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

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Additionally, the Town of Chapel Hill (Town) is suggesting that the County consider an approach to investing in the project using mutually agreed upon criteria, which will be tied to the Ephesus - Fordham project phases of completion and performance. The Town would provide an annual Ephesus Fordham project performance report during the County's budget deliberations that would include the following: additions to the tax base, status of public improvements, status of private improvements, including progress toward meeting affordable housing, energy efficiency and transportation goals, and economic impact analysis. The first Ephesus Fordham performance report would be submitted during the first budget cycle in which an actual tax increment from the project was expected in the next fiscal year. The County could potentially benefit from participating with the Town of Chapel Hill from increased property and sales tax revenues. The County budget would be committing an average contribution for the debt service of $385,612 over 18 years for a total of $6,941,017 for the project. This also takes in account the possible impact of adding approximately 284 new students in the Ephesus Fordham area of the Chapel Hill — Carrboro School 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. An interlocal agreement to provide the contribution for the debt service would not affect the County's bond rating, debt policy or legal debt limit. 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. FINANCIAL IMPACT: There is not a financial impact with receiving this information. The financial impact will occur if the Board of County Commissioners participates in the project. RECOMMENDATION(S): The Manager recommends that the Board receive the information and provide feedback to staff.