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The Board of Commissioners of Orange County, North Carolina (the "County"), adopted a <br />resolution on December 1, 1998, approving terms and documents related to the County's plans for financing <br />renovations to the County's "Skills Development Center." <br />NationsBank, N.A., has made a revised proposal to the County to provide financing for the project <br />in the amount of $780,000 at an annual interest rate of 5.05%. <br />The resolution of December 1 qualified the County's financing payments for a particular treatment <br />under the federal income tax laws that is favorable to the lender. Under the applicable income tax laws, <br />qualification for this particular favorable treatment must be obtained for a particular calendar year. Because <br />the financing will now be completed in 1998, instead of 1997 as originally contemplated, the Board must take <br />additional action to qualify the financing payments for the desirable tax treatment. <br />BE IT THEREFORE RESOLVED by the Board of Commissioners of Orange County, North <br />Carolina, as follows: <br />1. The County hereby accepts NationsBank's proposal to provide financing for the project in an <br />amount not to exceed $780,000, with a nominal annual interest rate (in the absence of default or change in <br />tax status) not to exceed 5.05%. <br />2. The County hereby designates its Obligations, as defined in the resolution of December 1, <br />as "qualified tax-exempt obligations" for the purpose of Internal Revenue Code Section 265(b)(3). The <br />County represents and covenants as follows: <br />(a) The County will in no event designate more than $10,000,000 of obligations as <br />qualified tax-exempt obligations in 1998, including the Obligations, for the purpose of such Section 265(b)(3); <br />(b) Barring circumstances unforeseen as of the date of delivery of the Modification <br />Agreement approved by the resolution of December 1, the County will not issue tax-exempt obligations itself <br />or approve the issuance of tax-exempt obligations of any "subordinate entities," within the meaning of Code <br />Section 265(b)(3), and all entities which issue tax-exempt obligations on behalf of the County and its <br />subordinate entities, if the issuance of such tax-exempt obligations would, when aggregated with all other <br />tax-exempt obligations theretofore issued in 1998 by the County and such other entities, result in the County <br />and such other entities having issued a total of more than $10,000,000 of tax-exempt obligations in 1998 <br />(including the Obligations) that count toward the annual limit provided for in Section 265(b)(3); and <br />(c) The County has no reason to believe that the County and such other entities will issue <br />tax-exempt obligations in 1998 in an aggregate amount that will exceed such $10,000,000 limit; <br />provided, however, that if the County receives an opinion of bond counsel acceptable to NationsBank, N.A., <br />that compliance with any covenant set forth in (a) or (b) above is not required for the obligations to be <br />qualified tax-exempt obligations, the County need not comply with such covenant. <br />3. Except to the extent modified by this resolution, the resolution of December 1 is confirmed in <br />all respects. <br />Construction and Demolition Facility Site Search Process <br />This item was moved to the end of the Consent Agenda for separate consideration. <br />VOTE ON THE CONSENT AGENDA: UNANIMOUS <br />ITEMS REMOVED FROM THE CONSENT AGENDA <br />d. Orange County Raceway Contract <br />The Board considered a contract between the Department of Emergency Management and <br />Orange County Raceway to provide emergency medical coverage for events at the raceway. It was clarified <br />that this contract does reimburse the County for its cost.