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Commission approves conduit financing to help Boys and Girls Club build new facility
Summary
The commission voted to approve conduit bond financing (item 24) on June 19 to allow Boys and Girls Club of Utah County access to public financing rates for a new facility; the public hearing drew no public comment and staff noted state law prevents the county from assuming bond payments for the nonprofit.
The Utah County Commission voted on June 19 to approve conduit financing that will let the Boys and Girls Club of Utah County access public borrowing rates for a planned capital facility.
Ezra and other staff explained the county would serve only as a conduit issuer; county counsel and bond advisors were present (Matt Dugdale of Stifel and bond counsel from Gilmore Bell). Staff emphasized the protections of conduit bonds: "conduit bonds... don't provide any additional burden to the county," and state law prevents the county from stepping in to make payments if the borrowing entity cannot pay.
The commission entered a public hearing as required and, with no members of the public speaking on the proposal, exited the hearing and approved item 24 by voice vote (motion moved by Commissioner Gardner and seconded by the meeting chair; all voted aye). Staff said the financing is intended to reduce project costs by providing access to public rates and to complement prior ARPA funding that helped advance the project.
What happens next: bond counsel and financial advisors will finalize financing documentation; no county exposure was reported in the staff presentation.
Source: Utah County Commission meeting, June 19 (presentation, public hearing and vote on item 24).
