Minutes 06-12-2018 Budget Work Session

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4 Chapel Hill, NC 27515 919-967-1545 ext. 307 Commissioner Price asked if the IFC were going to leverage grants next year. Bonnie Hammersley said she and Chair Dorosin met with the leaders of the capital campaign who said the level of funding commitments needed to reach a certain level before they start leveraging grants. Chair Dorosin said there is the option of a zero percent loan, and if the Board were in support of one, it could start with this, and could possibly convert it to grant funding, or a forgivable loan, after further discussion. He said he does not want the Board’s decision to have an adverse effect on the IFC tonight. Commissioner McKee said a forgivable loan is the same as a grant. Chair Dorosin said the Board could put some conditions on it, such as forgiving the loan if IFC fails to raise the additional funding after a certain time period. He said if IFC could raise the money than it would pay back the loan. Commissioner McKee said he is concerned about going down that path, and if the Board is going to provide a grant then that should be done from the get go. He said loans that are potentially forgivable are always forgiven. He said the Board put the policy in effect, and it does not need to do a work around tonight without having further discussion. He said there are too many agencies that would want, and be worthy of, this same treatment. Commissioner Jacobs said he would be more comfortable if staff would bring back some criteria of what the zero interest loans would look like at the next BOCC meeting on 6/19. He said he would be inclined to give IFC one third of what it is asking for. He said the County should not go into this thinking it will waive the amount of the loan, since it makes it psychologically harder for IFC to raise funds. Chair Dorosin said he likes the idea of a matching grant, as opposed to outright cash without conditions. Commissioner Burroughs said she agreed with Commissioner Jacobs about the psychological impact on fundraising when knowing a loan can be potentially forgiven. She said she still supports discussing this topic further in the fall. Commissioner Rich asked if any other local government entities have committed to the IFC campaign. Bonnie Hammersley said the Town of Chapel Hill received a request, which she thinks the Town is honoring, but she will find out. Jackie Jenks, IFC, thanked the Board for even considering this item, and said the IFC is working with Chapel Hill on a potential funding source. Commissioner Rich asked if those funds would be a grant or loan. Jackie Jenks said a grant. Chair Dorosin asked if the Town of Carrboro has made a commitment. Jackie Jenks said IFC has not received a commitment from Carrboro, but the Town has offered to waive some fees and the IFC may share its parking with the Town. Chair Dorosin asked if there was a timeline in place. Jackie Jenks said IFC would like to start construction a year from now, but would need to have all of the funds committed in advance, and the IFC is looking to get the $5.3 million secured soon. She said the IFC has surpassed the 50% mark, which was needed in order to apply for some funding from various foundations. She said a loan will not help IFC reach the $5.3 million required to build, but IFC would consider it as a bridge loan allowing for construction to begin, and repayment to occur in years 2 and 3. She said if pledges are made, but not received, IFC would ask that this portion of the loan be forgiven.