HomeMy WebLinkAboutAgenda - 10-04-1993 - VIII-A 1
ORANGE COUNTY
BOARD OF COMMISSIONERS
Action Agenda
Item No v27r4
ACTION AGENDA ITEM ABSTRACT
Meeting Date: October 4, 1993
SUBJECT: Swimming Pool Financing
DEPARTMENT County Manager PUBLIC HEARING YES NO x
ATTACHMENT(S) INFORMATION CONTACT
Proposed Resolution Rod Visser, ext 2300
Draft Agreement with TYHA Ted Abernathy, ext 2325
Additional Requested Background TELEPHONE NUMBER
Information Hillsborough 732-8181
Chapel Hill 968-4501
Mebane 227-2031
Durham 688-7331
PURPOSE: The first purpose of this agenda item is to respond to
questions and requests for information from the Board of Commissioners
during the discussion of this item on September 21 . The second purpose
relates to actions necessary by the Board of County Commissioners
should the Board choose to proceed with the proposal from the Municipal
Finance Group (MFG) . This action is in form of a draft resolution at
Attachment C.
BACKGROUND: At their regular meeting on August 4, 1993, the Board of
Commissioners received a report on a proposal for financing a swimming
pool to be located at the Meadowlands. The Board posed a number of
questions and concerns about the County' s roles and responsibilities in
such an arrangement. At the September 21, 1993 meeting, staff and
representatives of MFG, Triangle Youth Hockey Association (TYHA) , and
other interested parties provided the Board with additional information
in response to the Board' s questions and concerns. Since that time,
the staff has worked with the other parties involved to answer the
questions from the Board that remain outstanding from the September 21
meeting. Additional background information requested is attached.
The draft resolution to proceed with this project, if approved, would
signal the County' s commitment to contributing $4 million over a 10
year period to TYHA. It is this assurance that MFG has indicated is
necessary to line up the investors who will provide TYHA with the
capital upfront to acquire the site and construct the TCAC facility.
The final document, which would be substantially in the form of the
draft agreement with TYHA (Attachment D) , would be brought back for
formal approval at a subsequent meeting of the Board of Commissioners.
Only the resolution, not the agreement, is presented for formal
consideration by the Board at this October 4 meeting.
The draft agreement includes the following major elements:
* TYHA will construct and operate a swimming pool/ice rink facility at
the Meadowlands, as described in the TCAC Business Plan that was
prepared in February 1993
2
* The TCAC swimming pool would operate in accordance with the
scheduling and fee structure recommended by Orange County Recreation
and Parks - modifications can be made by mutual agreement of TYHA and
the County
* The County will make annual payments of $400,000, in quarterly
installments, to TYHA for 10 years
* The County' s obligation to make any further quarterly installment
payments would cease should TYHA default on the terms of the agreement
* The County will take title to the entire TCAC property, including
land, when debt is paid off by TYHA in 15 years
An explanatory list of attachments to this abstract follows:
Attachment A - Fifth Year Operation Activities Schedule
Provides comparable use figures from Town of Chapel Hill and YMCA
pools and details projected revenue from estimated 77,424 users
Attachment B - Feasibility of YMCA Participation in Pool Project
Summary of September 29 meeting between Board Chair, County
Manager, and YMCA Executive Director
Attachment C - Resolution to Proceed
Indicates Orange County' s intent to proceed with the TCAC project
under terms substantially in the form of the draft agreement at
Attachment D
Attachment D - Draft Facilities/Services Agreement
Draft version of agreement under which County contributes $4
million over 10 years and TYHA constructs and operates TCAC,
including pool - final version of this document to be approved at
subsequent Board of Commissioners meeting
Attachment E - Property and Sales Taxes - TCAC
Estimates of property tax and sales tax revenue to be returned to
Orange County from TCAC operations
Attachment F - Letter from PHN Capital Funding
Outlines likely actions by investors in the event of revenues
either significantly lower or higher than current projections
Attachment G - County/School CIP Projects
Compares funds estimated to be available for CIP projects over
next 10 years with identified 10 year school needs and 5 year
County capital needs
Attachment H - Memo from SBTDC
Identifies any changes from the TCAC Business Plan that was
produced in February 1993 ; provides 3 sets of revised cash flow figures
to replace the cash flow figures in the original business plan;
available cash when loan is paid off in 15 years is: conservative
scenario - $1 .815 million (page H-3) ; pessimistic scenario - $399,000
(page H-4 ) ; optimistic scenario - $3.356 million (page H-5)
3
RECOMMENDATION: Should the Board decide to proceed with the
proposal from MFG, the Manager recommends that the Board approve a
resolution indicating the County' s commitment to proceed with the
project and to enter into an agreement with TYHA that is substantially
in the form of the attached draft agreement to construct and operate
the proposed facility.
A - (
THE FOLLOWING IS A 5TH YEAR OF
OPERATION ACTIVITIES SCHEDULE
The daily activities schedule that follows leaves time slots
for week-end free swim, free time for school use , and swim
teams . The anticipated attendance and revenue are not
included in the totals . The estimated attendance for each
session is very conservative . The attendance/revenue totals
are for 51 weeks . Also revenue does not include out of
County fees .
For comparison of area pools the following information has
been received .
CHAPEL HILL COMMUNITY CENTER
Day Passes & Lap Swim Average 1000/Week = 52 ,000
Punch Passes/Season/& Various Classes = 30 ,000
TOTAL 82 , 000.
Note : Pool is only 25 meters x 42 feet
(Approximately 1/2 size of proposed pool )
YMCA
Lap Swim Average 940/week = 48 , 800
(Members/Guest )
Special Class/Instruction (Not available to date )
The daily open swim/lap swim totals for the proposed pool and
the two area pools are very compatible .
