HomeMy WebLinkAbout2012/09/25 RESOLUTION APPROVING AN INSTALLMENT FINANCING CONTRACT & A DEED OF TRUST W/RESPECT THERETO & DELIVERY THEREOF & PROVIDING FOR CERTAN OTHER MATTERS HARNETT MIDDLE SCHOOLParker Poe Draft — 09/17/12
EXTRACTS FROM MINUTES OF BOARD OF COMMISSIONERS
A special meeting of the Board of Commissioners (the "Board") of the County of Harnett, North
Carolina was duly called and held on Monday, September 25, 2012, at 7:00 p.m. at Benhaven Elementary
School, 2815 Olivia Road, Olivia, North Carolina 28368, 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
Chairman McNeill 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 political subdivision
validly existing under the Constitution, statutes and laws of the State (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 purchase contracts to finance the
purchase or improvement 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 or improved to secure repayment of
the purchase price;
WHEREAS, the Board of Commissioners of the County (the "Board") has previously determined
that it is in the best interest of the County to enter into (1) an installment financing contract with the
Harnett County Public Facilities Corporation, a North Carolina nonprofit corporation
(the "Corporation "), in order to pay the capital costs of acquiring; constructing, furnishing and equipping
a new Highland Middle School (the "Project ") and (2) a deed of trust, security agreement and fixture
filing (the "Deed of Trust') related to all or a portion of the County's fee simple interest in the real
property on which Highland Middle School will be located, together with the improvements thereon, to
provide security for the County's obligations under the Contract;
WHEREAS, the Corporation will execute and deliver (1) its Limited Obligation Bonds (County of
Harnett, North Carolina), Series 2012A (the "2012A Bonds "), and (2) its Taxable Limited Obligation
Bonds (County of Harnett, North Carolina, Qualified School Construction Bonds), Series 2012B
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(the "1012B Bonds," and together with the 2012A Bonds, the "Bonds "), in an aggregate principal amount
not to exceed $31,500,000, each evidencing proportionate undivided interests in rights to receive certain
Revenues (as defined in the Contract) pursuant to the Contract;
WHEREAS, the County intends (1) to designate the 2012B Bonds as "qualified school
construction bonds" under Section 54F of the Internal Revenue Code of 1986, as amended (the "Code ")
and (2) to elect to receive a direct payment from the United States Treasury Department equal to the
credit amount allowable pursuant to Section 6431 of the Code with respect to the 2012B Bonds;
WHEREAS, in connection with the sale of the Bonds by the Corporation to Merrill Lynch, Pierce,
Fenner & Smith Incorporated and Robert W. Baird & Co. (collectively, the "Underwriters "), the
Corporation will enter into a Contract of Purchase to be dated on or about November 1, 2012
(the "Contract of Purchase ") between the Corporation and the Underwriters relating to the Bonds, and the
County will execute a Letter of Representation to the Underwriters with respect to the Bonds (the "Letter
of Representation ");
WHEREAS, there have been described to the Board the forms of the following documents
(collectively, the "Instruments "), copies of which have been made available to the Board, which the
Board proposes to approve, enter into and deliver, as applicable, to effectuate the proposed installment
financing:
(1) the Contract;
(2) the Deed of Trust;
(3) an Indenture of Trust dated as of November 1, 2012 (the "Indenture ")
between the Corporation and U.S. Bank National Association, as trustee;
(4) the Contract of Purchase;
(5) the Letter of Representation;
(6) a Lease dated as of November 1, 2012 (the "Lease ") between the County
and the Harnett County Board of Education (the "School Board"); and
(7) an Agency Agreement dated as of November 1, 2012 (the "Agency
Agreement," and together with the Lease, the "School Documents ") between the County
and the School Board;
WHEREAS, to make an offering and sale of the Bonds, there will be prepared a Preliminary
Official Statement with respect to the Bonds (the "Preliminary Official Statement"), a draft thereof having
been presented to the Board, and a final Official Statement relating to the Preliminary Official Statement
(together with the Preliminary Official Statement, the "Official Statement'), which Official Statement will
contain certain information regarding the County;
WHEREAS, it appears that each of the Instruments and the Preliminary Official Statement are in
an appropriate form and is an appropriate instrument for the purposes intended;
WHEREAS, the Board did conduct a public hearing on September 4, 2012, to receive public
comment on the proposed Contract and the Project; and
WHEREAS, the County has filed an application to the LGC for approval of the Contract;
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NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF
THE COUNTY OF HARNETT, NORTH CAROLINA, AS FOLLOWS:
Section 1. Ratification of Instruments. All actions of the County, the Chairman of the Board
(the "Chairman "), the Clerk to the Board (the "Clerle'), the County Manager, the Finance Officer of the
County, the County Attorney and their respective designees, whether previously or hereinafter taken, in
effectuating the proposed financing are hereby approved, ratified and authorized pursuant to and in
accordance with the transactions contemplated by the Instruments.
