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June 7, 2007 (Recessed Meeting) Page 398 <br />The Board of Commissioners for the County of Cabarrus met in recessed <br />session in the Multipurpose Room at the Cabarrus County Governmental Center <br />in Concord, North Carolina on Thursday, June 7, 2007 at 6:30 p.m. <br />Present - Chairman: Robert W. Carruth <br />Vice Chairman: Joni D. Juba <br />Commissioners: Grace M. Mynatt <br />Coy C. Privette <br />H. Jay White, Sr. <br />' Also present were John Day, County Manager; Mike Downs, Deputy County <br />Manager; Pam Dubois, Deputy County Manager; and Lori Hinson, Deputy Clerk to <br />the Board. <br />Others present were Steve Cordell, Bond Counsel with Helms Mulliss & <br />Wicker, PLLC; Joe Niggel, Financial Advisor with UBS Securities, LLC; <br />Kannapolis Mayor Robert Misenheimer; Kannapolis City Manager Mike Legg; <br />Edward Boyles, Underwriter, from Bank of America; and Walter Goldsmith, <br />Financial Advisor for the City of Kannapolis. <br />Call to Order <br />Chairman Carruth called the meeting to order at 6:35 p.m. <br />Invocation <br />Commissioner Privette gave the invocation. <br />Approval of Agenda <br />UPON MOTION of Commissioner White, seconded by Commissioner Mynatt and <br />unanimously carried, the Board approved the agenda as presented. <br />Discussion of Financing Methods for Kannapolis Projects Associated with the <br />North Carolina Research Campus <br />' John Day, County Manager, introduced Joe Niggel, Financial Advisory <br />with USB Securities, LLC and Steve Cordell, Bond Counsel with Helms Mulliss & <br />Wicker, PLLC. <br />Mr. Niggel thoroughly reviewed the following funding scenarios in <br />comparison to a proposed 25-year TIF (Tax Increment Financing) scenario with <br />a 1.5x TIF coverage: 20-year COPS (Certificates of Participation) - level <br />principal; 20-year COPS - stepped principal; 29-year COPS with a 1.Sx TIE <br />coverage; 23-year COPS with a 1.5x TIF coverage; 19-year fill solution COPS <br />with a 1.Ox TIF coverage through final maturity; 20-year stepped principal <br />for COPS issued on August 1, 2008 at current market plus 50 basis points with <br />1.Ox TIF coverage through FY 2012; 20-year GO (General Obligation) bonds - <br />level principal; and 25-year GO bonds - level principal. Each scenario was <br />discussed by the Board and Mr. Niggel responded to numerous questions <br />throughout his presentation. <br />Mr. Cordell presented a lengthy comparison of TIF, COPS and GO bonds as <br />they pertain to the following items: voter approval, primary repayment <br />source, primary collateral, additional collateral, minimum valuation <br />agreement, impact debt capacity, unit at risk and borrowing costs/interest <br />rates. He also responded to numerous questions and comments from Board <br />members throughout his presentation. <br />Recess of Meeting <br />Chairman Carruth called for a short recess at 8:25 p.m. The meeting <br />reconvened at 8:92 p.m. <br />' Continued Discussion of Financing Methods for Kannapolis Projects Associated <br />with the North Carolina Research Campus <br />After the recess, there was discussion related to certain projects <br />included on the TIF project list that are not permitted to be funded through <br />TIF (i.e., parks). It was also noted that pending legislation, if approved, <br />would correct the situation. <br />Individual Projects to be Funded Through Debt Issuance that are <br />