tag:blogger.com,1999:blog-22040291.post8272500464919073658..comments2024-01-09T17:38:35.707-05:00Comments on This Old State: A.G. approves I-485 plan but Treasurer disagreesUnknownnoreply@blogger.comBlogger1125tag:blogger.com,1999:blog-22040291.post-7867491272377474262010-01-12T17:59:34.455-05:002010-01-12T17:59:34.455-05:00I disagree, Jack and here's why.
The opinion ...I disagree, Jack and here's why.<br /><br />The opinion starts off:<br /><br />"The Request for Proposals for the I-485 Loop and Interchange projects will inform prospective contractors of the maximum amount of funds available on a periodic basis throughout the ten-year contract term. Prospective contractors will be required to demonstrate their financial capability to meet the contract terms and conditions, including the delayed payment schedules, either through existing internal resources, joint-venture arrangements, or third-party financial support. NCDOT will neither provide financing nor guarantee debt. Although some contractors may include the cost of borrowing money in their bids (as is the case in most traditional construction contracts awarded by NCDOT), there will not be a line item interest component in the Request for Proposals and NCDOT will not make any direct interest payments."<br /><br />So this is saying that given what is out there in the first draft of proposals, there is no problem with NC DOT issuing or guaranteeing debt. That is that, then.<br /><br />Not so fast. The opinion concludes:<br /><br />"We are aware, however, that interested contractors, bonding companies and financial institutions have suggested to NCDOT that the Request for Proposals can be modified in ways which they contend will result in additional cost savings. Some of these recommendations involve authorization to assign payments and financing guarantees by NCDOT. We understand that the first draft Request for Proposals will allow prospective contractors to submit these types of suggestions and that NCDOT will consider whether the second draft Request for Proposals should be modified. Our opinion that NCDOT has legal authority to move forward as proposed with the expedited completion of I-485 is based solely on the draft Request for Proposals provided to us prior to the issuance of this opinion. Should future drafts, or the final contract, include new substantive provisions, reconsideration of this opinion may be required."<br /><br />In other words, the banks and the contractors want PRECISELY the guarantees that the AG has not signed off on!<br /><br />Absolutely nothing is settled in this matter then until the contractors come up with financing plans WITHOUT state guarantees. If there are guarantees proposed, then it is back to the AG's office to find out if that can possibly be squared with state law.<br /><br />Stay tuned.JAThttps://www.blogger.com/profile/16093146842739423564noreply@blogger.com