fn: Pool-l . doc
BREAKDOWN OF POOL REVENUES BASED ON ATTENDANCE
OPEN SWIM
10, 950 adults @$2.00ea. = $21.900. 00
3, 946 seniors @$1.25ea. = $ 4, 932 .50
22 ,540 children @$1.25ea. = $28, 175. 00
37,436 TOTALS $55,007 .50
LAP SWIM
14,397 adults @$2. 00ea. = $28,794 .00
9, 686 seniors @$1.50ea. = $14,529 .00
1, 366 children @$1. 00ea. = $ 1,366 .00
25,449 TOTALS $44,689.00
MASTERS SWIM
4 ,590 participants @$3.00ea. = $13,770
INSTRUCTION CLASSES
1,215 adults @$30.00ea. = $36,450. 00
1,368 children @$27 .00ea. = $36,936. 00
96 children @$20.00ea. = $ 1,920. 00
2,679 TOTALS $75,306.00
WATER-AEROBICS
3, 825 participants @3.00ea. = $11,475 .00
SENIOR SWIM
2 ,205 participants @$1.50ea. = $3,307 .50
540 participants @$1.25ea = $ 675 .00
2,745 $3,982 .50
SPECIAL OLYMPICS
700 participants at no fee charge = -0-
TOTAL REVENUE & PARTICIPATION
77,424 PARTICIPANTS in a year (year 5 )
$204,230
-3
SCHEDULE OF POOL USAGE AND REVENUES
estimated income by 5th year of operation
JANUARY - MID-APRIL (14 weeks)
MONDAY - FRIDAY
TIME PROGRAM NO. OF COST @ # PART. REVENUE
SESSIONS SESSION
6-9 am Lap Swim 70 $2 . 00 (A) 15 $2100. 00
(M-F) (daily) 70 $1.50 (S) 15 $1575 . 00
6-7 :30am Masters Swim 28 $3.00 15 $1260. 00
(Tu/Thur)
8:30-12 : 30pm SCHOOL USE
(M-F)
9-l0am OPEN SWIM 42 $ 2 .00 (A) 15 $1260 . 00
(M/W/F) 42 $ 1.25 (S) 10 $ 525.00
42 $ 1.25 (C) 35 $1837 .50
9-10 :30am Adult Classes 4 $30.00 30 $3600.00
(Tu/Th)
10:30-11:30am OPEN SWIM 28 $2.00 (A) 10 $ 560 .00
(Tu/Th) 28 $1 .25 (S) 10 $ 350 .00
11:30-2 :OOpm Lap Swim 70 $2 .00 (A) 15 $2100 .00
(M-F) 70 $1.50 (S) 13 $1365 .00
1:00-2 : OOpm Special olympics 28 NA 25 -0-
(Tu/Th) Special pops 28 NA
SCHOOL USE
11: 30-1:30pm Water-Aerobics 70 $3.00 15 $3150 .00
(M-F)
2 : 00-3:OOpm Adult Classes 4 $30.00 20 $2400. 00
(M/W/F)
2 : 00-3 : OOpm CLOSED FOR MAINTENANCE
(Tu/Th)
3 :00-5 :OOpm Youth Classes 4 $27 .00 25 $2700 .00
(Tu/Th) (various)
3 :00-5:OOpm OPEN SWIM 42 $2 .00 (A) 20 $1680.00
(M/W/F) 42 $1 .25 (S) 0 -0-
42 $1.25 (C) 50 $2625 .00
5 :00-6:30pm Lap Swim 70 $2 . 00(A) 15 $2100. 00
(M-F) 70 $1.50(S) 0 -0-
6 :30-8:OOpm Adult Classes 4 $30.00 18 $2160.00
(Tu/Th) (aquasize)
AreolSe04. 44' /c 3
ORANGE COUNTY
BOARD OF COMMISSIONERS
A RESOLUTION TO PROCEED
WITH AN AGREEMENT WITH TRIANGLE YOUTH HOCKEY ASSOCIATION
TO CONSTRUCT AND OPERATE A PUBLIC SWIMMING POOL
WHEREAS, the Orange County Board of Commissioners has determined the
need for a public swimming pool accessible to all residents of Orange
County, and
WHEREAS, the Board has evaluated several options for providing such a
facility, and
WHEREAS , the Triangle Youth Hockey Association (TYRA) , in conjunction
with the Municipal Financial Group (MFG) , has proposed the construction
and operation of the Triangle Community Activity Center (TCAC) , which
among other functions would house an Olympic-sized public swimming
pool, and
WHEREAS, plans for the construction and operation of the TCAC and
an analysis of the economic feasibility of such an undertaking have
been outlined in a business plan prepared for the TCAC by the North
Carolina Small Business and Technology Development Center, and
WHEREAS, the viability of the proposed TCAC would be dependent on a
contribution from Orange County of $4 million over a ten year period,
NOW, THEREFORE, BE IT RESOLVED THAT the Orange County Board of
Commissioners does hereby express its commitment to proceed with the
TCAC project, and
FURTHERMORE, BE IT RESOLVED THAT the County Manager, County Attorney,
and County staff are directed to continue negotiation with the
interested parties in this project to produce a final agreement with
TYHA, for subsequent consideration by this Board, that is substantially
in the form of the draft TCAC Facilities/Services Agreement, dated
September 28 , 1993 , and
FURTHERMORE, BE IT RESOLVED THAT the Orange County Board of
Commissioners does hereby indicate its desire that the Board of
Commissioners shall have authority to appoint members to the TYHA Board
of Directors numbering one less than a majority of the TYHA Board.
This, the 4th day of October, 1993 .
Ay
Page 2 of 8
TIME PROGRAM NO. OF COST @ # PART. REVENUE
SESSIONS SESSION
8: 00-9:OOpm Masters Swim 42 $3.00 20 $2520.00
(M/W/F)
9 : 00-10:OOpm OPEN SWIM 42 $2 . 00 (A) 10 $ 840 . 00
(Tu/Th) 42 $1 .25 (S) 3 $ 157 .50
42 $1.25 (C) 0 -0-
SATURDAY/SUNDAY
8 :30am-12 :00 Skill Classes 4 $27 . 00 20 $2160. 00
(Sat) (adult/child)
11:30-2:OOpm Lap Swim 28 $2 .00 20 $1120. 00
(Sat/Sun)
2 :00-5:30pm OPEN SWIM 14 $2 .00 (A) 60 $1680. 00
(Sat) 14 $1.25(S) 20 $ 350.00
14 $1 .25 (C) 115 $2012 .50
2 : 00-5:30pm OPEN SWIM 14 $2 .00 (A) 35 $ 980.00
(Sun) 14 $1 .25 (S) 20 $ 350.00
14 $1 .25 (C) 60 $1050.00
5 : 30-8:00 FREE SWIM 28 -0-
(Sat/Sun)
1st PERIOD TOTAL = $46,567 .50
MID-APRIL - MAY (6 weeks)
MONDAY - FRIDAY
TIME PROGRAM NO. OF COST @ # PART. REVENUE
SESSIONS SESSION
6: 00-9:OOam Lap Swim 30 $2 .00 (A) 15 $ 900 .00
(M-F) 30 $1 .50 (S) 15 $ 675 .00
6 : 00-7 : 30am Masters Swim 12 $3 .00 15 $ 540.00
(Tu/Th)
8: 30-12 : 30pm SCHOOL USE
(M-F)
9:00-10: OOam OPEN SWIM 18 $2 .00 (A) 15 $ 540. 00
(M/W/F) 18 $1.25 (S) 10 $ 225 . 00
10 : 00-11:30am Senior Swim 18 $1.25 (S) 30 $ 675 .00
(M/W/F)
/9
Page 3 of 8
TIME PROGRAM NO. OF COST @ # PART. REVENUE
SESSIONS SESSION
9 :00-11:30am OPEN SWIM 12 $2 .00(A) 10 $ 240 .00
(Tu/Th) 12 $1 .25 (S) 10 $ 150 .00
11:30-1 :OOpm Lap Swim 30 $2 .00 (A) 20 $1200 .00
(M-F) - 30 $1.50 (S) 10 $ 450 . 00
11: 30-1 :OOpm Water-robics 30 $3. 00 15 $1350. 00
(M-F)
1 :00-2 :OOpm SCHOOL USE
(M-F)
