BC 2007 05 21 Regular - Laserfiche WebLink

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May 21, 2007 (Regular Meeting) Page 370 UPON MOTION of Commissioner White, seconded by Vice Chairman Juba and unanimously carried, the Board approved the extension of fire insurance district boundaries from a 5-mile district to a 6-mile district for the following volunteer fire departments as presented in the Agenda: Flowe's Store Volunteer Fire Department (VFD), Midland Fire VFD, Mt. Pleasant VFD, North East VFD, Odell VFD and Rimer VFD. All other 5-mile fire district boundaries were approved as shown on the maps provided in the Board's agenda packets. (G-2) Update on Merger of Northeast Medical Center and Carolinas Healthcare System Item G-2 was removed from the Agenda at the request of the hospital. Consideration of the County's Participation in the Tax Increment Chairman Carruth opened the floor for discussion on the County's participation in the NCRC TIF project. There was a lengthy discussion and the following issues were addressed: lack of funding in the Governor's budget for the project; only $1 million was appropriated in the House budget for the project; the Google and Dell projects received much more revenue from the State and the N.C. Department of Transportation provided funding for road improvements; County citizens are being asked to pay for infrastructure improvements that are normally provided by the developers; whether the County can participate in the project by using other funding mechanisms such as Certificates of Participation (COPS); participation through an interlocal agreement with Kannapolis limits the County's financial obligation; if COPs are issued, the taxpayers will be responsible for the debt and the County's borrowing capability will be limited; financing $80 million with COPS could save the County as much as $32 million over time; General Obligation bonds could also be used and have cheaper interest rates; only certain items on the project list could be paid for with COPS; the limitations of General Obligation bonds; Cabarrus County is considered as a high tax burden verses Kannapolis, which has a low tax burden; crafting the interlocal agreement on a sliding scale to shift more of the burden to Kannapolis in later years; using COPS would restrict the projects to be funded; TIF does not bind county residents as a whole whereas COPS does; TIF financing is more flexible than COPs; issuing COPS for the NCRC project will potentially limit the County's ability to borrow money for schools; supporting the NCRC project provides the opportunity for the County to increase its commercial growth; etc. Commissioner White made a MOTION for Cabarrus County to participate in a TIF Bond issue, not to exceed $169 million, through an interlocal agreement with the City of Kannapolis for projects related to the development of the North Carolina Research Campus. Commissioner Mynatt seconded the motion. There was further discussion on TIF and John Day, County Manager, responded to several questions from the Board including the use of TIF revenues to pay off COPS debt and General Obligation bonds. Vice Chairman Juba MOVED to amend Commissioner White's motion to include consideration of COPS (Certificates of Participation) as a funding mechanism in addition to the TIF. Commissioner Privette seconded the amendment. Commissioner White asked Vice Chairman Juba to restate the amended motion, which she did. After discussion, the AMENDMENT TO THE MOTION carried with Vice Chairman Juba and Commissioners Mynatt and Privette voting for and Chairman Carruth and Commissioner White voting against. The Board then took action on Commissioner White's motion as amended: for Cabarrus County to participate in a TIF Bond issue not to exceed $169 million or Certificates of Participation (COPS), for the County's share, through an interlocal agreement with the City of Kannapolis for projects related to the development of the North Carolina Research Campus. The AMENDED MOTION carried with Vice Chairman Juba and Commissioners Mynatt and Privette voting for and Chairman Carruth and Commissioner White voting against. For the record, Chairman Carruth and Commissioner-White stated their support for TIF financing and the North Carolina Research Campus project.