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January 22, 2007 (Regular Meeting) Page 233 AYES: Chairman Carruth, Vice Chairman Juba and Commissioners Mynatt and White NOES: Commissioner Privette Amendment to Agreement with First Charter Bank for $15 Million Loan Pam Dubois, Deputy County Manager, presented an amendment to the $15 million loan agreement with First Charter Bank for the Jail Annex. She said First Charter Bank is willing to lower the interest rate on the debt to keep it from being refinanced with Certificates of Participation (COPS). She advised the amendment will include the following prepayment penalty: first year - 3 percent; second year - 2 percent; third year - 1 percent; and fourth year - zero percent. She also said the amended agreement will be finalized in a couple of days and asked the Board's preference on presenting the finalized amendment at a later date or authorizing the County Manager to execute the agreement today. John Day, County Manager, explained that a local bank is willing to offer the County a lower interest rate if the debt is kept with them rather than refinancing it on the COPS market. He said it is unlikely the County will pay off a $15 million dollar note in less than five years and that it is a good deal. Commissioner Mynatt made a motion to approve the amendment to the 815 million loan agreement with First Charter Bank, including a lower interest rate and prepayment penalty as presented. Commissioner White seconded the motion. Commissioner Privette stated his intent to vote against the motion. The MOTION carried with Chairman Carruth, Vice Chairman Juba and Commissioners Mynatt and White voting for and Commissioner Privette voting against. (F) CONSENT AGENDA (F-1) Cabarrus Arts Council - Approval of Lease Agreement for Historic Courthouse The Cabarrus Arts Council requested to amend its or:~.,;inal lease for the use of the Historic Courthouse to include an initial term of ten years (January 1, 2007 through December 31, 2016) and two additional five year terms. UPON MOTION of Commissioner Privette, seconded by Commissioner White and unanimously carried, the Board approved the Lease Agreement between Cabarrus County and the Cabarrus Arts Council, Inc, for use of the Historic Courthouse with an initial term of ten years (January 1, 2007 through December 31, 2016) and two additional five year terms. Further the Board authorized the County Manager to execute the Lease Agreement. (F-2) Historic Courthouse - Budget Amendment UPON MOTION of Commissioner Privette, seconded by Commissioner White and unanimously carried, the Board approved the following budget amendments: BUDGET REVISION/AMENDMENT REQUEST DEPARTMENT OF Commerce AMOUNT: $129,500.00 TYPE OF ADJUSTMENT: Supplemental Request PURPOSE OF REQUEST: The Arts Council has received additional donations and grants for remodeling of the Historic Courthouse. This Amendment applies those donations to the existing construction account. Present Account No. Approved Budget Increase Decrease Revised Budget 34398160 9820 $93,550.00 $129,500.00 $173,050.00 Historic Courthouse Construction 39360000 6805 $0.00 $129,500.00 $129,500.00 Contributions and Private Donations Historic Courthouse BUDGET REVISION/AMENDMENT REQUEST