1:00--2 :00pm OPEN SWIM 12 $2 .00 (A) 15 $ 360 .00
(Tu/Th) 12 $1 .25 (S) 5 $ 75. 00
2 :00-3: OOpm Adult Classes 3 $30 .00 0 -0-
(M/W/F) ,
2 :00-3:OOpm CLOSED FOR MAINTENANCE
(Tu/Th)
3 :00-5:OOpm OPEN SWIM 30 $2 .00 (A) 20 $1200 .00
(M-F) 30 $1 .25 (S) 0 -0-
30 $1.25 (C) 75 $2812 .50
5 :00-6: 30pm Lap Swim 30 $2 .00(A) 15 $ 900.00
(M-F) 30 $1.50 (S) 15 $ 675.00
6: 30-8:OOpm SWIM TEAM
(M/Tu/Th/F)
8:00-9:30pm Masters Swim 18 $3.00 20 $1080. 00
(M/W/F)
8:00-10pm Adult Class 1 $30.00 15 $ 450.00
(Tu/Th)
SATURDAY/SUNDAY
11:30-2 :00pm Lap Swim 12 $2 .00 (A) 20 $ 480 .00
(Sat/Sun) 12 $1 .50 (S) 12 $ 216 .00
12 $1.00 (C) 17 $ 204 . 00
2 :00-5: 30pm OPEN SWIM 6 $2 .00 (A) 60 $ 720. 00
(Sat) 6 $1. 25 (S) 20 $ 150.00
6 $1.25 (C) 115 $ 862 .50
2 :00-5 :30pm OPEN SWIM 6 $2 .00 (A) 35 $ 420.00
(Sun) 6 $1.25 (S) 10 $ 75.00
6 $1.25 (C) 60 $ 450.00
Page 4 of 8
TIME PROGRAM NO. OF COST @ # PART. REVENUE
SESSIONS SESSION
5: 30-8: OOpm FREE SWIM
(Sat/Sun)
6 : 30-8 :OOpm Lap Swim 12 $2 .00 (A) 8 $ 192 .00
(Sat/Sun) 12 $1.25 (S) 2 $ 30 .00
12 $1 .25 (C) 2 $ 30. 00
2nd PERIOD TOTALS = $18,327 .00
JUNE - MID-AUGUST (10 weeks)
MONDAY - FRIDAY
TIME PROGRAM NO. OF COST @ # PART. REVENUE
SESSIONS SESSION
6:00-9:O0am Lap Swim 50 $2 .00 (A) 15 $1500 .00
(M-F) (daily) 50 $1.50 (S) 15 $1125.00
6: 00-7 :30am Masters Swim 20 $3.00 15 $ 900 . 00
(Tu/Th)
9 :00-10:OOam CLOSED FOR MAINTENANCE
(M/W/F)
9 :00-10:OOam Adult/Child 3 $30 .00 8 $ 720. 00
(Tu/Th) (4 weeks)
10:00-11: OOam OPEN SWIM 30 $2 .00 (A) 15 $ 900 . 00
(M/W/F) 30 $1.25 (S) 5 $ 187 .50
30 $1.25(C) 40 $1500. 00
11: 30-1 : 30pm Water-robics 50 $3.00 15 $2250 . 00
(M-F)
11: 30-1 :OOpm Lap Swim 50 $2 .00 15 $1500 .00
(M-F)
1 : 00-2 :OOpm SUMMER CAMP
(M-F)
2 :00-3 :OOpm Adult Classes 3 $30.00 20 $1800 .00
(M/W/F) water-robics
2 : 00-2 :30pm CLOSED FOR MAINTENANCE
(Tu/Th)
Page 5 of 8
TIME PROGRAM NO. OF COST @ # PART. REVENUE
SESSIONS SESSION
3:00-5: OOpm OPEN SWIM 30 $2 . 00 (A) 30 $1800.00
(M/W/F) 30 $1.25(S) 0 -0-
30 $1 .25(C) 100 $3750.00
2 : 30-5:OOpm Youth Classes 9 $27 .00 23 $5589 .00
(Tu/Th)
5 : 00-6: 30pm Lap Swim 50 $2 .00 (A) 15 $1500. 00
(M-F) 50 $1.50 (S) 10 $ 750. 00
6:30-8 :00pm SWIM TEAM
(M-F)
8 :00-9:OOpm Masters Swim 30 $3. 00 20 $1800. 00
(M/W/F)
SATURDAY/SUNDAY
TIME PROGRAM NO. OF COST @ # PART. REVENUE
SESSIONS SESSION
9 : 00-11: 30am Youth Classes 4 $20 .00 24 $1920.00
(Sat) (various)
11: 30-2 :OOpm Lap Swim 20 $2 .00(A) 25 $1000 .00
(Sat/Sun) 20 $1 .50 (S) 12 $ 360 .00
20 $1 .00 (C) 12 $ 240 . 00
2 : 00-5: 30pm OPEN SWIM 10 $2 .00 (A) 55 $1100.00
(Sat) 10 $1.25 (S) 20 $ 250.00
10 $1 .25(C) 115 $1437 .50
2 : 00-5: 30pm OPEN SWIM 10 $2 .00 (A) 45 $ 900.00
(Sun) 10 $1.25 (S) 20 $ 250.00
10 $1.25(C) 115 $1437 .50
5 : 30-8: OOpm FREE SWIM
(Sat/Sun)
8 :00-10 :OOpm Lap Swim 20 $2 .00(A) 10 $ 400.00
(Sat/Sun) 20 $1 .50(S) 4 $ 120.00
20 $1.00(C) 5 $ 100.00
3rd PERIOD TOTALS = $37,086.50
S
/1 -(E
Page 6 of 8
MID-AUGUST - DECEMBER(21 weeks)
MONDAY - FRIDAY
TIME PROGRAM NO. OF COST @ # PART. REVENUE
SESSIONS SESSION
6 :00-9:OOam Lap Swim 105 $2 .00 (A) 15 $3150. 00
(M-F) 105 $1.50(S) 15 $2362 .50
6:00-7 :30am Masters Swim 42 $3 .00 15 $1890. 00
(Tu/Th)
8: 30-12 :30pm SCHOOL USE
(M-F)
9 :00-10 :OOam Adult Classes 10 $30.00 30 $9000 . 00
(M-F) (2 week sessions)
9:00-10:OOam OPEN SWIM 21 $2 . 00 (A) 15 $ 630 .00
(Fri) 21 $1.25(S) 10 $ 262 .50
21 $1.25 (C) 0 -0-
10:00-11:OOam Senior Swim 63 $1.50 35 $3307 .50
(M/W/F)
10:00-11:OOam Adult Classes 6 $30.00 25 $4500.00
(Tu/Th) ( 3 week sess. )
10:30-11:30am OPEN SWIM 42 $1.25(S) 10 $ 525 .00
(Tu/Th) 42 $1.25 (C) 10 $ 525 . 00
42 $2 . 00 (A) -0- -0-
11: 30-1: 30pm Water-robics 105 $3. 00 15 $4725 .00
(M-F)
11:30-12 :30pm Lap Swim 105 $2 .00 (A) 15 $3150 . 00
(M-F) 105 $1 .50(S) 10 $1575 . 00
1 :00-2 : OOpm SCHOOL USE
(M-F)
1: 00-2 :OOpm Adult Classes 3 $30.00 12 $1080. 00
(Tu/Th) (4 week sess. )
2 : 00-3:OOpm Adult Classes 10 $30.00 25 $7500 . 00
(M/W/F) (21/2 week sess. )
3: 00-5 :OOpm OPEN SWIM 63 $2 .00 (A) 20 $2520 . 00
(M/W/F) 63 $1.25 (S) 0 -0-
63 $1.25 (C) 50 $3937 . 50
2 :00-5:OOpm Youth Classes 9 $27 .00 45 $10935 . 00
(Tu/Th) (4 week sess. )
/" 1
Page 7 of 8
TIME PROGRAM NO. OF COST @ # PART. REVENUE
SESSIONS SESSION
5 :00-6 :30pm Lap Swim 105 $2 . 00 (A) 15 $3150.00
(M-F) 105 $1.50 (S) 15 $2362 .50
6 : 30-8:OOpm SWIM TEAM
(M/W/F)
6 :30-8 :OOpm Adult Classes 10 $30. 00 0 -0-
(Tu/Th) (4 week sess. )
8 :00-9:OOpm Masters Swim 63 $3 . 00 20 $3780 .00
(M/W/F)
8 : 00-10: 00pm Adult Classes 6 $30 .00 18 $3240. 00
(Tu/Th)
SATURDAY/SUNDAY
TIME PROGRAM NO. OF COST @ # PART. REVENUE
SESSIONS SESSION
9:00-11: 30am Youth Classes 12 $27 .00 48 $15552 .00
(Sat) (5 week sess. )
11:30-2 :OOpm Lap Swim 42 $2 .00(A) 20 $1680.00
(Sat/Sun) 42 $1.50(S) 12 $ 756.00
42 $1 .00 (C) 17 $ 714 .00
2 :00-5:30pm OPEN SWIM 21 $2.00(A) 50 $2100 . 00
(Sat) 21 $1 .25 (S) 20 $ 525 .00
21 $1.25 (C) 90 $2362 . 50
2 :00-5:30pm OPEN SWIM 21 $2 .00(A) 35 $1470.00
(Sun) 21 $1.25 (S) 20 $ 525.00
21 $1.25 60 $1575. 00
5: 30-8 :OOpm FREE SWIM
(Sat/Sun)
8:00-10 :OOpm Lap Swim 42 $2 .00 (A) 8 $ 672 . 00
(Sat/Sun) 42 $1.50 (S) 2 $ 126 . 00
42 $1.00 (C) 2 $ 84 . 00
4th PERIOD TOTALS = 102,249.00
YEAR TOTAL (51 weeks)
204,230.00
E
FEASIBILITY OF YMCA PARTICIPATION IN SWIMMING POOL PROJECT
During the discussion on swimming pool financing at the
September 21 Board of County Commissioners meeting, the
suggestion was made that we consult with the Chapel Hill
YMCA to determine if there could be a viable arrangement with
the YMCA in building and/or operating a swimming pool.
