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1 <br /> ORANGE COUNTY <br /> BOARD OF COMMISSIONERS <br /> ACTION AGENDA ITEM ABSTRACT <br /> Meeting Date: May 16, 2023 <br /> Action Agenda <br /> Item No. 8-c <br /> SUBJECT: Adoption of the Final Resolution Authorizing 2023 Installment Financing for <br /> Various Capital Investment Plan Projects for Up to $14,500,000 <br /> DEPARTMENT: Finance and Administrative <br /> Services <br /> ATTACHMENT(S): INFORMATION CONTACT: <br /> Attachment 1 . Resolution Approving Gary Donaldson, (919) 245-2453 <br /> Financing Terms and Chaz Offenburg, (919) 245-2150 <br /> Documents for 2023 Robert Jessup, (919) 933-9891 <br /> Installment Financing <br /> Attachment 2. Deed of Trust <br /> Attachment 3. Trust Agreement <br /> PURPOSE: To adopt the final financing resolution authorizing up to $14,500,000 in installment <br /> financing for capital investment projects and equipment for the fiscal year. The financing will also <br /> include amounts to pay transaction costs. <br /> BACKGROUND: At the May 2, 2023 Business meeting, the Board of County Commissioners <br /> conducted a public hearing and approved a preliminary resolution for capital projects and <br /> equipment financing. The Board made a preliminary determination to finance costs of these <br /> projects and equipment, and the financing costs, by the use of an installment financing, as <br /> authorized under Section 160A-20 of the North Carolina General Statutes. <br /> With approval of the attached resolution, the Board gives final approval for the financing, approves <br /> the financing proposal from TD Bank, approves substantially final financing documents, and <br /> authorizes staff to complete the closing. Staff anticipates receiving the required approval of the <br /> Local Government Commission on June 6, 2023, and then closing the financing by mid-June. <br /> Between now and then, staff will work with the lender and other financing team members to <br /> confirm final documents and County payment arrangements in order to finalize remaining blanks <br /> in the documents. This process is consistent with past practice. <br /> The final project list is $2 million lower than the initial project listing, reflecting final staff <br /> adjustments for both County and School projects. The financing is set to close June 13, 2023. <br /> COLLATERAL: In this type of County installment financing, the County secures its obligations to <br /> the lender by a mortgage-type interest in some or all of the property being acquired or improved <br /> through the financing. The County plans to secure this 2023 financing through a pledge of several <br /> school properties, along with extending the existing lien on the Whitted Building, the Orange <br />