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396 <br /> <br /> Section 4. That if any section, phrase or provision of this Resolution <br />is for any reason declared to be invalid, such declaration shall not affect <br />the validity of the remainder of the sections, phrases or provisions of this <br />Resolution. <br /> Section 5. That all motions, orders, resolutions, ordinances and parts <br />thereof, in conflict herewith are hereby repealed. <br /> Section 6. That this Resolution shall become effective on the date of <br />its adoption. <br /> <br />YEAS Chairman Lentz and Commissioners Payne <br /> <br />and Melvin <br /> <br />NAYES Commissioners Hamby and Moss <br /> <br />PASSED, ADOPTED AND APPROVED THIS 9TH day of June, 1988. <br /> <br />ATTEST: <br />/s/ Frankie F. Small <br /> <br />Clerk <br /> <br />CABARRUS COUNTY, NORTH CAROLINA <br />By: /s/ James W. Lentz <br /> <br />EXHIBIT A <br /> <br />April 22, 1988 <br /> <br />Mr. Blair D. Bennett <br />Finance Office <br />Cabarrus County <br />Courthouse, Box 707 <br />Concord, North Carolina 28025 <br /> <br />Dear Blair: <br /> Wachovia Bank and Trust Company, N.A. (herein after "Wachovia") is <br />pleased to provide the following proposal which summarizes how we would <br />structure an $8.5mm Bank Loan Financing Lease for Cabarrus County, North <br />Carolina (herein after the County) for the construction of an Administrative <br />Complex. The accompanying proposal outlines how Wachovia would assist the <br />County in structuring this non-tax revenue lease. Later sections of this <br />proposal describe the Finance Lease in detail as well, as provide Debt <br />Service Schedules and explanations. <br /> Similar types of financing have been done in North Carolina including <br />four financings in which Wachovia has been involved. We assisted the City of <br />Asheville (Asheville-Buncombe Development Corporation) with the financing of <br />a $6.4mm parking facility, the City of Winston-Salem with a $5mm parking <br />facility, Bermuda Center Sanitary District (BCSD) with a $650,000 financing <br />of a waste water treatment facility and most recently the Town of Kitty Hawk <br />with the financing of a $450,000 Town Hall. <br /> Our proposal is broken into three sections which should allow you to <br />initially review the basic components, terms and assumptions as presented in <br />the executive summary. Next, Section II describes a Financing Lease, <br />explains how the lease works and provides a detail overview. Lastly, Section <br />III provides a detailed proposal which outlines the specific assumptions, <br />terms and conditions of the Cabarrus County financing along with the Debt <br />Service Schedule. <br /> A financing lease with the exception of non-callable and early prepay- <br />ment stipulations is more flexible and cost effective than a public or <br />private certificate of participation (COP). Certification over a ten year <br />maturity would not allow prepayment and will incur greater upfront cost for <br />underwriting/placement and general marketing expenses. For these reasons we <br />recommend the use of a finance lease utilizing a bank loan. The following <br />are advantages and benefits of using a Finance Lease: <br /> 1. The cost of issuance for this type of financing is minimal. <br /> Typically the cost includes Bank attorney fees, Bond Counsel Fees, <br /> and a small amount of out-of-pocket expenses for our involvement. <br /> There are no underwriting costs, printing, rating expenses, regis- <br /> tration, registrar, and trustee fees. <br /> 2. Wachovia can provide very attractive and extremely competitive <br /> interest rates for 10 years which fits your financing needs. <br /> 3. Timing for this type of financing is extremely quick in that the <br /> financing can be completed within 45 days from the execution of a <br /> mandate letter. <br /> <br /> <br />