Minutes 05-15-2014 - Laserfiche WebLink

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The Town of Chapel Hill would like the County to participate in the Ephesus Fordham Renewal Project by pledging the lesser of 50% of the actual increment property tax revenues received or 50% of the actual annual debt service cost. The County could potentially benefit from participating with the Town of Chapel Hill from increased property and sales tax revenues. The budget impacts for the County would be committing an average of$385,612 over 18 years for a total of$6,941,017 for the project (Attachment C). This also takes in account the possible impact of adding approximately 450 new students in the Ephesus Fordham area of the Chapel Hill — Carrboro City Schools District (CHCCS) over an 18-year period that could increase the need for a new elementary and/or move up the timeline for Elementary #12 and Middle School #5 for CHCCS. Additionally, if a new high school and/or major additions have to be made to one of the existing CHCCS high schools to accommodate the projected increase in students, the additional debt service would reduce the net amount of property taxes received as result of the planned project improvements. Clarence Grier noted that the County has two school systems that are funded at 48.1 percent of the general fund revenue, and these were not taken into account. He noted that additional information has been included in attachment A, which shows the total cost of these improvements is $10.0 million ($8.8 million for traffic improvements and $1.2 million for stormwater). Michael Talbert said Chapel Hill has approved the re-zoning of these parcels. Chair Jacobs asked for more explanation of what is being asked of them and the time frame in which it is asked. Ken Pennoyer, Business Management Director for the Town of Chapel Hill, discussed the following financing and Repayment plan, as outlined in attachment A: Financing Plan The Town is planning on financing the Town Hall Renovation project and other CIP projects with debt. By combining the financing of these projects using two common forms of debt that the Town has used numerous times, the total cost of financing all of these projects will be reduced and can be completed on the timetable established for the Ephesus Fordham Project. The Projects Town Hall Repair & Renovation $ 900,000 High Priority CIP Projects 800,000 Ephesus Fordham: Traffic Improvements 8,800,000 Stormwater Capital 1,200,000 Total Ef Project 10,000,000 Total All Projects $ 11,700,000 The Debt Two-thirds General Obligation Bonds $ 1,700,000 Installment Financing 10,000,000 Total Planned Debt issuance $ 11,700,000 Repayment Plan