On Wednesday, September 29, Chair Moses Carey and
Manager John Link met with Glenda Alexander, Executive
Director of the Chapel Hill YMCA. During our discussion, we
agreed that the possibility of the YMCA' s participation in
the capital funding of the facility' s construction did not
provide a promising alternative to the present proposal.
However, we agreed that it is possible for the YMCA to
operate and manage the pool. For instance, the YMCA could
propose to operate the swimming pool part of the present
proposal through a management contract with the Triangle
Youth Hockey Association; for the same approximate amount of
expenditures now projected in the proposal. Of course, if
the YMCA' s operational costs were significantly more than
those now projected, the present financial plan would have to
be altered.
In summary, the YMCA' s most realistic involvement would
be as the operational entity under the current proposal. The
YMCA could operate a county pool, but the costs to the county
would virtually be the same as presented in the attached
charts provided to the Board on September 21.
9/29/93
A
X
El
F
0
COUNTY EXPENDITURES
TYHA VERSUS COUNTY OPTION
Millions
1 2 3 4 5 6 7 8 9 10
Years
r Cum. TYHA Cum. County Pool
County Cost to Build and Operate Pool Only
Pool Costs = $3.5M (including land)
Year
1
2
3
4
5
1 6
1 7
8
1 9
10
Total
Debt Service Payment"
560,000
539,000
518,000
497,000
476,000
455,000
434,000
413,000
392,000
371,000
4,655,000
Net Operating Costs-
200,000
206,000
216,000
225,000
234,000
243,000
253,000
263,000
274,000
285,000
2,401,000
Total Annual Cost
760,000
747,000
734,000
722,000
710,000
698,000
687,000
676,000
666,000
656,000
7,056,000
TYAA
400,000
400,000
400,000
400,000
400,000
400,000
400,000
400,000
400,000
400,000
4,000,000
Difference
360,000
347,000
334,000
322,000
310,000
298,000
287,000
276,000
266,000
256,000
3,056,000
mAzallyhoolcom 1.wk3
*Pool based on 50 meter pool comparable to TYHA planned facility. Pool is based on $3.2 m. Land based on 12 acres at $25,000 per acre.
r. Debt Service assumes debt is financed for 10 years at an interest rate of 6 %.
*- Future years calculated at 4% increase each year.
1
1134 C
u
ORANGE COUNTY
BOARD OF COMMISSIONERS
A RESOLUTION TO PROCEED
WITH AN AGREEMENT WITH TRIANGLE YOUTH HOCKEY ASSOCIATION
TO CONSTRUCT AND OPERATE A PUBLIC SWIMMING POOL
WHEREAS, the Orange County Board of Commissioners has determined the
need for a public swimming pool accessible to all residents of Orange
County, and
WHEREAS, the Board has evaluated several options for providing such a
facility, and
WHEREAS, the Triangle Youth Hockey Association (TYHA) , in conjunction
with the Municipal Financial Group (MFG) , has proposed the construction
and operation of the Triangle Community Activity Center (TCAC) , which
among other functions would house an Olympic-sized public swimming
pool, and
WHEREAS, plans for the construction and operation of the TCAC and
an analysis of the economic feasibility of such an undertaking have
been outlined in a business plan prepared for the TCAC by the North
Carolina Small Business and Technology Development Center, and
WHEREAS, the viability of the proposed TCAC would be dependent on a
contribution from Orange County of $4 million over a ten year period,
NOW, THEREFORE, BE IT RESOLVED THAT the Orange County Board of
Commissioners does hereby express its commitment to proceed with the
TCAC project, and
FURTHERMORE, BE IT RESOLVED THAT the County Manager, County Attorney,
and County staff are directed to continue negotiation with the
interested parties in this project to produce a final agreement with
TYHA, for subsequent consideration by this Board, that is substantially
in the form of the draft TCAC Facilities/Services Agreement, dated
September 28, 1993 .
This, the 4th day of October, 1993 .
