Cleveland County moves to complete justice center, expands landfill funding with $89 million loan
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Summary
The Cleveland County Board of Commissioners voted Oct. 21 to proceed with a combined $89 million loan — $75 million for a new Justice Center and $14 million for landfill expansion and equipment — structured with TD Bank at a 3.8% interest rate.
The Cleveland County Board of Commissioners voted Oct. 21 to move forward with a combined $89 million financing package to complete a new Justice Center and fund a landfill cell and related equipment.
County staff and Davenport financial advisor Mitch Bergoglio told the board the package is structured as a direct loan with TD Bank, using a limited-obligation bond form. The loan combines a $75,000,000 borrowing for the Justice Center and $14,000,000 for solid waste, carries an interest rate of 3.8%, and is structured with a 20-year amortization for the Justice Center portion and a 10-year term for the solid-waste portion. Staff presented an estimated total payback, principal plus interest, of just over $120,000,000 over the life of the borrowing. The loan may be prepaid without penalty after the first 10 years.
Board members heard that the county has secured state funding of a little over $100,000,000 and set aside $19,000,000 in capital reserves; the proposed borrowing is presented as the final financing component for the overall Justice Center project. The solid waste portion will be financed from the solid waste enterprise fund and, according to staff, will not be funded with general-tax revenue. Staff told the board the Justice Center borrowing was not expected to require a tax rate increase.
No members of the public signed up to speak during the required public hearings on either financing component. The board moved and seconded a resolution to proceed with the financing and voted to approve the action; the motion carried unanimously.
Next steps described by staff include submitting the financing application to the North Carolina Local Government Commission for approval, currently scheduled for Nov. 4, and a planned closing target of Nov. 13 if LGC approval is granted. County staff and the finance advisor said legal documentation and LGC materials are being prepared.
Commissioners commented in support of completing a long-discussed replacement for the county’s jail and courthouse facilities, noting prior evaluations that recommended replacement rather than piecemeal remodeling. One commissioner said the project was intended to prepare the county “for the next 75 years,” reflecting support for moving forward with the funding.
No amendments to the financing structure were proposed at the meeting. Staff emphasized compliance with tax-exempt financing rules; they said the fixed rate shown would remain a tax-exempt rate so long as statutory and regulatory requirements are met.
