NEW HANOVER COUNTY BOARD OF COMMISSIONERS 230 Government Center Drive, Suite 175, Wilmington, NC 28403 P: (910) 798-7149 | F:(910) 798-7145 | NHCgov.com Bill Rivenbark, Chair | LeAnn Pierce, Vice-Chair Jonathan Barfield, Jr, Commissioner | Dane Scalise, Commissioner | Rob Zapple, Commissioner ‘August 21, 2023 NC Treasurer Dale Folwell Local Government Commission 3200 Atlantic Avenue Raleigh, NC27604 Dear Treasurer Folwell, New Hanover County staff received a briefing from LGC staff Friday, August 18% that noted you would not be calendaring our debt issuance item for a new museum and library in downtown Wilmington. The reasons noted by staff are twofold: 1) You do not like or approve ofthe sit, 2) you do not believe debt is necessary for our project. We are disappointed by your position and ask that you reconsider calendaring our application. LGC staff confirmed they have received all the necessary items from us that are needed for the application, and they will be reviewing the application over the coming weeks, as is their typical process for any submitted application. Given ‘our complete application and that LGC staff will have reviewed the application in a timely way, we request that you calendar us for the LGC’s September 12" meeting. ‘As noted above from staff and based on your media statement after our August 7 meeting, we understand your objections to hearing the item. So, below is a reaffirmation of our decisions, as a duly elected County Board of Commissioners, regarding our policy decisions to ensure we bring the most clarity possible to your attention. First, the Board of Commissioners and county staff have explored and evaluated what is the best location for this, project. We have evaluated adaptive reuse of the current library, evaluated where a new building could work best on the existing county-owned block, and also reviewed alternatives like keeping the library and museum in their current locations with renovations, as well as talking through the new city-owned building that was the former PPD location, upon your request. Ultimately, after many yeats of evaluating this project and a consistent vision that has been the guide from the start, we are committed to the county-owned block that isin the heart of downtown, bordered by Grace, 2°, Chestnut, and 3° streets. We all feel this is the best location for transformative change for our downtown, and it is a fiscally responsible location because we already own the block and will not have to pay additional costs to purchase or lease ‘a new location. The location will also increase visitorship for these two important civic and cultural entities, as it will bbe within walking distance ofall our downtown has to offer, The block is currently underutilized, but with our development agreement we will not only be able to build a state-of- the-art and purpose-designed facility for our library and museum, we will also be able to transform the block with private investment that will benefit our economy and be an asset for our residents and visitors. Our county-owned downtown block is the best location for this project, and we are firmly in agreement on that. Second, the county is in a strong financial position and that is thanks to years of dedicated stewardship from county staff and the Board of Commissioners, oversight by the LGC, a strong local economy, and sound and strategic decisions made by leadership. We do not take borrowing lightly and have ensured that we will not have to raise taxes for ourresidents in order to afford the debt that is before the LGC for consideration. We will remain fully within our debt compliance policy. ‘As you have referenced, we do have a $300 million Revenue Stabilization Fund that the Board of Commissioners created from the sale of the hospital. It is our intention to preserve these funds for economic crises and for tax and. fee stabilization purposes. Having this fund ensures that our residents’ taxes aren‘t increased in the face of ‘emergencies, and we can remain financially strong and stable for the many uncertainties we may face in the future. We, as a Board of Commissioners, have confirmed a desire to limit the use of this fund to interest proceeds for ‘community needs. Ideally, we would like to grow the corpus of the fund so that it can benefit the county's citizens for any generations into the future. Spending the corpus of the fund on this project would reduce future earnings and ‘would result in less financial fh and lower liquidity for the county. So, it is this board's decision to use our borrowing power and low interest rates afforded by the county's AAA-rating, to finance the new museum and library. Within the county’s application packet to the LGC isan outline of several concerns you have raised, including the above two items, so you can see information reflected in that overview. We again ask that you reconsider and calendar this item for the LGC’s September 12" agenda. And, ifyou are unwilling, we ask that the LGC members make a motion at the September meeting and vote to place this item on the LGC’s agenda for September 12", We are committed to a new museum and library on our downtown block because it has transformational power and possibilities for New Hanover County, and we ask that you give us the consideration of a vote because we have met the statutory parameters for LGC consideration. Sincerely, New Hanover County Board of Commissioners BY by C frivce “Bill Rivenbark, Chair LeAnn Pierce, Vice-Chair fey) Dane Scalise Rob Zapple cc:_Local Government Commission members Governor Roy Cooper House Speaker Tim Moore Senator Phil Berger Senator Michael Lee Senator Bill Rabon