HomeMy WebLinkAboutC.054.93008_1763 (2)13 It;
F & F Builders, Inc. $59,547
John R. Kurfees & Assoc. 64,271
Brawley Construction Company 68,114
E. J. Brown & Associates 77,239
Commissioner Murdock asked if this would complete the renovation work. The county manager
responded that it would as far as we knew. It is basically just going in and doing additional
plumbing and installing a new entrance for fire codes.
MOTION from Commissioner Bryan to give the bid to F & F Builders at $59,547.
VOTING: Ayes - 4; Nays - 0.
KEWAUNEE BUILDING FINANCING DOCUMENTS: The county attorney briefed the group about the county
negotiating an option to acquire a building presently occupied by Kewaunee Scientific Corporation on
Highway 21 North. The matter was originally scheduled to close on June 29; however, due to several
people being out of town they were unable to close. The scheduled closing is now set for July 19.
It is unknown whether the county can meet this deadline. The county manager advised that Kewaunee
has asked for a delay of occupancy by the County. They would like to continue to occupy the
building a little longer. Our original agreement stated they could occupy until the end of October.
Kewaunee still would like to close on July 19. The county attorney reminded the group that the
method agreed upon to finance the building was a method known as the lease purchase arrangement.
Under this arrangement a party is found to buy the property and then lease it to the county under
terms such that when the lease is over the property is paid for and then deeded over to the County.
This is a method permissible under the general Statutes. The county can walk away from the
transaction at the end of any given year. It might be at any given month; however, the documents
state at the end of a given year with no penalty and what the county would have paid up to that time
would have been rent. Naturally, the longer a party stays in the lease the more they would not want
to walk away. The documents specifically provide that the taxing authority and the faith and credit
of the county are not pledged to secure the lease so there is no penalty for the county to enter the ..,.
arrangement. The lease purchase agreement has been reviewed and there are a few minor, typographi-
cal errors, but nothing that would alter its basic content. A schedule of payments has been given,
which shows payments to the year 2000. The agency agreement is necessary because the building is
not usable to the county in its present condition. The bank is entering into this agreement because
the county will have to do $700,0004800,000 worth of renovations to suit its purposes. The lease
is a standard document.
MOTION by Commissioner Bryan and seconded by Commissioner Hedrick to approve the following
resolution for the purchase of the Kewaunee property:
RESOLUTION APPROVING THE EXECUTION AND DELIVERY OF A LEASE/PURCHASE
AGREEMENT AND AN AGENCY AGREEMENT WITH FIRST UNION NATIONAL BANK OF
NORTH CAROLINA IN ORDER TO FINANCE THE ACQUISITION AND IMPROVEMENT
OF THE KEWAUNEE PROPERTY FOR USE BY THE COUNTY DEPARTMENT OF HEALTH.
WHEREAS, the County of Iredell, North Carolina (the "County") and First Union National Bank of
North Carolina (the "Bank") have determined to finance, acquire, construct, renovate, and equip an
existing building currently owned by Kewaunee Scientific Equipment Corporation in the county, and to
that end, have been negotiating certain financing documents pursuant to the authority granted to the
County by Section 153A-165 of the General Statutes of North Carolina; and
WHEREAS, in connection with such financing, it is necessary for the County to approve certain
documents relating thereto and authorize other corporate action in connection therewith; and
WHEREAS, there has been presented at this meeting copies of the following documents relating to
the financing.
(a) a draft of the proposed Lease/Purchase Agreement, dated as of July 19, 1990 (the "Lease"),
among the Bank, as Lessor, the County, as Lessee, and First Union National Bank of North Carolina, ...
Corporate Trust Department, as Escrow Agent;
(b) a draft of the Agency Agreement, dated as of July 19, 1990 (the "Agency Agreement"),
between the Bank and the County; now, therefore,
BE IT RESOLVED by the Board of Commissioners for the County of Iredell:
Section 1. Capitalized words and terms used in this resolution and not defined herein shall
have the same meanings in this resolution as such words and terms are given in the Lease.
Section 2. The forms, terms and provisions of the Lease and the Agency Agreement are hereby
approved in all respects, and Chairman of the Board of Commissioners and the Clerk to the Board of
Commissioners are hereby authorized and directed to execute and deliver the Lease and the Agency
Agreement in substantially the forms presented to this meeting, together with such changes, modifi-
cations and deletions as they, with the advise of counsel, may deem necessary and appropriate; such
execution and delivery shall be conclusive evidence of the approval and authorization thereof by the
County.
Section 3. The officers of the County are authorized and directed (without limitation except
as may be expressly set forth herein) to take such action and to execute and deliver any such
documents, certificates, undertakings, agreements, or other instruments as they, with the advice of
counsel, may deem necessary or appropriate to effect the transactions contemplated by the Lease and
the Agency Agreement.
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