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1 <br /> ORANGE COUNTY <br /> BOARD OF COMMISSIONERS <br /> Action Agenda <br /> Item No Vi--1F <br /> ACTION AGENDA ITEM ABSTRACT <br /> Meeting Date: December 5, 1994 <br /> SUBJECT: Elementary School Financing and Site Acquisition <br /> DEPARTMENT: Manager/Finance/Attorney PUBLIC HEARING YES X NO <br /> ATTACHMENT(S) : INFORMATION CONTACT <br /> Public Hearing Notice Rod Visser, ext 2300 <br /> Summary of Private Placement Proposals Geof Gledhill, 732-2196 <br /> NationsBank Financing Proposal Ken Chavious, ext 2450 <br /> Draft Financing Agreement TELEPHONE NUMBER <br /> Hillsborough 732-8181 <br /> Chapel Hill 968-4501 <br /> Mebane 227-2031 <br /> Durham 688-7331 <br /> PURPOSE: To conduct a public hearing on matters related to the <br /> financing of the new Chapel Hill-Carrboro City Schools (CHCCS) <br /> elementary. school, and to approve a financing agreement for the new <br /> school. <br /> BACKGROUND: At the September 20, 1994 meeting, the Board of <br /> Commissioners approved the financing of up to $10.6 million for the <br /> construction of the new CHCCS elementary school, which will be situated <br /> on a portion of the CHCCS owned property also occupied by the new <br /> McDougle Middle School. Subsequent discussion between School and <br /> County staffs resulted in a plan to seek financing of $9.6 million, <br /> with the balance of the project funding to come from sales tax and <br /> impact fee revenue already budgeted in the current Capital Improvement <br /> Plan. <br /> At the meeting on November 15, 1994, the Commissioners established <br /> December 5 as the date for a public hearing on the proposed financing <br /> agreement and on the acquisition by the County of the property upon <br /> which the elementary school will be built. County staff disseminated <br /> Requests for Proposals for financing the new school construction to <br /> interested lenders. Proposals were due to the County by November 18. <br /> County staff received and reviewed ten proposals for financing using <br /> Certificates of Participation (COPS) and five proposals for "private <br /> placement. " The COPs proposals included interest rates that ranged <br /> from the mid-high 6 percent range. Because of the higher interest <br /> rates and issuance costs associated with the COPs proposals, staff <br /> recommends that the Board not pursue COPs financing for the elementary <br /> school project. <br />