Commission extends Charles Pointe bond requisition period, approves tax counsel engagement with $20,000 cap arrangement

The Harrison County Commission on Wednesday approved multiple motions tied to the Charles Pointe Economic Opportunity Development District, including (1) a requisition for payment from the Series 2019 excise tax bond project fund, (2) an amendment to extend the period for requisitioning project costs, and (3) an engagement of Ballard Spahr LLP to provide special tax counsel with a limited initial funding arrangement.

County counsel explained the Series 2019 bonds include a three-year period within which costs must be requisitioned into the project fund; that period had expired and additional costs were now being submitted. Counsel recommended amending the trust indenture to extend the requisition date so trustee UMB Bank NA can credit previously approved requisitions into the bonds. Counsel described the target revision as extending the date “to December 30 first of 20 25.” Commissioners approved the resolution adopting the second supplemental indenture to effect that extension.

The commission also approved a separate requisition from the Series 2019(c) project fund to credit incurred project costs into the bonds. During the vote on an earlier requisition (agenda Item 7, covering multiple Charles Pointe project funds) one commissioner recorded a “no” vote on the floor even as the motion carried by voice vote.

Separately the commission moved to engage Ballard Spahr LLP to provide special tax counsel on the Charles Pointe bond matters, including review of the 2008 property TIF bonds, the 2019 excise tax bonds and any anticipated restructuring. Ballard Spahr’s tax attorney, Fred Williams, was described as experienced in tax-exempt municipal bond matters and familiar with the Charles Pointe project. Ballard Spahr’s hourly rate was discussed on the record; one commissioner summarized the concern that tax counsel work can be costly, and the developer indicated willingness to fund an initial portion of the work.

The commission approved engagement of Ballard Spahr with an amendment: the developer (Genesis/representatives on the record) would provide up to $10,000 to cover initial fees on two specified requisition items; the county would match up to $10,000, creating a $20,000 initial funding pot. Commissioners said further fee responsibility would be handled as the restructuring process progressed and could be shifted to bond proceeds or a trustee agreement if a formal restructuring or sale were completed.

Why it matters: The actions clear an accounting/legal impediment that had delayed crediting project costs into bond proceeds and put tax counsel in place to advise on preserving tax-exempt status during any restructuring. The matter involves long-running negotiations among developers, bondholders, the trustee and county officials and affects the financing and timing of a major local development.

What happens next: The trustee indicated it was more comfortable crediting requisitions after the document amendment; county counsel will work with the trustee and Ballard Spahr to process the approved requisitions. The developer’s $10,000 deposit and the county’s $10,000 match will be available to Ballard Spahr for initial tax review of the specified items; additional work would require further authorization and funding arrangements.