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Durham commissioners approve resolution for up to $40 million RTI revenue bonds; county not on hook for repayment, bond counsel says
Summary
The Board unanimously adopted a resolution July 8 approving in principle up to $40 million in Public Finance Authority revenue bonds for Research Triangle Institute; bond counsel said proceeds will finance enterprise software and the county will not be responsible for repayment.
Durham County commissioners unanimously adopted a resolution July 8 approving in principle the issuance of up to $40 million in Public Finance Authority revenue bonds to benefit Research Triangle Institute (RTI).
Jim Twiddy, an associate with McGuireWoods serving as bond counsel, told the Board that the proceeds would be loaned to RTI and used primarily to finance the acquisition and installation of cloud-based enterprise resource planning software and to pay certain issuance costs. Twiddy told commissioners the county would not be responsible for repayment of the bonds.
The public hearing required under federal tax law was opened and closed with no public speakers. Commissioners asked why the county was asked to consider the matter; Twiddy said the review is required because RTI’s principal office is located in Durham County and the public approval satisfies Internal Revenue Code requirements for the financing.
Vice Chair Nimasheena Burns moved to adopt the resolution; Commissioner Heidi Carter seconded the motion. The motion carried unanimously.
What happens next: McGuireWoods serves as bond counsel and RTI will proceed with bond issuance through the Public Finance Authority subject to final approvals and documentation; the County recorded a resolution approving issuance in principle and stated it will not assume repayment responsibility for the bonds.
