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Commission authorizes 3‑party interest reserve agreement to support East End refinance
Summary
The commission approved a three‑party agreement under which the county and the City will contribute $500,000 each to an interest payment reserve account held by United Bank to support refinancing of an East End development project; the development authority must sign a deed of trust before execution.
Monongalia County commissioners on April 23 voted to approve a three‑party agreement among the county, the City of Morgantown and the Monongalia County Development Authority that establishes and funds an interest payment reserve account (IPRA) to secure repayment of a refinance loan for the East End development.
County counsel summarized the history: in August 2024 the county and the city each agreed to contribute $500,000 to an IPRA to enable the development authority to refinance debt; the commission previously passed a resolution authorizing the contribution but the detailed agreement and deed of trust were finalized only this month. The commission approved a motion authorizing the county commission president to sign the agreement and directed staff to send the document to the city for signature and to hold the county’s signature until the development authority executes the deed of trust.
The document binds the parties on how funds in the IPRA will be applied if the bank draws on the reserve and sets the repayment obligations and collateral arrangements. County officials said United Bank will hold the account and the development authority will execute a deed of trust encumbering a development-authority property to protect the county’s and city’s interests.
Commissioners and development authority representatives said the arrangement followed lengthy negotiations and was required by the lender as a condition for refinancing the East End project. Development authority representatives said parcel sales and renewed developer interest make the refinance and subsequent project activity timely.
The motion passed by voice vote.
