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HomeMy WebLinkAboutAgenda - 12-12-2000-b1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date:. December 12, 2000 Action Agenda Item No.` SUBJECT: Authorization to Seek Financing for Property Acquisition at 112 and 118 North, _Churton Street in Hillsborough DEPARTMENT: Finance PUBLIC HEARING: (Y /N) No Purchasing ATTACHMENT(S): INFORMATION CONTACT: Ken Chavious, ext 2453. Resolution Pam Jones ext 2652 Public Hearing Notice. TELEPHONE NUMBERS: Correspondence From.Bond Counsel Hillsborough 732 -81.81 Chapel Hill 9684501 Durham 688 -7331 Mebane 336- 227 -2031 PURPOSE: To consider adoption of a resolution indicating the Board's approval. of.the acquisition and financing for the purchase of buildings located at 112 and 11.8 North Churton Street,. Hillsborough; and to establish a date of a public hearing on the financing proposal. BACKGROUND: Hillsborough Savings Bank and CCB have become one entity within the recent past.. The Bank is now divesting itself of property that is not critical to its day to day. operations.. As a result they have offered for purchase the property leased by the County in Hillsborough at 112 N. Churton (old Hillsborough Savings Bank currently lease for use as the Clerk of.Cburt Annex) and 118 N. Churton (Graham Building .present location.'of the Veterans office. and the Literacy Council). . CCB has accepted the.County's offer of $485,000 for both properties. Based on a projected interest rate of 6.5 %, the debt service payment for each year of the 10 -year projected. finance period will cost the County approximately $7,000 above what we are currently paying for rent. Further, it is contemplated that the property will fill significant future space needs as may be identified by the County. The Board will formally be requested to approve the acquisition of the properties on January 18, 2001; contingent upon a favorable report on the-environmental and general building assessments.` In the interim; staff will solicit financing Requests for Proposals (RFP's) for Board consideration as well as the public's consideration during the required public hearing. 3 Resolution approving in principle a plan for the County's acquisition and financing of a building and authorizing appropriate staff work WHEREAS, there has been presented to this Board a plan for Orange County to. acquire the buildings and associated property at 11.2 N. Churton Street, specifically the. old Hillsborough Savings Bank Building and at 118 N. Churton Street, specifically the Graham Building, in Hillsborough, and to finance that acquisition through an installment financing contract as authorized under Section 160A -20 of the North Carolina General Statutes.; and WHEREAS, the Board of Commissioners has determined 'to approve such plan and to authorize County staff to proceed accordingly; NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners .of Orange County; North Carolina, as follows: L. The Board. approves in principle the plan described to the Board for the County's acquisition and financing of the old Hillsborough Savings Bank Building and the Graham Building in Hillsborough. The County will not; however, complete any. acquisition or financing until the Board takes further action after the public. hearing required by law and referenced below in. this resolution. 2. The Finance Officer and all other County, officers and employees 'are. authorized and directed to proceed with the installment. financing that is part of the financing plan, and to take all such further action as they may consider desirable in that connection. 3. The Clerk to this. Board is authorized and directed to provide for the publication of a notice of public hearing on the proposed financing, in the form and manner prescribed by statute, with the hearing to be. held at the Board's meeting on Jan uary 18, 2001. This the 12'. day of December 2000. To: Date: Regarding: Kenneth T. Chavious December 5, 2000 Timetable for HSB building acquisition, preliminary County Board resolution and notice of public hearing Ken, as we have discussed, I am sending along a variety of items to get the financing process started on the HSB building acquisition. The first item attached to this cover memo is a sample- financing scheduler It contemplates a preliminary go -ahead from the County Board at the December 12 work session, and then final County Board action after a public hearing on January 18. The action at the January 18 meeting would include the adoption of the "findings" resolution that the LGC requires; we would also include in that resolution the appropriate approval of a particular financing. proposal and direction to County staff to complete the process. This schedule means we need to have a financing proposal ready to accept by the agenda deadline for the. January 18 meeting, which I would not think should be a problem, even if we had to' go out with RFPs at the beginning of the year. I see that the January 18 meeting is designated .as one to include planning items.. I don't know if this new plan. for the Board meetings is inconsistent with taking action on this project, but I would point out that January 18 is the only regular meeting currently scheduled for January and our only opportunity for the Board to act before the February 6 LGC meeting. The next item .attached. is my proposed form of a preliminary resolution for the December 12 meeting. This is pretty simple, but it is certainly plenty to get us started. Finally, I. have attached the form of a notice of the public hearing. As. you may recall, the notice needs to run once, at least ten days before the hearing - we should try to publish not later than January 7 for a hearing on January 18. You .will see .I have left a couple of blanks in the notice — feel free to fill those in yourself, or call me and ..I will prepare anew version with the blanks filled in. Event Date County Board adopts preliminary BOCC work session Dec 12 resolution approving transaction in principle and directing County staff to proceed accordingly County publishes notice of public Promptly after the previous step, and at hearing on proposal to finance the least ten days before hearing; should acquisition publish not later than January 7 for a hearing on January 1$ County negotiates financing proposal Between the first. step and the January 18 with CCB or obtains RFP financing meeting; need to leave about a week to responses from others ten days to obtain proposals from other potential providers Obtain boundary survey and Phase I Promptly after. selection of a financing environmental review of the property provider (if required by financing provider) County Board holds public hearing;. Regular BOCC meeting of January 18 adopts "findings" resolution and resolution authorizing staff to complete the financing and acquisition County works with CCB (or other Between previous step and closing; need provider) on loan documentation to have substantially final documents in hand by time the LGC application is filed . County application due to LGC By January 25 LGC approves the transaction LGC meeting on February 6. County closes on financing Anytime after the previous step