Morgantown schedules May 20 hearing on Riverfront TIF extension and bond restructuring

MORGANTOWN, W.Va. — City officials on Tuesday asked Morgantown City Council to set a public hearing for May 20 on a proposal to amend the Riverfront Tax Increment Financing (TIF) District No. 2 and to pursue bond refinancing that city staff and counsel said could unlock additional funds for redevelopment in the Wharf/Riverfront area.

Tom Ammon, the city’s bond counsel, said the district was created in 2003 and has project plans dating to 2004; senior bonds issued in 2006 and subordinate bonds issued in 2007 remain outstanding and the subordinate bonds have received little repayment in recent years. Ammon described a statutory option, enacted in recent years, allowing districts with pre-2020 bonds to extend their life by up to 15 years as part of a restructuring.

"This goes back several years that we've been working on this one," Ammon said, summarizing the aim to restructure debt so both senior bond coverage and subordinate bondholders are put "in a better place." City staff explained the proposal would replace the original private developer role with the city as the developer for the district and could issue replacement bonds that repay 2006 obligations and apply remaining coverage toward subordinate bond recovery.

Why it matters: staff and bond counsel said the restructuring and extension could (1) satisfy longstanding bondholders with outstanding subordinate bonds, (2) generate flexibility to attract additional capital for redevelopment, and (3) allow the city and bondholders to share future incremental revenue growth. Council voted 7–0 to set the May 20 public hearing and authorize publishing required notices to neighboring taxing bodies and the West Virginia Division of Economic Development.

What was described in the meeting: Ammon and city staff provided historical figures and options — the meeting record referenced roughly $6.1 million in 2006 senior bonds and $8.6 million in 2007 subordinate bonds outstanding at various points during the district’s life. Staff explained the process: (a) set and hold the public hearing (scheduled for May 20 at 7 p.m.), (b) if council votes to move forward, submit an application to the West Virginia Division of Economic Development, (c) if approved, adopt an ordinance amending the district and authorize any financing.

Councilor questions focused on how the restructuring would affect future development in the Wharf area and on revenue sharing. City staff said potential future growth in district revenues would be split 50/50 in at least one development area that is excluded from bond capture, and both bondholders and the city would share in any revenues above current baselines after a refinance.

Next steps: council set the public hearing for May 20; if the hearing produces a favorable vote, staff will prepare a submittal to the West Virginia Division of Economic Development. Bond counsel and the underwriter who have been advising the city and the bondholder were present and answered technical questions; council members asked staff to publish notices and return with the record and any required ordinances after the hearing.

Council members voting to set the hearing were recorded as Bill Koike; Breezey Michael; Deputy Mayor Celine; Daniel Trumbull; Dave Harshbarger; Brian Butcher; and Mayor Joe Abouganos.