Orange County NC Website
Browse       Search
2 <br /> The County received a number of very aggressive private placement <br /> bids, several with fixed rates for the life of the proposed loan. <br /> Staff recommends that the Board enter into a financing agreement with <br /> Nationsbank for a $9.6 million, 15 year, fixed rate loan at 5.71%. <br /> Nationsbank offered four options, described in detail in their attached <br /> proposal. The 15 year construction draw option will provide the County <br /> with the lowest total interest cost, just over $4 million. By way of <br /> comparison, this option would result in interest savings of almost $1 <br /> million over the best COPs proposal that the County received. The <br /> Nationsbank proposal will result in annual savings of more than <br /> $80, 000, compared to debt service funds that have been budgeted in the <br /> school CIP for the new elementary school project. <br /> The Local Government Commission will consider the County' s application <br /> for approval of the financing agreement at their meeting on Tuesday, <br /> December 6. Assuming that both the Board and the LGC approve the <br /> financing, CHCCS would award bids with construction to begin in January <br /> 1995. CHCCS has indicated that it is essential that construction <br /> begins in January to lead to completion of the new school in time for <br /> the 1996-97 school year. <br /> RECOMMENDATION: The Manager recommends that the Board of Commissioners <br /> conduct the public hearing, and approve the proposed financing <br /> agreement with Nationsbank, subject to review by the County Attorney <br /> and Bond Counsel. <br />