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DATE: December 22, 2016 TO: Chairs / Joint Legislative Oversight

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DATE: December 22, 2016 TO: Chairs / Joint Legislative Oversight DATE: December 22, 2016 TO: Chairs / Joint Legislative Oversight Committee on Agriculture and Natural and Economic Resources Fiscal Research Division FROM: Dr. Patricia Mitchell, CEcD Assistant Secretary NC Department of Commerce Rural Economic Development Division Susan Fleetwood Executive Director of Economic Development NC Department of Commerce RE: REPORT DETAILING EXPENDITURES ASSOCIATED WITH THE FUNDS APPROPRIATED BY THE GENERAL ASSEMBLY FOR THE BROUGHTON HOSPITAL STUDY EXTEND REPORTING DEADLINE FOR BROUGHTON HOSPITAL STUDY SECTION 15.5 (b) “On or before February 1, 2017, the Department of Commerce shall submit a report to the Joint Legislative Oversight Committee on Agriculture and Natural and Economic Resources and the Fiscal Research Division detailing the expenditures associated with the funds appropriated by the General Assembly for the Broughton Hospital campus economic development project, from the inception of the project”. ATTACHED ARE THE FOLLOWING: Section 15.5 (a) (b) (c) List of stakeholder meetings March 17, 2014 through December 20, 2017 Memorandum of Agreement (MOA) Amendments 1, 2, and 3 with School of Government DEVELOPMENT FINANCE INITIATIVE for Scope of Services performed January 13, 2015 through June 30, 2016 Final Invoice for above-mentioned Scope of Services performed Study Report due to and presented to General Assembly June 2016 Memorandum of Agreement (signed November 30, 2016) with Scope of Services with School of Government DEVELOPMENT FINANCE INITIATIVE regarding Section 15.20 © of S.L. 2014- 100 “The Department of Commerce is designated as the lead agency with respect to the study, as well as the site control and disposition strategies, working closely with the Department of Health and Human Services, the Department of Administration, the City of Morganton, and the County of Burke.” MEMBERS OF BROUGHTON STUDY COMMITTEE: Dr. Patricia Mitchell Assistant Secretary / Department of Commerce Susan Fleetwood Executive Director of Economic Development / Department of Commerce Dave Efird Acting General Counsel / Department of Commerce Luke Hoff Director of Division of Property and Construction / DHHS John LaPenta Deputy Secretary / Department of Administration Tyler Mulligan Principal Investigator / SOG Development Finance Initiative Peter Cvelich Project Manager / SOG Development Finance Initiative EXTEND REPORTING DEADLINE FOR BROUGHTON HOSPITAL STUDY SECTION 15.5.(a) Section 15.20(c) of S.L. 2014-100 reads as rewritten: "SECTION 15.20.(c) No later than December 31, 2014, the Department of Commerce shall submit an interim report on the study to the Chairs of the Joint Legislative Oversight Committee on Health and Human Services, to the Chairs of the Joint Legislative Committee on Economic Development and Global Engagement, and to the Chairs of the Joint Legislative Commission on Governmental Operations. No later than June 30, 2015,2016, the Department of Administration Commerce shall submit a final report on the results of the study to the Chairs of the same committees. The Department of Commerce is designated as the lead agency with respect to the study, as well as the site control and disposition strategies, working closely with the Department of Health and Human Services, the Department of Administration, the City of Morganton, and the County of Burke." SECTION 15.5.(b) On or before February 1, 2017, the Department of Commerce shall submit a report to the Joint Legislative Oversight Committee on Agriculture and Natural and Economic Resources and the Fiscal Research Division detailing the expenditures associated with funds appropriated by the General Assembly for the Broughton Hospital campus economic development project, from the inception of the project. Schedule of Stakeholder Meetings The following meetings were held in the planning, coordination and execution of the study; listed according to date with the location and invited participants noted. 2014 Meetings March 17 (Morganton City Hall) - Commerce Sec. Sharon Decker, Asst. Sec. Dr. Patricia Mitchell, Sen. Warren Daniel, Rep. Hugh Blackwell, Golden Leaf Executive Director Dan Gerlach, Burke County Commission Chair Johnny Carswell, Morganton Mayor Mel Cohen, County Manager Bryan Steen, City Manager Sally Sandy, Asst. City Manager Scott Hildebran, City Development/Design Director Lee Anderson, Burke Development, Inc. Director Scott Darnell May 6 (Morganton City Hall and Broughton Tour) - Asst. Sec. Dr. Patricia Mitchell, NC Governor Office Western Representative April Riddle, DHHS - Director of Property/Construction Luke Hoff, Facilities Team Leader Laura White, Acting Broughton Co-CEO Dr. George Krebs, Acting Broughton Co-CEO Vivian