What is the process for issuing project development bonds?

The following sets forth a rough timeline for issuing project development bonds:

• Develop a project development financing plan.
• Apply to the Local Government Commission (LGC) for approval to issue the project development bonds.
  • The LGC may accept an application for issuance of project development bonds before a project development financing plan has been adopted, but it may not approve the issuance of the bonds until after the plan is adopted and after the governing board of the unit issuing the bonds makes the findings prescribed by G.S. 159-105(b)(1) and (5).
• Publish notice of the application to the LGC in a newspaper of general circulation in the unit.
• Attend a preliminary conference with the LGC, if required.
• If the project development district is proposed by a municipality, send notice of the proposed development financing district by first-class mail to the county or counties in which the district is located.
  • If the board of county commissioners does not disapprove the plan by resolution within the 28 days following the date the notice is mailed, the municipality’s governing board may proceed.
• If the proposed development financing plan involves construction and operation of a new manufacturing facility, submit the plan to the NC Department of Environmental and Natural Resources for approval and to the NC Secretary of Commerce for certification of compliance with specified wage requirements.
• Place a copy of the development financing plan in the office of the clerk of the unit that proposes to issue the project development bonds.
• Publish notice between 14 and 30 days before holding a public hearing on the proposed project development district in a newspaper of general circulation in the taxing unit that proposes to issue the project development bonds and mail notice of the public hearing by first-class mail to all property owners and mailing addresses in the proposed project development district and to the governing boards of any special districts in the proposed district.
  • The notice must state the time and place of the public hearing, specify the purpose of the hearing, and state that a copy of the proposed development financing plan is available for inspection in the office or the clerk of the unit.
• Hold public hearing.
• Governing board adopts project development financing plan, with or without amendment.
• LGC approves project development bond issuance.
  • The effective date of the development financing district is the date the LGC enters the order approving the issuance of the project development bonds, unless the debt is for a financing district that is already in place.