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llratt Yage "l of. 2 The above consideration becomes mute if your information is correct that the tenant will be a tax exempt hospital authority. In this case there would be no private payment issues and rent could be collected without any tax consequenses. 3) The school and water sewer projects are allowable TIF projects and typically seen in such financings. It is noted in the comments section that there's a concern about being able to meet the rational nexus test for certain of the proposed utility improvements outside the District and the City limits. So, while there's statutory authority for financing this type of project with TIF's in NC, there may be a problem with rational nexus given location. The decision regarding the rational nexus test will fall to the TIF bond counsel and LGC. Perhaps with further information and review of the project(s), the rational nexus test can be met. 4) Obviously, the projects fundedby the TIF financing need to both serve County/City needs and best promote tax base growth within the TIF district in order to better support the financing -particularly if the Cotanty would like to see it's share/participation in the TIF debt service payments be reduced (or eliminated) over time. Schools and water/sewer projects do promote growth. The Cabarrus Health Alliance facility would appear to be part of the research campus itself, and would likely be an asset to the research campus and promote future success/growth in the TIF district. HELMS MULLISS WICKER{-_.__________.._._ Steve Cordell tot North Tryon streak Charlotte, NC 28202 sieve cardell~a hmw.com P. O. Box 31247 {28231 } L7lrect Dia17t?4 343-2136 Desktop Fax 70~ A44-b721 Helms MulliSS & Wicker, PLLC Attar~xeysattaw Charlotte Raleigh Wilmington wwlY,hmw com IRS Circular 230 Notice: Any advice contained herein is not intended or written by us to be used, and may not be used or relied on, for the purposeof avoiding penalties under the Internal Revenue Code. Further, any advice contained herein relating to federal tax matters is not intended or written by us to support the promotion or marketing of the transactions or matters addressed herein. ~ ++++++«««++«««+NOTE+++++««««+«««++ > Because electronic mail can be altered electronically, the integrity of the contents of this message (and any attachment hereto) cannot be guaranteed. The information contained in this a-mail message is intended only for use of the individual or entity named above. If the reader of Phis message isnot the intended recipient, or the employee or agent responsible to deliver it to the intended recipient, you are hereby notified that any dissemination, distribution or copying of this communication is strictly prohibited. If you have received this communication in error, please immediately notify the sender or our IS staff at (704) 343-2233, and destroy the original message. Thank you. 9/17/2007 ~'