;�Li 7J l o Jb r't-iKf•,�� r.�� r-11.4111...) 71 y ijc d u:4o,-r r. r
V - I
PPAB DRAFT
9/28/93
NORTH CAROLINA TRIANGLE COMMUNITY ACTIVITY CENTER
SWIMMING POOL
ORANGE COUNTY FACILITIES/SER'V'ICES AGREEMENT
This Agreement(the "Agreement") made and entered into this day of
1993,by and between TRIANGLE YOUTH HOCKEY ASSOCIATION("TYHA").,a non-profit
corporation duly incorporated under the laws of the State of North Carolina, and ORANGE
COUNTY (the "County"), a body politic and corporate existing under North Carolina law:
WITNESSETH•
WHEREAS, the Orange County Board of Commissioners (the "Board") has determined
that there is a need for a public swimming pool accessible to all residents of the County;
WHEREAS, the Board has evaluated several options for providing a public swimming
pool accessible to all residents of the County;
WHEREAS, the Board has appropriated an initial amount of funding for the construction
of a public swimming pool facility in the County's 1992-91 Capital Improvements Plan; and
WHEREAS, TYHA is a non-profit organization managing recreational activities in the
County; and
WHEREAS, TYHA has proposed the construction of a Triangle Community Activity
Center ("TCAC"), which would include an olympic-sized swimming pool (the "TCAC Pool")
and other facilities, including an ice rink; and
WHEREAS, TYHA proposes to finance construction of the TCAC through a "63-20"
financing (the "TYHA Financing") in which TYHA would issue its own corporate debt and the
County would not be liable for any payment of that debt; and
WHEREAS, due to economies of scale and other factors, TYHA would be able to
provide and maintain the TCAC Pool on a more efficient basis than the County could if the
County were to build and operate its own pool; and
WHEREAS, the County is authorized to make public expenditures for parks and
recreation; and
WFIEREA.S, the County is authorized to awstraat with private entities for any public
purpose; and
WHEREAS, the County is authorized to enter into continuing, multiple-year contracts;
and
WHEREAS, the County has determined that it is in the best interest of the County that,
instead of building and operating its own pool, the County contract with TYHA to provide a
public pool and operational services through the operation of the TCAC Pool for the benefit of
Orange County residents;
NOW, THEREFORE, in consideration of the mutual covenants herein contained,TYHA
and the County hereby agree as follows:
ARTICLE I
hmscolAgursuatsegtiant
The purpose of this Agreement is to give the residents of Orange County access to a
public swimming pool by having the County compensate TYAC for the costs associated with the
use and operation of the TCAC Pool.
ARTICLE II
Engagement
Section 2.01 -Engagement of TYHA. The County hereby engages and retains T"YtIA
as an independent contractor to provide and operate the TCAC Pool.
Section 2.02 - En em . TYHA shall provide the TCAC Pool and furnish
facility and operational services as reasonably required for the efficient construction and
operation of the TCAC Pool. TYRA agrees to build and operate the TCAC Pool similarly to
the County would operate its own recreation facilities, as set forth in the Operating
Memorandum attached hereto as Exhibit A.
ARTICLE III
Payment Obligation
Section 3.01 - .Payment of Fee. For services to be rendered by TYRA hereunder, the
County hereby agrees to pay an annual fee ("Fee") of four hundred thousand dollars ($
400,000). The Fee will be paid in four quarterly installments of one hundred thousand dollars
($100,000)each quarter. The first quarterly installment payment of the Fee is due and payable
on the first day the TCAC Pool is open for use by the general public (the "Opening Date"). The
second quarterly payment will be due and payable on the first day of the third subsequent month
thereafter. Subsequent quarterly payments will be due and payable on the first day of the first
month of the quarter following the second payment through the term of the Agreement, as set
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forth in Section 4.02. li the date for making payment as provided herein, is not a business day,
such payment may be made on the next succeeding business day, with the same force and effect
as if done on the nominal date provided herein, and no interest shall accrue for the period after
such nominal date.
Section 3.02 - fir, for Payment of Jbe Fee. The payment obligation under this
Agreement is a contractual obligation of the County, payable from the County's funds and from
the earnings and all income received by the County from whatever source derived, to the extent
that County's Funds are available for such purpose and are not pledged for the payment of any
other obligation of the County and subject only to the limitation set forth in N.C. GEN. STAT.
§ 153A-149(c).
Section 3.03 - jr Q Abatement of Management Fee. There will be no abatement or
reduction of the Management Fee by the County for any reason, including, but not limited to,
any defense, recoupment, setoff, counterclaim, or any claim arising out of or related to the
Agreement, including the temporary closing of the TCAC Pool for no more than three (3)
consecutive months. Closing of the TCAC Pool for more than three (3) consecutive months
would, however, effect a termination of the Agreement unless otherwise mutually approved by
the parties pursuant to Section 16.07 contained herein.
Suction 3.04 - Management.Fee. The Management Fee shall cover payment for all
services to be provided under this Agreement by TYHA, including but not limited to:
(i) all salaries, benefits, and other expenses incurred by TYHA personnel
pursuant to this Agreement;
(ii) any TYRA overhead and profit; and
(iii) all other fees, charges, costs, and expenses associated with TYHA's perfor-
mance of this Agreement.
ARTICLE IV
Duratloo
Section 4.41 - Effective Date. This Agreement shall be effective when approved by the
respective governing bodies of each party, executed in duplicate counterparts and delivered to
the respective parties.
Section 4.02 - arm of Agreement This Agreement shall continue in full force and
effect fOr tea (10)years from the Opening Date, as herein defined in Section 3.01.
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ARTICLE V
Personnel
TYHA shall employ a General Manager who shall serve at the sole expense of TYHA
and shall provide the active management of the TCAC Pool. TYHA retains the right and
responsibility to exercise full control and supervision over its employees and their terms and
conditions of employment except as otherwise provided herein. Without limiting the generality
of the foregoing, TYHA shall be solely responsible for all matters relating to payment of its
employees, including the withholding and payment of employee taxes, insurance contributions,
and the Tike. TYHA will be fully and solely responsible for its own acts and omissions and
those of its employees and subcontractors.
ARTICLE VI
Nature of Relationship
TYRA and the County agree that in the performance of this Agreement, TYRA shall be
acting as an independent contractor. Nothing herein shall constitute or be construed to be or
create a partnership, agency,joint venture or other similar relationship between the County and
TYHA. TYHA agrees that it will not represent to anyone that its relationship to the County is
other than that of independent contractor, and the County and TYHA may so inform any parties
with whom they deal and may take any other reasonable steps to carry out the intent of this
section.
ARTICLE VII
hi iced Interests
No member, officer, or employee of the County, during his/her tenure or for one (1)
year thereafter, shall have any interest, direct or indirect, in this Agreement or the benefits
thereof. No TYHA officer, employee, or agent associated with this Agreement, and no TYHA
officer, employee, or agent shall either solicit or accept gratuities, favors, or anything of
material monetary value from vendors, suppliers, or subcontractors.
ARTICLE VIII
Operating Revenues
Until the debt obligations incurred by TYHA pursuant to the TYHA Financing have been
discharged, all revenues derived in any manner from or in connection with the operation of the
TCAC Pool, whether from users or from any other sources whatsoever, shall be and remain
from the initial receipt thereof, the property of TYRA.
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ARTICLE Ix
Covenants. Represent tioss, and nties
Warra
Section 9.01 - Qvcnants. Itopresentations. and-WWrrranties of the County. The County
hereby covenants, represents, and warrants as follows:
(i) The County will maintain its existence, and, in the event of reorganization, this
Agreement will be binding upon any successors or assigns;
(ii) The County will comply in all material respects with the terms and conditions of the
laws of North Carolina respecting budgeting and appropriations and will take whatever
action is necessary to assure the proper and continued receipt and expenditure of monies
thereunder
(iii) The County will execute and deliver all such further instruments and take all such
further action as may be required to carry out the purposes of this Agreement;
(iv) Neither the execution and delivery hereof, nor the fulfillment of or compliance with
the terms and conditions hereof, nor the consummation of the transactions contemplated
hereby, conflicts with or results in breach of the terms,conditions, and provisions of any
restriction or agreement or instrument to which the County is now a party or by which
the County is bound, or constitutes a default under any of the foregoing;
(v) No controversy, budget protest, or litigation is pending or threatened involving the
incorporation, organization, existence, or boundaries of the County, or the titles of its
officers to their respective positions, or the validity of the adopted budget, or the power
and duty of the County to provide and apply adequate ad valorem tax receipts and other
general fund receipts in accordance with its adopted budget for the current fiscal year;
and further there is no action, suit, proceeding, inquiry, or investigation at law or in
equity or before or by any public board or body pending or, to its knowledge, any basis
therefor, wherein an unfavorable decision, ruling or finding would adversely affect the
transactions contemplated by this Agreement. The County will immediately notify
TYHA if any such controversy or litigation is filed or threatened during the term of this
Agreement; and
(vi) As of the date of execution hereof the County is not currently in default in any
material respect on any other obligation.
