Agenda - 06-29-2000-7a - Laserfiche WebLink

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An additional item referred to on the timetable was the need for the County to create a non- profit corporation to play a role in the financing. As mentioned in the attached memorandum from bond counsel, the legal structure most commonly used in a COPS financing requires that a non-profit corporation serve as the counter party to the County's primary financing contract. Creating the corporation requires two major steps: (1) preparing the articles of incorporation and (2) identifying people to serve as directors of.the corporation. Bond Counsel has recommended a similar approach to the one used in the formation of the nonprofit for Orange County's Small Business Loan program. As far as the Directors are concerned, the County Finance Director and the Finance Directors for both school systems could be the initial members, or the Board could select other members. The School Finance Directors have been contacted and are willing to serve. Bond Counsel will be available at the June 29 meeting to discuss in further detail the issues related to the non-profit corporation. FINANCIAL IMPACT: As mentioned above the amount approved for the project construction is $13.5 million. Underwriting and other issuance costs are estimated to be in the range of $108,000 to $115,000. These costs will be included in the total amount to be financed. Once the amount is determined, the annual debt service will be paid from Orange County Schools pay-as-you go revenues in accordance with the CIP and Capital Policy. In addition, costs associated with the creation of the nonprofit ,estimated at $5,000, will be paid from school capital fund balance. RECOMMENDATION(S): The Manager recommends that the Board take the following actions: 1. Receive public comment on the financing proposal. 2. Adopt the Resolution retaining BB8~T Capital Markets as Underwriters and authorizing staff to proceed with the formation of a non-profit corporation: