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Pender County holds TEFRA hearing, approves Novant Health tax-exempt bond sign-off
Summary
The board held a TEFRA public hearing and voted to approve Novant Health's request to allow tax-exempt bond financing for projects that include work at Pender Medical Center; one commissioner disclosed an employment relationship and recused from the vote.
Pender County commissioners held a TEFRA (Tax Equity and Fiscal Responsibility Act) public hearing April 7 and approved a resolution enabling tax-exempt bond financing for Novant Health projects that include work at Pender Medical Center.
Alice Adams, attorney with Robinson Bradshaw & Henson, represented Novant Health and described the federal TEFRA process: local elected bodies must publicly approve tax-exempt bond financings for nonprofit projects within their jurisdiction. Adams emphasized the action was a federal tax-law procedural step and does not create county debt.
A commissioner disclosed they are an employee of Novant Health and recused from participating in the vote; the board proceeded under the vice chair and approved the resolution. The motion to approve followed a public hearing; a voice vote was taken and the board signified unanimous approval among participating members.
Adams told commissioners the county’s action would not place any financial obligation on the county; she said the hearing and resolution are required by federal tax rules when nonprofit bond proceeds will be used at facilities located in the county. She offered to answer further questions and provided the board the TEFRA notice and resolution language for review.
The county’s adoption of the TEFRA resolution clears an administrative step for Novant Health to proceed with using tax-exempt bond proceeds for nonprofit medical facilities in the county, subject to federal procedures and other lender/issuer requirements.
The county clerk will record the public hearing and resolution in the meeting record and provide required documentation to Novant’s counsel as part of the TEFRA approval process.
