AG 2010 11 15 - Laserfiche WebLink

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bids will be extended any further, 2) one of the planned projects (Village Park pedestrian tunnel /stormwater improvements) is an NCDOT project leveraging federal ARRA funds and the City is required to pay NCDOT in January 2011 for the local match for the project, 3) in this volatile economic environment we need to take no chances on interest rates changing in a way that is detrimental to the effort, and 4) there will be two new seats on the Board of Commissioners in December which will further delay this action due to the inevitable learning curve. A few additional points to consider: - The agreement between City and County will be the same as it has been from the beginning. The County will only be obligated to half the debt service from available revenues in the project development financing district (the old TIF district). This is the only commitment. It will be the City's debt. There is no pledge for general revenues by the County. - As part of the agreement, the total amount of the proposed financing is not to exceed $36,500,000. The agreement will also include a provision for the County to proposed different terms to the City in 2020 and a pledge to good faith negotiations at that time. - There are two years of capitalized interest factored into the debt schedule; therefore the County's obligation will not begin until June 2013. - The structure will still include elements of a TIF but will be a publicly sold COPs transaction of which the City will make the pledge for repayment. There will probably be a side agreement with Castle and Cooke but it may not have the same teeth the Minimum Assessed Valuation Agreement (MAYA) had with the TIF. The proposed Interlocal Agreement calls for a MAVA but it may ultimately take on another form. This provision only effects the City. - Because the CHA building will be collateral for the transaction, the City will have to own the new building and will likely transfer it to the CHA (or the County, if so desired) at the end of the debt period. The city is working on an agreement that establishes how that will work. It will be CHA's building in every practical way other than the name on the deed. The agreement will address how it gets built, how the property gets acquired, etc. - Due to the lower interest rate, we will benefit from about $4 - 4.5 million in additional revenues for the same debt service. I am recommending to our City Council that we try to keep that in tact. We are working on some alternatives for those uses including ideas that will generate new economic growth and investment (on the NCRC or perhaps elsewhere in Page 114 G -3