origin Farms will be needed when the town decides to apply for grant funding from the U.S. Economic Development Administration or EDA.
The town previously submitted a pre-application to the EDA for a 24,000-square-foot food processing center estimated to cost $5.87 million.
The board decided in April 2016 to delay submitting the full grant application until the scope and cost of the proposed food processing center could be better defined and plans, such as the feasibility study and business plan, could be completed.
The proposed center would serve as a regional food processing hub with the space and equipment needed for regional food producers to start commercial-scale food processing and packaging for fresh-cut produce, such as greens, vegetables and nuts, as well as other value-added products, such as sauces, pickles and juices, according to an economic impact analysis prepared by Shepherd Research LLC of Cary.
The proposed center has been projected to bring up to 225 new jobs to the region and increase food sales by $80 million, according to that analysis.
The town has already entered into an interlocal agreement with Pitt County to provide land in the Worthington Industrial Park for the center if the town receives funding in the form of an EDA grant.
Because a grant from the EDA would require a 50 percent match, town leaders have also expressed the hope that they could secure additional funds in partnerships with the county, state and other regional agencies.
In addition to approving the memorandum of understanding with Origin Farms, the board also approved a plan to transfer the $100,000 allocation from the General Assembly into the town’s accounts. The money is now being held by the N.C. Department of Commerce, and the town will be required to provide documentation of how the funds are being used before it will be transferred. In the meantime, the town will pay Origin Farms from the town fund balance, according to Ayden Manager Steve Harrell.
The plan approved by the board includes a formal request that the department of commerce transfer the funds to the town, authorization for Mayor Steve Tripp to execute an agreement to transfer the funds and authorization to use town funds to pay Origin Farms until the funds are received from the department of commerce.
The board also authorized the town to enter into an agreement with the N.C. East Alliance to oversee Origin Farms’ work on the plans for the center.
“They’ve done this kind of thing in the past, and it puts it in the hands of somebody who has the expertise to oversee this,” Harrell said.
The Times-Leader serves southern Pitt County including Ayden, Grifton and Farmville.