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Council approves resolution to apply for financing for new public works facility
Summary
Council voted unanimously to approve a resolution allowing town staff to submit an application to the Local Government Commission to finance the $10 million acquisition of a new public works facility at 125 International Drive; TD Bank offered financing at 4.02% over 20 years and staff said additional documents will return July 22.
The Morrisville Town Council unanimously approved a resolution on July 8 authorizing staff to apply to the North Carolina Local Government Commission (LGC) for financing to reimburse the town for the $10 million acquisition of a new public works facility at 125 International Drive.
Byron Hayes, the town's chief financial officer, told council the town solicited bank bids and selected TD Bank to finance the $10 million acquisition over 20 years at a proposed interest rate of 4.02 percent. Hayes said staff is seeking council approval tonight to submit the LGC application so the town can meet the LGC calendar and close the financing in August. He said renovation financing will return to council later (anticipated second issuance once renovation design is finalized).
Hayes explained the timeline: council approval tonight enables the LGC application to meet an August calendar slot; the trust and deed documents will be presented at council's July 22 meeting and the LGC review would follow in August. Council members asked why the staff recommended opening, closing and voting on the hearing all in one night; staff replied the schedule is driven by LGC calendar constraints and the need to reimburse acquisition closing costs after the town takes possession.
Council had no public speakers on the financing item. After brief questions, a motion to adopt the resolution carried unanimously, allowing staff to proceed with LGC application and return with trust documents and the final financing package at a future meeting.
Next steps include council review and likely approval of trust documents and related financing documents on July 22, followed by LGC review in August and anticipated closing in mid‑August.
