MINUTES OF A SPECIAL MEETING OF THE MAYOR AND COUNCIL OF THE TOWN

OF CHAPEL HILL, TUESDAY, JULY 30, 1991 AT 5:00 P.M.

Mayor Jonathan Howes called the meeting to order. Council Members in attendance were Julie Andresen, Joyce Brown, Joe Herzenberg, Nancy Preston, and Jimmy Wallace. Council Members Alan Rimer, Art Werner, and Roosevelt Wlkerson were absent excused.

Mayor Howes said that Rosemary Waldorf has requested to speak to the Council. He asked the Council if there were objections. There were none.

Town Manager Horton summarized A report to the council. He noted that revenue bonds would pledge parking revenues only to repay the debt, and would include refinancing about $1,000,000 of existing debt for lots 2 and 5. He stated that Certificates of Participation as a alternate financing mechanism would involve a pledge of revenues from an unspecified source if necessary for debt payments and would involve pledging a security interest in the new parking facility.

Council Member Andresen asked whether the refinancing would involve an increase in debt. Manager Horton stated the refinancing would include reducing the principal of the existing debt.

Rosemary Waldorf said she agrees that the Town needs more parking. She thinks the financial community gave the Town a message when they gave us a B rating. She wonders why the projections look so good now when the rating companies said they did not only a couple of weeks ago. Under present conditions, lot 2 produces, and will increase. Downtown business people should want parking at reasonable rates. As designed, project excessively expensive, and the Town may have to use non-parking funds to disolve the cost. If redesign the project, maybe can get a less expensive . Concerned that plaza is non-revvenue-producing. Was security compromised when looking for ways to cut the costs.

Mayor Howes said comments more timely at public hearings held earlier.

Asked TM why private placement when Moody's Standards & Poors said not a marketable project.

Manager Horton stated that the institutional Investors say it is a good investment. The bond rating agencies wanted the Council to pledge additional revenues, if necessary, to supplement the parking revenues, and the rating agencies were not accustomed to small parking revenue bond issues.

Council Member Wallace said the project has been considered and designed, and it is essential that we proceed with the project, and not try to redesign it now. He said it will be looked upon with considerable pleaseure by visitors, and the security issue has been handled appropriately, and the Town should move forward.

Item 1 - Approval of Issuance of Parking Revenue Bonds

COUNCIL MEMBER wallace MOVED, SECONDED BY COUNCIL MEMBER preston, TO ADOPT RESOLUTION 1, AUTHORIZING AN APPLICATION FOR APPROVAL OF THE ISSUANCE OF PARKING REVENUE BONDS.

Council Member Andresen said the council has voted to proceed with this project. She said Ms. Waldorf's questions s=certainly point up that the project is expensive, but think that we should move ahead.

THE MOTION PASSED BY A VOTE OF 5-1 WITH COUNCIL MEMBER BROWN VOTING NO.

RESOLUTION 1 WAS ADOPTED.

Item 2 - Calling a Special Meeting

COUNCIL MEMBER HERZENBERG MOVED, SECONDED BY COUNCIL MEMBER PRESTON, TO ADOPT RESOLUTION 2, CALLING A SPECIAL MEETING FOR TUESDAY, AUGUST 13, 1991.

THE MOTION PASSED UNANIMOUSLY. RESOLUTION 2 WAS ADOPTED.

The meeting concluded at 5:32 p.m.