HomeMy WebLinkAboutC.054.93011_1294 (2)agreement in principle and request the Local Government Commission to allocate a part of the
private activity bond limit to the transaction. Pope said bond proceeds totaling up to $3.5 million
would be loaned to Riley, and a letter of credit issued ;tom a banking institution would secure the
loan. Mr. Pope recommended approval, and he said the county had no exposure in the
transaction.
No one else desired to speak, and Chairman Tice adjourned the hearing.
Chairman Tice introduced the following resolution, the title of which was read:
APPROVAL IN PRINCIPLE OF INDUSTRIAL PROJECT FOR RILEY TECHNOLOGIES, INC,
AND THE FINANCING THEREOF WITH INDUSTRIAL DEVELOPMENT REVENUE BONDS IN
THE PRINCIPAL AMOUNT OF UP TO $3,500,000
WHEREAS, The Iredell County Industrial Facilities and Pollution Control Financing Authority
(the "Authority') has agreed to assist in the financing under the North Carolina Industrial and Pollution
Control Facilities Financing Act (the "Act') of an industrial project by Riley Technologies, Inc., an
Indiana corporation, or its related or affiliated entities (collectively, the "Company'), which plans to
acquire, construct and equip a 32,000 square foot facility to be used for the manufacture of racecars and
racecar parts (the "Project') and has indicated that agreement by the execution of an Inducement
Agreement between the parties dated June 29, 2006; and
WHEREAS, under G.S. § 159C-7 each project must be approved by the Secretary of the
Department of Commerce and, under Article 51B of Chapter 143 of the North Carolina General Statutes,
the Federal Tax Reform Allocation Committee must allocate a sufficient amount of North Carolina's
private activity bond limit, " as defined in Section 141 of the Internal Revenue Code of 1986, as amended
(the "Code') to rhe financing; and
WHEREAS, the Act and the Rules and Procedures of the North Carolina Department of
Commerce require that the governing body of a county approve in principle any project to be financed
under the Act; and
WHEREAS, this Board of Commissioners today has held a public hearing with respect to the
advisability of the Project and the issuance of bonds therefor, as evidenced by the Certificate and
Summary of Public Hearing attached hereto as Exhibit A; and
WHEREAS, the Authority intends to issue its Industrial Development Revenue Bonds (Riley
Technologies, Inc. Project), Series 2006 (the "Bonds') in the principal amount of up to 83,500, 000 which
either will be secured by a letter of credit issued by a United States bank or be privately placed with a
qualified institutional investor; and
WHEREAS, Section 1470 of the Code requires that the Board of Commissioners approve the
plan of financing for the bonds; and
WHEREAS, under Section 159C-4 of the Act the issuance of bonds under the Act must be
approved by the governing body of the county in which the project to be financed under the Act is located.
NOW, THEREFORE, the Board of Commissioners of Iredell County, meeting in regular session
at Statesville, North Carolina, on September 5, 2006, does the following:
BE IT RESOLVED BY THE BOARD OF COMMISSIONERS FOR IREDELL COUNTY- The
proposed "industrial project " consisting of the acquisition, construction and equipping of a facility to be
used for the manufacture of racecars and racecar parts in Iredell County and the issuance of bonds in an
amount not to exceed 83,500,000 therefor are hereby approved in principle.
The Board of Commissioners hereby requests the Federal Tax Reform Allocation Committee to
allocate up to 83,500,000 of North Carolina's 2006 "private activity bond limit, " as defined above for the
financing of the Project. The Board of Commissioners hereby approves the plan of financing as required
by Section 147(t) of the Code. The issuance of the Bonds in the principal amount of $3,500,000 is hereby
approved for purposes of Section 159C-4 of the Act.
Commissioner Normanov the passage of the foregoing resolution and Commissioner
Johnson seconded the motion. The resolution passed by the following vote:
Ayes: 5; Nays: 0
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