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HomeMy WebLinkAboutRES-1998-014 Resolution modifying approvals for Skills Development Center Finance 03-04-1998-8f4 r 3-y- ~8' The undersigned Clerk to the Boazd of Commissioners of Orange County, North Carolina (the "County"), hereby certifies as follows: A. A regular meeting of the County's Boazd of Commissioners (the "Boazd") was held on Mazch 4, 1998, at the place and time established for such regular meeting in Hillsborough, North Cazolina, and the following members were present and absent: PRESENT: Commissioners Brown, Carey, Crowther, Gordon and Halkiotis ABSENT: None The above were all the Boazd's members as of such date and all had been duly elected and qualified for office. B. At such meeting, the Boazd adopted the attached Resolution, entitled "Resolution Modifying Approvals for Skills Development Center Financing," on motion by Commissioner Halkiotis ,second by Commissioner Gordon and a vote of 5 to 0. , C. Such Resolution has not been repealed, revoked, rescinded or amended, and remains in full effect as of today. D. Pursuant to N.C. Gen. Stat. Sec. 143-318.12(a), a written schedule showing the tune and place of regular meetings was on file with me for a period of at least seven days prior to the meeting of Mazch 4, 1998. WITNESS my signature and the official seal of Orange County, North Cazolina, this 13th day of Mazch, 1998. (SEAL) Beverly A. B e Clerk, Boazd of Commissioners Orange County, North Carolina Resolution Modifying Auorovals for Skills Development Center Financing WHEREAS: The Board of Commissioners of Orange County, North Carolina (the "County"), adopted a resolution on December 1, 1997, approving terms and documents related to the County's plans for financing renovations to the County's "Skills Development Center." NationsBank, N.A., has made a revised proposal to the County to provide financing for the project in the amount of $780,000 at an annual interest rate of 5.05%. The resolution of December 1 qualified the County's financing payments for a particular treatment under the federal income tax laws that is favorable to the lender. Under the applicable income tax laws, qualification for this particular favorable treatment must be obtained for a particular calendar year. Because the financing will now be completed in 1998, instead of 1997 as originally contemplated, the Board must take additional action to qualify the financing payments for the desirable tax treatment. BE IT THEREFORE RESOLVED by the Board of Commissioners of Orange County, North Carolina, as follows: 1. The County hereby accepts NationsBank's proposal to provide financing for the project in an amount not to exceed $780,000, with a nominal annual interest rate (in the absence of default or change in tax status) not to exceed 5.05%. 2. The County hereby designates its Obligations, as defined in the resolution of December 1, as "qualified tax-exempt obligations" for the purpose of Internal Revenue Code Section 265(b)(3). The County represents and covenants as follows: (a) The County will in no event designate more than $10,000,000 of obligations as qualified tax-exempt obligations in 1998, including the Obligations, for the purpose of such Section 265(b)(3); (b) Barring circumstances unforeseen as of the date of delivery of the Modification Agreement approved by the resolution of December 1, the County will not issue tax-exempt obligations itself or approve the issuance of tax-exempt obligations of any "subordinate entities," within the meaning of Code Section 265(b)(3), and all entities which issue tax-exempt obligations on behalf of the County and its subordinate entities, if the issuance of such tax-exempt obligations would, when aggregated with all other tax-exempt obligations theretofore issued in 1998 by the County and such other entities, result in the County and such other entities having issued a total of more than $10,000,000 of tax-exempt obligations in 1998 (including the Obligations) that count toward the annual limit provided for in Section 265(b)(3); and (c) The County has no reason to believe that the County and such other entities will issue tax-exempt obligations in 1998 in an aggregate amount that will exceed such $10,000,0001imit; provided, however, that if the County receives an opinion of bond counsel acceptable to NationsBank, N.A., that compliance with any covenant set forth in (a) or (b) above is not required for the Obligations to be qualified tax-exempt obligations, the County need not comply with such covenant. 3. Except to the extent modified by this resolution, the resolution of December 1 is confirmed in all respects.