RES-2009-081 Qualified School Construction Bond Financing for Carrboro High School Arts Wing

Browse Search

~~s- aoo~ -- 08 ~ 3 Resolution Providing Final Approval of Terms and Agreements For Countv's 2009 QSCB Financing -Carrboro Arts Wing WuFRF.<1.C~ The Orange County Board of Commissioners has previously indicated its intent to proceed with the construction of the proposed Arts Wing at Carrboro High School (the "Project"). The County has also made a preliminary determination to finance Project costs by the use of an installment contract, as authorized under Section 160A-20 of the North Carolina General Statutes, that qualifies as a "qualified school construction bond" (a "QSCB"). The QSCB program is a federal tax credit program that provides for very low cost financing for qualified school projects. The Finance Officer has obtained for the County a proposal from Branch Banking and Trust Company (`BB&T) to provide the QSCB installment financing to the County. BE IT RESOLVED by the Board of Commissioners of Orange County, North Carolina, as follows: 1. Determination To Proceed with Project -- The Boazd confirms its decision to carry out the Project. The County will carry out the Project with financing from BB&T, substantially in accordance with a financing proposal dated November 5, 2009. Under the financing plan, BB&T will make funds available to the County for use on Project costs. The County will repay the amount advanced, with interest, over time. The County will grant to BB&T a mortgage-type interest in Carrboro High School to secure the County's repayment obligation. 2. Direction To Execute Documents -The Board authorizes and directs the Board's Chair, the County Manager and the County Finance Officer, or any of them, to act on the County's behalf and execute and deliver all appropriate Agreements and other documents (the "Agreements") for the proposed financing. It is the Board's understanding that the Agreements will be in forms acceptable to the North Cazolina Local Government Commission, and substantially similaz to those used by BB&T in similaz financings provided to the County and other North Cazolina local governments, with appropriate modifications to reflect the chazacteristics of the QSCB program. The execution and delivery of any document by an authorized County officer will be conclusive evidence of the approval of the final form of such document. The Agreements in final form, however, must provide (a) for the amount financed not to exceed $4,136,434, (b) for a financing term not to extend more than 15 yeazs from the