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ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: January 27, 2015 <br />Action Agenda <br />Item No. 1 <br />SUBJECT: Update on the Ephesus Church Road /Fordham Boulevard Public <br />Improvements and Request for County Investment in the Project <br />DEPARTMENT: Finance and Administrative PUBLIC HEARING: (Y /N) No <br />Services <br />ATTACHMENT(S): <br />A. Bond Counsel Memorandum on Tax <br />Increment Financing <br />B. County Financial Analysis <br />1. Scenario 1 <br />2. Scenario 2 <br />C. Planning Analysis & Comments <br />D. November 11, 2014 County Staff <br />Presentation <br />E. Town of Chapel Hill Presentation <br />F. Town of Chapel Hill Memo on County <br />Participation <br />INFORMATION CONTACT: <br />Bonnie Hammersley, 919 - 245 -2306 <br />Paul Laughton, 919 - 245 -2152 <br />Craig Benedict, 919 - 245 -2592 <br />Steve Brantley, 919 - 245 -2326 <br />1 <br />PURPOSE: To receive a County overview and financial additional analysis of the County's <br />potential involvement/investment in the Ephesus Church /Fordham Boulevard (Ephesus <br />Fordham) Public Improvement Plan. <br />BACKGROUND: The Town of Chapel Hill, at the March 21, 2014 Joint Meeting with the Board <br />of County Commissioners, presented an improvement project for the Ephesus Church — <br />Fordham Boulevard of the Town of Chapel Hill. In order to support the renewal of the Ephesus <br />Fordham area, the Town of Chapel Hill must make investments in much needed traffic and <br />stormwater capital improvements. The project would be financed with the use of Tax Increment <br />Financing or Project Development Financing. Under this method the financing of economic <br />development projects occurs by pledging the anticipated growth in tax base as a source of <br />repayment. The theory is that the project being financed is enabling the tax growth and <br />therefore the project is and will be self- financing because, if not for the project, the tax growth <br />would not have occurred. <br />The Town of Chapel Hill would like the County to participate in the Ephesus Fordham Renewal <br />Project by pledging the lesser of 50% of the actual increment property tax revenues received or <br />50% of the actual annual debt service cost. The Town of Chapel Hill (Town) is suggesting that <br />the County consider an approach to investing in the project using mutually agreed upon criteria, <br />which will be tied to the Ephesus - Fordham project performance. The Town would provide an <br />