HomeMy WebLinkAboutAgenda - 06-27-2006-5iiORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: June 27, 2006
Action Agenda
Item No. S' j
SUBJECT: Adoption of Resolution Authorizing OPC/LME to Acquire Real Property in
Orange County
DEPARTMENT: County Manager's Office PUBLIC HEARING: (Y/N) No
ATTACHMENT(S):
Draft Resolution
INFORMATION CONTACT
Gwen Harvey, Asst Co. Mgr, 245 -2307
Judy Truitt, OPC/LME Director,
913-4037
PURPOSE:
To adopt a resolution that provides consent for the OPC/LME to enter into a financing
agreement for the acquisition of real property.
BACKGROUND:
At its meeting on June 27, 2006, the OPC/LME Board will consider adoption of resolutions
drafted by consulting counsel, Annette Moore, to allow OPC/LME to file an application with the
North Carolina Local Government Commission for approval of a proposed financing contract for
the purchase of two pieces of Club House properties that serve OPC target populations. The
two properties are known as Club Nava in Carrboro and Club Insight in Chatham County. Loan
financing in the amount of $421,000 would be through Wachovia Bank, N.A.
Each of the three Boards of County Commissioners -Orange, Person, and Chatham -must
also adapt resolutions - as in the one attached - in order to allow OPC/LME to hold title to real
property. The Local Government Commission requires all documentation to be submitted 28
days in advance, or by August 8, 2006 in this instance. The draft resolution is on this BOCC
agenda for adoption, the same night as the regular OPC/LME Board meeting, because the filing
deadline would have passed by the time the BOCC returns from summer break to take action.
Commissioner Moses Carey, as BOCC liaison to OPC/LME, has been actively engaged in
discussions concerning the advantages of Club House property ownership in helping assure
continued public benefit for the counties and the consumers being served.
FINANCIAL IMPACT: There is no financial cost to the County associated with this action. The
proposal submitted by Wachovia Bank does not require a cash deposit to close on the loan
package, and the amount of current rents paid by the two service programs will cover the
mortgage payment, as well as create a small surplus which will be used far property
maintenance and upkeep.
RECOMMENDATION(S): The Manager recommends that the Board adopt the draft resolution
and authorize the Chair to sign, pending final review by County management and the County
Attorney.
STATE OF NORTH CAROLINA RESOLUTION TO ACQUIRE
REAL PROPERTY/ COUNTY
COUNTY OF ORANGE
~'
,;
WHEREAS, North Carolina General Statutes § 122C 147 provrdes-that the
authority to hold title to real property and the authority to"acquire the same may be
held by an area mental health, development disabilities and siabsfance abuse
authority, upon the consent of the boards of county comrnissianers of all counties
which comprise the authority; and ~.
~I
WHEREAS, North Carolina General Statutes § F122C;147(c);further provides this
consent shall be ratified by resolution of each.' affected board of county commissioners
and may specify any necessary or proper conditionsCfo~r'the consent;; including, but
not limited to, provisions for~distnbution of~Ch~ proceeds in the evelrt of disposition of
the property by an•area authority,,%a,rd ~ `_ ,. (; ` .x
WHEREAS, the Area Board of Orange-Verson Chatham Mental Health,
Developmental Disa~bilii`ries and Substano"e Afius~, Services (hereinafter referred to as
"OPC") at a Board Meeting h~ld an f , 2006, adopted a motion to
accept a proposed conveyan, e of title ofi,a tract or parcel of land situated in Orange
and Person Courtier, f~`orth Garolin`a;-(fiereinafter referred to as "the Properties")
mare particularly, described in,Deed~Book ~, Page _ in the Orange County
Registry and in Deed Soo`k ~=-'' ,Page of the Chatham County Registry, said
description being attached as Exhibits A and B and incorporated herein by reference,
and 1:.=,:,:,`
WHEREAS'`OPC desires to enter into a Financing Agreement by and between
OPC and Wachovia Bank, N.A., a North Carolina banking corporation, that provides
for, inter ilia, a conveyance by OPC of the Property as described in Exhibits A and B
attached hereto, to a Trustee for Wachovia Bank, N.A., as security far a loan in the
arnaunt of Four Hundred Twenty- One Thousand Dollars ($421,000.00); and
WHEREAS, the payments required to repay the advance made pursuant to the
Financing Agreement call for an amortization period of approximately fifteen (15)
years, payments are quarterly in arrears in the amount of $7,016.66, and a portion of
each payment is paid as and represents payment of interest at an annual interest rate
of 4.89%; and
WHEREAS, OPC , at an Area Board Meeting held on ,
2006, adopted a motion (a copy of which is attached hereto as Exhibits A and B and
incorporated herein by reference) recommending to the respective Boards of
Commissioners of Orange, Person and Chatham Counties that in the event of
disposition by OPC of the real property hereinabove referred to, any and all proceeds
shall be used by OPC for purposes authorized under Article 4 of Chapter 122C of the
General Statutes of North Carolina, or in the event of dissolution of OPC ,any and all
proceeds from the disposition of the real property hereinabove referred to shall be
distributed to and among Orange, Person and Chatham Counties according to the
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percentage that the population of each county bears to the total population of the
combined said three (3) counties.
NOW, THEREFORE, BE IT RESOLVED, that the Orange County, Board of
Commissioners hereby authorizes OPC to acquire the real property hereinabove
referred to and to hold title to the same, by entering into a Financ7ng Agreement with
Wachovia Bank, N.A, that provides for a conveyance byrOPC`ofthe real property
hereinabove referred to, to a Trustee for Wachovia Bak, N Al as `security for a loan
in the amount of Four Hundred Twenty- One Thousand Dollars ($21,000.00), with
~ . ~ ,r...
the payments being required to repay the adGance calling for an amortization period
of approximately fifteen (15) years and quetterly pay mentsnin arrears in the amount
of $7,016.66, with a portion of each payment `repres~nting ;paymentof interest at an
annual interest rate of 4 89% and = - ' ` '
k ' ~ y h iy f
~r, ~ ~ ~
BE IT FURTHER RESOLVED, 'hat mlthe went ~Of disposition of'the real property
herein referred to~b~%OPC, a~~y an~°ail'proceeds shah iie used by bPC for purposes
authorized under Article 4~of~C~h'apter 122C of the Genetal Statutes of North Carolina,
or in the event of dissolution,of OPC, an~ and, al] proceeds from the disposition of real
p s I G~ r :,.~~ ~
property heremaboVe r ferredtoshal! be distnt~ufied'to and among Orange, Person
~s ~ a r ~ i ~ ~.;°
and Chatham Countlies cCOrdmg to the percentage of the combined population of
said three (3) co,~un~ies~ ~,~ _°~ 4 ~,~ ,,>
IN WITN
Commissioners
e undersigned Orange County Board of
is Resolution to be effective as of the day of
Orange County Board of Commissioners
By:
(Chairperson)
ATi'EST:
Clerk of Board
(SEAL)
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