Orange County NC Website
Browse       Search
I _ <br /> ... <br /> -2- <br /> E. Established procedures for the selection of a permanent Executive <br /> Director with the Executive Committee authorized to appoint, <br /> subject to confirmation by the Board, at its February meeting <br /> in connection with the Legislative Conference. <br /> 1 <br /> F. Appoint d Ron Cameron as Executive Director until the new <br /> permanent Executive Director is appointed. <br /> el <br /> III. Observations and Information. <br /> A. Cash flow situation remains critical. <br /> 1. No 'loan has been secured (a $2.1 million letter of credit <br /> has been agreed to by the Bank of Washington, subject to <br /> NApo's finding another financial institution to assume 1/2 <br /> of the risk of any defaults. NACo is actively pursing <br /> finding that other financial institution. ) <br /> 2. Creditors of the Association almost daily demand payments. <br /> President Murphy and the present Executive Director, Ron <br /> Cameron, continue to negotiate with creditors and to seek <br /> extelsions of their demands. <br /> 3. A crucial need was expressed for State Association loans. <br /> (authority for a securing of loans expressed in II above <br /> included authority for the securing of loans from State <br /> Associations.) <br /> B. Six additional staff reductions are planned by January 1, 1983 <br /> including two Associate Directors. <br /> C. The NACo Building - The NACo building is the problem now, but <br /> can be a positive factor in the future. <br /> 1 <br /> 1. $2.8 million in improvements were authorized by NACo (only <br /> $40(400 of which was authorized with the knowledge of the <br /> Board . These improvements have became a part of the <br /> building and cannot be removed by NACo, if NACo defaults <br /> on the lease and moves out. <br /> 2. The agreement between NACo and the developer provides as <br /> folio st <br /> a. A lease term of 15 years with a 10-year extension option <br /> 117 <br /> at a base annual rental of $1,500,000 per year adjusted <br /> for changes and a consumer price index (CPI) at a rate <br /> of 25% of CPI increases beginning with the third lease- <br /> year. <br /> b. NACo must pay, in addition to the rental, all insurance, <br /> r al estate and ground 'rental escalations. <br /> c. C <br /> NA I o has the option to purchase the developer's equity <br /> in the building between the end of the 12th lease-year <br /> and the end of the 17th lease-year at a purchase price <br /> of 50% of the fair market value of the building. <br />