March 26, 2004

1. Request to Counties for Proposed Site
Each of the five counties in the Kerr-Tar Region has been invited to submit to the COG their proposed site for the Hub Project. Proposed sites and required site information is to be submitted to the COG office on or before April 16, 2004.

2. Status Report on Request for Proposals for Engineering Services and Economic Development Services.
The COG received proposals from the following firms:

Engineering Services
Mactec Engineering and Consulting
Hobbs, Upchurch and Associates
Langley and McDonald, Inc.
Engineering Consulting Services, (ECS)

Economic Development Advisory Services
Leak-Goforth Company
Greenfield Associates
The Sanford Holshouser Business Development Group

The above proposals are currently being reviewed by Leslie (Stewart) Scott, Mike Luger, Allen Kimball, Timmy Baynes, Rick Seekins and myself. This group will submit a recommendation to a meeting of the County Managers and County Economic Developers to select the firms with which we will negotiate a contract for engineering and economic development services. The meeting with the County Managers and Economic Developers should be held by mid April. After the firms are selected, representatives of the County Managers, Economic Developers and Hub support staff will negotiate separate contracts for engineering services and for economic development services.

3. Funding for Next Phase of the Hub Project.
As per the information shared with the Exploratory Committee on February 3, 2004, the budget for the next phase of the Hub Project is $480,000. To date, the COG has commitments for:
$180,000 Community Development Block Grant Funds
$ 50,000 From Region K Workforce Development Board
$230,000

The remaining $250,000 is anticipated to be a grant from the US Economic Development Agency (EDA). EDA has approved the preliminary proposal and has invited a full application for the Hub Project in the amount of $250,000. The full application was submitted to EDA on February 27, 2004. The COG expects approval from EDA for the $250,000 grant by early April.

The COG has also submitted an application to Z. Smith Reynolds in the amount of $30,000 that could be used for the Hub Project. Action by Z. Smith Reynolds on the COG's application is not expected until late May.

The Power Point Program explaining the purpose and status of the Hub Project has been presented to each Board of County Commissioners in the Kerr-Tar Region. At the conclusion of the Power Point Presentation a request was made to each Board of County Commissioners for an appropriation of $5,000 for the Hub Project, if needed. To date, the COG has been advised that four of the Boards of County Commissioners have authorized $5,000 for the Hub Project.
Once EDA approval is received, adequate funding will be in place to proceed with the next phase of the Hub Project.

A meeting of the Exploratory Committee is anticipated in late April or early May to:

• Review the sites submitted by the counties;
• Meet with selected engineering and economic development consulting firms;
• Explain project activities including expected schedule to determine the recommended site for the Hub;
• Review committee functions, structure and activities in the next phase of Hub development; and
• Review funding to support the project activities of the Hub.
Please contact the COG office if you have questions or desire additional information as to the activities outlined in this status report. Thank you for your continued support of the Hub Project.