HomeMy WebLinkAbout2011/10/17 RESOLUTION APPROVING AN INSTALLMENT FINANCING CONT & A DEED OF TRUST W/RESPECT THERETO & DELIVERY THEROF & PROVIDING FOR CERTAIN OTHER RELATED MATERIALSEXTRACTS FROM MINUTES OF BOARD OF COMMISSIONERS
A Regular Meeting of the Board of Commissioners (the "Board") of the County of Harnett, North
Carolina was held on Monday, October 17, 2011, at 7:00 p.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,
presiding and the following Commissioners present:
Commissioners Present: Timothy B. McNeill, Chairman
Beatrice B. Hill, Vice Chairman
Dan Andrews, Commissioner
Jim Burgin, Commissioner
Gary House, Commissioner
Commissioners Absent: None
s • • • • r
Commissioner House introduced the following resolution, a summary of which had been
provided to each Commissioner, a copy of which was available with the Clerk to the Board and which
was read by title:
RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE COUNTY OF HARNETT,
NORTH CAROLINA, APPROVING AN INSTALLMENT FINANCING CONTRACT AND A
DEED OF TRUST WITH RESPECT THERETO AND DELIVERY THEREOF AND
PROVIDING FOR CERTAIN OTHER RELATED MATTERS
WHEREAS, the County of Harnett, North Carolina (the "County") is a validly existing political
subdivision of the State of North Carolina, existing as such under and by virtue of the Constitution,
statutes and laws of the State of North Carolina (the "State ");
WHEREAS, the County has the power, pursuant to the General Statutes of North Carolina to
(1) purchase real and personal property, (2) enter into installment financing contracts in order to finance
the purchase of real and personal property used, or to be used, for public purposes, and (3) grant a security
interest in some or all of the property purchased to secure repayment of the purchase price;
WHEREAS, the County has previously executed and delivered an Installment Purchase Contract
dated as of May 15, 2002 (the "Prior Contract") between the County and Harnett County Public Facilities
Corporation (the "Corporation ");
WHEREAS, to secure its obligations under the Prior Contract, the County has previously executed
and delivered a deed of trust encumbering, among other collateral, the site on which Overhills High
School is located (the "Site ") and the improvements thereon;
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WHEREAS, the Board of Commissioners of the County (the "Board") has previously determined
that it is in the best interest of the County to refinance its installment payment obligations under the Prior
Contract;
WHEREAS, the Board hereby determines that it is in the best interest of the County to enter into
an installment financing contract dated as of November 1, 2011 (the "Contract ") with SunTrust Leasing
Corporation (the "Lender") in order to pay the capital costs of refinancing its installment payment
obligations under the Prior Contract;
WHEREAS, the Board hereby further determines that it is in the best interest of the County to
enter into a deed of trust, security agreement and fixture filing in connection with the Contract (the "Deed
of Trust") relating to the County's fee simple interest in the Site and the improvements thereon;
WHEREAS, the Board adopted a resolution on October 3, 2011 making certain findings with
respect to the Contract, the Deed of Trust and the projects to be refinanced thereby;
WHEREAS, the Board conducted a public hearing on October 17, 2011 to receive public
comments on the Contract, the Deed of Trust and the projects to be refinanced thereby;
WHEREAS, the County has filed an application with the LGC for approval of the LGC with
respect to the County entering into the Contract in an aggregate principal amount of not to exceed
$26,000,000 at the interest rate specified in the Contract;
WHEREAS, there has been made available to the Board the forms of the:
(a) the Contract;
(b) the Deed of Trust;
(c) a Lease dated as of November 1, 2011 (the "Lease ") under which the
County will lease the Site and the improvements thereon to the Harnett County Board of
Education; and
(d) an Escrow Agreement dated as of November 1, 2011 (the "Escrow
Agreement") between the County and U.S. Bank National Association, as escrow agent,
relating to the refinancing of the County's payment obligations under the Prior Contract;
(collectively, the "Instruments "), which the County proposes to approve, enter into and deliver, as
applicable, to effectuate the proposed refinancing at an interest rate specified in the Contract; and
WHEREAS, it appears that each of the Instruments is in appropriate form and is an appropriate
instrument for the purposes intended;
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF THE
COUNTY OFHARNETT NORTH CAROLINA, AS FOLLOWS:
Section 1. Ratification of Prior Actions. All actions of the County, the County Manager,
the Finance Officer and the Clerk to the Board and their respective designees in effectuating the proposed
refinancing are hereby approved, ratified and authorized pursuant to and in accordance with the
transactions contemplated by the Instruments.
