|
January 22, 2007 (Regular Meeting) Page 230
<br />(E-3) Resolution Approving Installment Financing for Law Enforcement
<br />Facilities Project in an Aggregate Principal Amount up to $35,000,000.00
<br />Pam Dubois, Deputy County Manager, reported the Resolution is for $35
<br />million because First Charter Bank has offered the County a better interest
<br />rate on the original $15 million loan. .Instead of refinancing the loan with
<br />Certificates of Participation (COPS) as originally planned, she asked the
<br />Board to allow the loan to remain at First Charter Bank.
<br />Steve Cordelly the County's Bond Counsel, reviewed the following
<br />documents: (1) the. Installment Financing Contract; (2) the Trust Agreement;
<br />and (3) the Certificate Purchase Agreement. He reported the trustee is
<br />Regions Bank; the Sheriff's Office will be pledged as collateral for the
<br />installment contract financing; UBS Securities is serving as the underwriter;
<br />and Ferris-Baker-Watts is the co-underwriter. He further reported copies of
<br />these documents are on file in the Clerk's office; this Resolution authorizes
<br />financing in an aggregate principal amount of up to $35,000,000; and the
<br />Resolution authorizes the Clerk and Pam Dubois, Finance Officer, to execute
<br />whatever documents are necessary to consummate the transaction. Finally, he
<br />reported the COPS are to be sold next week with closing to be held the end of
<br />February 2007.
<br />Mr. Cordell responded to questions on the COPS interest rate and
<br />prepayment penalty clause.
<br />Commissioner Privette reported there are two ways to borrow money:
<br />General Obligation Bonds or Certificates of Participation. He said citizens
<br />should have a vote in a project of this size. Further, he stated he could
<br />not vote for the financing when Brunswick County built a jail for
<br />approximately S16 million.
<br />EXTRACT FROM MINUTES OF BOARD OF COMMISSIONERS OF
<br />THE COUNTY OF CABARRUS, NORTH CAROLINA
<br />The Board of Commissioners for the County of Cabarrus, North Carolina,
<br />met in regular session in the Commissioners' Meeting Room in the Cabarrus
<br />County Governmental Center in Concord, North Carolina, the regular place of
<br />meeting, at 6:30 p.m., on January 7_2, 2007, with Robert W. Carruth, Chairman,
<br />presiding. The following Commissioners were:
<br />PRESENT: Joni D, Juba, H. Jay White, Sr., Grace M. Mynatt and Coy C.
<br />Privette
<br />ABSENT: None
<br />ALSO PRESENT: John D. Day, County Manager; Richard M. Koch, County
<br />Attorney; Pamela S. Dubois, Deputy County Manager/Finance Director; Mike
<br />Downs, Deputy County Manager; and Kay Honeycutt, Clerk to the Board
<br />« + ~ ~ + ~ ~
<br />Resolution No. 2007-01
<br />RESOLUTION APPROVING INSTALLMENT CONTRACT FINANCING FOR LAW
<br />ENFORCEMENT FACILITIES PROJECTS IN AN AGGREGATE PRINCIPAL AMOUNT
<br />UP TO $35,000,000 AND THE EXECUTION AND DELIVERY BY THE CABARRUS
<br />COUNTY DEVELOPMENT CORPORATION OF CERTIFICATES OF PARTICIPATION
<br />RELATED THERETO, AUTHORIZING THE EXECUTION AND DELIVERY OF
<br />RELATED DOCUMENTS IN CONNECTION THEREWITH, AND PROVIDING FOR
<br />CERTAIN OTHER i"2E LATED MATTERS ..
<br />WHEREAS, the Board of Commissioners desires to approve a proposed plan
<br />of financing in an aggregate principal amount of up to $35,000,000, which
<br />plan would involve the entry by the County into an installment financing
<br />contract with the Cabarrus County Development Corporation (the "Corporation")
<br />pursuant to North Carolina General Statutes 160A-20, as amended, the proceeds
<br />of which would be used to pay all or a portion of the costs of acquiring
<br />real property and constructing, renovating and equipping law enforcement
<br />facilities, including, without limitation, new administrative facilities for
<br />the County Sheriff, and various real and personal property improvements
<br />related to the foregoing (collectively the "2007 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 contract by granting a
<br />security interest in and lien on all or a portion of the 2007 Project;
<br />
|