HomeMy WebLinkAboutAgenda - 03-15-1994 - VIII-H Q
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ORANGE COUNTY
BOARD OF COMMISSIONERS
Action Agenda
Item No VIM
ACTION AGENDA ITEM ABSTRACT
Meeting Date: March 15, 1994
SUBJECT: Establish Public Hearing Date for OCCAC Bonds
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DEPARTMENT County Manager/Attorney PUBLIC HEARING YES NO X
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ATTACHMENT(S) INFORMATION CONTACT
Public Hearing Notice Rod Visser, ext 2300
Geof Gledhill, 732-2196
TELEPHONE NUMBER
Hillsborough 732-8181
Chapel Hill 968-4501
Mebane 227-2031
Durham 688-7331
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PURPOSE: To establish a public hearing date for the proposed issuance
of Orange County Community Activity Corporation revenue bonds.
BACKGROUND: At the October 4, 1993 meeting, the Board of Commissioners
approved the County' s participation in a "63-20" financing arrangement
whereby the Orange County Community Activity Corporation (OCCAC,
previously known as the Triangle Youth Hockey Association) would issue
bonds, in an amount not to exceed $8.5 million, for the construction of
a swimming pool/ice rink facility at the Meadowlands. The debt thus
created is an obligation strictly of the Corporation. The County is in
no way incurring debt or pledging its faith and credit or taxing power
for the repayment of the bonds.
Because 1163-20" financing under the Internal Revenue Service Code
permits the sale of bonds as tax-exempt instruments which will benefit
a non-governmental agency, the County was required to hold a public
hearing on the matter under provisions of the federal 1986 Tax Equity
and Fiscal Responsibility Act (TEFRA) . The County held this required
public hearing on November 16, 1993. No one spoke either for or
against the proposed bonds.
During efforts to market the bonds in the last several months, it
became apparent to the OCCAC's financial agents that the creation
upfront of a $950,000 debt service reserve would make the bonds
appear more secure, and thus much more attractive to potential
investors. The creation of this debt service reserve necessitates an
increase in the approximate amount of bonds to be isssued to $9.5
million. In accordance with IRS regulations and TEFRA, another public
hearing must be held because the size of the proposed bond issue has
increased by more than 5% of the amount contemplated during the
original public hearing. OCCAC' s financial agents anticipate that
agreement with an investor to buy the bonds can be reached within
the next several weeks. The new public hearing must be held prior to
closing on the anticipated bond sale.
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The County Attorney will cause the publication of the required public
hearing notice, and recommends that the Board conduct the public
hearing at their next regularly scheduled meeting on Monday, April 4,
1994, at 5:30pm at the Pleasant Green Community Center in Eno Township.
RECOIMNDATION: The Manager recommends that the Board establish
the public hearing date as cited.
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NOTICE OF PUBLIC HEARING CONCERNING THE ISSUANCE OF
AN AMOUNT NOT TO EXCEED
$9,500,000
ORANGE COUNTY COMMUNITY ACTIVITY CORPORATION
ORANGE COUNTY COMMUNITY ACTIVITY CENTER REVENUE BONDS,
SERIES 1994A AND SERIES 1994B
NOTICE IS HEREBY GIVEN that on the 4th day of April, 1994 at 5:30 p.m. in the Pleasant
Green Community Center, Pleasant Green Community Center Road, Eno Township, Orange County,
North Carolina, a public hearing will be conducted before the Board of Commissioners of the County
of Orange, North Carolina(the "County") concerning the approval of the issuance by the Orange County
Community Activity Corporation (the "Corporation") of an amount not to exceed $9,500,000 of the
Corporation's Orange County Community Activity Center Revenue Bonds, Series 1994A and Series
1994B(the "Bonds") issued for the purpose of providing moneys with which to acquire, construct, install
and equip facilities consisting of an ice hockey rink and two swimming pools (the "Project") located on
an approximately 60-acre parcel of land at the intersection of U.S. 70-A and Meadowlands Drive east
of the Town of Hillsborough in the County in the 110-acre park known as the "Meadowlands".
THE BONDS, WHEN AND IF ISSUED, AND THE INTEREST THEREON ARE NOT OBLIGATIONS,
GENERAL OR SPECIAL, DEBT OR LIABILITY OF THE COUNTY, THE STATE OF NORTH CAROLINA (THE
"STATE") OR OF ANY POLITICAL SUBDIVISION THEREOF WITHIN THE MEANING OF ANY CONSTITUTIONAL
OR STATUTORY PROVISIONS WHATSOEVER, AND NEITHER THE FAITH AND CREDIT NOR THE TAXING POWER
OF THE COUNTY, THE STATE OR ANY POLITICAL SUBDIVISION THEREOF IS PLEDGED TO THE PAYMENT
OF THE PRINCIPAL OF+OR INTEREST ON THE BONDS.
Any interested parties are invited to present comments at the public hearing regarding the issuance
of the Bonds or the Project financed thereby.
BOARD OF COMMISSIONERS OF THE
COUNTY OF ORANGE, NORTH CAROLINA
By
Clerk