BC 2006 11 27 RECESSED - Laserfiche WebLink

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November 27, 2006 (Recessed Meeting) Page 784 reported the County's participation in the financing by means of an InterLocal Agreement will be viewed as follows by the rating agencies: • Will likely be factored into the County's debt. • Assuming cost of project to be financed with TIF debt remains in the $90 to $BO million range, should have limited impact on County's debt burden. • If an event of default occurs under the TIF debt, the County's bond rating would likely not be impacted so long as the County continues to meet its obligations specified in the InterLocal Agreement. • These points need to be confirmed with all three rating agencies before entering into the InterLocal Agreement. At the request of Mr. Day, Mr. Cordell reviewed a working draft on an Intergovernmental Agreement dated October 5, 2006, between the City of Kannapolis and Cabarrus County. There was a lengthy discussion and Mr. Day, Mr. Cordell and Mr. Niggel responded to numerous questions. (D-2) Review of County and School Capital Projects Planned During the TIF Term John Day, County Manager, presented the following information on additional capital funding requests for County projects during the same time period as the TIF term: based on the County's 5-year plan, current CIP projects totaled $256,948,991.00 and capital projects from 2008-2012 and beyond were estimated at $107,739,381.00 for a grand total of $369,683,372.00; Cabarrus County School's 15-year draft building plan called for 18 new schools totaling $399,920,000.00; $195,500,000.00 in operational current expense will be needed for the new 18 schools; and Kannapolis City Schools estimates $35,600,000.00 is needed for new school construction. There was discussion and Mr. Day and Mr. Cordell responded to questions. (D-3) Request from City of Kannapolis for Financial Assistance Mike Legq, Kannapolis City Manager along with Mayor Misenheimer presented information on a proposed bond issue for the NC Research Campus Project. Highlights included the following: issuance date of bonds - March 2007; par amount of bonds to be issued - $76 million; construction projects funded - $60.2 million; capitalized interest - $6.9 million; debt service reserve fund - $7.6 million; the County and Kannapolis would pledge 100 percent of its Incremental Tax Revenues in the TIE district and pay half of the debt service; over 20 years, the projected excess property tax available after payment of all debt was estimated at approximately $89.9 million for Cabarrus County and $57.9 million for Kannapolis; over 20 years, the projected operating costs associated with the TIF district were estimated at $1.85 million annually or $92.9 million for Cabarrus County and $2.55 million annually or $59 million for Kannapolis; and over 20 years, the excess revenue was projected at $72.1 million for Cabarrus County and $58.3 million for Kannapolis. There was a lengthy general discussion between Board members, representatives from Kannapolis and bond counsel for both entities. Mayor Misenheimer thanked the Board for the opportunity to discuss the proposed bond issue. Recess of Meeting Chairman Carruth recessed the meeting at 8:30 p.m. for a short break. The meeting reconvened at 8:38 p.m. the the Cabarrus UPON MOTION made by Commissioner Privette, seconded by Commissioner Freeman and unanimously carried, the Board adopted the following Resolution: Resolution No. 2006-30 RESOLUTION REVISING THE REGULAR MEETING SCHEDULE OF THE CABARRUS COUNTY BOARD OF COMMISSIONERS