1999 - 04-19-99 Regular Meeting - Laserfiche WebLink

Home Browse Search

004 BOOK 17 PAGE 641 Chairman Hincks closed the public hearing and Commissioner Reives moved to approve the following resolution: APPROVAL IN PRINCIPLE OF INDUSTRIAL PROJECT FOR ARDEN CORPORATION, AND THE FINANCING THEREOF WITH INDUSTRIAL DEVELOPMENT REVENUE BONDS IN THE PRINCIPAL AMOUNT OF UP TO $5,000,000 WHEREAS, the Lee 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") for an industrial project by Arden Corporation, a Michigan corporation (the "Company"), which plans to acquire, construct and equip a facility to manufacture home furnishings in Lee County (the "Project") and has indicated that agreement by the execution of an Inducement Agreement between the parties dated March 22, 1999, and; WHEREAS, under G.S. 159C-7 each project must be approved by the Secretary of the Department of Commerce, and Article 51 B of Chapter 143 of the North Carolina General Statutes, the Federal Tax Reform Allocation Committee must allocate a sufficient amount of North Carolina's "volume cap," as defined in Section 146 of the Internal Revenue Code of 1986, as amended (the "Code") to the financing; and WHEREAS, 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 has today held a public hearing with respect to the advisability of the Project and the issuance of bonds therefore; and WHEREAS, Section 1470 of the Code requires that the Board of Commissioners approve the plan of financing for the bonds; and WHEREAS, Lee County (the "County") has experienced "especially severe unemployment" as defined in the provisions of the North Carolina Administrative Code relating to industrial development bonds because its average unemployment for the six month period which ended January 31 was more than 125% of the unemployment rate in the State of North Carolina for the same period, as set forth in N.C. Administrative Code Part T04, Chapter 1, Subchapter 1 e, Section .303. WHEREAS, the Authority intends to issue its Industrial Development Revenue Bonds (Arden Project), Series 1999 (the "Bonds") in the principal amount of $5,000,000 which will be secured by a letter of credit issued by a United States bank; and 4