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Monongalia County approves amended $21.5 million Harmony Grove TIF bonds and boundary update
Summary
The county commission authorized amended and restated Tax Increment Financing (TIF) bonds totaling $21.5 million for Harmony Grove Phase 1, funded a required reserve, extended the draw period and approved a related boundary amendment for Development District No. 5.
The Monongalia County Commission on April 23 approved a resolution to issue amended and restated tax increment revenue bonds totaling $21,500,000 for the Harmony Grove Phase 1 infrastructure project and approved a county development-district boundary amendment related to the same project.
Bond counsel Tom Ammon, of Steptoe Johnson, told commissioners the amendments modify terms of the county’s existing 2021B TIF bonds and formalize arrangements with the project’s lender. "These items have all now been finalized and ready for consideration of approval by the county," Ammon said, describing extensions to the capitalized interest and draw periods and a plan to fund the interest reserve at closing.
The changes approved authorize (1) execution of the amended and restated bonds and a first supplemental indenture of trust; (2) funding of the bond reserve at closing on or about May 1 in the amount of approximately $1,755,000; and (3) an extension of the draw period through Oct. 31, 2026, to allow the developer to complete additional site work and make a large pad site available for future development. Ammon said roughly $1,900,000 of tranche 1 remains unspent and tranche 2 funding of $6,500,000 will be available on a drawdown basis as project costs are incurred.
Glenn Adrian, a member of NREL Properties and a Harmony Grove developer, said the revised structure will allow completion of remaining site work and the creation of one large parcel for future sale. "This opening of this second tranche will allow us to do that," Adrian said, adding that engineering work by Thrasher Engineering is underway and bidding is expected this summer with construction before fall while weather remains favorable.
Commissioners also approved a separate resolution that amends the boundaries of Monongalia County Development District No. 5 (Harmony Grove) pursuant to an amended project plan approved earlier by the West Virginia Division of Economic Development. County counsel summarized the addition as tax map 13, parcel 208.1, an area of approximately 82.11 acres described as a residential development area; commissioners were explicit that no TIF bond proceeds are anticipated to be used to develop that residential tract and that its inclusion is intended to increase tax increment receipts that will help repay the bonds.
Both resolutions passed by voice vote. The commission authorized the county commission president to sign the supplemental trust indenture, amendments to the development agreement and other closing documents necessary to effectuate the amended bond issuance.
The county’s statements and presenters repeatedly noted continued coordination with lenders (including MVB Bank and United Bank), the West Virginia Department of Highways and the Federal Highway Administration on interchange and access improvements connected to Harmony Grove.
