Agenda - 03-15-1994 - VIII-H - Laserfiche WebLink

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Q { 1 ORANGE COUNTY BOARD OF COMMISSIONERS Action Agenda Item No VIM ACTION AGENDA ITEM ABSTRACT Meeting Date: March 15, 1994 SUBJECT: Establish Public Hearing Date for OCCAC Bonds ----------------------------------------------------------------------- DEPARTMENT County Manager/Attorney PUBLIC HEARING YES NO X ----------------------------------------------------------------------- ATTACHMENT(S) INFORMATION CONTACT Public Hearing Notice Rod Visser, ext 2300 Geof Gledhill, 732-2196 TELEPHONE NUMBER Hillsborough 732-8181 Chapel Hill 968-4501 Mebane 227-2031 Durham 688-7331 ----------------------------------------------------------------------- PURPOSE: To establish a public hearing date for the proposed issuance of Orange County Community Activity Corporation revenue bonds. BACKGROUND: At the October 4, 1993 meeting, the Board of Commissioners approved the County' s participation in a "63-20" financing arrangement whereby the Orange County Community Activity Corporation (OCCAC, previously known as the Triangle Youth Hockey Association) would issue bonds, in an amount not to exceed $8.5 million, for the construction of a swimming pool/ice rink facility at the Meadowlands. The debt thus created is an obligation strictly of the Corporation. The County is in no way incurring debt or pledging its faith and credit or taxing power for the repayment of the bonds. Because 1163-20" financing under the Internal Revenue Service Code permits the sale of bonds as tax-exempt instruments which will benefit a non-governmental agency, the County was required to hold a public hearing on the matter under provisions of the federal 1986 Tax Equity and Fiscal Responsibility Act (TEFRA) . The County held this required public hearing on November 16, 1993. No one spoke either for or against the proposed bonds. During efforts to market the bonds in the last several months, it became apparent to the OCCAC's financial agents that the creation upfront of a $950,000 debt service reserve would make the bonds appear more secure, and thus much more attractive to potential investors. The creation of this debt service reserve necessitates an increase in the approximate amount of bonds to be isssued to $9.5 million. In accordance with IRS regulations and TEFRA, another public hearing must be held because the size of the proposed bond issue has increased by more than 5% of the amount contemplated during the original public hearing. OCCAC' s financial agents anticipate that agreement with an investor to buy the bonds can be reached within the next several weeks. The new public hearing must be held prior to closing on the anticipated bond sale.