AG 2000 11 20 - Laserfiche WebLink

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MEMORANDUM To: Gene Jordan From: Blair Bermett Date: November 6, 2000 Subject: $40M Financing for School Projects: 2 New Middle and 1 New Elementary Schools On November 3, 2000, we had a meeting to discuss financing issues for the three new school projects and to determine exactly which costs were to be financed from cash on hand at the County and which costs would be allocated to the $40M installment payment revenue bonds. The original budget as projected by H. R. Gray & Associates, Inc. and Martin Boal Anthony & Johnson Architects in correspondence dated February 17, 2000, was $47,512,000 for the three schools. It was determined based on information available, that the County would be responsible for architects, land purchases,. site work and engineering. The budget for each element was determined as follows: Architects $2,103,000 Land purchase 1,038,782 Site work 3,325,000 Engineering 405,000 ., Total $6,871,782 The school system is responsible for the cost for construction of the schools, furniture, technology, legal expenses, and'financing cost to be paid from the $40M in bonds. The County will .reserve $600,000 from the $40M for legal and financing cost. This estimate was based on actual costs from the last financing sale of $30M for the high school financing in 1999. This would leave school officials $39,400,000 to cover the above mentioned related costs. The County has completed filing of the application with the Local Government Commission; employment of underwriters and bond counsel, and approval of a schedule to complete the transaction based on a calendar, as discussed with school officials. It is my understanding at this time that bids will go out to contractors in December 2000, for receipt in January 2001. Schools officials will discuss bids and alternatives and have final recommendations to me by January 31, 2001. Those recommendations will be turned over to the Local Government Commission (LGC) along with other application materials for approval at the February 6, 2001 meeting of the LGC. Pending the LGC approval, bids may be awarded on February 7, 2001 and contractors given permission to proceed with construction. The actual closing of the financing deal, the time when the County receives the proceeds from the $40M, will occur around March 20, 2001. We will honor all invoices and pay them from County proceeds until closing and at that time reimburse ourselves accordingly from bond proceeds. ~("-~ 8ox 7(37 ~, Concnrd