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ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: March 4, 1998 <br />Action Agenda <br />Item No. ~r.- .~ <br />SUBJECT: Resolution Modifying Approvals for Skills Development Center Financing <br />DEPARTMENT: Finance PUBLIC HEARING: (Yl1~ Nip=~.`' <br />BUDGET AMENDMENT: (Y/N) Na=y ~.~ <br />ATTACHMENT(S): <br />Resolution <br />INFORMATION CONTACT: <br />Ken Chavious, ext 2453 <br />TELEPHONE NUMBERS: <br />Hillsborough 732-8181 <br />Chapel Hill 968-4501 <br />Durham 688-7331 <br />Mebane 227-2031 <br />PURPOSE: To adopt a resolution designating the financing for the Skills Development Center <br />renovations as 1998 qualified tax-exempt obligations. <br />BACKGROUND: On December 1, 1997, the Board adopted a resolution that qualified the <br />County's financing payments for the planned Skills Development Center (SDC) renovation project <br />for treatment under federal income tax laws that is favorable to the lender. It is this favorable tax <br />treatment that allows the lender to provide very attractive financing rates to the County. The <br />financing was originally planned to be consummated in December, 1997. However, consideration <br />of the County's application to the Local Government Commission for approval of the financing <br />arrangement was postponed until Mazch 1998. The qualification for favorable tax treatment applies <br />to a particular calendar year. Since the SDC financing will now be completed in 1998, a new <br />resolution must be approved to provide for the favorable tax treatment. The attached resolution will <br />replace the one adopted for this project in December 1997. <br />RECOMMENDATION(S): The Manager recommends that the Board adopt the resolution. <br />