Orange County NC Website
Browse       Search
6 <br /> 1 staff has been in contact with the LGC staff, and staff expects no issues to receiving LGC <br /> 2 approval. <br /> 3 <br /> 4 If the Board adopts the resolution indicating its intent to continue with the financing plan, the <br /> 5 Board will be asked to consider a resolution giving final approval to the financing plans at its <br /> 6 April 19, 2016 meeting. <br /> 7 <br /> 8 The general schedule for this process is as follows: <br /> 9 • BOCC conducts public hearing and adopts resolution in support of financing and LGC <br /> 10 approval — March 22 <br /> 11 • County staff reviews financing proposals from lenders and develops recommendation <br /> 12 for Board approval — by end of March <br /> 13 • County Board adopts resolution formally approving financing provider and the <br /> 14 substantially-final financing documents —April 19 <br /> 15 • LGC approves financing — May 3 <br /> 16 • Closing on the financing —funds advanced to County— by mid-May <br /> 17 <br /> 18 The County's financing is proceeding as an installment financing under the authority of the <br /> 19 North Carolina General Statutes. Under the statutes, an installment financing has to be secured <br /> 20 by a lien on part or all of the property being acquired or improved through the financing. County <br /> 21 staff recommended that the County use Grady Brown Elementary School as the collateral. <br /> 22 Grady Brown is receiving two new roofs through the financing package. For the County to <br /> 23 provide a lien on this school, the County must own the school. <br /> 24 <br /> 25 The Orange County Board of Education has approved the use of the school as collateral and <br /> 26 the related transfer of that property to the County (the financing documents will provide for the <br /> 27 return of the school upon the County's repayment of the financing). This is similar to <br /> 28 arrangements the County has used previously, most recently with respect to financings related <br /> 29 to the Orange County Schools District's Gravelly Hill Middle School and with Culbreth Middle <br /> 30 School in Chapel Hill Carrboro City Schools. Ownership of Grady Brown will revert back to <br /> 31 Orange County Schools upon final payment of the installment financing. <br /> 32 <br /> 33 Gary Donaldson reviewed all items on the financing list. <br /> 34 Chair McKee asked if Gary Donaldson would expand on the issue of using Grady Brown <br /> 35 Elementary School as collateral. <br /> 36 Gary Donaldson did so. <br /> 37 Commissioner Jacobs said the school system still owns Cedar Ridge, and said he <br /> 38 understood the County to be the only one that is exempt from paying sales tax. He asked if this <br /> 39 is so, perhaps ownership of Cedar Ridge should be transferred to the County to avoid sales tax <br /> 40 being paid on these construction projects. <br /> 41 Commissioner Jacobs said to review this going forward. <br /> 42 Commissioner Price asked if it was known how long the County would own Grady <br /> 43 Brown. <br /> 44 Gary Donaldson said 20 years, and after the financing is completed it will revert back to <br /> 45 the Orange County Schools (OCS) system. <br /> 46 Commissioner Rich referred to the Rogers Road easement acquisition project and <br /> 47 asked if costs are going to be shared with their partners. <br /> 48 Bonnie Hammersley said the County has agreed to be the fiduciary and will borrow all of <br /> 49 the funds and then invoice the partners. <br /> 50 <br />