Section 9.02-Commis, •tepresentatio ts, and Warranties o f YHA. TYHA represents,
covenants, and warrants for the benefit of the County as follows:
(i) TY}IA is a nonprofit corporation duly created, existing, and in good standing under
the laws of'North Carolina, is duly qualified to do business in North Carolina, has all
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necessary powers to carry out its obligations and to eater into this Agreement, and has
duly authorized the execution and delivery of this Agreement;
(ii) Neither the execution and delivery hereof, nor the fulfillment of or compliance with
the terms and conditions hereof, nor the consummation of the transactions contemplated
hereby, conflicts-with or results in breach of the terms, conditions, and provisions of any
restriction or agreement or instrument to which TYHA is now a party or by which
TYHA is bound, or constitutes a default under any of the foregoing;
(iii) To the knowledge of TYHA, there is no litigation or proceeding pending or
threatened against TYHA or any other person affecting the right of TYHA to execute or
deliver this Agreement or to comply with its obligations under this Agreement. Neither
the execution and delivery of this Agreement by TYHA, nor compliance by TYHA with
its obligations under this Agreement, require the approval of any regulatory body, any
parent company, or any other entity, which approval has not been obtained; and
(iv) TYHA agrees to obtain annually an audit of its financial statements from an
accounting firm acceptable to the County and to provide a copy of such audit to the
County promptly after receipt thereof.
(v) The County will maintain its existence, and, in the event of reorganization, this
Agreement will be binding upon any successors or assigns;
(vi) The County will execute and deliver all such further instruments and take all such
further action as may be required to carry out the purposes of this Agreement;
ARTICLE X
Ownership of Property: Limited Obligation of County
Section 10.01 - Qwnership o_f hcsati. All property of any type hereinafter acquired
at TYHA expense for or in connection with the TCAC, shall be acquired in the name of TYHA
and become the property of TYHA subject to the right of the County to a reversionary interest
therein when all debt obligations of TYHA related to the TCAC have been discharged.
Section 10.02 - Li i Obligation ofof County. The County has agreed to accept the
reversionary interest referred to above for the sole purpose of complying with Internal Revenue
Service Revenue Proclamation 82-26. The debt incurred by TYHA pursuant to the TYHA is
the sole responsibility of TYHA. No debt of the County shall be created pursuant to the TYHA
Financing. No provision of this contract shall be construed or interpreted as creating a
delegation of governmental powers nor as a donation by or a lending of the credit of the County
within the meaning of the constitution of the state. This contract shall not directly or indirectly
or contingently Obligate the County to make any payments beyond those appropriated pursuant
to Section 3.O1 of this contract. To the extent of any conflict between this provision and any
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other provision of this contract or any documentation related to the TYHA Financing, this
provision shall take priority.
ARTICLE XI
Insurance
TYHA shall procure and maintain, or cause to be procured and maintained, throughout
the term of this Agreement, all insurance as customarily maintained for such facilities. The
types of coverage and limits of liability obtained shall be subject to approval by the County.
ARTICLE MI
JAetnnjfication
To the extent permitted by law, and further, to the extent of insurance policies owned
by the County, the County shall indemnify, defend, and hold harmless TYHA from and against
any and all claims or liabilities (including reasonable attorneys' fees) arising out of or in
connection with this Agreement where attributable to the acts or omissions performed by the
County. TYHA shall indemnify, defend, and hold harmless the County from and against any
and all claims or liabilities (including reasonable attorneys' fees) arising out of or in connection
with this Agreement where attributable to the acts or omissions performed by TYHA.
ARTICLE XIII
Performance of Government 'Functions
Nothing contained in this Agreement shall be deemed or construed so as to in any way
estop, limit, or impair the County from exercising or performing any regulatory,. policing,
legislative, governmental, or other powers or functions pursuant to applicable law.
ARTICLE XIV
Defaults and Remedies
Section 14.01 - Definition of Event of Default.
A. The County shall be deemed to be in default hereunder upon the happening of any
of the following events of default:
(1) The County fails to make payment of the Fee required under Section 3.01 when due;
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(ii) The County fails to budget appropriate money sufficient to pay the Management Fee
coming due in the next ensuing fiscal year in the County's annual budget or in an interim
or amended County budget;
(iii) Any bankruptcy, insolvency, or reorganization proceeding or similar litigation as
instituted against the County, or a receiver, custodian, or similar officer is appointed for
the County or any of its property, and such proceeding or appointment shall not be
vacated or fully stayed within ninety(90)days after the institution or occurrence thereof;
or
(iv) Any warranty, representation, or statement made by the County herein or in any
other document executed or delivered in connection herewith is found to be incorrect or
misleading in any material respect on the date made.
B. TYHA shall be deemed to be in default hereunder upon the happening of any of
the following events of default:
(i) Any bankruptcy, insolvency, or reorganization proceeding or similar litigation is
instituted against TYHA, or a receiver, custodian, or similar officer is appointed for
TYHA or any of its property, and such proceeding or appointment shall not be vacated
or fully stated within ninety (90) days after the institution or occurrence thereof; or
(ii) TYHA fails to operate the TCAC pool for more than three (3)consecutive months.
Section 14.02 - mRe . Each party hereto will have all remedies available at law or
in equity to enforce any of the terms and provisions hereof,including, but not limited to,actions
at law for damages and equitable actions seeking rescission of this Agreement and/or injunctive
relief (mandatory or prohibitory) to prevent the breath or threatened breach of any term or
provision thereof or to enforce the performance of all terms and conditions of this Agreement.
All remedies are cumulative; the exercise of any one or more of them will not in any way alter
or diminish the rights of the exercising party to any other remedy provided herein or at law or
in equity.
Section 14.03 -A,ttooi ys' Fees. In the event of any breach or default by either party
of any of the terms and conditions of this Agreement, the non-defaulting party will be entitled
to reimbursement from the defaulting party of all of its costs and expenses in enforcing any of
the terms and conditions of this Agreement, including all reasonable and necessary attorneys'
fees incurred thereby.
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ARTICLE XV
Notice
Except as otherwise provided in this Agreement, all notices, certificates, requests,
requisitions, or other communications given pursuant to this Agreement must be in writing and
will be sufficiently given and will be deemed given when mailed by certified mail, postage
prepaid, addressed as follows:
County: County Manager
Orange County Government Services Center
200 S. Cameron
Hillsborough, North Carolina. 27278
TYHA: Triangle Youth Hockey Association
_, North Carolina
ARTICLE XVI
No Jury Trial
TYHA and the County waive and will waive trial by jury in any action, proceeding, or
counterclaim brought by either of them against the other on any matter whatsoever arising out
of or in any way connected with or related to this Agreement or the relationship of the County
and TYBTA under this Agreement.
ARTICLE XVII
Mist eflaneo.us
Section 17.01 - .ersongl Liability. No member of the County Board of Commission-
ers or officer or employee of TYHA or the County will have any personal liability for acts taken
in accordance with this Agreement.
