BC 2007 04 02 Work Session - Laserfiche WebLink

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April 2, 2007 (Work Session) Page 326 skimp on this project and said a greater investment now will generate greater rewards in the future. Steve Morris of99 Georgia Street, NW in Concord, speaking as a former member of the Cabarrus County and Kannapolis Economic Development Corporation, said he has had the opportunity to discuss many potential new businesses for the area and nothing touches the opportunity that the Research Campus brings to theCounty. He stated Cabarrus County is investing money to save money and he encouraged the Board to support the TIF for the NCRC. Ernest Macon of 1619 Eastwood Drive in Kannapolis explained the difference between tax incentives and TIF. He also commented on what would happen if the County does not participate in the project (i.g. low value housing). He encouraged Commissioners to review the project list carefully and make the right choices with the future of Cabarrus County first and foremost. John Corder of 5010 Fair Lawn Crescent Court in Charlotte, stated he sees the NCRC as an evolution of a small town with local and regional influence to a state and national influence. He said citizens should view change of this quality not as a revolution but an evolution. He said the Kannapolis and the Research Campus must aspire to top quality, world class standards because how they work and feel will be how Cabarrus County is judged. Lastly, he said a vital public private partnership that delivers the right type of infrastructure will be imperative to the evolutionary process. Harold Smith of 106 Edinburg Drive in Kannapolis said he is all for the Research Campus; however, he does oppose the TIF. He said David Murdock is a multi-millionaire and can build the Research Campus without the County's help. He reported the County stood its ground concerning the Convention Center and it was built by an individual. He said the Research Campus could be. the same way. He encouraged the Board to exercise due diligence to do the best things for the citizens. Clyde Higgs, Vice President for Business Development for the NC Research Campus, said he is responsible for attracting and bringing new companies to the Research Campus. He pointed out the Research Campus will be anchored by seven topuniversities along with three community colleges; there are over 350 acres for development; Kannapolis has the necessary risk capital to start up the Research Campus; and there will be over two million square feet of office and lab space available. Mr. Higgs and Lynn Safrit with Castle & Cooke, Inc., responded to numerous questions from the Board related to what is risk capital and who is providing the risk capital for the Research Campus, etc. Charles Phillips, Chairman of the Public Health Authority, reported he is the resident expert on the Research Triangle Park (RTP) because he has read the official history of the Park for the third time. He reported the RTP sold land- to research companies who had to provide their own infrastructure. He attributed the slowdown of the RTP to lack of infrastructure. In the case of the NCRC, he said the infrastructure is already there. He said there needs to be a partnership between the government sector and private sector and academic sector for the NCRC to be successful. There was no one else to address the Board. TIF Discussion Steve Cordell, the County's Bond .Counsel and Joe Niggel, .Financial Advisor with USB Securities, gave a lengthy overview of how tax increment financing works. Topics such as minimum evaluation agreements, risks, interlocal agreements,. debt service coverage, etc., were covered. Mr. Cordell and Mr. Niqqel responded to numerous questions throughout the presentation and there was a lengthy discussion on the following issues: crafting the interlocal agreement carefully; protecting the county; worse case scenarios; the possibility of Kannapolis using Certificates of Participation (COPS) to fund the project; the amount of funding needed for school construction fdr the next five years; and suggested. steps for moving forward with the TIF and dealing with other financial requests. By consensus, the Board agreed to the following six step process related to the TIF for the NCRC: