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Monroe-Union County Economic Development Commission Merger Indemnification Agreement
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INFORMATION CONTACT:
Brian Matthews, County Manager’s Office, County Manager, 704-292-2597
ACTION REQUESTED:
Authorize the County Manager to negotiate and execute the Indemnification Agreement, substantially consistent with this agenda item.
PRIOR BOARD ACTIONS:
1) September 20, 2021, Regular Meeting, Agenda Item # 37 - At this meeting, the Board adopted a joint resolution with the City of Monroe creating the Monroe-Union County Economic Development Commission and approving the related interlocal agreement effective January 1, 2022.
2) November 4, 2024, Regular Meeting, Agenda Item # 24-758 - Board adopted the “Resolution of the Union County Board of Commissioners Withdrawing from the Monroe-Union County Economic Development Commission.”
3) June 16, 2026, Regular Meeting, Agenda Item # 26-353 - Consideration of Merger of Union County and the Monroe-Union County Economic Development Commission action items.
BACKGROUND:
Effective January 1, 2022, Union County and the City of Monroe established the Monroe-Union County Economic Development Commission (“MUEDC”) through adoption of a joint resolution establishing the MUEDC (the “Establishment Resolution”) and entering into an interlocal agreement concerning the MUEDC (the “Interlocal Agreement”), as a joint county-wide economic development program. On November 4, 2024, the Board adopted a resolution withdrawing from the MUEDC, terminating the Interlocal Agreement, and dissolving the MUEDC, effective November 4, 2026 (giving two years’ notice as required by statute, the Establishment Resolution, and the Interlocal Agreement).
The Board and the City of Monroe have determined it is now in their respective best interests to promote economic development activity through each entity’s own internal economic development efforts independent of the other, engaging in economic development project collaboration with each other on a case-by-case basis. Rather than the County withdrawing from the MUEDC, the County, City, and MUEDC agree that the MUEDC will merge into the County. This reflects the functions of the MUEDC which have shifted already to the County. The action requested will address certain handling of any outstanding obligations and liabilities of the MUEDC incurred prior to the MUEDC’s merger with the County. These responsibilities will be financially shared equally (50/50) between the County and the City.
FINANCIAL IMPACT:
Responsibility for 50% of the outstanding obligations and liabilities of the MUEDC prior to the MUEDC’s merger with the County.