Minutes - 20041021 - Laserfiche WebLink

Browse Search

• Keeps Seniors and Other Age Groups Together • County Control, Fiscally Efficient • Favorable Financing Structure • Provides Nucleus for Future Senior Oriented Land Use Commissioner Brown asked about ownership of the facility and Jeff Thompson said that, based on the requirements for USDA, the ownership could be by a municipality, a government entity (county}, an Indian tribe, or anot-for-profit. Commissioner Brown asked Jeff Thompson if he was interested in owning it and he said that he was interested in being on the board of directors if it is anon-profit. Rod Visser said that the 501 (c} 3non-profit could be an existing one or a new one that is created. It could be a County controlled non-profit. Commissioner Gordon asked about the USDA and the guarantee and what is involved. Jeff Thompson said that it is a guarantee of loss that USDA will support. The entity would apply for a loan at a lending institution, and then the lending institution will ask USDA to support it with the guarantee function. If the bank approves the economics of the deal, USDA will issue a contingent commitment that will be followed by a guarantee once the facility is occupied. This is a guarantee for as long as the debt is on the books. Rod Visser read from the USDA brochure, which is incorporated by reference. Commissioner Gordan asked about the County's contribution. Jeff Thompson said that they do not know yet. Currently, there is a $400,000 subsidy to the Sportsplex, and there is an estimated $357,000 subsidy to the stand-alone senior center. Rod Visser clarified that these subsidies are what it will cost to run a senior center. The total for both entities is $757,000 in operational costs. The staff is trying to come up with a proposal that would be less than this in terms of operational costs to the County. Commissioner Gordon asked for a more detailed analysis of figures. She would like for an independent agency to look at what it is going to cost the County. Jeff Thompson agreed. Commissioner Gordan asked how they knew they would get a favorable estimate from Eaton Vance and Whit Morrow answered that Eaton Vance does not want to operate this facility, but they want to sell it. He thinks that they can come up with a fair proposal for this entity to purchase it. Commissioner Gordan said that it is important to realize that this is a ten-year old facility and that investors, not Eaton Vance, were the ones who lost money on this facility. This facility was supposed to cost $10.6 million, and they took a paper value of $6 million several years ago. She is not at all interested in paying $6 million far the Sportsplex. Commissioner Halkiotis said that there was old data showing haw the Tawn of Chapel Hill was subsidizing the aquatic center on Estes Drive and what may be the anticipated subsidy for the new aquatic center, which he is sure is going to be more. Some of the design work has had to be scaled back because of rising construction costs. He thinks it would be appropriate to ask surrounding jurisdictions, including Durham, Wake, and Guilford Counties what the costs are for water opportunities. He believes that the Sportsplex brought a quality of life to central and northern Orange by giving people year-round opportunities for fitness. He thinks the $400,000 was a bargain because a facility could not have been built and maintained for this price. Commissioner Halkiotis made reference to USDA and said that he had a discussion about a year ago with Peter Morcombe, who was instrumental in getting Orange Charter School started. Mr. Morcombe told him that they got a USDA loan guaranteed to build Orange Charter School, which is located opposite the Sportsplex. He asked staff to investigate this situation. He said that if this is true, then there is an example for the County to look at. He does know that a federal agency guaranteed their loan.