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County approves master-lease conduit to enable tax-exempt financing for Trinity Christian School HVAC
Summary
After a public hearing with a representative of the leasing company, commissioners approved a resolution authorizing a master lease and sublease that will allow Trinity Christian School to secure tax-exempt financing for new HVAC equipment, with the county serving only as a conduit and bearing no financial responsibility. The financing amount was discussed at about $245,000.
Monongalia County commissioners voted to approve a resolution authorizing a master lease and sublease with Country Roads Leasing LLC to allow Trinity Christian School to obtain tax-exempt financing for new HVAC equipment.
The item began with a public hearing. Jeff Smell, owner of Country Roads Leasing, told the commission that the county’s role would be to act as a conduit. “What we’re asking is that the commission adopt a resolution to act as a conduit for the financing so that the financing for new HVAC equipment for Trinity Christian School can be considered tax exempt,” Smell said, adding that tax-exempt status reduces interest costs over the life of the financing. He said all financial responsibility, insurance and maintenance remain with the sublessee, Trinity Christian School.
County staff confirmed the required publication for the hearing and commissioners asked staff and the leasing representative whether the county would assume any financial obligation. They were told the county would not be financially responsible. Commissioners discussed the approximate financing amount, which participants stated as about $245,000.
After the hearing, a commissioner moved to authorize the president to sign the resolution and the associated master lease and sublease documents. The motion was seconded and approved by voice vote.
The resolution authorizes the county to serve as a conduit issuer for the benefit of the school; the lease documents assign repayment responsibility to the school or its financing structure. No county appropriation or debt was recorded in the meeting minutes in connection with the action. The county’s legal and administrative documents to implement the financing were authorized to be signed by the president as part of the approval.
Next steps are administrative: county staff indicated they will finalize and execute the resolution and the leasing documents to permit the school’s financing to proceed.
