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Kannapolis Citizen ~ LOCAL NEWS ~ Kannapolis City Council votes and notes Yage 1 of µ hammer out a list of projects the county wants to see funded by TIF revenue. "We are working diligently with our bond counsel and bond advisers ... and the Local Government Commission;' Legg said of the overall process. Legg told city leaders that the goal of adopting a project list and interlocal agreement with Cabarrus County, establishing the TIF revenue district by the end of the year, is within reach at this point. "There's really only one drop dead date that we have to meet, and that is Dec. 31, - 2007," Legg said. "By that date we have to have the TIF district established.... If we don't, we lose incremental value from what is being built now, and that is substantial." The concern is that the process might come screeching to a halt if county leaders cannot agree with the city over how and which of Cabarrus County's projects will be funded with TIF bond revenue. The list of potential projects compiled by the county includes some which are clearly ineligible for Tunding under the TIF regulations in place, which require any project funded from that revenue to be directly related to the revenue source. In other words, in order to build something with money from the North Carolina Research Campus TIF bonds, there must be a rational connection between whatever is being built and the Research Campus, the so-called "rational nexus test." Some of the projects the county has put forth -such as water and sewer services in Fishertown outside the city limits, a new senior center and a new public library -are not allowed under the current laws governing the bonds, or simply don't have a clear enough connection to the Research Campus, Legg said. Other proposals, such as new science labs and classrooms at A.L. Brown High School and a biotechnology and agriculture facility at Northwest Cabarrus High School, have clear connections to the Research Campus and fit the legal needs. More tricky is a plan to fund an 80,000-square-foot building for Cabarrus Health Alliance on the Research Campus itself. "It's very complicated because the Health Alliance is not a public agency," Legg said. There are legal restrictions involving city money being used to provide buildings for private groups. The other question is that of money. Legg said that, if permissible county projects are added to the TIF list, other essentials such as public utility improvements on the Research Campus, planned city park projects and street improvements may have to be delayed. Council members were dissatisfied with that idea. "Anything that we do with the TIF, in my opinion, should be directly to the benefit of the project which is what it's all about," said council member Gene McCombs, speaking of the Research Campus. "Because, if we fail to carry out our responsibilities with regard to utilities and streets, we're going to be in a bad place in our support of the North Carolina Research Camous.,, Legg's suggestion is that the permissible county projects be moved to "tier two" of the TIF funding list. This means that they will be funded at the city's discretion if money becomes available once the more vital infrastructure projects are completed. G-~ httn//www.salishurvn~st.comYkc/area/345096706295462.nhn 9/4/2007