A RESOLUTION AUTHORIZING THE TOWN MANAGER TO EXECUTE A FINANCING CONTRACT FOR A PORTION OF MAJOR REPAIRS FOR THE COMMUNITY CENTER AND FOR A PORTION OF THE CONSTRUCTION COST OF THE AQUATICS (2006-12-04/R-2b)

WHEREAS, the Town of Chapel Hill solicited and received competitive proposals from financial institutions for the this project; and

WHEREAS, SunTrust Bank offers the lowest total interest and principal cost of $3,669,625 for the 10-year term contract;

NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council authorizes the Town Manager to enter into a contract with SunTrust Bank on behalf of the Town for the financing a portion of the major repairs to the Community Center and a portion of the construction of the Aquatics Center at a fixed interest rate of 3.5%; and

BE IT FURTHER RESOLVED, that the Council does not reasonably expect that the Purchaser (and any subordinate entities) will issue more than $10,000,000 in qualified tax-exempt obligations pursuant to such Sections 265(b)(3)(ii) during the current calendar year.

This the 4th day of December, 2006.