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financing agreements, one for the financing of the capital investment projects and one for the <br /> financing of the equipment. <br /> He said the financing terms of the two installment financing agreements will be as <br /> follows: <br /> 1. Installment Financing Agreement 1 — Capital Projects - $8.16 million in total debt service, <br /> Interest Rate —2.41%, Average debt service over 15 years totals $544,252. <br /> 2. Installment Financing Agreement 1 — Equipment - $3.88 million, Interest Rate — 1.24%, <br /> Average debt service over 5 years totals $776,537 <br /> Clarence Grier said the average debt service would be $803,098 over the term of the <br /> installment financing periods. <br /> He said the installment financing method requires that the mortgage be for the <br /> property, school, land and buildings. He said this means the County must own the Culbreth <br /> Middle School and the proposed science wing. He said the Chapel Hill- Carrboro City Schools <br /> (CHCCS) have agreed to transfer the property to the County for financing with a lease back <br /> agreement of$1 per year until the end of the 15 year term when the property will revert back to <br /> CHCCS. <br /> Clarence Grier said the state law said such a transfer can occur only after a public <br /> hearing. <br /> Commissioner Gordon noted that the only difference between this item on the consent <br /> agenda and on the public hearing is the requirement of a public hearing on the transfer of the <br /> buildings and related real estate from CHCCS to Orange County for the 15 year term, to <br /> facilitate the financing of the new science wing at the school. <br /> Clarence Grier said that is correct. <br /> A motion was made by Commissioner Gordon, seconded by Commissioner Price to <br /> close the public hearing. <br /> VOTE: UNANIMOUS <br /> A motion was made by Commissioner Gordon, seconded by Commissioner Rich to <br /> adopt the final financing resolution authorizing the issue of$10,500,000 of installment <br /> financing to finance various County and School Capital Investment Plan Projects and County <br /> equipment, including the proposed transfer of Culbreth Middle School, including the buildings <br /> and the related real estate, from the Chapel Hill - Carrboro City Schools to Orange County for <br /> a 15 year term, to facilitate the financing of a new science wing at the school; and adopting the <br /> final financing resolution authorizing the issue of$10,500,000 of installment financing to <br /> finance various County and School Capital Investment Plan Projects and County equipment. <br /> VOTE: UNANIMOUS <br /> Commissioner Gordon expressed her appreciation for the Board's approval of these <br /> projects, especially the Culbreth Science Wing. She said this will allow the students at <br /> Culbreth Middle School to have science instruction that is appropriate for the 21 st century. <br /> Chair Jacobs said he would like to figure out a way to investigate which banks the <br /> Board should or should not do business with, based on the relationship of the business with <br /> the community. He said if lenders are discriminatory or dishonest in their practices, the County <br /> should not do business with them. <br /> Commissioner Dorosin said every bank gets a Community Reinvestment Act rating that <br /> is available to the public. He said there is an organization called Community Reinvestment <br />