HomeMy WebLinkAboutSeptember_30_2008_MinutesIREDELL COUNTY BOARD OF COMMISSIONERS
SEPTEMBER 30, 2008 MINUTES — CONTINUATION
OF THE SEPTEMBER 16 2008 REGULAR MEETING
The Iredell County Board of Commissioners met on Tuesday, September 30, 2008, at
7:00 P.M., in the Iredell County Government Center (Commissioners' Meeting Room) 200
South Center Street, Statesville, NC. (The meeting was a continuation of the
September 16, 2008 meeting.)
Board Members Present
Chairman Marvin Norman
Vice Chairman Sara Haire Tice
Steve Johnson
Godfrey Williams
Absent: Ken Robertson
Staff present: County Manager Joel Mashburn, County Attorney William Pope, Deputy
County Manager Susan Blumenstein, and Clerk to the Board Jean C. Moore.
CALL TO ORDER by Chairman Norman.
INVOCATION by Commissioner Johnson
PLEDGE OF ALLEGIANCE
(Note: The public hearing previously scheduled.for this date was cancelled.)
REQUEST TO AUTHORIZE THE DIRECTOR OF FINANCE AND
ADMINISTRATION TO SEEK PROPOSALS FOR THE REFINANCING OF THE
OUTSTANDING 2003 INSTALLMENT PAYMENT REVENUE REFUNDING BOND:
Deputy County Manager Susan Blumenstein said the public hearing originally scheduled for this
evening was cancelled. She said a recent discussion with the Local Government Commission
revealed the county would not achieve any savings by terminating the Ambac Bond Insurance on
the 2003 Installment Payment Refunding Bond. Blumenstein said the current unstability in the
bond market, and other events, had increased the variable bond rate to the 7.5-8% range, and this
was four times the variable rate seen earlier this month. She said at the present time, the supply
of variable rate bonds was high and the demand low. Mrs. Blumenstein said a different option
was now recommended.
Blumenstein said the county could refund or refinance the outstanding bonds with a fixed
rate, direct placement loan. She requested authorization to seek RFPs by October 13 and to share
the results at a November meeting.
Attorney Pope asked how many institutions would receive the RFPs.
Blumenstein said normally five; however, only three might be sent.
Commissioner Johnson mentioned there might be little or no response.
Blumenstein agreed. She said a fixed interest rate would be requested. She mentioned
the bonds had only 12 years remaining on them.
MOTION by Commissioner Tice to Authorize the Director of Finance and
Administration to seek Proposals for Refinancing the Outstanding 2003 Installment Payment
Revenue Refunding Bond.
VOTING: Ayes — 4; Nays — 0.
CLOSED SESSION: OTION by Commissioner Johnson at 7:10 P.M., to enter into
Closed Session pursuant to Economic Development — G.S. 143-318.11 (a) 4.
VOTING: Ayes — 4; Nays — 0.
(RETURN TO OPEN SESSION AT 7:35 P.M.)
MODIFICATION TO THE ECONOMIC DEVELOPMENT AGREEMENT WITH
PROVIDENCIA USA, INC: MOTION by Commissioner Tice to modify the terms of the
Joint Economic Development Agreement with Providencia USA, Inc., as contained in a memo
from Mike Smith, with the Greater Statesville Development Corporation, and with the
incentives to be paid if the company achieves 90% of the Phase One Investment ($54,000,000).
VOTING: Ayes — 4; Nays — 0.
The referenced memo from Smith is as follows:
Greater Statesville
North Carolina
Development Corporation September 30, 2008
Providencia USA Over 5 years; $120,00,000 investment, 88 new jobs.
Providencia is the largest announced manufacturing investment in Iredell County since
1988. City and County to jointly purchase and ]told 43 acres at West Industrial Park.
Phase One Investment: *860,000,000. 56 new full time jobs average wage, 819.95 per
hour, plus 50% of healthcare benefits for the employees. ($41,496 annually)
Phase 'pwo: Additional investment and jobs: $60,000,000 total of 8120,000,000.
32 jobs, total of 88 in 5 vears. Phase one completed by December 31, 2010. Phase two
completed by December 31, 2014. County and City will purchase 43 acres at $28,000 per
ac- $1,204,000, plus closing costs. Incentive plan based upon the above investment in
two phases. County will deduct 1/6 of incentiN es each year to pay down land cost. At the end
of six years, after the above investments and jobs have been made., County and City will deed
over 43 ac to company.
As County is working with Providencia and the Dept of Commerce to leverage CDBG funds, the
County will also deduct $188,000 of earned incentives as part of the rail match.
If the company does not make the stated investment and job creation by 2014, company will
pay County and Cih6% interest on the $1,204,000, and will forfeit the 611' Near of the industrial
grant program.
This project was drix en by an outstanding location, labor force, logistics advantages, tax rates
and utility cost advantages.
The County and City had an incredible amount of teamwork and responsic eness on this project,
and was another major factor in the decision making process.
*Note: The company officials requested that $54,000,000 be used, rather than $60,000,000
for the Phase One investment.
(See September 2, 2008 Regular Minutes for additional information.)
ADJOURNMENT: MOTION by Commissioner Tice to adjourn the meeting that 7:35
P.M. (NEXT MEETING: Tuesday, October 7, 2008 in the Iredell County Government Center,
200 South Center Street, Statesville, NC.)
VOTING: Ayes — 4; Nays — 0.
Approval:
Clerk to the Board