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Commission asked to start bond process
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Published: October 22, 2008
What: Iredell County Board of Commissioners, regular meeting, Tuesday, Iredell County Government Center
Open the gates: Langtree at the Lake developers asked commissioners to support a request that the Local Government Commission help start the bond proceedings in a special assessment improvement district.
"Your function is to let down the drawbridge," said David Parker, the lawyer representing the developers. "That is all we are asking you to do."
The special assessment improvement district will allow the developers of the 175-acre, mixed-use development off of the future Exit 32 on U.S. Interstate 77 to pay for infrastructure improvements — such as sewer systems, water systems and streets and sidewalks — through bonds paid for by only the developer's benefited properties.
Similar districts have been used to fund projects in South Carolina, Alabama, Florida, Louisiana, Arkansas and Mississippi.
"The goal is to make the developers pay for the infrastructure and assess the people who use it," Parker said. "What we are asking for is to tax ourselves."
Parker said the county's ability to issue other bonds won't be impeded. If the developer defaults on the bonds, the county is not liable, Parker said.
Commissioners are scheduled to vote on the request at a later date.
Speaking of bonds: Iredell County, with the help of Bank of America, was able to exchange its 2003 installment revenue refund bonds, which had adjustable rates, with bonds with fixed interest rates.
The bond exchange eases some of the problems that have been plaguing the county since July, when bond insurer Ambac Insurance's rating dropped, hurting the overall value of the bond, said County Finance Director Susan Blumenstein.
The estimated new interest rate for the bonds is 4.34 percent, including a swap termination payment and the cost of issuance.
By switching from the existing bonds, which had a 7.38 percent interest rate, the county will save nearly $5 million.
Commissioner Steve Johnson said the county did take some chances by refinancing, but it is not in the same dire credit situation as other counties in the region.
Euthanasia training: The Iredell County Animal Control Department accepted a grant from the Humane Society of the United States for euthanasia training.
Animal Control Manager Chris Royal said her department used the $4,000 to send four employees to the training course.
And the management company is: The county awarded the management contract of Twin Oaks Golf Course to Twin Oaks Golf Club LLC.
Under the terms of the lease agreement, the management team will pay the county $2,000 a month for the next nine years, plus 3 percent of its quarterly gross profits.
The county purchased the golf course earlier this year to allow for future expansion of the adjoining landfill.
County Manager Joel Mashburn said it made sense to use the current management team because it owns all of the equipment on the premises and any new management firm would have to buy or lease the equipment.
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