Fiscal court authorizes legal review as county nears purchase of Yokohama facility

The Woodford County Fiscal Court Committee voted to authorize the judge executive and county attorney to complete legal review of the closing documents for 105 Industry Drive, the former Yokohama facility, advancing a purchase the county has sought to steer toward a long-term employer rather than a passive investor. The judge said the bonds are set to close on June 24 and the real estate transaction can close shortly after.

"The bonds are set to close on June 24th and then from there the real estate transaction itself can close shortly after that," Lucas Wit of MWM Consulting told the committee. He said he expected the real estate closing to occur "anytime between the 24th and the 30th." Wit's update said the county's economic development authority (EDA) will serve as conduit to hold title and vendors were approved to maintain the building's roof, HVAC and grounds.

Wit described a leaseback agreement with Yokohama under which the company will lease back 40,000 square feet at $5.25 per square foot for up to two years. "That valuation for 2 years of 40,000 [at] 5.25 a foot is $420,000 and that will be a credit at closing towards the purchase price," he said. Wit added that Yokohama will pay 28% of monthly operating expenses while occupying the space.

The judge told the committee the prepaid rent credit and other agreed credits reduce the county's purchase price from about $8.5 million to "just above $8 million." Wit also said the KPDI fund'approximately $2 million'will be funneled back to the community after the purchase, typically about 30 days after reimbursement requests are submitted.

Committee members asked whether market conditions have changed since the county began the process. "In terms of the way we look at it, the deal hasn't changed," Wit said, arguing the property'its quality, ceiling heights, office-to-warehouse ratio and expansion land'remains attractive and that comparable industrial activity year-over-year has been positive.

After brief discussion the committee moved to authorize the judge executive and county attorney to complete legal review of the closing documents. The motion was seconded and, after a voice vote in which several members said "I" and at least one member said "nay," the judge declared the motion carried. The judge thanked Wit and his team for their work and said the county may need a special meeting to approve final closing documents if timing requires it.

What happens next: staff expect bond documents to close on June 24 and the formal closing documents for the purchase to be circulated to the court. The judge said the court will review and approve the documents before the sale is final; if timing is tight the court may call a special meeting to act.

Sources: Remarks and Q&A by Lucas Wit (MWM Consulting) and members of the Woodford County Fiscal Court Committee during the committee meeting.