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Davidson County adopts resolution approving TEFRA hearing for up to $855 million in tax-exempt bonds to benefit Novant Health
Summary
After a public hearing, commissioners adopted a resolution approving the issuance of not-to-exceed $855,000,000 in tax-exempt bonds by the National Finance Authority to benefit Novant Health and its affiliates; county counsel advised the bonds would not create county debt or repayment obligation.
The Davidson County Board of Commissioners held a TEFRA public hearing April 14 and adopted a resolution approving the issuance of not-to-exceed $855,000,000 in tax-exempt bonds by the National Finance Authority to benefit Novant Health Incorporated and its affiliates.
A representative for the National Finance Authority said the issuance would be governed by Section 147(f) of the Internal Revenue Code and the applicable law for the authority. The presenter stressed the bonds would not be a debt of the county and the county would not have an obligation to repay them. The county attorney reviewed the proposed resolution and said it was consistent with prior uses of the TEFRA public-hearing venue for similar financing matters.
Board members asked about potential conflicts of interest after a prior meeting raised concerns that a commissioner (Mr. McClure) served on the board of a nonprofit that might be a borrower. The county attorney said he reviewed state law (citing the applicable anti-self-dealing statute, G.S. 14-244.3 as referenced in the meeting) and concluded Mr. McClure—s participation in the vote would not be prohibited because the county was not entering into a contract or obligation and Mr. McClure would not directly benefit.
A motion to adopt the resolution passed on a voice vote; no roll-call tally was recorded in the meeting transcript.
