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ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: January 24, 2006 <br />Action Agenda <br />Item No. _8_g_ <br />SUBJECT: Public Hearing on Financing the Acquisition of a Facility Located at 510 <br />Meadowlands Drive, Hillsborough, and Adoption of Related Resolution <br />DEPARTMENT: Finance PUBLIC HEARING: (Y/N) yes <br />ATTACHMENT(S): <br />Resolution <br />Agreement for Purchase and Sale <br />Draft Financing Agreement <br />INFORMATION CONTACT: <br />Ken Chavious, ext 2453 <br />TELEPHONE NUMBERS: <br />Hillsborough 732-8181 <br />Chapel Hill 968-4501 <br />Durham 688-7331 <br />Mebane 336-227-2031 <br />PURPOSE: To conduct a public hearing on matters related to financing the acquisition of the <br />facility located at 510 Meadowlands Drive, Hillsborough, and to adopt the resolution that <br />authorizes the financing. <br />BACKGROUND: On December 13, 2005 to the Board approved the purchase of a facility <br />located at 510 Meadowlands Drive, Hillsborough, currently occupied by Tweeter, Inc, The <br />owner has agreed to the County's purchase of the building for a sum of $1,700,000 and the <br />County's purchase of non-inventory equipment and furnishings in the building for a sum of <br />$35,000. All but $50,000 of the total $1,735,000 will be owner-financed for a period of 10-years <br />at an interest rate of 5%. In addition, the Board authorized the Finance Director to submit an <br />application to the Local Government Commission (LGC) for approval of the financing. <br />A preliminary application requesting approval of this proposed financing has been forwarded to <br />the LGC. Prior to the LGC granting approval, the Board is required to conduct a public hearing <br />on matters related to the financing proposal. The Board has established January 24, 2006 as <br />the date for the hearing. In addition to the hearing, the Board is required to adopt a resolution <br />in support of the County's application. The resolution in, in this case, also grants the necessary <br />approval of the transaction as well as authorizes County staff to finalize the financing. The <br />resolution has been prepared by Bond Counsel in compliance with the requirements of the <br />LGC. <br />FINANCIAL IMPACT: As mentioned above, the total purchase price is $1,735,000, with Fifty <br />Thousand Dollars ($50,000) of the purchase price of the facility and the personal property to be <br />paid to the owner at closing and the remaining $1,685,000 financed by the owner at 5% over a