Section 2. Authorization of the Official Statement. The form, terms and content of the
Preliminary Official Statement are in all respects authorized, approved and confirmed, and the use of the
Preliminary Official Statement and of the final Official Statement by the Underwriters in connection with
the sale of the Bonds is hereby in all respects authorized, approved and confirmed. The Chairman, the
County Manager and the Finance Officer are each hereby authorized and directed to deliver, on behalf of
the County, the Official Statement in substantially such form, with such changes, insertions and omissions
as each may approve.
Section 3. Authorization to Execute the Contract The County approves the acquisition of the
Project 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 form and content of the Contract are hereby in all respects
authorized, approved and confirmed, and the Chairman, the Clerk and the County Manager and their
respective designees are hereby authorized, empowered and directed to execute and deliver the Contract,
including necessary counterparts, in substantially the form and content 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 the County's approval of any and
all changes, modifications, additions or deletions therein from the form and content of the Contract
presented to the Board. From and after the execution and delivery of the Contract, the Chairman, the
Clerk, the County Manager and the Finance Officer of the County are hereby authorized, empowered and
directed 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 4. Authorization to Execute the Deed of Trust The County approves the form and
content of the Deed of Trust, and the Deed of Trust is in all respects authorized, approved and confirmed.
The Chairman, the Clerk and the County Manager and their respective designees are hereby authorized,
empowered and directed to execute and deliver the Deed of Trust, including necessary counterparts, in
substantially the form and content 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 the County's approval of any and all changes, modifications, additions
or deletions therein from the form and content of the Deed of Trust presented to the Board. From and
after the execution and delivery of the Deed of Trust, the Chairman, the Clerk, the County Manager and
the Finance Officer of the County are hereby authorized, empowered and directed 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 5. Letter of Representation.. The form and content of the Letter of Representation are
hereby in all respects approved, and the Chairman or the County Manager is authorized to execute the
Letter of Representation for the purposes stated therein.
Section 6. Authorization to Execute the School Documents. The County approves the form and
content of each of the School Documents, and each of the School Documents is in all respects authorized,
approved and confirmed. The Chairman, the Clerk and the County Manager and their respective
designees are hereby authorized, empowered and directed to execute and deliver each of the School
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Documents, including necessary counterparts, in substantially the form and content 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 the County's
approval of any and all changes, modifications, additions or deletions therein from the form and content
of each of the School Documents presented to the Board. From and after the execution and delivery of
the School Documents, the Chairman, the Clerk, the County Manager and the Finance Officer of the
County are hereby authorized, empowered and directed 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 each School
Document as executed.
Section 7. County Representative. The Chairman, the County Manager and the Finance Officer
of the County are hereby designated as the County's Representative to act on behalf of the County in
connection with the transactions contemplated by the Instruments and the Preliminary Official Statement,
and the Chairman, the County Manager and the Finance Officer are authorized to proceed with the
acquisition of the Project in accordance with the Instruments and to seek opinions as a matter 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 by this Resolution as required
by law. The County's representatives or designees are in all respects authorized on behalf of the County
to supply all information pertaining to the County for use in the Official Statement and the transactions
contemplated by the Instruments or the Preliminary Official Statement. The County's representatives or
their respective designees are hereby authorized, empowered and directed to do any and all other acts and
to execute any and all other documents, which they, in their discretion, deem necessary or appropriate to
consummate the transactions contemplated by the Instruments or the Preliminary Official Statement or as
they deem necessary or appropriate to implement and carry out the intent and purposes of this Resolution.
Section 8. Severability. 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 9. Repealer. All motions, orders, resolutions and parts thereof, in conflict herewith ar_ e
hereby repealed.
Section 10. Effective Date. This Resolution is effective on the date of its adoption.
On motion of Commissioner House, seconded by Commissioner Andrews, 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: 5
NAYS: 0
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STATE OF NORTH CAROLINA
ss:
COUNTY OF HARNETT
I, 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 IIARNETT, 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 by the Board of Commissioners of the County of Harnett, North Carolina at a special
meeting held on the 25" day of September, 2012.
WITNESS my hand and the corporate seal of the County of Harnett, North Carolina, this the 25th
day of September, 2012.
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Gina Wheeler
From:
Gina Wheeler
Sent:
Thursday, September 27, 2012 11:13 AM
To:
'Juby, P. Michael`, Cole, Ted; Sylvia Blinson; Kimbedy.A.,Honeycutt
Cc:
_Bob Troutman'; Tom Frye; Scott Sauer- -
Subject:
approved resolution
Attachments:
SAdmin C28012092711060.pdf
Importance: High
Please find attached a scanned color copy of the 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.