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May 15, 2006 - Regular Meeting Page 587 per day when the first housing unit is full. Dr. Sommer reported on the amount of gross retail sales generated by on-street parking and stated there will be no parking spaces for those who wish to shop. She said the lack of parking spaces for customers will impede the growth and development in downtown Concord. Fred Wally questioned the legality of a contiguous annexation of a four-acre parcel on the western side of Coddle Creek Reservoir (Lake Howell) by the City of Kannapolis. He reported that staff at the Institute of Government (lOG) had advised that N.C. General Statute 163A-31F would allow this annexation to be considered contiguous if property under the reservoir was also annexed. However, Mr. Wally stated the reservoir property is not listed as being in the Kannapolis City limits. He said the County would lose control of the property as well as lose sales tax revenue if the City chooses to annex the property. Further, Mr. Wally reported the lOG staff also cited a Court of Appeals case between the Town of Valdese and Burke Inc., filed on March 18, 1997. Finally, he asked the Board to investigate the Kannapolis annexation and determine if legal recourse is available. UPON MOTION of Commissioner Privette, seconded by Vice Chairman Juba and unanimously carried, the Board added a report by the County Attorney on the Contiguous Annexation by the City of Kannapolis to the Agenda. Quinton Locklear of Concord stated he was on a fact-finding mission for the jail project. He said he reviewed the County's proposed mission statements, core values, etc., and liked the fact that the Board wants to stand out or be different from Charlotte. When making jail-related decisions, he asked Board Members to look at the big picture and consider how the jailhouse will affect the quality of life in Concord. Finally, he suggested information be posted on the County's website explaining why the downtown location for the jail was chosen. Jerry Goodman of Concord asked if it was possible for the County to receive any Federal or State funding for the jail project. He said any additional funding received would lessen the tax burden on Cabarrus County citizens. Also, he commented on being asked to provide a free meal by persons released from jail in downtown Concord. With there being no one else to address the Board, Chairman Carruth closed that portion of the meeting at 7: 15 p. m. He reported citizens could also address the Board at its June 5th Agenda Work Session. (E) OLD BUSINESS (E-1) Approva1 of Reso1ution Authorizing Fi1ing of App1ication for Approva1 of Financing Agreement for Sheriff's Office and Detention Center Project John Day, County Manager, reviewed a Memorandum outlining financing options for the Annex, Sheriff's Office and Detention Center. He said Certificates of Participation (COPs) had originally been proposed for the entire project, but the Board had recently discussed a bond referendum in November to finance the Sheriff's Office and Detention Center. Mr. Day pointed out that a bond referendum is a vote on the type of financing and not a vote on the project itself. Although the cost of interest is generally less on General Obligation (GO) bonds than COPs, he said the County's financial advisor had suggested the difference in the interest rates between issuing the COPs at this time and issuing GO bonds after a November referendum would almost cancel each other out. Mr. Day pointed out that the big issue is the continuing increase in construction costs and stated there could be an increase of $2.5 million to $5 million by waiting to have a bond referendum. He explained the process for issuing COPs and reviewed the two proposed resolutions one authorizing up to $25 million for the Annex and one authorizing up to $90 million for the entire project. Mr. Day explained the numbers were higher than the estimated cost of the project and stated the $90 million amount could be lowered to $70 or $75 million. He emphasized the Local Government Commission would only allow the County to borrow the amount of the contract for the project. A summary of the financing options, including additional interest costs and project delays for each option, was as follows: 1. Approve the COPs Resolution as previously planned and authorize the issuance of a sufficient amount of debt to construct the Jail Annex and the Sheriff's Office and Detention Center. The COPs to finance the Annex would be sold after the Board approves an amendment to the Turner Construction contract specifying a Guaranteed Maximum Price (GMP) for construction of the Annex. The