HomeMy WebLinkAboutAgenda - 06-26-1996 - VII-D 1
ORANGE COUNTY
BOARD OF COMMISSIONERS
Action Agenda
Item No
ACTION AGENDA ITEM ABSTRACT
Meeting Date: June 26, 1996
SUBJECT: Public Hearing and Resolution - 501/503 West Franklin Street
Financing
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DEPARTMENT Finance PUBLIC HEARING YES • X NO
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BUDGET AMENDMENT
REQUIRED YES X NO
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ATTACBMENT(S) INFORMATION CONTACT
Public Hearing Notice Ken Chavious, ext 2453
Summary of Financing Proposals TELEPHONE NUMBER
. Draft Installment Purchase Agreement Hillsborough 732-8181
Proceedings (including Resolution) as Chapel Hill 968-4501
Prepared by Bond Counsel Mebane 227-2031
(all to be delivered later) Durham 688-7331
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PURPOSE: To conduct a public hearing on matters related to the
financing of the purchase of property located at 501/503 West Franklin
Street in Chapel Hill, and to take action required on such matters to
facilitate the acquisition of funds.
BACKGROUND: At the March 19, 1996 meeting, the Board of Commissioners
authorized County staff to pursue the purchase of the 501/503 West
Franklin Street property for the purpose of establishing a Skills
Development 'Center. After several weeks of negotiations with the
property owners, staff recommended, and the Board approved a contract
to purchase the property. This action took place at the May 14, 1996
Board meeting, at which time the Board also authorized the Finance
Director to seek funding for the purchase through private placement and
submit an application to the LGC. A public hearing must be held before
private placement financing can be approved. On May 14, the Board of
Commissioners established June 26 as the date for the required public
hearing.
Because the property is currently rented to private businesses and the
County plans to continue with the current leases, it was determined by
the County' s Special Tax Counsel (Bond Counsel) that a portion of the
financing would not be tax exempt . Therefore, the Requests for
Financing proposals disseminated by staff, in conjunction with the LGC
application, indicated that responding institutions should offer
proposals for $650, 000 in tax exempt financing and $550, 000 in non-tax
exempt financing. Proposals are due to the County by June 21, and will
be evaluated by staff on June 24 . The staff recommendation, along with
all other associated documentation, will be provided to the Board at or
before the June 26 meeting.
2
RECOMMENDATION W : The Manager recommends that the Board approve the
private placement funding agreement, and authorize the Chair, Manager,
Finance Director, and/or Attorney to execute all documents related to
this transaction, subject to final review by the County Attorney and
Bond Counsel .