Agenda - 03-04-1998 - 8f - Laserfiche WebLink

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rev c~ biy ,c:'fop Rooerc ~i. ..es5iup ,;r. JLJ-'tC3J'JJ.1,~ Be_ o~ lutiua,M_ edi ,^~~orovals for Skills Development Center Financing, N~H~REAS: The Board of Commissioners of Orange County, North Carolina (the "County"), adopted a resolution on December 1, 1998, approving terms and documents related to the County's plans for financing renovations to the County's "Skills Development Center." NationsBank, N.A., has made a revised proposal to the County to provide financing for the project in the amount. of $780,000 at an annual interest rate of 5.05%. The resolution of December 1 qualified the County's financing payments for a particulaz treatment antler the federal income tax laws that is favorable to the lender. Under the applicable income tax laws, qualification for this particular favorable treatment must be obtained for a particular calendar year. Because the financing will now be completed in 199$, instead of 1997 as originally contemplated, the Board must take additional action to qualify the financing payments for the desirable tax treatment. BE IT THEREFORE RESOLVED by the Board of Commissioners of Orange County, Nort4 Carotinat, as follows: I. The County hereby accepts NationsBank's proposal to provide financing for the project in an amount not to exceed x780,000, with a nominal annual interest rate (in the absence of default or change in tax status) not to exccecl 5.05°/a. 2. The County hereby designates its Obligations, as defined in the resolution of December 1, as "qualified tan-exempt obligations" for the purpose of Internal Revenue Code Section 265(bx3). The County represents and covenants as follows: (a} The County will in no event designate more than $10,000,000 of obligations as qualified tax-exempt obligations in 1998, including the Obligations, for the Purpose of such Section 265(b)(3); (b} Barring circumstances unforeseen as of the date of delivery of the Modification Agreement approved by the resolution of December 1, the County will not issue tax-exempt obligatians itself or approve the issuance of tax-exempt obligations of any "subordinate entities," within the meaning of Code Section 265(bx3}, and all entities which issue teat-exempt obligations on behalf of the County and its subordinate entities, if the issuance of such tax-exempt obligations would, when aggregated with all ether tax-exempt obligations theretofore issu®d in 1998 by the County and such other entities, result in the County and such other entities having issued a total of more than $10,000,000 of tax-exempt p. c