[Call to Order]
[00:00:07]
I WOULD LIKE TO SAY GOOD EVENING TO EVERYONE AND WELCOME TO OUR OCTOBER 5TH, 2026 BOARD OF SUPERVISORS SPECIAL CALL MEETING.
I WOULD NOW LIKE TO CALL THIS MEETING TO ORDER.
BEFORE WE BEGIN OUR MEETING, I WOULD ASK INTERIM COUNTY ADMINISTRATOR FOR A ROLL CALL.
SUPERVISOR VICE CHAIRMAN HARDY.
THANK YOU FOR THAT, MR. HARRISON.
[New Business]
YOU HAVE, UH, OUR AGENDA BEFORE US THIS EVENING.WE HAVE ONE BUSINESS OF ACT, UM, NEW BUSINESS, ONE NEW BUSINESS ITEM TONIGHT, AND THAT IS THE CONSIDERATION OF APPROVAL OF EDA FINANCING FOR COUNTY YMCA PROJECT.
I HAVE MR. UH, KYLE LUX HERE OF DAVENPORT AND COMPANY.
I'LL ASK IF YOU PLEASE APPROACH THE PODIUM.
YES, SIR, MR. CHAIR, MEMBERS OF THE BOARD.
UM, AS ALWAYS AGAIN, KYLE LUX WITH DAVENPORT.
UM, JUST A LITTLE BIT OF AN UPDATE HERE FOR YOU AS A BOARD.
UM, YOU MAY RECALL JUST A COUPLE WEEKS AGO, WE WERE TALKING ABOUT THE FINANCING FOR THE YMCA, UM, AND HOW WE HAD GONE THROUGH A BIDDING PROCESS AND HUNTINGTON BANK WAS THE BID THAT WAS THE BEST BID, UM, THROUGH A COMPETITIVE PROCESS.
AND YOU OBVIOUSLY SAW THAT AS BOARD OF SUPERVISORS AND, AND, UH, AUTHORIZED MOVING FORWARD WITH THAT.
PART OF THAT PROCESS WAS THEN, UH, TO MOVE TOWARDS, UH, TODAY REALLY, UM, WHEREBY THE EDA, THE COUNTY'S EDA, VIA THE LEGAL STRUCTURE THAT GEORGE SCRUGGS, YOUR BOND COUNSEL WILL EXPLAIN IN A LITTLE MORE DETAIL, SERVES AS A CONDUIT ISSUER.
UM, THAT CONDUIT IS, UH, USED THAT TERM PURPOSELY IN SO FAR AS THAT EDA REALLY ONLY SERVES AS A CONDUIT.
THE LOAN HERE AND THE REPAYMENT OBLIGATION RESTS WITH THE BOARD OF SUPERVISORS LIKE WE'VE TALKED ABOUT FOR THE LAST YEAR PLUS.
SO AT THAT EDA MEETING, UM, THERE WAS BOTH A PUBLIC HEARING THAT WAS HELD, GEORGE WILL DESCRIBE THAT, UM, AND ALSO THE EDA APPROVED THEIR RESOLUTION UNANIMOUSLY TO MOVE FORWARD WITH THE FINANCING PROCESS.
AND SO WITH THE FINAL PROCESS IN TERMS OF MOVING FORWARD WITH THIS LOAN FOR THE YMCA, JUST LIKE WE'VE TALKED ABOUT A COUPLE WEEKS AGO, IS FOR THIS BOARD, YOUR BOARD OF SUPERVISORS TO APPROVE A RESOLUTION THAT I THINK I'LL TURN IT TO GEORGE HERE IN A MOMENT TO DESCRIBE.
UM, AND THEN THAT WILL BE THE FINAL ACTION THAT IS NEEDED OF, OF THE COUNTY.
UM, MR. CHAIRMAN, UH, MEMBERS OF THE BOARD, GEORGE SCRUGGS WITH KUTAK ROCK.
UH, JUST A BIT OF A RECAP HERE ON, UH, I BELIEVE SEPTEMBER 17TH, THIS BOARD ASKED THE EDA TO ASSIST WITH THE YMCA PROJECT.
UH, THE EDA BOARD MET EARLIER TODAY AND, UH, APPROVED A RESOLUTION FOR THAT PROJECT.
UH, THE RESOLUTION BEFORE YOU TODAY DOES A COUPLE THINGS.
UM, STATE LAW AND FEDERAL TAX LAW REQUIRES YOU TO APPROVE THE PUBLIC HEARING THAT THE EDA HAD FOR THIS PROJECT.
