Lee County approves financing package and agreement terms for Central Carolina Community College Moore Center

The Lee County Board of Commissioners on June 2 held a public hearing and took actions to advance a limited-obligation bond financing of up to $4 million to support building improvements at Central Carolina Community College's Moore Center.

The board opened the hearing after staff described the purpose: to provide funding "to finance various improvements to community college facilities located at the Moore Center on the campus of Central Carolina Community College, and b, pay certain issuance costs related thereto." Lisa Chapman, president of Central Carolina Community College, told commissioners she and the college trustees "are very supportive of this financing" and said the project will enable construction of a biotechnology building and related programming.

Davenport Public Finance led a request-for-proposal process and recommended Webster Bank's 15-year, fixed-rate loan as the county's preferred option. Davenport's summary, presented by Ted Cole, compared five proposals and advised the board that Webster's offer was a locked, fixed rate (15 years at 4.35% as presented) and that the bank's prepayment provisions stepped down to zero after a set period. Cole said acceptance would require a closing by mid-July and that the financing would later be reviewed by the Local Government Commission.

During public comment, resident David Smoke urged caution about new debt and highlighted the county's fund-balance level; he also noted the financing structure would net roughly $3,820,000 in project proceeds after an estimated $180,000 in issuance costs. Commissioners and staff discussed that the annual debt service would not begin until fiscal 2027 to avoid affecting the current year budget and that the loan would be secured on a parity basis with existing debt on the property.

The board voted to proceed with the financing steps and to accept Davenport's recommendation of Webster Bank as the preferred lender. After the initial motion, a subsequent motion reduced the par amount to $3,820,000 net to the college (so the college receives the same net project proceeds) and directed the county to pay the estimated $180,000 in cost-of-issuance from the county fund balance rather than include those fees in the borrowing. Commissioners approved that approach by voice vote. The agenda included a findings resolution (required as a next step); the board approved the findings resolution and waived the policy that would have required delaying action until a later meeting so the required approving resolution can move forward at the next meeting and then to the Local Government Commission for final approval.

Davenport and county staff noted the practical advantages of a locked, fixed rate in the current volatile market and that Webster's terms avoid breakage costs tied to a rate-lock agreement. Staff also explained that, if the board pursues the Webster option, all loan proceeds at closing would go to the bond trustee and be invested at the county's direction while project costs are incurred; any interest earned on those invested proceeds could offset project costs or early debt service.

Next steps include (1) formal approval of an approving resolution at the board's next meeting, (2) closing of the loan if staff and counsel finalize documents and (3) final review and approval by the North Carolina Local Government Commission.

Commissioners did not record a roll-call tally in the public record for each motion; approvals were taken by voice vote. The record shows the board voted to (a) accept Davenport's recommendation, (b) award the financing on the Webster Bank 15-year terms as recommended, and (c) reduce the borrowing so the college receives net proceeds of approximately $3,820,000 while the county covers issuance costs.