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November 3, 2008 (Work Session) Page 1035
<br />Finance - Hold Public Hearing for Installment Financing Contract (G.S. 160A-
<br />20) with a Third Party for Acquiring Real Property for Park and Recreational
<br />Purpose and Adopt Resolution Approving Installment Financing Contract in an
<br />Aggregate Principal Amount Not to Exceed $6,000,000.00
<br />Mike Downs, Deputy County Manager, presented the following information
<br />related to property for a proposed park in southeastern Cabarrus County: the
<br />property, consisting of approximately 190 acres in Midland, is owned by Rob
<br />and Donna Wallace; the scheduled payments are equal annual payments for 30
<br />years; the timeframe of payment will allow the park to be developed and
<br />opened as quickly as possible; etc. Utilizing a visual aid, the location of
<br />the park was identified by Mr. Downs.
<br />Londa Strong, Parks Director, presented an overview of envisioned
<br />facilities for the proposed park. Following the presentation, she responded
<br />to questions from the Board.
<br />UPON MOTION of Commissioner Carruth, seconded by Commissioner Privette
<br />and unanimously carried, the Board voted to place the following item on the
<br />November 17, 2008 Agenda as a New Business item: Hold Public Hearing for
<br />Installment Financing Contract (G.S. 160A-20) with a Third Party for
<br />Acquiring Real Property for Park and Recreational Purpose and Adopt
<br />Resolution Approving Installment Financing Contract in an Aggregate Principal
<br />Amount Not to Exceed $6,000,000.00.
<br />Pam Dubois, Deputy County Manager, reported in order to receive the
<br />financing for this transaction and to complete the transaction by December
<br />31, the Board must act on this item tonight and approve a resolution which
<br />calls for a public hearing to be held on November 17, 2008. She further
<br />stated that because this is a 30-year lease purchase, the County is required
<br />to follow N.C.G.S. 160A-20, which requires the County to present this
<br />transaction to the Local Government Commission.
<br />John Day, County Manager, reported that the Wallace family wants this
<br />transaction to be completed this year due to tax purposes. He also stated
<br />this is a no-interest loan for 30 years and the County is purchasing the
<br />property well below value.
<br />UPON MOTION of Commissioner Mynatt, seconded by Commissioner Carruth
<br />and unanimously carried, the Board suspended its Rules of Procedure in order
<br />to take action on the resolution.
<br />UPON MOTION of Vice Chairman Juba, seconded by Commissioner Privette
<br />and unanimously carried, the Board approved the following resolution related
<br />to the Installment Financing Contract in an aggregate principal amount of up
<br />to $6,000,000.00 and called for a required public hearing to be scheduled on
<br />November 17, 2008 at 6:30 p.m.
<br />Res. No. 2008-20
<br />RESOLUTION RELATING TO INSTALLMENT CONTRACT FINANCING FOR
<br />ACQUISITION OF REAL PROPERTY IN AN AGGREGATE PRINCIPAL AMOUNT UP
<br />TO $6,000,000 AND CALLING REQUIRED PUBLIC HEARING
<br />WHEREAS, the Board of Commissioners desires to undertake a proposed
<br />plan of financing in an aggregate principal amount of up to $6,000,000, which
<br />plan would involve the entry by the County into an installment financing
<br />contract with a third party pursuant to North Carolina General Statutes 160A-
<br />20, as amended, the proceeds of which would be used to pay all or a portion
<br />of the costs of acquiring real property to be used for park and other
<br />recreational purposes (collectively the "Project"), and under said
<br />installment financing contract the County would secure the repayment by the
<br />County of the moneys advanced pursuant to such installment financing contract
<br />by granting a security interest in and lien on all or a portion of the
<br />Project; and
<br />WHEREAS, North Carolina General Statutes 160A-20, as amended, requires
<br />that the Board of Commissioners must hold a public hearing concerning the
<br />installment financing contract and the transactions contemplated thereby and
<br />associated therewith, with notice of said public hearing to be published once
<br />at least 10 days before the date of the public hearing
<br />NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners, as
<br />follows:
<br />Section 1. The Board of Commissioners hereby finds and confirms that
<br />(i) the Project and the financing thereof by an installment financing
<br />contract is necessary and expedient for the County; (ii) financing of the
<br />Project by an installment financing contract, under the circumstances, is
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