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August 10, 2006 (Special Meeting) Page 31 the County's debt burden calculation; (2) if the cost of the project to be financed remains in the $40 million range, it should have little impact on the County's debt burden; (3) if a default occurs under the TIF debt, the County's bond rating will likely not be impacted as long as the County continues to meet its obligations specified in the InterLocal Agreement; and (4) these points should be confirmed with all rating agencies before entering into an InterLocal Agreement. Mr. Cordell pointed out the County can participate in a Kannapolis TIF project through an InterLocal Agreement and that the County can carefully craft its commitment to give itself some additional protection in case the tax revenues within the district are not generated for whatever reason (s) . As long as the County meets its contractual obligation (s) set forth in the InterLocal Agreement, he said the County will be okay even if Kannapolis has problems. Mr. Niggel also explained the difference between open and closed systems. Mr. Cordell and Mr. Niggel responded to a variety of questions related to capitalized interest, early repayment of bonds, what happens if there is not enough of an incremental increase in the ad valorem taxes to payoff the bonds, can the project developer agree to cover the liability, etc. There was a general discussion on the following aspects of TIF financing: risk associated with the project, possible terms for inclusion in an InterLocal Agreement, completion of a feasibility study of property values within the district, etc. After discussion, Chairman Carruth polled each Board member to gauge their interest in participating in the N.C. Research Campus (NCRC) TIF pro] ect through an InterLocal Agreement. There was a consensus among Board members to wait for the completion of a feasibility study of projected property values within the district scheduled to be completed in mid October before taking official action. There was also a consensus to participate in the NCRC TIF project through an InterLocal Agreement by pledging a certain percent of the incremental ad valorem tax revenues created within the district for a certain number of years. Chairman Carruth will contact Kannapolis Mayor Misenheimer to confirm the joint meeting of the Board and City Council on August 14 to further discuss the NCRC project. Project Safe Neighborhood Chairman Carruth announced the first roundup of the Project Safe Neighborhood initiative sponsored by the Cabarrus County Sheriff's Department will be held in the Cabarrus County Courthouse, Courtroom No.1 on August 17, 2006, at 5 p.m. He encouraged all Board members to attend. Retirement Announcement Chairman Carruth reported Susie Bonds, Clerk to the Board, plans to retire in October after serving as Clerk for 27 years. Adjournment Wi th there being no further business to come before the Board, the special meeting was adjourned at 7:41 p.m. c~~