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HomeMy WebLinkAboutRES-2000-022 Resolution Authorizing the Installment Purchase of Land from Duke University and Acceptance of Grant The Board of Commissioners for the County of Orange, North Carolina, met in the F. Gordon Battle Courtroom of the new Orange County Courthouse, 106 E. Margaret Lane, - Hillsborough, North Carolina at 7 :30 P.M. on March 21, 2000 . Present :— rRAIR MORE!2 r-;j=tnu 7- pa Commissioners Brown, Gordon, Halkiotis--an-&'Jacobs ---- Absent : The Chair of the Board of Commissioners announced that this was the hour, day and place fixed for the public hearing for the purpose of considering whether the Board of Commissioners should approve a proposed Installment Purchase Promissory Note and Installment Purchase Deed of Trust (hereafter collectively "the financing agreements") under which the County , would obtain financing for the purchase of 62. 65 acres of land (hereafter "the Property") located in central Orange County, adjacent to US 70 West and to property on which is located Corporation Lake, a public water supply impoundment owned by Orange Alamance Water System, Inc. , for the purposes of conserving so much of the property purchased as is deemed appropriate by the County to buffer the Eno River, McGowan Creek and an unnamed tributary of the Eno River and using the balance of the property for other governmental purposes, as described in the notice of such public hearing which was published in The Chapel Hill Herald on March 11, 2000 and The News of Orange County on March 15, 2000, and under which the County would secure the repayment by it of moneys borrowed by granting a security interest in the property purchased. The Property and the use of the Property were then described by the Director of the Orange County Environment and Resource Conservation Department. The County Attorney presented and described the financing agreements between Orange County and Duke University which agreements describe the provisions of the proposed installment purchase . The Chair of the Board of Commissioners then announced that the Board of Commissioners would immediately hear anyone who might wish to be heard on this matter. No one appeared, either in person or by attorney, to be heard on such matter. The Board also considered a draft Clean Water Management Trust Fund Grant Agreement, a draft Temporary Conservation Easement and a draft Permanent Conservation Easement, all of which are necessary to document the State' s participation in the purchase of the Property and which will establish a permanent easement on the riparian buffer portion of the Property. Thereupon, the Board of Commissioners determined to proceed with the proposed financing and to approve the financing agreements. Thereupon the Chair of the Board of Commissioners announced that the public hearing was closed. Thereupon, ' Commissioner Carey introduced the following resolution, a copy of which had been provided to each Commissioner and which was read by title: RESOLUTION APPROVING AGREEMENTS BETWEEN ORANGE COUNTY AND DUKE UNIVERSITY AND BETWEEN ORANGE COUNTY AND THE STATE OF NORTH CAROLINA CONCERNING THE INSTALLMENT PURCHASE BY THE COUNTY OF A 62 . 65 ACRE PARCEL OF LAND DESCRIBED HEREIN AND THE CREATION OF A CONSERVATION EASEMENT ON THE RIPARIAN BUFFER AREAS OF THE PROPERTY ALL AS SHOWN ON THE DOCUMENTS THAT ARE EXHIBITS TO THIS RESOLUTION, APPROVING CERTAIN OTHER ACTIONS RELATING THERETO AND AUTHORIZING CERTAIN ACTIONS IN CONNECTION THEREWITH WHEREAS, the County of Orange, North Carolina, a political subdivision of the State of North Carolina (the "County" ) , has previously approved the acquisition of the Property; and WHEREAS, the County has previously approved the application for a Clean Water Management Trust Fund grant to help pay for the acquisition of the Property, which grant has been approved by the Clean Water Management Trust Fund under the terms and the conditions generally of the Grant Agreement, Temporary Conservation Easement and Permanent Conservation Easement, drafts of which are exhibits to this resolution; and WHEREAS, the County is authorized to finance the acquisition of the Property by a contract or contracts that create in the Property a security interest to secure repayment of moneys made available for such purpose; and 2 WHEREAS, the , County has determined to proceed with the proposed financing of the purchase of the Property and to approve agreements providing for the installment payment with respect thereto; and WHEREAS, there have been presented for consideration by the County copies of the following documents relating to this matter: (a) a form of a deed from Duke University to the County for the purchase of the Property; and (b) a draft of an Installment Purchase Promissory Note under which Duke University would "advance" funds for the acquisition of the Property and the County would be obligated to make installment payments (as defined therein) to repay the funds advanced to it; and (c) a draft of an Installment Purchase Deed of Trust which the County would execute and deliver to a trustee for the benefit of Duke University and which would encumber the Property as security for the County' s obligation to repay the funds advanced to it pursuant to the Installment Purchase Promissory Note; and (d) a draft of the Clean Water Management Trust Fund Grant Agreement under which the Clean Water Management Trust fund would provide $143, 000 to the