Board consents to conduit financing request for BBL Kresge LLC; supervisors press for more project detail

Marathon County supervisors voted July 22 to provide consent for BBL Kresge LLC to use the Public Finance Authority (PFA) for taxable conduit financing, a step the developer needs to access the PFA bond market. The motion was made by Supervisor Seefeldt and seconded by Supervisor Robinson and carried after debate.

What the vote allows: County officials explained that consenting to the conduit financing does not create county debt, does not pledge the county to repay the bonds, and does not count against the county’s statutory borrowing limit. Administrator Leonard told supervisors the financing is a private issuance through PFA and that the county would not be legally liable for bond repayment: “This does not say this is a Marathon County bond. It does not pledge Marathon County to repay these bonds. They don't count against the county's borrowing capacity.”

Concerns raised: Several supervisors said they were uncomfortable approving the consent without more public detail. Supervisor Lemmer said she was "bothered" by a perceived lack of municipal discussion and transparency; Supervisor Endres said she opposed the motion because she wanted clearer commitments on affordable housing costs and protection against tax impacts on homeowners. Supervisor Gisselman said she wanted more information about whether the borrower had sufficient capital and questioned the vagueness of the project description.

Administrator Leonard and other staff explained the rationale for moving quickly: PFA financing requires overlaying-jurisdiction consent and the applicant sought to access the market in September. Leonard said the PFA loan is typically a better rate for borrowers than some private-market alternatives and that project market interest will determine bond pricing and feasibility.

Details noted in discussion: The packet referenced an expected bond size of about $27,000,000. Administrator Leonard said the owner of the property may be Compass Properties and that BBL Kresge would purchase and renovate the property, but Leonard said he did not know the full ramifications if the project did not move forward.

Action: The board approved the consent to use PFA conduit financing for BBL Kresge LLC (Resolution 50-25). The motion passed but several supervisors voted no.

Ending: County staff said the PFA process places bond risk on the borrower and not on Marathon County; supervisors who sought greater transparency said they expect more detail before future approvals for large projects.