Monongalia County commissioners voted May 14 to authorize execution of documentation needed to pursue release of tranche 2 funds tied to the county’s special district excise tax revenue bonds for the Westridge development.

The action directs county staff to deliver a certificate and related documents that would instruct the bond trustee to move monies from the tranche 2 accounts to project and capitalized-interest accounts, provided the developer files a tranche-release request and Municap (the financial analyst) files its report showing the tranche meets the release test.

Tom Amen explained the mechanics at the meeting. He said the 2023 A and B excise tax bonds were set up in tranches and that tranche 1 already was redeemed. He told the commission that the developer was prepared to close the transaction necessary to support release of tranche 2 and that Municap’s analysis indicates the development’s overall revenues exceed the original issuance projections. Amen said there is, however, a shortfall in the first two years compared with the original projections and that the proposed tenth supplemental indenture would address that by allowing monies to be held in a capitalized interest account or, if a required tax opinion cannot be obtained, by the developer providing funds to cover the shortfall.

The motion approved by the commission authorizes the county to execute and deliver the tenth supplemental indenture and the county certificate that are prerequisites to the trustee releasing tranche 2 funds. The order signed by the commission makes the county’s execution conditional on the developer delivering the tranche-release request, Municap’s report, and other required items.

Amen and others said Municap projects a shortfall in the first two years described in the analysis as “205,000 to 61,000,” while the total projected revenues exceed the original expectations by about 663,000. The commission asked that the county’s approval remain conditional on receipt of the required filings and reports.

Commissioners thanked project consultants, including Rob Steptoe of Cruise Associates, for assisting the county’s due diligence. The county president instructed staff to have documents ready for signatures and noted a work session with the developer scheduled for 11 a.m.

The vote to approve execution of the documents was taken by voice and recorded as approved in the meeting minutes. No roll-call vote with counts was announced on the record.

If the developer’s tranche-release filing and the supporting Municap report satisfy the trustee and bond counsel requirements, the tranche 2 funds would be released and transferred to the project fund and a capitalized interest account as described in the supplemental indenture, otherwise the developer would be expected to provide funds to cover the short-term shortfall.

The commission’s action does not extend tranche deadlines; commissioners were advised that an investor blocked earlier proposed deadline extensions and that the tranche release must meet the existing contractual tests.