NSN RES-2001-004 Resolution Authorizing a Public Hearing on Financing for Property Acquisition at 112 and 118 North Churton Street in Hillsborough

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~ ~ ~ - a ~~ I - o~ ~ ~ '1 ~~ ~' / ~~ Resolution making findings of fact and authorizing the filing of an application with the Local Government Commission for its approval of a financing agreement authorized by Section 160A-20 of the North Carolina General Statutes - Orange County Churton Street Building Acquisitions WHEREAS, the Board of Commissioners of Orange County has previously approved in principle a project to finance the acquisition of two buildings and associated property, specifically the old Hillsborough Savings Bank building at 112 North Churton Street and the Graham Building at 118 North Churton Street in Hillsborough; WHEREAS, the County desires to finance an amount not to exceed $500,000 for the project by the use of an installment contract, as authorized under Section 160A-20 of the North Carolina General Statutes; WHEREAS, the County's undertaking of the financing was the subject of a public hearing held earlier this evening on January 18, 2001; and WHEREAS, under the guidelines of the North Caxol.ina Local Government Commission (the "LGC"), 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; NOW, THEREFORE, BE IT RESOLVED that the Board of Commissioners of the Orange County, North Carolina, makes the following findings of fact: 1. The proposed project is necessary and appropriate for the County, pending a favorable report on outstanding environinental issues. The County is currently leasing these buildings from the owner, and the current owner is seeking to sell the buildings. The County would find it difficult to replace the space at comparable rents, and there is no assurance that a new owner would continue to lease the space to the County. In addition, the County expects the financing payments to be approximately comparable to the rent the County is now paying. 2. The proposed installment financing is preferable to a bond issue for the same purpose. The County has no ability to issue two-thirds bonds for this project. The County is currently considering the possibility of a conducting a multi-purpose bond referendum, but the small amount to be financed, the availability of relatively low-cost installment financing and the need to act on the owner's timetable makes it desirable to proceed now with an installment financing. 3. The sums to fall due under the contract are adequate and not excessive for the proposed purpose. The County is negotiating the purchase price with the building owner, contingent upon the favorable resolution of outstanding environmental issues, and has solicited competitive proposals for the financing.