1989 - 02-20-89 Regular Meeting - Laserfiche WebLink

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a 0 BOOK V F:GE 654 Piedmont Woodyards and deeded the property to the County. Piedmont Woodyards started cutting the timber but was stopped by the City of Sanford who had acquired title from the State of North Carolina. The City of Sanford required Piedmont Woodyards to pay for the timber cut and ever since Mr. Joyner has been asking the County to survey the property for his use in seeking a refund from the City of Sanford. The County Attorney reported that he had searched the title to the area bounded by the Burge property, Kiwanis Park, U. S. No. 1 By-pass and Carbonton Road, and it appeared McIver Park, Inc. owned a part, the City of Sanford owned a part and the Department of Transportation may have a claim to a ramp area. Commissioner John R. Dossenbach, Jr., moved that the County accept the conveyance from the City of Sanford and authorize and direct that the deed be recorded. Commissioner William C. Stafford, Jr., seconded the motion and upon a vote the results were as follows: AYE: Dossenbach, Matthews, Stafford, Wicker and Cox NAY: None The Chairman ruled the motion had been unanimously adopted. The Chairman called upon the County Attorney to comment on the letter he had received from the law firm representing Southern National Bank concerning the loan to Floyd Browne Associates, Inc., for construction of a water plant. The County Attorney reported that Mr. Steven I. Reinhard of the firm of Graham & James had stated that Floyd Browne Associates, Inc., loan was presently conditioned upon the provisions that upon the default by Floyd Browne Associates, Inc., and the right of Lee County to terminate its agreement with Floyd Browne Associates, Inc., that Lee County shall operate the water treatment plant and would pay the monthly payment due to the Southern National Bank until the loan was fully satisfied. Any residual in excess of the amount necessary for debt service would be returned to the County. As an alternative, the Bank would waive this obligation if Lee County would join in the deed of trust on the water treatment plant. If so, the Bank would grant a period when the County could purchase the indebtedness on the property provided that any cost the Bank had in operating the water treatment plant would be passed on to the County in the form of higher water rates. The County Attorney stated that in his opinion the County could not guarantee Floyd Browne Associates, Inc.'s loan, nor could it grant a deed of trust on its property. In addition, he stated he had consulted with a representative of the Institute of Government and a member of the firm that serves as the County's bond counsel and they concurred in his opinion. The Board discussed the matter and observed that it was Floyd Brown Associates, Inc. 's obligation to finance the construction of the water treatment and plant and not Lee County's and directed the County Attorney to advise Mr. Reinhard that Lee County would not either guarantee the note or join in the deed of trust. - 2 -