BC 2009 07 06 Work Session - Laserfiche WebLink

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July 6, 2009 (Work Session) Page 1480 Board would not be affected by withdrawal of membership from the COG because that program is grant funded by the State. A general discussion ensued. Commissioner Poole noted that Stanly County has voted to rejoin the Centralina COG. She also stated her preference to continue the County's membership in the COG until the efforts of the COG's Blue Ribbon Committee are complete. Chairman White stated his preference to end the County's membership in the COG, noting the lack of regionalism during the COG's Highway 3 study. He also suggested if the Board chooses to remain members of the COG, then continue at a reduced rate. Commissioner Carruth suggested the County remain a member of the COG for now, and review the membership again in December 2009. He also suggested a letter be sent to the COG to let them know that the County will be reviewing this issue again in December. UPON MOTION of Commissioner Privette, seconded by Commissioner Carruth and unanimously carried, the Board voted to table the discussion regarding Centralina Council of Government (COG) Membership until the December 7, 2009 Work Session. Between Cabarrus Centralina Council of Governments for Purchase of Condominium for Office John Day, County Manager, presented information related to a request from the Centralina Council of Governments for approval of an Interlocal Agreement between Cabarrus County (et al.) and Centralina Council of Governments for the purchase of a condominium for office space. UPON MOTION of Commissioner Carruth, seconded by Vice Chairman Mynatt and unanimously carried, the Board voted to place denial of the Interlocal Agreement between Cabarrus County (et al.) and the Centralina Council of Governments for purchase of a condominium for office space on the July 20, 2009 Agenda as a Consent item. Sohn Day, County Manager, presented information related to the status of the proposed new building for the Cabarrus Health Alliance (CHA). He addressed the following issues: there was a newspaper story in the Salisbury Post about some discussion the Kannapolis City Council had about the possibility of, through some type of financing, to build the new building for the Cabarrus Health Alliance (CHA) ; the new building for the CHA is one of the projects agreed on between Cabarrus County and the City of Kannapolis to be funded by the proceeds from TIF bonds; the CHA began the design process last year, has spent approximately half a million dollars on both design and the condemnation of property; there is still approximately $2 million more funding needed for the property that has been condemned; CHA has received bids for the project that expire August 2009; the received bids were below projections; Chairman White, and Mr. Day met with Dr. Fred Pilkington and the Chairman of the Health Alliance Board to discuss this issue and were encouraged to bring this up with the Board of Commissioners to discuss debt financing for the construction for the new building; in discussions with the Kannapolis City Manager, Kannapolis is not interested in the CHA building alone but would also want to borrow an additional sum of money for some of the infrastructure improvements that it has planned or performed already; the city manager suggested if the Board of Commissioners is willing to pledge all the money being generated in the TIF at this point, they would be interested in discussions; TIE bonds have not yet been sold; $15 million is needed for the CHA new building; etc. A lengthy discussion ensued. The following issues were addressed: this is not something the County would be issuing any debt on; because it is in the TIF district, it would be debt issued by Kannapolis; Kannapolis would probably need to own the building in order to collateralize the debt instrument; if the new CHA building is not built, there is more space available at its current location; support of the Kannapolis proposal as long as the County does not issue debt, the concept of the Interlocal Agreement is not changed and that whenever the TIF bonds get issued, the $15 million is taken off of the bond issuance; the County's obligation to the Interlocal Agreement would probably not have any consideration by a bond rating agency,