AG 2010 11 15 - Laserfiche WebLink

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WHEREAS, owing to the general economic conditions that became evident in 2008, the original plans for issuing the Bonds became and remain infeasible in response to which the City, in consultation with its financial advisors and the North Carolina Local Government Commission, has devised an alternative plan to fund a portion of the Public Improvements under the provisions of North Carolina General Statutes Section 160A -20 (the "Installment Contracts Act ") through the issuance of Limited Obligation Revenue Bonds or Certificates of Participation in installment contracts in the amount of not exceeding $36,500,000 (the "Alternative Financing "); and WHEREAS, the County wishes to provide assistance to the Development Project as provided in the Bond Act and by resolution duly adopted on November 19, 2007, has authorized the execution and delivery of an interlocal agreement pursuant to which the County will pledge a portion of its ad valorem taxes (the "County Contribution ") actually received by it on the incremental valuation (as described in the Bond Act) of property in the Development Financing District in support of the Bonds to be issued by the City; and WHREAS, the County has agreed to provide similar assistance to the Alternative Financing in the form the County Contribution under substantially the same provisions as were originally conceived to be provided for the Bonds; and WHEREAS, the County will allow its incremental ad valorem tax revenues to be used for the payment of no more than one -half of the annual payments of principal and interest due on the Bonds or the Alternative Financing, as the case may be; and WHEREAS, the Developer and certain of its subsidiaries (collectively, the "Initial Owners ") are entering into a Minimum Assessed Value Agreement with the City (the "Minimum Assessed Value Agreement ") pursuant to which the Initial Owners will agree that the value, for purposes of taxation by the City, of the real property described therein will be determined in accordance with the Minimum Assessed Value Agreement; and WHEREAS, the Local Government Commission issued an order on December 4, 2007, approving the Development Financing District and the issuance by the City of bonds to be designated as the City of Kannapolis, Project Development Financing Bonds (North Carolina Research Campus Project); and WHEREAS, the City and the County intend for this agreement to be implemented for the benefit of the Alternative Financing in the same fashion as originally agreed to between the parities; NOW THEREFORE, in consideration of the premises, the benefits to be derived by the City and the County from the investment being made in the Development Financing District, the City and the County desire to provide in this Alternative Financing Interlocal Agreement for the basis on which the County Contribution will be made for the benefit of the holders of the Bonds to be issued by the City, the City and the County do hereby covenant, promise, agree and represent as follows: ARTICLE I GENERAL PROVISIONS SECTION I.I. Purpose of the Interlocal Agreement. This Interlocal Agreement is being entered into as a means for the County to provide assistance to the Development Project from the County's Incremental Revenues actually received by the County from the Development Financing District by pledging the County Contribution as security for the Bonds or the Alternative Financing. The terms of this Interlocal Agreement shall apply to the Alternative Financing in the same way as it would to the -2- Attachment number 4 Page 135 G -3