HomeMy WebLinkAboutSeptember_16_2008_Briefing_MInutesIREDELL COUNTY BOARD OF COMMISSIONERS
BRIEFING MINUTES
SEPTEMBER 16 2008
The Iredell County Board of Commissioners met in Briefing Session on Tuesday,
September 16, 2008, at 5:00 P.M., in the Iredell County Government Center (South Wing
Conference Room), 200 South Center Street, Statesville, NC.
Board Members Present
Chairman Marvin Norman
Vice Chairman Sara Haire Tice
Steve Johnson
Ken Robertson
Absent: Godfrey Williams
Staff present: County Manager Joel Mashburn, County Attorney Bill Pope, Deputy
County Manager Susan Blumenstein, Assistant County Manager Tracy Jackson, Sheriffs Chief
Deputy Rick Dowdle, Social Services Director Don Wall, Income Maintenance Supervisor Lynn
Deal, Work First Supervisor Linda Bledsoe, Planning and Development Director Ron Smith,
Planner Matthew Todd, Tax Administrator Bill Doolittle, and Clerk to the Board Jean Moore.
CALL TO ORDER by Chairman Norman.
REQUEST FOR APPROVAL OF A RESOLUTION CALLING FOR A PUBLIC
HEARING ON OCTOBER 21, 2008, AT 7:00 P.M., REGARDING A SPECIAL
ASSESSMENT DISTRICT: Joining the board to present this request were Langtree at the
Lake (a mixed-use development) General Counsel David Parker, Alan Barksdale (Director of the
Capital Markets Group with Crews & Associates), and Langtree at the Lake Developers/Property
Owners Rick and Brad Howard.
Attorney Parker said a new type of assessment financing was approved by Governor
Easley on August 3, 2008, and the Langtree property owners were requesting usage of the
legislation with the first step requiring passage of a preliminary assessment resolution calling for
a public hearing. Parker said the hearing would be held to discuss a financing option for
infrastructure. He said the 166 -acre Langtree project, at total build out, would cost $1.2 billion
with infrastructure alone costing approximately $57 million. Parker said the group was
requesting a special assessment financing for 80% of the project ($46,154,480).
Barksdale said this type of assessment was new to North Carolina, but it had been used in
South Carolina and other states, with one example being Disney World in Orlando, Florida. He
said only the affected or benefitted property would be included in the assessment district.
Commissioner Robertson asked (1) Would the county's debt rating be impacted by the
financing? (2) Why was this type of financing being used over standard borrowing? and (3)
What happened if the Langtree project failed?
Barksdale said revenue bonds paid by the assessments would allow a long -term -fixed
financing, whereas banking institutions, such as Bank of America, could only offer short-term
assistance.
Parker said standard financings were dysfunctional. He said for example in the past, the
Bank of America loaned out 80 cents on the dollar compared to today's rate of 50 to 60 cents.
Parker said the assessment financing would allow for a 30 -year amortization. Attorney Parker
said the Local Government Commission would be involved in the financing, and the bond debt
would not be counted against the county. He said that in reference to any exposure to the county,
should the development project fail, that the financing "ran with the land not the property
owner."
Commissioner Johnson asked if County Attorney Pope had reviewed the request and the
new legislation.
Pope said a thorough review had not occurred due to time constraints, and the legislation
appeared unique.
Attorney Parker said County Attorney Pope would be involved in the financing along
with Langtree's bond counsel, Parker Poe Adams & Bernstein out of Charlotte. He said the
assessment invoices would be sent at the same time as the county's property tax bills. Parker
added that an enforcement procedure for the collection of the assessments would probably be
incorporated into the Langtree Homeowners' Association.
Note: The board agreed to place the request on the consent agenda, and to call for a
public hearing on October 21, 2008. A copy of the petition for the special assessment and the
resolution may be found in the regular minutes for September 16, 2008.
All other agenda requests were then presented, and a summary about these items may be
found in the regular minutes.
ADJOURNMENT: Chairman Norman adjourned the briefing at 5:50 P.M.
Approval:
2
Clerk to the Board