AND THAT, THAT'S ONE COMPONENT OF THIS RESOLUTION BEFORE YOU.
THE OTHER COMPONENT OF THE RESOLUTION IS ACTUALLY APPROVING THE DOCUMENTS FOR THE FINANCING ITSELF.
THIS IS A, UH, LEASE REVENUE STRUCTURE.
UH, FROM THE AUTHORITY'S PERSPECTIVE, IT'S A LEASE REVENUE BOND STRUCTURE BECAUSE THE AUTHORITY'S ISSUING A BOND.
WHAT THE COUNTY IS DOING IS ENTERING INTO TWO LEASES WITH THE AUTHORITY.
UH, THE YMCA SITE IS BEING LEASED TO THE EDA.
THE EDA THEN LEASES THE SITE BACK TO THE COUNTY FOR CONSTRUCTION OF THE PROJECT.
UNDER THE LEASE BACK TO THE, UH, THE COUNTY, THE COUNTY AGREES TO MAKE CERTAIN RENTAL PAYMENTS.
THOSE RENTAL PAYMENTS ARE MATCHED UP EXACTLY TO THE DEBT SERVICE ON THE BONDS.
AND THE DOCUMENTS THEN, UH, ASSIGN THOSE PAYMENTS AS SECURITY FOR THE BONDS.
UH, SO IN ESSENCE, THAT'S, THAT'S THE STRUCTURE OF THE TRANSACTION.
UH, THE, UH, PAYMENTS BY THE COUNTY UNDER THE LEASE ARE SUBJECT TO APPROPRIATION.
SO EACH, EACH YEAR, THE BOARD WOULD, UH, BE REQUIRED TO CONSIDER MAKING AN APPROPRIATION TO, TO MAKE THE LEASE PAYMENT.
AND WE, UH, HAVE A DOCUMENT THAT WE'VE STRUCTURED TO KIND OF MEMORIALIZE THAT PROCESS CALLED A COOPERATION AND SUPPORT AGREEMENT.
AND WHAT THAT DOES IS ESSENTIALLY TELLS THE COUNTY ADMINISTRATOR IN EACH YEAR TO PUT THE AMOUNT, UH, FOR, UH, FOR THE DEBT SERVICE ON THE BOND, LEASE PAYMENT AND THE BUDGET, AND THE COUNTY WOULD CONSIDER IT AND VOTE IT UP OR DOWN.
AND OBVIOUSLY THE ABILITY TO, UH, TO, TO APPROPRIATE OR NOT IS WITHIN THE DISCRETION OF THE BOARD.
UH, AND THAT'S KIND OF A RISK OF THESE TYPE OF TRANSACTIONS, BUT IT'S A RISK THAT PEOPLE ARE WELL AWARE OF AND ARE WILLING TO TAKE.
UH, AS I INDICATED WELL AT THE OTHER MEETING THAT, UH, AS PART OF THIS TRANSACTION, THE COUNTY IS PUTTING A LEASEHOLD DEED OF TRUST ON THE COUNTY'S LEASEHOLD INTEREST IN THE PROJ- PROJECT.
[00:05:01]
IN THE EVENT THE COUNTY ELECTED EITHER NOT TO PAY IF FUNDS WERE APPROPRIATED AND THE FUNDS, UH, HAVE BEEN APPROPRIATE OR HAVE NOT BEEN APPROPRIATED AND COULD NOT PAY, THAT WOULD GIVE THE LENDER, THE BANK, THE ABILITY TO COME IN AND DISPOSSESS THE, UH, COUNTY FROM THE PROPERTY FOR THE LEASE TERM.UH, AND THE LEASE TERM HERE IS, IS 20 YEARS.
UH, IN THE EVENT THE COUNTY DIDN'T PAY AND THE BANK DID ELECT TO EXERCISE REMEDIES, IF THE COUNTY DIDN'T CHANGE ITS MIND AND THEN DID PAY, THE COUNTY WOULD, OF COURSE, BE BACK, UH, ON THE PROPERTY WITH, WITH THE PROJECT.
UM, THAT IS, UH, SORT OF THE, UH, FINANCING STRUCTURE IN A NUTSHELL.
IT'S, UH, REALLY NOT A NEW FINANCING STRUCTURE FOR THE COUNTY.
IT'S NEW THROUGH THE EDA, BUT, UH, THE COUNTY HAS DONE A NUMBER OF PROJECTS USING THIS STRUCTURE, USING BRA FOR THIS BUILDING AND SEVERAL OTHER PROJECTS IN THE COUNTY.
