Monongalia County approves amended $21.5 million Harmony Grove TIF bonds, expands district boundary

The Monongalia County Commission on April 23 approved a resolution authorizing issuance of amended and restated tax increment revenue bonds (Series 2021B) for the Harmony Grove Phase 1 infrastructure project in the principal amount of $21,500,000 and approved an amendment to add roughly 82.11 acres to County Development District No. 5, Harmony Grove.

County bond counsel Tom Ammon, introduced at the meeting as bond counsel for the project, told commissioners the amended bonds and related closing documents “have all now been finalized and [are] ready for consideration of approval by the county.” He said the changes include extending the capitalized-interest and draw periods, funding an interest reserve at closing and leaving $6.5 million available as a second tranche for site work as project costs are incurred.

The amendment matters because it clears technical and financing steps the developer and lenders said were necessary to complete additional site work and create a large developable pad. “This opening of this second tranche will allow us to do that,” said Glenn Adrian, identified at the meeting as co-owner and member of NREL Properties, which is directly involved with the Harmony Grove TIF. Adrian told the commission the projects producing the tax increment—Mountaintop Beverage, the MECA 911 center, and a large Owens & Minor distribution facility—have produced sufficient incremental tax revenue for the lenders to proceed.

Key details discussed at the meeting and recorded in the staff presentation and counsel's remarks include: the principal amount of the amended bonds at $21,500,000; a closing reserve to be funded at approximately $1,755,000 on or about the anticipated May 1 closing; roughly $1,900,000 of previously issued tranche 1 funds remain unspent, of which about $1,755,000 will be placed in the reserve at closing; and availability of a tranche 2 amount of $6,500,000 on a drawdown basis to be used for additional site work. Counsel also said the draw period was being extended to Oct. 31, 2026, an interval the developer estimates is sufficient to complete the additional site work.

Separately, the commission approved an amendment to the District No. 5 project plan that adds tax map 13, parcel 28.1—about 82.11 acres—across the road from the primary industrial park. Counsel said no TIF bond proceeds are expected to be spent to develop that residential parcel; rather, future tax increments from development there will help repay the bonds.

Commissioners voted to approve the resolution and the boundary amendment by voice vote. No roll-call tally was recorded in the meeting minutes; the motion was seconded and commissioners answered, “Aye.”

The developer and county staff said next steps include bidding of site-work contracts this summer (Thrasher Engineering was named as the engineering firm preparing bid documents) and closing with the lenders around May 1. County officials also noted lenders—identified in the meeting as MBB Bank and United Bank—participated in the negotiations and have confirmed sufficient financial stability to support the amended structure.

The action does not change previously disclosed obligations to state and federal agencies for interchange work; counsel and the developer reiterated ongoing coordination with the West Virginia Department of Highways and the Federal Highway Administration on interchange approvals required for full park access.

The commission's approval authorizes the president of the commission to sign a first supplemental trust indenture, a first amendment to the development agreement and related closing documents to effectuate the changes.