Agenda - 10-17-1995 - VI-B2 - Laserfiche WebLink

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J i ORANGE COUNTY, NORTH CAROLINA 4 TRIANGLE SPORTSPLE% FINANCING 4-5% annual growth, the County's additional GO debt capacity, as a practical matter, had to be preserved for new school construction over recreation. Third, Certificates of Participation (COPs) were a less desirable alternative as they would also have counted against the County's debt limitation. Orange County's costs in the arrangement of the Triangle SportsPlex financing were measured in staff hours committed to development and evaluation of options, preparation for public presentation and discussion of the financing, negotiation of terms and conditions for the operation and financing of the facility, and legal and administrative procedural requirements. County staff members who devoted significant portions of their time to the arrangement of the SportsPlex financing included the County Manager, Assistant County Manager, County Attorney, Finance Director, Economic Development Director, and Recreation and Parks Director, with lesser time commitments from several other staff members. Total staff hours involved in the arrangement of financing are estimated at between 400-500. On the other hand, actual out-of-pocket costs associated with the financing were incidental (primarily supplies and copying costs) . Since the SportsPlex is being operated by the non- profit OCCAC, the County is incurring no ongoing operational, capital, or maintenance costs (beyond the ten annual payments of $400,000 related to the operating agreement with OCCAC) . Moreover, the County will recognize operational savings of several hundred thousand dollars per year that would be incurred if the County operated a similar facility. The most visible measurement of the success of the financing arrangement is the SportsPlex itself, which will receive its Certificate of Occupancy in late March and open to host an ice skating competition the first weekend in April. Significant events already booked include the ice sports of the State Games of North Carolina and a full summer slate of youth hockey camps. The construction project is being completed within budget and well ahead of schedule. For example, the project budget included 17 months of capitalized interest, but only 12 months will be required before the operating revenue stream becomes available to cover debt service payments. In sum, the Triangle SportsPlex is worthy of a NACo Achievement Award for 1995 because it represents the epitome of what "public-private partnership" should be. The hard work and vision of many dedicated volunteers and County officials resulted in an innovative financing solution to an important need. Two meritorious recreation projects, which separately could not be undertaken, were combined into one project which is just beginning to bring a tremendous array of new or improved services to all of Orange County's citizens, young and old. Orange County hopes that the financing described herein, and in more detail in the accompanying Limited Offering Statement, will provide an example of an alternative financing mechanism that can be replicated elsewhere in the United States by local governments that may not .be aware of the demonstrated utility of 63-20 financing.