UM, IF YOU HAVE ANY OTHER SPECIFIC QUESTIONS ABOUT THE RESOLUTIONS OR DOCUMENTS, I'M, I'M HERE AND HAPPY TO ANSWER.
THANK YOU FOR THAT, MR. SCRUGGS.
BOARD OF SUPERVISORS, YOU HAVE LISTENED TO MR. LOCKS AND MR. SWIRK'S, UH, PRESENTATIONS THIS EVENING.
DO YOU HAVE ANY QUESTIONS FOR EITHER? THANK YOU.
SO BOARD MEMBERS, UH, BEFORE YOU'RE ON YOUR SCREEN, YOU HAVE THE ACTUAL RESOLUTION.
THERE'S BEEN A TYPO IN THE RESOLUTION THAT WAS GIVEN TO US, BUT IF YOU LOOK ON YOUR SCREENS, YOU ACTUALLY HAVE IT BEFORE YOU.
I'LL GIVE YOU A FEW MOMENTS TO TAKE A LOOK AT IT.
SO THE DOCUMENTS THAT I HANDED YOU AT THE DAIS, UM, THOSE DOCUMENTS WERE PREPARED FOLLOWING THE EDA MEETING.
THOSE COULD NOT BE PREPARED UNTIL AFTER THE EDA MEETING.
THOSE INCLUDE A SUMMARY OF THE PUBLIC COMMENTS THAT WERE RECEIVED DURING THE PUBLIC HEARING, AS WELL AS AN AFFIDAVIT, UH, FROM THE NEWSPAPER DOCUMENTING THAT THERE WAS AN ADVERTISED PUBLIC HEARING.
UM, IN ADDITION TO THAT, THERE IS THE, THE EDA'S RESOLUTION THAT THE EDA APPROVED.
THIS RESOLUTION THAT'S UP ON YOUR SCREEN, UM, THAT HAS BEEN UP ON OUR WEBSITE, UM, AND THAT IS THE RESOLUTION THAT WE ARE ASKING THE BOARD TO APPROVE.
UM, JUST TO, TO CLARIFY, IT'S A L- LOT OF DOCUMENTATION.
UM, AND AT THIS POINT RIGHT NOW, WE DID HAVE THE OPPORTUNITY TO UPLOAD THOSE DOCUMENTS THAT WERE HANDED TO YOU AT THE DAIS.
UH, THOSE ARE NOW ON OUR WEBSITE.
THANK YOU FOR THAT CLARITY FOR THAT, MS. PERKINS.
SO WITH THAT BEING SAID, UM, BOARD MEMBERS, IF YOU HAVE ANY OTHER, IF YOU DON'T HAVE ANY QUESTIONS FOR, UH, STAFF, MR. DAVENPORT, MR. SCRUGGS, OR MS. PERKINS, I WILL NOW ASK, UH, WHAT IS YOUR PLEASURE? CHAIR.
I'D LIKE TO MAKE A MOTION THAT WE APPROVE THE RESOLUTION, APPROVING THE ISSUANCE OF BONDS BY THE ECONOMIC DEVELOPMENT AUTHORITY FOR THE YMCA PROJECT AND FURTHER AUTHORIZE THE COUNTY TO ENTER INTO AND DELIVER ALL BOND RELATED DOCUMENTS.
THERE'S A MOTION ON THE FLOOR.
IT'S BEEN PROPERLY MOVED BY SUPERVISOR HARDING, SECOND BY SUPERVISOR ELLIOT, THAT WE APPROVE THE RESOLUTION, APPROVING THE ISSUANCE OF BONDS BY THE ECONOMIC DEVELOPMENT AUTHORITY FOR THE YMCA PROJECT AND FURTHER AUTHORIZE THE COUNTY TO ENTER INTO ANY AND, EXCUSE ME, ENTER INTO AND DELIVER ALL BONDS RELATED DOCUMENTS.
IS THERE ANY QUESTIONS ON SAID MOTION? HEARING NONE, WE'LL NOW VOTE.
ALL IN FAVOR OF SAID MOTION, SIGNIFY YOUR VOTE BY SAYING AYE.
NEXT ON OUR AGENDA, WE HAVE OUR ADJOURNMENT.
I'LL NOW ASK A MOTION FROM OUR SUPERVISORS.
IT'S BEEN PROPERLY MOVED AND SECOND THAT WE ADJOURN TO OUR NEXT SCHEDULED BOARD MEETING.
IS THERE ANY DISCUSSION? HEARING NONE, WE'LL NOW VOTE.
ALL IN FAVOR SAY A MOTION TO SIGNIFY YOUR VOTE BY SAYING AYE.