Section 1702 - Amendment. This Amt may not be modified or amended except
by subsequent written Agreement authorized by the governing bodies of each party and signed
by authorized representatives of both parties.
Section 17.03 - Entire Agreement. This instrument contains the entire Agreement
between the parties, and no statement, oral or written, made by either party or agent of either
party that is not contained in this written Agreement shall be valid or binding.
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Section 17.04 -Semabirity. If any of the provisions of this Agreement shall be held by
a court of competent jurisdiction to be unconstitutional or unenforceable, the decision of such
court shall not affect or impair any of the remaining provisions of this Agreement, and the
parties shall, to the extent they deem to be appropriate, take such actions as are necessary to
correct any such unconstitutional or unenforceable provision, It is hereby declared to be the
intent of the parties to this Agreement that this Agreement would have been approved and
executed had such an unconstitutional or unenforceable provision been excluded therefrom.
Section 17.05 - tive Efforts. This Agreement shall be liberally construed in
order to promote a harmonious relationship between the parties with regard to the management
and operation of the TCAC Pool. TYHA accepts the relationship of trust and confidence
established between TYHA and the County by this Agreement. TYHA covenants with the
County to furnish its best skill and judgment and to fully and effectively cooperate with the
County to accomplish the purposes and objectives of this Agreement. If a problem arises that
this Agreement does not directly or indirectly address, TYHA and the County agree to work
with one another to determine a mutually satisfactory solution.
Section 17.06 - Appr,vas . Notwithstanding anything herein which may be to the
contrary, all approvals or consents required or permitted pursuant to this Agreement shall be in
writing in order to be considered valid and binding.
Section 17.07-SegoimeignstAssias. This Agreement shall be binding upon the heirs,
personal representatives, successors, and assigns of the parties hereto; provided, however, this
provision shall not be deemed to authorize the assignment or other transfer of this Agreement
which may only be accomplished as expressly provided in this Agreement.
Section 17.08 - Waiver, The failure of either party to insist upon a strict performance
of any of the terms or provisions of the Agreement, or to exercise any option, right, or remedy
under the Agreement, shall not be construed as a waiver or as a relinquishment for the future
of such term,provision, option, right, or remedy, but the same shall continue and remain in full
force and effect. No waiver by either party of any term or provision hereof shall be deemed to
have been made unless expressed in writing and signed by the party against whom the waiver
is asserted.
Section 17.9-Covenant of Farther Assurances. TYHA and the County agree that from
and after the date of execution hereof, each will, upon the request of the other, execute and
deliver such other documents and instruments and take such other actions as may be reasonably
required to carry out the purpose and intent of this Agreement.
Section 17.10 - Choice of Law. This Agreement shall be deemed made in North
Carolina. This Agreement shall be governed by and construed in accordance with the laws of
the State of North Carolina. All litigation arising out of this Agreement shall be brought in
courts sitting in North Carolina, with venue in Orange County.
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Section 17.11 - Force 1 ajeure. in the event that TYRA or the County is unable to
perform the obligations of this Agreement, by reason of an act of God, war, riot, strike,
insurrection, fire, explosion, injunction, inability to obtain fuel, government action, order or
decree of any court, casualty, or other cause beyond the control of TY11A or the County, then
TYRA or the County, as applicable, shall be excused from such failure to perform but shall
recommence and continue to perform promptly after removal or cessation of such cause of delay.
Section 17.12 - Assignment. No assignment, delegation, transfer, or novation of this
Agreement or any part thereof shall be made unless approved by both TYRA and the County.
Section 17.13 - Duplicate Originals. This Agreement shall be executed by the parties
hereto in duplicate originals, each of which, when executed, shall constitute one and the same
Agreement and one of which shall be retained by each party.
Section 17.14 - He . The headings given to sections or paragraphs of this
Agreement are included for reference only, and shall not be construed to affect the meaning of
this Agreement.
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IN WITNESS WHEREOF, the County has caused this Agreement to be approved in open
session, and the resolution approving this Agreement is part of the minutes of the County, and
the undersigned officials of the County have been authorized to execute this Agreement. TYRA,
likewise, has authorized the execution of this Agreement by proper resolutions and its officers
are authorized to execute this Agreement.
Executed as of this day of 1993.
COUNTY OF ORANGE
[SEAL]
By:
Chairman, Board of Commissioners
ATTEST:
Clerk
TRIANGLE YOUTH HOCKEY
ASSOCIATION
Ewa
By:
President
ATTEST:
Secretary
tt= o■TY[iA-rhl
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PHN Capital Funding Inc. -
In vestment Banking
VIA FACSIMILE
September 29, 1993
Mr, Ted W. Abernathy, Jr.
Director
Economic Development Commission
Orange County
109 Court Street, Annear
Hillsborough, North Carolina 27278
RE: Triangle Community Activity Center
Dear Ted:
I am writing on behalf of Municipal Financial Group, Inc. (MFG) and PHN Capital Funding
Inc. (PHN) in response to two questions raised by the Orange County Commission relating to
the proposed financing of the Triangle Community Activity Center (TCAC).
(1) If, for example, in the sixth year of operation of the TCAC, revenues were not
sufficient to make debt service payments on the proposed bonds, what steps would
the investors (bondholders) take?
The indenture of trust (Indenture) securing the bands for the benefit of
the bondholders will provide for a rate covenant/user charge schedule
intended to produce not less than 1.20 times annual debt service (after
the payment of budgeted annual operating costs and expenses). Our
current projections indicate that revenues available for debt service
coverage should range from 1.5 times upward, increasing gradually over
the life of the proposed bonds.
The indenture will be closed ended—that is, prior to payment in Ill of
the bonds, all TCAC revenues will be paid to the trustee and held in trust
for the benefit of the bondholders. In other words, after the ayment of
operations and debt service, no excess revenues may be released from
the lien of the indenture, , cess funds, together with the investment
income thereon, would be available to be applied toward payment of
debt service and operations if the TCAC should encounter financial
difficulties.
Payments will be made on a monthly basis to the trustee under the
indenture, and semiannual payments of interest and principal will be
made to the bondholders. The timing of the payments to the trustee,
together with the rate covenant, closed ended indenture structure
intended to capture excess revenue, and nancial reporting
requirements, will permit Orange County, MFG, PEN, the trustee and
the bondholders to detect a potential short all in revenue well in advance
• of a scheduled debt service payment, and will allow the avoidance of a
payment default.
One Buckhead Plaza•Suite 1880.3060 Peachtree Road,NW•Atlanta,Georgia 30305.4041364.2800•Fax:4041364.2801
Mr. Ted W, Abernathy, Jr.
September 29, 1993
Page Two
In the event of a payment default, and taking into consideration the
structural safeguards dercribed above, the bondholders and the trustee
will have negotiated with TYHA and Orange County, with the advice of
MFG and PHN,for an increase in rates or user charges, alternative uses
of the TCAC, a reduction in the interest rate on the bonds, or some
combination of remedies. Foreclosure by the trustee and a sale of the
TCAC would be the last resort of the bondholders.
(2) if, for example, TCAC revenue substantially exceeds current projections, how might
the excess revenue be used?
