RES-2006-007 Final Approval of terms & conditions for Meadowlands Building acquisition & financing

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~~~ -~c~ - a o 7 ~~ Resolution providing final approval of terms and conditions For Meadowlands Building acquisition and financing WHEREAS - Orange County has previously determined in principle to finance the acquisition of a building located at 510 Meadowlands Drive, Hillsborough, and associated real and personal property (collectively, the "Meadowlands Building"). The County's plan for the project includes owner financing for the acquisition. The County's Board of Commissioners has been provided a draft of the proposed contract for the acquisition (the "Sales Contract"), which provides (a) for a purchase price of $1,735,000, (b) for $50,000 of the purchase price to be paid in cash at closing, and (c) for the remaining amount to be financed by the sellers for 10 years at an annual interest rate of 5%. The Sales Contract includes as an exhibit the form of the Financing Agreement and Deed of Trust (the "Financing Agreement") that the parties will enter into to memorialize the financing transaction and to provide for a lien on the property to secure the County's obligations to the sellers. The proposed financing would therefore be secured by a lien on the Meadowlands Building (including the associated land and any related fixtures) and the County's promise to repay the financing, but there would be no recourse against the County or its property (other than the pledged property) if there were a default on the financing. The County's plan requires the approval of the North Carolina Local Government Commission (the "LGC"). Under LGC guidelines, this governing body must make certain findings of fact to support the County's application for the LGC's approval of the County's proposed financing arrangements for the project The County's undertaking of the financing was the subject of a public hearing held earlier today on January 24, 2006. NOW, THEREFORE, BE IT RESOLVED that the Board of Commissioners of Orange County, North Carolina, makes the following findings of fact: (a) The proposed project is necessary and appropriate for the County under all the circumstances. The County has long searched for a solution to its on-going need for bulky storage items and for records with long-term archival space. The Meadowlands Building will provide a solution to these problems, along with providing office space for several County departments with plentiful parking and room for expansion. (b) The proposed installment financing is preferable to a bond issue for the same purpose. The current owners of the Meadowlands Building desire to provide owner financing for the County's acquisition, and therefore an installment financing presents itself as the most appropriate financing vehicle. The County has long determined to combine voted and non- voted financings in its capital improvements program.