2010/01/04 RESOLUTION DESIGNATING ISSUER AND PROJECTS FOR RECOVERY ZONE FACILITY BONDSEXTRACTS FROM MINUTES OF BOARD OF COMMISSIONER
A regular meeting of the Board of Commissioners of the County of Harnett, North Carolina was
held on Monday, January 4, 2010 at 9:00 a.m. in the County Commissioners' Meeting Room, Harnett
County Administration Building, 102 East Front Street, Lillington, North Carolina, Timothy B. McNeill,
Chairman of the Board of Commissioners of the County of Harnett, North Carolina (the "Board'),
presiding and the following Commissioners present:
The following members were present: Timothy B. McNeill, Chairman
Beatrice B. Hill, Vice Chairman
Jim Burgin, Commissioner
Dan Andrews, Commissioners
Gary House, Commissioner
The following members were absent: N/A
Also present: Scott Sauer, County Manager
Dwight Snow, County Attorney
Sylvia Blinson, Finance Officer
Gina Wheeler, Acting Clerk
Commissioner Andrews introduced the following resolution, a copy of which had been
distributed to each Commissioner and the title of which appeared on the agenda:
RESOLUTION DESIGNATING ISSUER AND PROJECTS
FOR RECOVERY ZONE FACILITY BONDS
WHEREAS, the American Recovery and Reinvestment Act of 2009 (Pub. L. No. 111 -5)
('ARRA ") authorizes a new type of federally tax exempt private activity bonds entitled "recovery zone
facility bonds" (the "RZ Bonds ") in Sections 140OU -1 and 140OU -3 of the Internal Revenue Code of
1986, as amended (the "Code ") to finance construction, renovation, or acquisition of depreciable property
by or for the benefit of a private taxpayer of a qualified business in a recovery zone, with "qualified
business" defined to include any trade or business other than residential rental property and certain
prohibited uses outlined in the Code;
WHEREAS, the Internal Revenue Service (the "IRS ") in Notice 2009 -50 (the "Notice ") allocated
authority to issue RZ Bonds to certain cities and counties in North Carolina in accordance with the
guidelines provided in ARRA, and the Tax Reform Allocation Committee, the entity responsible for
reallocation of any unused recovery zone allocation (the "Committee') has promulgated regulations
relating to the reallocation of that allocated authority in the event that cities and counties are unable to use
their authority to issue RZ Bonds;
WHEREAS, the County received an initial allocation of $8,526,000 for RZ Bonds (the "Initial
Allocation"), and the County has previously designated the entire County as a recovery zone in
accordance with the requirements of ARRA;
WHEREAS, the County has identified approximately $20,350,000 in eligible projects, including
(a) the construction of a 45,000 square foot retail center (the "Retail Center"), (b) the construction of a
65 -unit extended stay hotel (the "Hotel "); (c) the construction of a 11,500 square foot medical office
J
building (the "Medical Office Building"), (d) the construction of a 25,000 square foot self - storage facility
(the "Storage Facility, " and together with the Retail Center, the Hotel and the Medical Office Building,
the "Stafford Projects ") and (e) the construction of an intermodal transportation facility and related
railroad spur (the "Intermodal Facility, " and together with the Stafford Projects, the "RZ Bond
Projects ");
WHEREAS, Stafford Land Company, Inc. ( "Stafford ") and Brown Street Associates, LLC
( "Brown Street, " and together with Stafford, the "Companies") have requested that the County assist
with the financing of their respective RZ Bond Projects through the issuance of industrial development
revenue bonds by the Harnett County Industrial Facilities and Pollution Control Authority (the
"Authority") during calendar year 2010;
WHEREAS, Stafford has agreed to secure the repayment of the Bonds issued to finance the
construction of the Stafford Projects, and Brown Street has agreed to secure the repayment of the Bonds
issued to finance the construction of the Intermodal Facility;
WHEREAS, the Companies have requested that the County (a) use its Initial Allocation to finance
the RZ Bond Projects through the issuance of RZ Bonds, (b) designate the Authority as the issuer of such
RZ Bonds and (c) request the Committee to reallocate up to $11,824,000 in additional recovery zone
facility bond authorization to the County to be used to finance the RZ Bond Projects; and
NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the County of
Harnett that:
Section L The County hereby designates (1) its Initial Allocation in the amount of $8,526,000
for the financing of the RZ Bond Projects through the issuance of RZ Bonds and (2) the Authority as the
issuer of the RZ Bonds to finance the RZ Bond Projects.
Section 2. The County hereby requests that the Committee reallocate to the County an
additional $11,824,000 of recovery zone facility bond authorization to be used by the Authority to finance
the RZ Bond Projects through the issuance of RZ Bonds.
Section 3. The officers of the County are hereby authorized and directed to take such further
actions as may be required in furtherance of this resolution, including filing such forms as may be
required with the Committee in order to designate the use of its recovery zone facility bonds allocation for
the RZ Bond Projects and to request reallocation of additional recovery zone bond authorization to
finance the RZ Bond Projects.
Section 4. The Clerk to the Board is directed, if requested or imposed by law, to file a
certified copy of this resolution with the Authority, the Department of Commerce or any other
governmental agency required by law.
Section S. If any section, phrase or provision of this Resolution is for any reason declared to
be invalid, such declaration shall not affect the validity of the remainder of the sections, phrases or
provisions of this Resolution.
Section 6. All motions, orders, resolutions and parts thereof, in conflict with this resolution
are hereby repealed.
Section 7. This Resolution is effective on the date of its adoption.
STATE OF NORTH CAROLINA
SS:
COUNTY OF HARNETT
I, Margaret R. Daniel, Acting Clerk to the Board of Commissioners of the County of Harnett,
North Carolina, DO HEREBY CERTIFY that the foregoing is a true and exact copy of a resolution titled
"RESOLUTION DESIGNATING ISSUER AND PROJECTS FOR RECOVERY ZONE FACILITY BONDS" adopted by
the Board of Commissioners of the County of Harnett, North Carolina in regular session convened on the
4`s day of January, 2010, as recorded in the minutes of the Board of Commissioners of the County of
Harnett, North Carolina.
WITNESS, my hand and the seal of the County of Harnett, North Carolina, this the 4th day of
January, 2010.
GOMM ''f�,
(SEAr�pO Ss /0^.�:
l
Marga t R. Wheel
Actin Jerk to th oard of Commissioner
County of Harnett, North Carolina