Minutes 11-17-2016 - Laserfiche WebLink

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17 Danny Rogers said Duke has made a commitment to donate the ROW, and is putting together a letter of intent to that effect. Chair McKee asked if there is a commitment for $25 million, or if that is for the ROW. Danny Rogers said the ROW would be in the line above that. He said the $25 million is a goal of funding from private donors, and the end total may be higher. He said that process takes time. Chair McKee asked if UNC or NCCU has made any commitment, given that they are state entities. He said he assumed Council of State will have to be involved there. Danny Rogers said UNC and NCCU are not expected to give money, but are able to clear a path for them such as clearing some land, or building facilities further back in order to leave room for the light rail. Chair McKee said he does not agree that the $200 million is the only funding gap. He said today the state funding has gone from $400 million, to $160 million on 10%. He said the County has not yet agreed to pick up the extra $40 million, at $4 million a year. He also is unsure of Durham's commitment. He said there may be a commitment of intent, but not of money. Danny Rogers said a commitment of intent is the only thing being sought at this time. Chair McKee said it is important to be realistic about the gap, which is over $400 million at this point in time. Danny Rogers said the change in the state participation is as Chair McKee describes. He said GoTriangle puts the revenue growth, which comes through the sales tax, into the financial model, and also puts in the borrowing opportunities that are available. He said that which is left is the gap that cannot be covered. He said the current commitment allows GoTriangle to say the 30% share can be covered, and the part beyond that must receive approval. He said that is planned. Chair McKee said the real stop point for making a decision is the end of December 2016. He said the Board of County Commissioners must decide whether or not to issue a letter of intent by that time. Danny Rogers reread the slide, which outlined what the Orange County Board of County Commissioners will need to do, and the BOCC will need to issue a letter of intent at its December 5th meeting. Chair McKee said a letter of intent does carry with it the implication that Orange County will come forward to filling this funding gap. Danny Rogers said a letter of intent means that the BOCC is committed to working together to fill this gap. Chair McKee said Orange County is being asked to commit to $4 million per year for 10 years to fill the federal gap. He said he fears that Orange County will end up spending $8 million per year to fill the federal funding gap, as well as the state-funding gap. Danny Rogers said it is very complicated. Jeff Mann said the same amount of federal funding will be received, but it will take longer for it to come. He said it will be 50% of funding, distributed in $100 million per year increments, as opposed to $125 million per year. He said the result is that more will have to be borrowed up front. Chair McKee said he will concede that point, but he is still seeing $4 million per year, for 10 years, that the taxpayers of Orange County will have to pay. Chair McKee said paying for this will require a minimum of a three cent tax increase. He said the voters approved a transit tax, but this conversation no longer relates to that tax. He said the voters did not approve coming back at a later date to cover a gap that is not of their making. He said he does not think the state will correct this issue.