BC 2006 11 27 RECESSED - Laserfiche WebLink

Home Browse Search

November 27, 2006 (Recessed Meeting) Page 183 city of Concord have caused an estimated $15 million increase in the cost of the facility, due to rising costs of construction materials, as well as the uncertainty of approval of the project. This is equivalent to the cost of one school. Wi11 the additional $15-20 million spent awaiting a decision from the Appeals Court have an effect on the ability of the County to build schools? 3. This board has been asked to participate in the TIF financing for the NC Research Campus, which has the very real potential of defining the future of our county for generations to come. Will the cost of the delays lead to our being unable to provide for many of the infrastructure improvements that the public will demand, as we begin to feel the effects of the campus and new residents moving into the county? Although citizens should always have the right to express concern and tolodge protests with their governing bodies, our very democratic and representative form of government is set up to ensure fairness prior to decisions, and clear direction once those decisions are made. For over 200 years, this county has worked remarkably well, and the downtown Concord community has seen harmony between private enterprise, governmental services, public safety and residences. Now, due to continued legal challenges of a handful of downtown residents, whose median home prices are 66 percent higher than the overall county, the entire county, to include our teachers, law enforcement officers, families, working folks, and senior citizens, will bear the brunt of their actions in the escalated costs that the county, and the city, will have to bear as a result of their actions. At this point in time, the Cabarrus County Board of County Commissioners continues to assess all options, to include legal, to resolve this matter in a way that ensures our obligations are met and that we do so in such a way that best protects the public safety and hard earned resources of the citizens and taxpayers of Cabarrus County. (C) Receae to the Multipurpose Room At 6:10 p.m., Chairman Carruth recessed the meeting in order for the Board to relocate to the Multipurpose Room. The meeting reconvened at 6:25 p.m. (D) Tax Increment Financing (TIF) - North Carolina Research Campus (D-1) Review of TIF Legislation and Issues Steve Cordell, the County's Bond Attorney, gave a brief presentation on the Tax Increment Financing (TIF) in North Carolina. Highlights of the presentation included the following: • TIF debt can be issued in North Carolina to finance public improvements in a development financing district. • The primary source of repayment for the TIF debt contemplated by the NC statutes will be the incremental increase in ad valorem tax revenues in the District - ad valorem tax revenues attributable to the assessed '. value in the District in excess of the base valuation of the District when formed. • As a means of attempting to assure there will be sufficient incremental ad valorem tax revenues generated in the District to service the TIF debt, the TIF statute permits the issuer of the TIF debt to enter into "minimum valuation" agreements for ad valorem tax assessment purposes with property owners in the District. • There's an ,inherent payment/bankruptcy risk associated with a private owner's contractual payment obligations under a minimum valuation agreement. • If the project that will be the subject of the TIF debt will affect tax revenues in more than one unit of local government, then those units can enter into an InterLocal Agreement that specifies each unit's commitment to the project. Joe Niggel, USB Securities, LLC, presented information concerning the County's participation in the TIF through an InterLocal Agreement. Based on preliminary conversations with one of the rating agencies (Moody's), he