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HomeMy WebLinkAboutNSN RES-2001-004 Resolution Authorizing a Public Hearing on Financing for Property Acquisition at 112 and 118 North Churton Street in Hillsborough~ ~ ~ - a ~~ I - o~ ~ ~ '1 ~~ ~' / ~~ Resolution making findings of fact and authorizing the filing of an application with the Local Government Commission for its approval of a financing agreement authorized by Section 160A-20 of the North Carolina General Statutes - Orange County Churton Street Building Acquisitions WHEREAS, the Board of Commissioners of Orange County has previously approved in principle a project to finance the acquisition of two buildings and associated property, specifically the old Hillsborough Savings Bank building at 112 North Churton Street and the Graham Building at 118 North Churton Street in Hillsborough; WHEREAS, the County desires to finance an amount not to exceed $500,000 for the project by the use of an installment contract, as authorized under Section 160A-20 of the North Carolina General Statutes; WHEREAS, the County's undertaking of the financing was the subject of a public hearing held earlier this evening on January 18, 2001; and WHEREAS, under the guidelines of the North Caxol.ina Local Government Commission (the "LGC"), this governing body must make certain findings of fact to support the County's application for the LGC's approval of the County's proposed financing arrangements for the project; NOW, THEREFORE, BE IT RESOLVED that the Board of Commissioners of the Orange County, North Carolina, makes the following findings of fact: 1. The proposed project is necessary and appropriate for the County, pending a favorable report on outstanding environinental issues. The County is currently leasing these buildings from the owner, and the current owner is seeking to sell the buildings. The County would find it difficult to replace the space at comparable rents, and there is no assurance that a new owner would continue to lease the space to the County. In addition, the County expects the financing payments to be approximately comparable to the rent the County is now paying. 2. The proposed installment financing is preferable to a bond issue for the same purpose. The County has no ability to issue two-thirds bonds for this project. The County is currently considering the possibility of a conducting a multi-purpose bond referendum, but the small amount to be financed, the availability of relatively low-cost installment financing and the need to act on the owner's timetable makes it desirable to proceed now with an installment financing. 3. The sums to fall due under the contract are adequate and not excessive for the proposed purpose. The County is negotiating the purchase price with the building owner, contingent upon the favorable resolution of outstanding environmental issues, and has solicited competitive proposals for the financing. 4. As previously reported to the Board by the Finance Officer, (a) the County's debt management procedures and policies are sound and in compliance with law, and (b) the County is not in default under any of its debt service obligations. 5. The County expects that there will be no increases in taxes necessary to meet debt obligations under the proposed financing arrangements. The County expects that given the amount to be financed, the interest rates to be payable by the County on the proposed financing and the expected term of the financing, the County will be able to repay the financing within current resources. 6. The County Attorney is of the opinion that the proposed project is authorized by law and is a purpose for which public funds of the County may be expended pursuant to the Constitution and laws of North Carolina. BE IT FURTHER RESOLVED that all actions of the Finance Officer in filing an application with the LGC for its required approval of the project and the proposed financing arrangements are authorized, ratified and approved. BEIT FURTHER RESOLVED as follows: (a) If the County determines it is in its best interest to purchase the property, it will finance the Project through Branch Banking and Trust Company (the "Bank") in accordance with a proposal submitted by the Bank. The amount financed shall not exceed $500,000, the annual interest rate (in the absence of default or a loss of tax-exempt status) shall not exceed 6.58%, and the financing term shall not exceed ten years from closing. (b) All financing contracts and all related documents for the closing of the financing (the "Financing Documents") shall be in such forms as the Bank may request and as are acceptable to the Finance Officer. The County Manager, the Finance Officer and all other County officers and employees are authorized and directed to execute and deliver any Financing Documents, and to take all such further action as they may consider necessary or desirable, to carry out the financing as contemplated by this resolution. (c) All prior actions of County officers in furtherance of the purposes of this resolution are ratified, approved and confirmed. All other resolutions (or parts thereo~ in conflict with this resolution are repealed, to the extent of the conflict. This resolution shall take effect immediately.