HomeMy WebLinkAbout730896.tiff ^ \ September 11, 1973
MEMORANDUM
TO: GLENN K. BILLINGS
Chairman of the Board of County
Commissioners
FROM: SAMUEL S. TELEP
County Attorney
RE: RECOMMENDATION RELATIVE TO PROCEDURE FOR
ESTABLISHMENT, CONSTRUCTION AND FINANCING FOR
A NEW COUNTY COURTHOUSE COMPLEX.
The following, in my opinion, may be the best procedure for the establish-
ment, construction and financing of a County Courthouse complex for an
approximate cost of Eight to Ten Million Dollars:
1. The land owned by the County could be leased to an individual, group
of individuals, or a non-profit corporation for 20 or 25 years at a rental
rate of $ per year.
2. The County could enter into a contract to lease the land and constructed
improvements on the land from the lessee at a rate per year or per month
that would be sufficient to pay for financed improvements. This lease
would provide for a de-escalation option to purchase buildings over a
period of between 20 or 25 years.
3. A lawsuit could be brought by the lessee, and in my opinion should
be brought by lessee, the developer of the complex, to test the legality
of this method of leasing with option to purchase.
4. The lessee could borrow money from a lending group at best rates
possible, build the complex and lease same to the county.
5. Negotiations should take place with the potential lendor to obtain the
best interest rates possible for financing the complex. Most favorable
rates should be obtained since the rental lease from the county would be
pledged as security for the loan in addition to a Deed of Trust on the
leasehold, together with the improvements constructed thereon.
6. There may be some income tax advantages to the developer of the
complex by virtue of a depreciation write off. This should be thoroughly
looked into.
7. Political consideration should be given as to the vehicle that should
be used to construct improvements, to-wit: Another political subdivision
vs, a non-profit corporation vs. individuals. This matter could be
further discussed inasmuch as the final decision will be that of the Board
of County Commissioners.
The above is merely a rough summary of a outline that could be followed
by the Board; however, as ,you can see it may take some time to put the
whole package together in such a way that the whole matter in establishing,
constructing and financing of this complex will be in the best interest of
Weld County.
730896
T'N Pack
rN,
Glenn K. Billings
Page -2-
Bearing in mind the various political ramifications of such a project
at this time, and considering the fact that time may be of the essence,
it is my further recommendation that the Board arrange a meeting or
meetings with potential individuals, groups of individuals, etc. in order
that there will not be any unnecessary further delay.
Respect-011y (submitted,
7.
•
Samuel S. Te/lep
County Attorney
SST/emw
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