Streater, Dixon Byrd, County Manager Bryan Steen, City Manager Sally Sandy, Asst. City Manager Scott Hildebran, City Development/Design Director Lee Anderson, Morganton City Attorney Louis Vinay August 28 (Morganton City Hall) - Asst. Sec. Dr. Patricia Mitchell, County Manager Bryan Steen, City Manager Sally Sandy, Asst. City Manager Scott Hildebran, City Development/Design Director Lee Anderson, Burke Development, Inc. Director Scott Darnell, {Sen. Warren Daniel and Rep. Hugh Blackwell were present for a portion of the meeting) September 29 (UNC School of Government ) - Asst. Sec. Dr. Patricia Mitchell, County Manager Bryan Steen, City Manager Sally Sandy, Asst. City Manager Scott Hildebran, City Development/Design Director Lee Anderson, UNC SOG - DFI Director Michael Lemanski, Senior Analyst Christy Raulli, Associate Professor of Public Law and Government Tyler Mulligan October 22 (Conference Call on Brownfields possibility) - Asst. Sec. Dr. Patricia Mitchell, County Manager Bryan Steen, City Manager Sally Sandy, Asst. City Manager Scott Hildebran, City Development/Design Director Lee Anderson November 12 (Conference Call on Golden Leaf application) - Asst. Sec. Dr. Patricia Mitchell, County Manager Bryan Steen, City Manager Sally Sandy December 22 {Assistant Secretary Mitchell's Office) - Luke Hoff, DHHS Director of Property/Construction, Speros Fleggas, Deputy Secretary Department of Administration, and Asst. Sec. Dr. Patricia Mitchell 2015 Meetings January 29 (Morganton City Hall) – County Manager Bryan Steen, City Manager Sally Sandy, Asst. City Manager Scott Hildebran, City Development/Design Director Lee Anderson, Burke Development, Inc. Operations Director Hope Hopkins, DFI – Director Michael Lemanski, Project Manager Peter Cvelich February 4 (Department of Commerce) – Asst. Sec. Dr. Patricia Mitchell, General Counsel John Hoomani; Luke Hoff, DHHS Director of Property/Construction, Speros Fleggas, Deputy Secretary Broughton Stakeholder Meetings 1 Department of Administration; DFI – Director Michael Lemanski, Principal Investigator Tyler Mulligan, Project Manager Peter Cvelich February 20 (Morganton City Council Workshop) – City of Morganton Council, City Manager Sally Sandy, Asst. City Manager Scott Hildebran, City Development/Design Director Lee Anderson, County Manager Bryan Steen, DFI – Director Michael Lemanski, Project Manager Peter Cvelich, Graduate Fellow Julianne Stern; Other City and County public officials and citizens March 3 (web conference) – County Manager Bryan Steen, City Manager Sally Sandy, Asst. City Manager Scott Hildebran, City Development/Design Director Lee Anderson, Burke Development, Inc. Operations Director Hope Hopkins, DFI – Project Manager Peter Cvelich, Graduate Fellow Julianne Stern March 5 (DHHS) – Asst. Sec. Dr. Patricia Mitchell, General Counsel John Hoomani; Luke Hoff, DHHS Director of Property/Construction, Speros Fleggas, Deputy Secretary Department of Administration,; DFI – Director Michael Lemanski, Project Manager Peter Cvelich, Graduate Fellow Julianne Stern April 22 (UNC School of Government) – Asst. Sec. Dr. Patricia Mitchell, General Counsel John Hoomani; Luke Hoff, DHHS Director of Property/Construction; DFI – Director Michael Lemanski, Principal Investigator Tyler Mulligan, Project Manager Peter Cvelich, Graduate Fellow Julianne Stern April 29 (Dept. of Administration) – Luke Hoff, DHHS Director of Property/Construction, Speros Fleggas, Deputy Secretary Department of Administration; DFI – Director Michael Lemanski, Project Manager Peter Cvelich May 7 (Morganton City Hall) – County Manager Bryan Steen, City Manager Sally Sandy, Asst. City Manager Scott Hildebran, City Development/Design Director Lee Anderson, City Attorney Louis Vinay, Burke Development Inc. President/CEO Alan Wood, DFI – Director Michael Lemanski, Project Manager Peter Cvelich, Graduate Fellow Andrew Trump August 6 (NC School for the Deaf) – NCSD Advisory Council; DFI Project Manager Peter Cvelich August 13 (web conference) – WPCC President Dr. Michael Helmick, WPCC CFO Sandy Hoilman, DFI Project Manager Peter Cvelich August 17 (Department of Public Instruction) – Deputy State Superintendent Dr. Rebecca Garland, Superintendent NC Governor Morehead School Dr. Barbria Bacon, Director NC School for the Deaf Dr. Audrey Garvin, Chief Financial Officer Philip Price, School Planning Consultant Ken Phelps, DPI Architect Ron Collier; DFI – Principal Investigator Tyler Mulligan, Project Manager Peter Cvelich August 19 (UNC School of Government) – Office of State Budget & Management Special Projects Director John LaPenta; DFI – Director Michael Lemanski, Principal Investigator Tyler Mulligan, Project Manager Peter Cvelich August 24 (Department of Commerce) – Asst. Sec. Dr. Patricia Mitchell, General Counsel John Hoomani, Luke Hoff, DHHS Director of Property/Construction, Speros Fleggas,
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