Agenda - 11-11-2014 - 2 - Laserfiche WebLink

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ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: November 11, 2014 Action Agenda Item No. 2 SUBJECT: Update on the Ephesus Church Road /Fordham Boulevard Public Improvements and Request for County Investment in the Project DEPARTMENT: Finance and Administrative PUBLIC HEARING: (Y /N) No Services ATTACHMENT(S): INFORMATION CONTACT: A) Town of Chapel Hill Presentation B) Town of Chapel Hill Memo on County Participation C) Bond Counsel Memorandum on Tax Increment Financing D) County Presentation Bonnie Hammersley, 919 - 245 -2306 Clarence Grier, 919 - 245 -2453 Craig Benedict, 919 - 245 -2592 Steve Brantley, 919 - 245 -2326 1 PURPOSE: To receive an overview and additional analysis of the County's potential involvement/investment in the Ephesus Church /Fordham Boulevard (Ephesus Fordham) Public Improvement Plan. BACKGROUND: The Town of Chapel Hill, at the March 21, 2014 Joint Meeting with the Board of County Commissioners, presented an improvement project for the Ephesus Church Road — Fordham Boulevard area of the Town of Chapel Hill. In order to support the renewal of the Ephesus Fordham area, the Town of Chapel Hill must make investments in much needed traffic and stormwater capital improvements. The project would be financed with the use of Tax Increment Financing. Under this method of financing, economic development projects are financed by pledging the anticipated incremental growth in tax revenues generated by the incremental increase in the tax base as a source of repayment for the debt incurred to finance the economic development project. The basis and theory behind this method of project financing of economic development projects is that the project being financed is enabling the tax growth, and therefore the project is, in theory, will be self- financing because if not for the project, the growth in the tax base and corresponding tax revenues would not have occurred. 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.