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Board approves $5.2 million lease-revenue financing for landfill Cell 2; Goodwin Building pledged as collateral
Summary
The Board approved a financing package to fund construction of landfill Cell 2 using a $5.2 million lease-revenue structure, pledging the Goodwin Building as collateral and directing the county administrator to execute closing documents.
The Amherst County Board of Supervisors voted on March 18 to approve a financing package to fund construction of landfill Cell 2 and to authorize staff to execute related documents.
RT Taylor, a representative of Davenport & Company, which is serving as the county's financial adviser, presented the recommended financing. Taylor said the proposal calls for issuing $5,200,000 in lease-revenue debt through the Amherst County Economic Development Authority as a conduit issuer; the county would remain responsible for debt service. "We're gonna look at issuing $5,200,000, and that will cover any related financing costs, but also your project costs as well as your capitalized interest," Taylor said, adding that the resulting project fund would be "roughly $4,600,000" and that roughly $500,000 of that would cover engineering costs.
Taylor described the Goodwin Building's role in the financing: the structure, which houses the treasurer's office, extension office and commissioner of revenue, was selected as collateral to enhance credit comfort for lenders. Taylor also explained the financing structure would be a 15-year amortization with a fixed rate of about 3.99 percent as shown in the resolution packet.
Board members requested clarifications about collateral substitution and improvements to the Goodwin Building. Taylor said collateral could be substituted with bond counsel and lender approval if the board later needed the building free and clear for renovations. A county staff member confirmed routine improvements not financed under the bond would not be precluded.
The board took two actions tied to the financing: members approved the financing resolution and then approved the related motion authorizing issuance of the $5,200,000, directing the county administrator to execute required documents, and awarding the contract to the lowest responsive bidder. A roll-call vote on the motion showed the board voting unanimously in favor: Supervisor Wade, Supervisor Adams, Supervisor Pugh, Supervisor Martin and the chair all recorded "aye" on the transcript.
The financing will fund Cell 2 construction activities and capitalized interest and is expected to leave approximately $4.1 million for construction after engineering costs. The board directed staff to proceed with closing steps and document execution; staff and counsel will coordinate required final financing documents.
