BC 2006 05 15 REGULAR - Laserfiche WebLink

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May 15, 2006 - Regular Meeting Page 589 same day; however, he said it could cost the County more by waiting to do the GO bonds in a rising interest rate market. There was lengthy discussion on the financing of the Jail Annex and Sheriff's Office and Detention Center. Items addressed included the following: voter approval for GO bonds; the required time to call for and conduct a bond referendum; the increasing interest rates i the prior use of COPs to build new schools; and the increasing cost of construction (e.g" concrete and copper). There was also a review of the planning and programming efforts associated with the project and events that have occurred during the past several years. Commissioner Privette stated his obj ection to financing the project without voter approval. Vice Chairman Juha made a motion to approve the financing Resolution for COPs financing for the Annex, Sheriff's Office and Detention Center for an amount up to $90 million to include the total proj ect. Chairman Carruth seconded the motion. Commissioner Carpenter moved to amend Vice Chairman Juba's motion to change the amount of the COPs financing from $90 million to $75 million and to hold a referendum in 60 days or sooner to vote on General Obligation bonds. There was a brief discussion concerning the authorization amount of up to $90 million versus an amount of up to $75 million, the requirements for holding a referendum, controlling construction and financing costs, rising interest rates and avoiding costly delays. Mr. Niggel commented on the lack of a direct correlation between short- term and long-term interest rates and the customary practice of using a higher financing amount in the authorizing Resolution. If the bond referendum failed, he stated the County may not be able to borrow the same amount originally anticipated for the project. Commissioner Carpenter's amendment died for lack of a second. Commissioner Carpenter presented a second amendment to approve the COPs financing Resolution for an amount up to $75 million. Chairman Carruth seconded the amendment. The amendment was approved Commissioner Carpenter, Vice Chairman Juba and Chairman Carruth voting for and Commissioners Privette and Freeman voting against. The Board then voted on Vice Chairman Juba's original motion as amended. The motion carried with Chairman Carruth, Vice Chairman Juba and Commissioner Carpenter voting for and Commissioners Freeman and Privette voting against. * * * * * RESOLUTION RELATING TO LONG-TERM INSTALLMENT CONTRACT FINANCING FOR LAW ENFORCEMENT FACILITY PROJECTS IN AN AGGREGATE PRINCIPAL AMOUNT UP TO $75,000,000; INTERIM INSTALLMENT CONTRACT FINANCING FOR SUCH PROJECTS IN AN AGGREGATE PRINCIPAL AMOUNT UP TO $25,000,000; THE EXECUTION AND DELIVERY BY THE CABARRUS COUNTY DEVELOPMENT CORPORATION OF CERTIFICATES OF PARTICIPATION RELATED TO THE LONG-TERM INSTALLMENT CONTRACT FINANCING AND CALLING REQUIRED PUBLIC HEARING WHEREAS, the Board of Commissioners desires to undertake a proposed plan of financing in an aggregate principal amount of up to $75,000,000, which plan would involve the entry by the County into a long-term installment financing contract with the Cabarrus County Development Corporation (the ~Corporation") pursuant to North Carolina General Statutes 160A-20, as amended, the proceeds of which would be used to pay all or a portion of the costs of acquiring real property, constructing, renovating and equipping law enforcement facilities, various real and personal property improvements related to the foregoing and a portion of the interest to accrue under the installment financing contract during the construction period (collectively the ~Project"), and under said long-term installment financing contract the County would secure the repayment by the County of the moneys advanced pursuant to such long-term installment financing contract by granting a security interest in and lien on all or a portion of the Project; WHEREAS, as part of said proposed plan of financing, the Corporation will execute and deliver one or more series of Certificates of Participation