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1 <br /> ORANGE COUNTY <br /> BOARD OF COMMISSIONERS <br /> Action Agenda <br /> Item No •A <br /> ACTION AGENDA ITEM ABSTRACT <br /> Meeting Date: November 14, 1995 <br /> SUBJECT: Construction Project Financing Agreement - Jail/Courthouse <br /> Additions and Southern Human Services Center <br /> ----------------------------------------------------------------------- <br /> DEPARTMENT Finance PUBLIC HEARING YES x NO <br /> ------------------------------- <br /> BUDGET AMENDMENT <br /> REQUIRED YES x NO <br /> -------------------------------- ------------------------------- <br /> ATTACHMENT(S) INFORMATION CONTACT <br /> Summary of Financing Proposals Ken Chavious, ext 2450 <br /> Public Hearing Notice TELEPHONE NUMBER <br /> NationsBank Financing Proposal Hillsborough 732-8181 <br /> Chapel Hill 968-4501 <br /> Mebane 227-2031 <br /> Durham 688-7331 <br /> ----------------------------------------------------------------------- <br /> PURPOSE: To conduct a public hearing about , and consider approval of , <br /> a proposal from NationsBank to provide $2 million in installment <br /> purchase financing for the planned additions to the Jail and New <br /> Courthouse, and for a portion of the Southern Human Services Center . <br /> BACKGROUND: At the September 5 , 1995 meeting , the Board of <br /> Commissioners authorized staff to solicit proposals for private <br /> placement financing of $2 , 000, 000 to supplement existing funds for <br /> several County construction projects . Of that amount, $1 . 5 million <br /> would help fund the construction of additions to the County Jail and <br /> New Courthouse. The remaining $500 , 000 would be allocated to complete <br /> the funding for the Southern Human Services Center. <br /> Subsequently, on October 2, 1995 , the Board adopted a resolution <br /> authorizing staff to seek approval from the Local Government Commission <br /> (LGC) to facilitate the financing . In conjunction with the LGC <br /> application process, County staff disseminated Requests for Financing <br /> Proposals to interested lenders. Proposals were due to the County by <br /> November 8 , 1995. County staff received and reviewed Financing <br /> Proposals from 6 prospective lenders. A table summarizing the <br /> proposals is included as page 3 of this abstract. <br /> Staff have reviewed these proposals and believe that the most <br /> advantageous proposal is for the County to enter into an agreement with <br /> NationsBank at a 10 year fixed rate of 4. 35% . The total interest <br /> payments by the County would be about $495 , 000 under this proposal . <br /> By way of comparison, staff had conservatively estimated in September <br /> that interest costs of the proposed financing might slightly exceed $1 <br /> million. The County had requested that prospective lenders offer <br /> proposals for 15 year financing arrangements. As the table shows , <br /> NationsBank also submitted the best 15 year proposal , at a rate of <br /> 4 . 40%, with total interest payments of about $765 , 000 . Even with the <br />