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County reimburses $30,000 in deposits after initial New Markets Tax Credit allocation for new high school
Summary
Northampton County commissioners authorized reimbursement of $30,000 in upfront deposits paid by the school board to secure a New Markets Tax Credit allocation tied to the new high school project; the allocation is expected to reduce the county’s obligation by about $2 million once the allocation closes.
County staff briefed the board that the new high school construction project has received an initial allocation of New Markets Tax Credits from Self-Help Ventures totaling $13,000,000. According to staff, the allocation is expected to yield roughly $2,000,000 in net benefit to the county and school system, thereby reducing the county’s potential obligation toward construction.
Because the school board faced a deadline to secure the allocation last month, the Board of Education advanced two required deposits — $25,000 to Self-Help and $5,000 to Novogradac (the CPA firm handling allocation paperwork). The school board requested that the county reimburse those deposits; legal counsel and staff explained the deposits are refundable when the allocation closes (anticipated in spring). A motion to appropriate $30,000 for reimbursement was made, seconded and carried by voice vote.
What the board approved: immediate reimbursement of $30,000 to Northampton County Schools to cover the two deposits; staff said the amount will be returned to county contingency when the allocation closes. The county manager and school staff indicated they will monitor for potential additional allocations that could yield further reductions to the county’s obligation.