As discussed above, the indenture will be closed ended. Therefore,
TYHA and Orange County might agree to use excess revenue as follows:
(a) to expand and improve the TCAC with additional revenue
continuing to be captured under the indenture;
(b) after the build-up of a threshold amount (to be negotiated with
the bondholders prior to closing), a portion of excess revenue
might be paid to Orange County;
(c) to retire the bonds, or a portion thereof, on the earliest
redemption date (typically, the tenth anniversary date of the
bonds); or
(d) to effect some combination of(a), (b) and/or (c) above.
I trust this brief response will serve your purposes. Please give me a call if you should have
any additional questions or require further explanation.
Yours sincerely,
Patricia H, Newman
Chairman and President
pc: Dick Davis
Lovell C. Jones
Dan Kidd
Blair Levin, Esq.
Donald P. Ubell, Esq.
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Central Carolina Regional Center ,1111 loc• � H North Carolina
cia;sl Small Business and Technology
Development Center
608 Airport Road, Suite B
Chapel Hill, NC 27514
919/962-0389
Fax: 919/962-3291
•
Sponsoring Institutions
and Offices 9 . 29 . 1993
Elizabeth City Stale University
North Carolina Wesleyan To Ted Abernathy
College
Elizabeth City,919/335-3247 Orange County Economic Development Commissi'n
Rocky Mount,919/985-5130
East Carolina University From Barry Phillips /
Greenville,919/757-6157 Small Business And Technology Developme t /Center
University of North Carolina Central Carolina Regional Office +'
at Wilmington
Wilmington.919/395-3744
\o
University of North Carolina Re Triangle Community Activity Center J
at Chapel Hill
North Carolina Central
University You asked us to prepare Cash Flow Projections (CFPs)
Chapel Hill,919/962-0389 for the TCAC using the latest available data . These CFP
North Carolina State University should show the following three scenarios; (a) Conserva-
Ra/etgh,919/571-4154 tive, (b) Pessimistic and (c) optimistic, with the assump-
Fayetlevltlestateunlversify tions for each scenario listed. These CFPs are enclosed ;
Pembroke State University
Campbell University they have been based on (a) Income growth 2% per annum,
MelhodistColtege cumulative and Expense growth 3% per annum cumulative; (b)
Fayetteville,919/486-1727
Pembroke, 919/521-4214 income growth 1% and expense growth 3% (c) both income and
North Carolina AST state - expense growth at 3% .
University
University Greensboro ity North Carolina
a You also asked us to compare these CFPs with that pro-
at Gr
Greensboro, 919/334-7005 duced in the Business Plan published in February 1993 and
Winston-Salem Stale University to give a brief explanation of the changes .
Winston-Salem, 919/750-2030
University of North Carolina (a) Term of the loan. The loan has now been amortized over
at Charlotte 15 uest o
request ears at the of the lending institutions .
Charlotte, 704/548-1090 Y q g
Appalachian Slate University
Boone, 704/262-2492 (b) Interest rate . The assumed rate is now 8% versus 9% to
better reflect the market rates ; it is still on the conser-
Western Carolina University
University of North Carolina vative side based on the rates now prevailing which indi-
atAsheville cate 7 . 5% as an achievable rate .
Cullowhee, 704/227-7494
Ash e v r ll e. 704/254-1921
Hickory, 704/327-0007 (c) Amount of loan. $7, 550 , 000 versus $6, 700 , 000 . This has
been changed to meet revised costings and to allow for an
element of construction period financing costs .
(d) Pool revenue . This was previously based on Department
of Parks and Recreation projected income at year 5 of $240-
A business and , 380 per annum. A revised figure for year 1 of $210 , 000 was
technology extension inserted when the Parks & Recreations management reviewed
service operated as an their calculations in light of two regional pool ' s 1993
inter-institutional g g P
program of The season' s experience and fee structures .
University of North
Carolina.
Central Carolina Regional Center North Carolina
Smell Business end Technology
Development Center
808 Airport Road, Suite B
Chapel Hill, NC 21514
919!962-0389
Fax, 9191982.3291
(e) Property taxes . This is a new category, In the original
Sponsoring Inolilullone projections it had been assumed that TYHA , as a "not-for-
and omers profit" corporation would not be liable for property taxes ,
>;IlsabothC'"ylilateUnlwnity However, when this assumption was tested it became clear
Mirth C'aruylna wcalctan that taxes would be applied to whatever ratable value given
Colley
Elizabeth Clty. 919/53531.77 to the structure . The estimated range was between $50 , 000
Rocky Manm, 91/985-5110
and $100, 000 a year. We decided to build a conservative
E.(Carolinaltnl.eratty figure of $90, 000 into the CFP and to increase this by 5$6-
Oreem llle.P14,757-6137
each 5 years . From the county' s point of view $90, 000 is at
University of North Carolina the optimistic end of the scale for revenue it could expect
Ill 14lltnlnyinn
W(t,ntoPron,A/9/39,14,4e from the TCAC.
University of North Cari,llna
al Chapel 11111
North Camllna Central
Untrrr,l,y (f) Given the time that has elapsed since the Business Plan
Chapel Mil,919/962-0389 was produced, we were able to include actual figures for
Norlh Carolina State Unit/reit) the TYHA 1992/3 season. We substituted TYHA' s projected
Rufclyh,fll0/571•4151 figures for 1993/4 for the 1992/3 "full year" column previ-
rayelIOYliltStalrllntvrrsll} ously show which was only an extrapolation from the 1992/3
Pembroke 4 months results.
CampbNl I%nlvsnny
Meth9010 Collteo
Fay.tlrvll(e,919/486.1727
Aem0rok4,910/5214214
North(urolina ALT Stoic
ltnitenlly
University of North Carolina
at Greensboro
Grernshnnt 919/J34.70N
Wlnsu,n•8otem Stato Unlrrrrtty
Wtmtun•Salem,919/750.2030
Univrrally of North Carolln
al Charlotte
ChurMltr, 704;548-!090
Appalarhtan stale Gnlw0
Bonne, 704,'252-249:
Western Carolina University
University of North Carullna
at Asheville
Cullowhre, 704/227.7494
Ash,vllle, 704/254.1921
Hickory, 704/5274007
A business and
technology extension
service operated as an
lnirr-lnstituflone!
program of The
University of North
Carolina,
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AW- /w-4 - 92
MARK SCHULZ
711 DUMONT DRIVE
HILLSBOROUGH, NC 27278-9107
October 4, 1993
Moses Carey
Orange County Commissioner
P . O. Box 8181
Hillsborough, NC 27278
Dear Commissioner Carey:
I am a resident of Orange County living at 711 Dumont Drive ( a
few miles NE of Hillsborough) . The discussion the county
commissioners have been having about building a swimming pool or
better yet a combined swimming pool skating rink in Northern
Orange County is very interesting to me .
I grew up in Milwaukee County, Wisconsin, which operates scores
of outdoor pools in its parks and three indoor pools spread
across the county. So I am acutely aware of the lack of public
swimming pools in Orange County and especially Northern Orange
County.
I believe that a swimming pool skating rink complex would be a
great resource for the children of Orange County. I know that
the Milwaukee County pools provided a good outlet for my youthful
energy and the energy of my five siblings . Most importantly, it
was in those pools that we took swimming lessons and learned to
swim. I still swim for exercise today some 35 years later .
I urge you to support the swimming pool skating rink complex at
the Meadowlands . The benefits of this complex are more than
worth the four million dollar price figure for the County quoted
in the News of Orange.
Sincerely,
'
Mark Schulz
644-0919