The 20-year-old Spectrum Center, home of the NBA’s Charlotte Hornets and host to major music concerts, will be getting significant upgrades. The work will be paid for from over $475 million in financing requests from the city of Charlotte that were approved by the Local Government Commission (LGC).
The venue enhancements are necessary to meet NBA requirements for franchise facilities. The 17,500-seat sports and entertainment center is owned by the city of Charlotte, which successfully submitted three financing requests for LGC approval at its July 1 meeting.
One request was for $130 million in certificates of participation, which are similar to limited obligation bonds, and the security for which is the financed asset. Proceeds will be used to refinance previous debt at a lower, long-term, fixed interest rate. They will pay for improvements to the Spectrum Center, a parking facility and fire house.
A $136.5 million private financing agreement will cover a variety of modernization upgrades on the Spectrum Center, as well as renovations to other governmental facilities.
Charlotte’s third request was to refund $210 million in water and sewer revenue bonds at an anticipated savings of $5 million.
State Treasurer Brad Briner chairs the LGC. Denise Canada, the new secretary of the LGC, attended her first meeting, as did newly appointed board members Mike Brown and Thomas Stith.
The commission is staffed by the DST and has a statutory duty to approve most debt issued by units of local government and public authorities in the state. The commission examines whether the amount of money units borrow is adequate and reasonable for proposed projects and confirms the governmental units can reasonably afford to repay the debt. It also monitors the financial well-being of more than 1,100 local government units.
Among other governmental items on the agenda that received the LGC’s blessing was Nash Healthcare Systems (Nash County), which requested approval for $165 million in revenue bonds. Proceeds will be used to build a new UNC Health Nash hospital tower. It will have 150 patient rooms that connect to the existing hospital tower in Rocky Mount. Proceeds also will pay for hospital equipment.
The LGC signed off on a $68.6 million State Revolving Fund loan sought by Wilkesboro (Wilkes County). The financing will be used to expand the permitted flow of the Cub Creek Wastewater Treatment Plant from 4.9 million to 8 million gallons per day. Facilities in the floodplain will be elevated with the proceeds. The town has been under a sewer moratorium since 2020 because effluent flow reached about 95% of permitted capacity.
Onslow County received a favorable vote on $63 million in limited obligation bonds to equip, renovate and improve an existing county building in Jacksonville. It will house space for senior and agricultural services. Work on Bear Creek Fire Station in Hubert and a public safety facility in Jacksonville also will be performed with the proceeds. Limited obligation bonds do not require a public referendum for approval to issue the debt.
Winston-Salem (Forsyth County) got a green light to secure $44 million in limited obligation bonds for improvements to parks and recreation facilities, and to build and improve streets, sidewalks and transportation infrastructure. Proceeds also will be used to improve Winston Lake Golf Course, the Winston-Salem Fairgrounds and Truist Stadium, to replace the roof at the Joycelyn V. Johnson Municipal Center, and for renovations to the city’s 911 communications center.
The LGC voted in favor of a request from Dare County to issue $26.5 million in limited obligation bonds to build and equip a new facility for the Dare County Early College. To date, about 60 students have been enrolled and a principal has been named. Students at the standalone school will be able to earn an associate’s degree, college credits and career credentials in addition to a diploma. The first class would graduate in 2029. The school will be built on the College of Albemarle campus.
The Cape Fear Public Utility Authority (New Hanover County) application for a $26.3 million State Revolving Fund loan received a favorable vote. It will use the money to replace the Southside Wastewater Treatment Plant and expand treatment capacity from 12 million gallons to 16 million gallons daily. A new treatment process will be implemented. Greater capacity is needed to accommodate growth and development.
Hendersonville (Henderson County) needs to improve the city’s water and sewer system, and LGC members agreed, approving an application for $11.5 million in revenue bonds to perform the work. Maintenance of water and sewer mains, pipes and pump stations is included, as is expansion and improvement of the water treatment facility to provide additional capacity to residents and businesses.
Other applications approved by the LGC are:
- Lumberton (Robeson County), a nearly $7.5 million financing agreement to install advance metering infrastructure for electric utilities and water and sewer services to reduce meter reading costs.
- Lee County, $3.8 million in limited obligation bonds to finance renovations at the Central Carolina Community College facilities at the Moore Center Bioprocessing Building.
- Williamston (Martin County), $2 million for a State Revolving Fund loan to rehabilitate 6,830 linear feet of sewer lines and replacing manholes.
- Troutman (Iredell County), nearly $1.3 million for a State Revolving Fund loan to rehabilitate, repair and replace clay pipe and brick manholes to reduce sewer system overflows.
- Cape Carteret (Carteret County), an $850,000 installment purchase to acquire one acre of waterfront land on Bogue Sound with a boat ramp, dock, bulkhead and parking. Boating access is currently leased by the town.
- Moore County, a $795,282 financing agreement to lease 18 stretchers for Emergency Management Services.