Campbell County Schools is set to benefit significantly from a new agreement with Midland Atlantic Properties, which is expected to generate an estimated $10 million in revenue over the next 30 years. This agreement, discussed during the board meeting on September 18, 2023, involves a payment in lieu of taxes (PILOT) that will support the development of an $80 million property in Cold Spring.

Midland Atlantic Properties is acquiring land and pursuing funding through industrial revenue bonds, which will allow them to allocate future tax savings toward property improvements. In a collaborative effort, the Campbell County School Board has agreed to pledge 40% of the projected tax revenue from this development. In return, the school district will receive a PILOT payment equal to 60% of the real property tax revenue, effectively enhancing their financial resources without incurring a loss.

This arrangement is designed to work in synergy with the state's SEEK funding formula, ensuring that the school district does not lose any real revenue during the agreement period. The PILOT payments will be distributed over the course of the industrial revenue bond's lifespan, which could last up to 30 years. Additionally, the agreement will save the district from a 1.5% tax collection fee, further bolstering their financial position.

The board emphasized that this partnership is crucial for the developer to complete the project, highlighting the importance of economic development in the community. The discussions underscored the need for transparency regarding property tax allocations, as a portion of these funds is typically sent to the state.

As the project moves forward, the Campbell County Schools community can look forward to enhanced funding that will support educational initiatives, thanks to this strategic agreement with Midland Atlantic Properties.