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Section 2. Approval, Authorization and Execution of Contract. The County hereby
approves the refinancing of the Prior Contract in accordance with the terms of the Contract, which will be
a valid, legal and binding obligation of the County in accordance with its terms. The County hereby
approves the amount advanced by the Lender to the County pursuant to the Contract in an aggregate
principal amount not to exceed $26,000,000 at the interest rate specified in the Contract, such amount to
be repaid by the County to the Lender as provided in the Contract. The form, terms and content of the
Contract are in all respects authorized, approved and confirmed, and the Chairman, the County Manager,
the Finance Officer of the County and the Clerk to the Board or their respective designees are each
authorized, empowered and directed, individually and collectively, to execute and deliver the Contract for
and on behalf of the County, including necessary counterparts, in substantially the form presented to the
Board, but with such changes, modifications, additions or deletions therein as they may deem necessary,
desirable or appropriate, their execution thereof to constitute conclusive evidence of their approval of any
and all such changes, modifications, additions or deletions, and that from and after the execution and
delivery of the Contract, the Chairman, the County Manager, the Finance Officer of the County and the
Clerk to the Board or their respective designees are hereby authorized, empowered and directed,
individually and collectively, to do all such acts and things and to execute all such documents as may be
necessary to carry out and comply with the provisions of the Contract as executed.
Section 3. Approval, Authorization of Deed of Trust. The form, terms and content of the
Deed of Trust are in all respects authorized, approved and confirmed, and the Chairman, the County
Manager, the Finance Officer of the County and the Clerk to the Board or their respective designees are
each authorized, empowered and directed, individually and collectively, to execute and deliver the Deed
of Trust for and on behalf of the County, including necessary counterparts, in substantially the form
presented to the Board, but with such changes, modifications, additions or deletions therein as they may
deem necessary, desirable or appropriate, their execution thereof to constitute conclusive evidence of their
approval of any and all such changes, modifications, additions or deletions, and that from and after the
execution and delivery of the Deed of Trust, the Chairman, the County Manager, the Finance Officer of
the County and the Clerk to the Board or their respective designees are each hereby authorized,
empowered and directed, individually and collectively, to do all such acts and things and to execute all
such documents as may be necessary to carry out and comply with the provisions of the Deed of Trust as
executed.
Section 4. Approval, Authorization of Lease. The form, terms and content of the Lease are
in all respects authorized, approved and confirmed, and the Chairman, the County Manager, the Finance
Officer of the County and the Clerk to the Board or their respective designees are each authorized,
empowered and directed, individually and collectively, to execute and deliver the Lease for and on behalf
of the County, including necessary counterparts, in substantially the form presented to the Board, but with
such changes, modifications, additions or deletions therein as they may deem necessary, desirable or
appropriate, their execution thereof to constitute conclusive evidence of their approval of any and all such
changes, modifications, additions or deletions, and that from and after the execution and delivery of the
Lease, the Chairman, the County Manager, the Finance Officer of the County and the Clerk to the Board
or their respective designees are each hereby authorized, empowered and directed, individually and
collectively, to do all such acts and things and to execute all such documents as may be necessary to carry
out and comply with the provisions of the Lease as executed.