County for the acquisition of the Property and to ensure the conservation of the riparian buffer area of the property and related draft Temporary Conservation Easement and draft Permanent Conservation Easement to ensure the permanent conservation of the riparian buffer area; now, therefore, BE IT RESOLVED by the Board of Commissioners for the County of Orange: Section 1 , The Board of Commissioners for the County of Orange, North Carolina (the "Board of Commissioners") hereby finds and determines in connection with the proposed Installment Purchase that (a) the proposed Installment Purchase Promissory Note is necessary or expedient for the County, (b) the proposed Installment Purchase Promissory Note, under, current circumstances, is preferable to a bond issue of the County for financing the acquisition of the purchase of the Property, (c) the sums to fall due under the proposed Installment Purchase Promissory Note are adequate and not excessive for its proposed 3 purpose, (d) the, County' s debt management procedures and policies are good and its debt will continue to be managed in strict compliance with law, (e) although the taxing power of the County is not and may not be pledged directly or indirectly to secure any sums to fall due under the proposed Installment Purchase Promissory Note, the proceeds of taxes might be used to meet the sums to fall due under the proposed Installment Purchase Promissory Note and any increase in taxes necessary to meet such sums will not be excessive and (f) the County is not ' in default regarding any of its debt service obligations . Section 2 . The Board of Commissioners hereby further finds and determines that it is in the best interest of the County to enter into the Installment Purchase Promissory Note, the Installment Purchase Deed. of Trust, the Clean Water Management Trust Fund Grant Agreement, the Temporary Conservation Easement and the Conservation Easement in order to execute the plan for the acquisition of the Property and the financing thereof as described above. Section 3 . The terms and provisions of the deed, the Installment Purchase Pro'missory Note, the Installment Purchase Deed of Trust, the Clean Water Management Trust Fund Grant Agreement and the temporary and permanent Conservation Easement Agreements are hereby approved in all respects and the Chair of the Board of Commissioners, the County Manager of the County, the Finance Director of -the County and the Clerk to the Board of Commissioners are hereby authorized and directed to execute and deliver the documents, as may be applicable, in substantially the forms presented to the County, together with such additions, changes, modifications and deletions as they, with the advice of counsel, may deem necessary and appropriate, and such execution and delivery shall be conclusive evidence of the approval and authorization thereof by the Board of Commissioners and the County; provided, however, that the County Manager or the Finance Director of the County or his respective designee shall determine that the provisions of the Installment - Purchase Promissory Note and the Installment Purchase Deed of Trust are consistent with the provisions of the Option to Purchase Agreement except as those agreements may vary the terms of the Option to Purchase Agreement; and that, under the Installment Purchase Promissory Note the final installment payment is due not later than January 31, 2002 , the maximum stated interest rate with respect to the Installment Payments does not exceed 5 . 00% per annum and the aggregate amount of the principal components of the Installment Payments does not exceed $279, 900 . 4 Section 4 . The Board of Commissioners hereby approves, ratifies and confirms the actions of the County Manager, the Finance Director and the County Attorney of the County in connection with this matter. Section 5 . The officers and employees - of the County are authorized and directed (without limitation except as may be expressly set forth herein) to take such other actions and to execute and deliver such other documents, certificates, undertakings, agreements or other instruments as they, with the advice of -counsel, may deem necessary or appropriate to effectuate the transactions contemplated by the agreements recited herein. Section 6 . This resolution shall take effect immediately upon its passage. Upon motion duly made and seconded, the foregoing resolution was passed by the following votes: Ayes : Commissioners Brown., Gordon., Halkiotis and Jacobs Noes : I, Beverly A. Blythe, Clerk to the Board of Commissioners for the County of Orange, North Carolina, DO HEREBY CERTIFY that the foregoing has been carefully copied from the recorded minutes of the Board of Commissioners for said County at a regular meeting of said Board held on March 21, 2000, said record having been made in Minute Book No. 28 of the minutes of said Board, - and is a true copy of so much of said proceedings of said Board as relates in any way to the matters described in said proceedings. I DO HEREBY FURTHER CERTIFY that a schedule of regular meetings of said Board, in the form attached hereto, has been on file in my office as of a date not less than seven days before the date of said meeting in accordance with G. S . 143-31 •- 12 - WITNESS my hand and the corporate seal of said County, this the 94th Of MarCh ,7 , 2000 . ZX Be erly A. ly_ae Clerk to the Board of Commissioners .,,rtl isg:orangecounty\dukepropproceedings.doc 11A 5