HomeMy WebLinkAboutRES-1996-017 Resolution Authorizing the Filing of Application for Approval of a Financing Agreement Authorized by NC General Statute 160A-20 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 property located at
5011503 West Franklin Street, Chapel Hill, North Carolina,which property includes a building
and parking facilities, in which to locate its Skill Development Center (hereafter "the Project);
and
WHEREAS, the County of Orange desires to finance this purchase in an amount not to exceed
$1.2 million 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 sixteenth day of April, 1996, make the
following findings of fact:
1. The proposed acquisition is necessary or expedient because:
a. The Project will serve as a one stop center for services such as information,
assessment, referral and training 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 Project is ideal for the function it will provide. Its location on the
Chapel Hill Transit and the County's OPT bus routes will make accessibility by public
transportation convenient.
c. The Project is in immediate proximity to the highest concentration of unemployment
and poverty in all of Orange County; and
d. The building which is part of the Project, 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
E 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 the Project 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 to purchase the Project;
b. The not-to-exceed amount of$1.2 million represented through this contract and
imperative for the purchase of the Project 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 the Project. Given Orange County's excellent credit standing, any differences in the
comparable costs between bond financing and installment purchase financing will be reasonable.
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 Aa1 (Moody's) and AA+ (Standard and Poor's).
6. There will be no increase 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 Project will offset a portion of the annual debt service
payment, with the balance of the debt retired through pay-as-you-go revenue.
7. The County of Orange is not in default in any of its debt service obligations.
8. That it is the opinion of the Orange County Attorney that the purchase of the Project
by Orange County with public funds is authorized by the laws and Constitution of North Carolina
and that the Orange County Attorney will render his written opinion to that effect
contemporaneous with the closing of the purchase of the Project.
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 the Project 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 Halkiotis , seconded by
Commissioner Gordon , and passed by a vote of 4 to 0
oses Carey, Chair
ATI'ES
Beverly A. B he, Clerk to threBoard
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.
everly A. the, Clerk to t e Board Date
[COUNTY SEAL]
2.2a 1eases\503frank\res12fin.wpd