Agenda - 10-18-2005-8a - Laserfiche WebLink

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The LGC was previously scheduled to take action on the County's application on November 1, 2005, LGC staff working with the County on the application process recently informed County staff of the need to have a completed 2005 audit report from the County prior to granting approval of the financing application, The County's audit contract requires completion of the audit report by October 31, 2005, which would provide insufficient time for LGC review of the report prior to approving the County's application for financing, In light of this development, the LGC approval of the financing has been rescheduled to December 6, 2005, If LGC approval is granted and all other contingent conditions have been met, closing on the SportsPlex property is expected to occur on or before December 16, 2005. In another related development, on October 12, 2005 the Town of Hillsborough Board of Adjustment discussed and approved the County's development application related to the construction of the Senior Center addition and renovation to the existing SportsPlex facility, This action opens the door for the County to proceed with a development plan and construction timeline for the proposed addition, As the County moves from the end of the acquisition phase of the SportsPlex project to the management/operations phase, staff plan to bring back for the Board's consideration at the November 2, 2005 regular BOCC meeting a proposed facilities management agreement that would provide for a contractor to operate the SportsPlex facility on the County's behalf following the expected December closing on the property, FINANCIAL IMPACT: As mentioned above, the amount of the short-term financing is $6,000,000, It is important to note that while the financed amount is $6,000,000, the County will receive $300,000 from the seller to cover deferred maintenance expenses at the SportsPlex, under the terms of the contract to purchase, The principal amount will be rolled into a COPs financing scheduled for early winter 2006, The most favorable proposal quotes a variable interest rate of 3,15%, The LGC will not approve refinancing of the interest costs to be paid by the County from the short term financing, Accordingly, the short-term interest costs will be paid at the time of the COPs closing out of the County's annual $400,000 capital project allocation for the SportsPlex, Those interest costs are expected to be in the range of $70,000 to $90,000, depending on the timing of the closing on the COPs issuance, RECOMMENDATION(S): The Manager recommends that the Board conduct the public hearing, accept the proposal from Bank of America, and adopt the accompanying resolution.