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Home My WebLink AboutAgenda - 05-14-1996 - V-F . t 4 ORRNGZ COUNTY BOARD OF CC§WSSIONER! Action Agenda Ite No. V. ACTION AQMNDA IT= ABSTRACT sleeting Date: SUBJSZCT: Resolution Authorizing Staff to Seek Approval For Financing for 501/503 West Franklin Street and to Establish a Public Hearing Date for the Financing Proposals. D$PAR2NZNT: Finance PUBLIC BB.ARING: YZS: NO: X ATTACMMM(S) : INPrOIGMTION CONTACT:Ken Chavious Resolution Public Hearing Notice TRLBPHONB NMMM: Hillsborough-732-8181 Chapel Hill -968-4501 Mebane -227-2031 Durham -688-7331 PURPOSSZ: To consider adoption of a resolution indicating the County's intent to file an application with the Local Government Commission for the installment purchase of property located at 501/503 West Franklin Street and to estblish a date for a Public Hearing on Financing Proposals. BACKGROUND: The Board of Commissioners has authorized staff to pursue the purchase of property located at 501/503 West Franklin Street. Negotiations with the property owners have taken place during the past several weeks, and staff is now prepared to seek the financing necessary to acomplish the purchase. The Local Government Commission (LGC) must approve financing arrangements involving the purchase of real property. As a part of their approval process, the LGC requires the Governing Board to adopt a resolution which authorizes staff to submit an application for consideration. The attached resolution was prepared in accordance with the LGC guidelines and will satisfy LGC requirements. Once the resolution is adopted, staff will send out requests for financing proposals to interested financial institutions and begin the LGC application process. Upon receipt of financing proposals, staff will review and select the most favorable repayment plan. Once a proposal is selected, a Public Hearing must be held on the proposed financing plan in order to comply with statutory and LCG requirements. Notice of the Public Hearing must be advertised at least ten days prior to the date fixed for the Hearing. EtZCCN®iDl►TION(S) : The Manager recommends that the Board adopt the resolution establish the Public Hearing date for June 26, 1996 and authorize the Clerk to advertise the Hearing notice. A t t ORANGE COUNTY BOARD OF COMMISSIONERS A RESOLUTION AUTHORIZING THE FILING OF AN APPLICATION FOR APPROVAL OF A FINANCING AGREEMENT AUTHORIZED BY NORTH CAROLINA GENERAL STATUTE 160A-20 WHEREAS, the County of Orange, North Carolina desires to purchase a building in at 501/503 West Franklin Street, Chapel Hill North Carolina, in which to locate its Skill Development Center; and WHEREAS, the County of Orange desires to finance this purchase by use of an installment contract authorized under North Carolina General Statute 160A,Article 3, Section 20; and WHEREAS,findings of fact by this governing body must be presented to enable the North Carolina Local Government Commission to make its findings of fact set forth in North Carolina General Statute 159,Article 8, SECTION 151 prior to approval of the proposed contract; NOW, THEREFORE, BE IT RESOLVED that the Board of Commissioners of Orange County, North Carolina, meeting in regular session on the fourteenth day of May, 1996, make the following findings of fact: 1. The proposed acquisition is necessary or expedient because: a. The facility will serve as a one stop information, assessment, referral and training center for citizens seeking access to these services to prepare them for and help them locate employment or higher paying employment. There is no similar facility in the County;and b. The location of the property to be purchased is ideal for the function it will provide. It's location on the Chapel Hill Transit and the Orange Public Transportation bus routes will make accessibility by public transportation convenient; and c. The building is in immediate proximity to the highest concentration of unemployment and poverty in all of Orange County; and d. The building,as it presently stands, will require minimal upfit for the purpose it is to serve; and e The purchase and upfit costs will be significantly less than the cost of new construction for a similar facility; and f. The purchase of an existing building will allow services to the citizens of the County to be offered much sooner than if a new facility were to be built. 2. The proposed contract is preferable to a bond issue for the same purpose because: a. The opportunity to purchase this property is not one which will exist for an extended period of time. This method of contracting would be the most expeditious manner in which to raise cash for the facility; b. The not to exceed amount of$1,200,000 represented through this contract and imperative for the purchase of this property cannot be prudently raised from currently available appropriations,unappropriated fund balances, or non-voted bonds. 3. The cost of financing under the proposed contract could be greater than the cost of issuing general obligation bonds. However, this method of financing will increase the alternatives available to Orange County to obtain the most cost effective, timely, and flexible means possible of funding this necessary project. Given Orange County's excellent credit standing,any differences in the comparable costs between bond financing and installment purchase financing will be reasonable. F t 3 4. The sums to fall due under the contract are adequate and not excessive for the proposed purpose because funding of the debt service thus created is already planned in Orange County's long-term Capital Improvement Plan. 5. The County of Orange's debt management procedures and policies are good because the County's existing and planned debt falls well within North Carolina's legal debt limitations for local governments; furthermore,Orange County's excellent creditworthiness is well recognized by investors and well established by the principal municipal bond rating agencies with bond ratings of Aal (Moody's)and AA+(Standard and Poor's). 6. There will be no in ad valorem property taxes necessary to meet the sums to fall due under the proposed contract. Rent payments from tenants presently residing in the 501 West Franklin Street portion of the facility will offset a portion of the annual debt service payment with the balance of the debt retired through pay-as-you-go sales tax revenues. 7. The County of Orange is not in default in any of is debt service obligations. 8. The Attorney for the County of Orange will render an opinion that the proposed Project is authorized by law and is a purpose for which public funds may be expended pursuant to the Constitution and laws of North Carolina. NOW,THEREFORE,BE IT FURTHER RESOLVED that the Finance Officer is hereby authorized to act on behalf of the County of Orange in filing an application with the North Carolina Local Government Commission for approval of these projects and the proposed financing contract and other actions not inconsistent with this resolution. This resolution is effective upon its adoption this the 14th day of May, 1996. The motion to adopt this resolution was made by Commissioner seconded by Commissioner , and passed by a vote of to Moses Carey,Chair ATTEST: Beverly A.Blythe,Clerk to the Board This is to certify that this is a true and accurate copy of this resolution adopted by the Orange County Board of Commissioners on the 14th day of May, 1996. Beverly A. Blythe, Clerk to the Board Date l NOTICE OF PUBLIC BEARING CONCERNING A PROPOSED INSTALLMENT PAYMENT AGREEMENT OF THE COUNTY OF ORANGEr NORTH CAROLINA TO FINANCE THE PURCHASE OF PROPERTY LOCATED AT 501-503 HEST FRANKLIN STREET, CHAPEL HILL, FOR THE PURPOSE OF OPERATING A CENTER TO AID PERSONS SEEKING EMPLOYMENT OR BETTER EMPLOYMENT. NOTICE IS HEREBY GIVEN of a public hearing to be held at 7:30 P.M. on June 26, 1996, in the OWASA Meeting Room on Jones Ferry Road in Carrboro, North Carolina, for the purpose of considering whether the Board of Commissioners for the County of Orange, North Carolina should approve a proposed installment payment agreement and certain related documents under which the County would obtain financing for the purchase of property located at 501-503 West Franklin Street, Chapel Hill, North Carolina, for the purpose of operating a one stop information, assessment, referral and training center for citizens seeking access to these services to prepare them for and help them locate employment or higher paying employment. Under the proposed installment payment agreement and related documents the County would secure the repayment by it of moneys advanced pursuant to such installment payment agreement by granting a security interest in the property purchased. , -------------------------- Beverly A. Blythe Clerk to the Board of Commissioners for the County of Orange, North Carolina