Board approves $6 million interim financing, accepts treasurer’s report

The board voted to enter a $6,000,000 interim line of credit with an entity referred to in the meeting as "ShareTrust" and accepted the treasurer’s report showing an ending balance of $11,140.68.

The action came as board members discussed short-term cash needs while they continue to market bonds to investors. Treasurer Dan Holder said the proposed loan would be interim financing and would be repaid from the proceeds of the pending bond sale once those bonds fund.

Dan Holder, Treasurer, said, "This loan would be paid off with interest at the funding of the bonds." He described the loan as interim, not term debt, and said attorneys were drafting the loan document. Holder asked for a motion to proceed so staff could advance a payment that would otherwise be due before the next meeting.

The treasurer’s report, presented by Holder from figures provided by Joanne (staff member), listed an ending balance of $11,140.68 after paying most outstanding bills; the next payment to Crossland was noted as due after the meeting. Board members were invited to review the bills on the docket.

The board also approved a motion to authorize payment and signing of an agreement related to arena, livestock, equipment and panels; a board member moved that the board "approve the amount and sign the agreement and send it back," and a second was recorded before the vote.

Votes and motions recorded in the meeting transcript include: approval of the treasurer’s report; a motion authorizing the board to enter the $6,000,000 interim financing arrangement with ShareTrust with terms mirroring the board’s prior interim financing; and approval to make payment and sign the arena-related agreement. According to the meeting record, the interim financing motion passed with recorded yes votes from Glass, Hood, Holder, Klein and Hannaford. The motion to authorize payment and sign the arena agreement passed with the same recorded yes votes.

Holder said the interim loan would effectively function as "sub debt" that the board would issue back to coincide with double tax exempt bonds that are expected to be purchased by investors. He said the loan would be paid from bond proceeds and would carry the same note terms as the earlier interim agreement.

Holder also said the loan document was being drafted and that copies would be circulated by email; he said he would make a copy available for board members to initial before signing so no one would be asked to approve material they had not reviewed.

In committee updates, the funding committee reported that three to four investors were actively reviewing the bond offering and that negotiations were progressing; the committee said the bond market movement was favorable and could yield a slightly lower interest rate. The management operations committee said it will hold another meeting on the 13th at the tech center.

The board did not disclose the formal name of the external lender beyond references used in the meeting ("Trowbridge Share Trust," "Charles Morton shared trust," and "ShareTrust" appear in different remarks); the meeting record did not provide a definitive, single legal name for the lending entity.