Section 5. Approval, Authorization of Escrow Agreement The form, terms and content of
the Escrow Agreement are in all respects authorized, approved and confirmed, and the Chairman, the
County Manager, the Finance Officer of the County and the Clerk to the Board or their respective
designees are each authorized, empowered and directed, individually and collectively, to execute and
deliver the Escrow Agreement for and on behalf of the County, including necessary counterparts, in
substantially the form presented to the Board, but with such changes, modifications, additions or deletions
therein as they may deem necessary, desirable or appropriate, their execution thereof to constitute
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conclusive evidence of their approval of any and all such changes, modifications, additions or deletions,
and that from and after the execution and delivery of the Escrow Agreement, the Chairman, the County
Manager, the Finance Officer of the County and the Clerk to the Board or their respective designees are
each hereby authorized, empowered and directed, individually and collectively, to do all such acts and
things and to execute all such documents as may be necessary to carry out and comply with the provisions
of the Escrow Agreement as executed.
Section 6. Further Actions. The County Manager, the Chairman of the Board and the
Finance Officer of the County are each hereby designated as the County's representatives to act on behalf
of the County in connection with the transactions contemplated by the Instruments, and the County
Manager, the Chairman of the Board and the Finance Officer of the County are each authorized and
directed, individually and collectively, to proceed with the refinancing of the Prior Contract in accordance
with the terms of the instruments, and to seek opinions on matters of law from the County Attorney,
which the County Attorney is authorized to furnish on behalf of the County, and opinions of law from
such other attorneys for all documents contemplated hereby as required by law. The Chairman, the
County Manager and the Finance Officer of the County are each hereby authorized to designate one or
more employees of the County to take all actions which the Chairman, the County Manager and the
Finance Officer of the County are each authorized to perform under this Resolution, and the Chairman,
the County Manager, the Finance Officer of the County or their designees are each in all respects
authorized on behalf of the County, individually and collectively, to supply all information pertaining to
the transactions contemplated by the Instruments. The Chairman of the Board, the County Manager, the
Finance Officer of the County and the Clerk to the Board are authorized, individually and collectively, to
execute and deliver for and on behalf of the County any and all additional certificates, documents,
opinions or other papers and perform all other acts as may be required by the Instruments or as they may
deem necessary or appropriate to implement and carry out the intent and purposes of this Resolution.
Section 7. Repealer. All motions, orders, resolutions, ordinances and parts thereof in
conflict herewith are hereby repealed.
Section 8. Severability. If any section, phrase or provision of this Resolution is for any
reason declared to be invalid, such declaration will not affect the validity of the remainder of the sections,
phrases or provisions of this Resolution.
Section 9. Effective Date. This Resolution is effective on the date of its adoption.
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On motion of Commissioner House, seconded by Vice Chairman Hill, the foregoing resolution entitled
"RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE COUNTY OF HARNETT, NORTH
CAROLINA, APPROVING AN INSTALLMENT FINANCING CONTRACT AND A DEED OF TRUST WITH
RESPECT THERETO AND DELIVERY THEREOF AND PROVIDING FOR CERTAIN OTHER RELATED
MATTERS" was duly adopted by the following vote:
AYES:
NAYS:
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STATE OF NORTH CAROLINA
611.1
COUNTY OF HARNETT
1, MARGARET REGINA WHEELER, 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
entitled "RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE COUNTY OF HARNETT, NORTH
CAROLINA, APPROVING AN INSTALLMENT FINANCING CONTRACT AND A DEED OF TRUST WITH
RESPECT THERETO AND DELIVERY THEREOF AND PROVIDING FOR CERTAIN OTHER RELATED
MATTERS" adopted bz the Board of Commissioners of the County of Harnett, North Carolina at a
meeting held on the 17 day of October, 2011.
WITNESS my hand and the corporate seal of the County of Harnett, North Carolina, this the 17th
day of October, 2011.
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