Authority asks staff to draft Shared Trust proposal to free interest for economic development while preserving principal

The Woods County Industrial Authority on March 10 directed staff to prepare a formal proposal to Shared Trust that would make accrued interest on a $500,000 fund available for local economic-development grants or leveraged loans while leaving part of the principal intact for the fund's original purpose.

The board discussed documentation showing the fund was set up so the principal generates interest for economic-development administration. A staff member said the $500,000 principal has produced roughly $166,883 in interest to date; board members cited slightly different tallies during the discussion but agreed the interest represented a meaningful pool for grants or seed capital.

A committee member proposed a compromise to preserve principal while unlocking funds for projects: "What if in the proposal we asked the $1.60 in existing interest funds that we could use that to spur economic growth ... and then this $500,000, what if we left it, but in the proposal we said that we would have the ability to leverage 50% of it and then leave 50% of it alone," the committee member said. The board directed staff to draft language reflecting that approach and to circulate the draft to members and to the economic development committee for input.

Members emphasized the need to clarify governance steps before any money moves. The staff member said any change would need appropriate signatures and possibly approval from the economic development committee or industrial authority, and recommended providing the Shared Trust with documentation of intent and a clear plan for how interest would be used.

Board members also discussed possible near-term uses if funds were made available, including grants to attract businesses and leverage loans to acquire or refurbish local buildings that could create jobs. The chair and others recommended site visits and coordination with USDA/rural development or low-interest loan programs to identify feasible projects before committing funds.

The board voted unanimously to have staff (Jeremy) draft a Shared Trust proposal that would propose making interest available (with options such as allocating up to half the interest or leveraging part of the principal) while keeping a portion in reserve for the fund's original purpose; the draft will be circulated to the board and to the economic development committee for review prior to a future meeting.

Next steps: staff will prepare the proposal and supporting documentation, circulate it to the authority and the economic development committee, and report back at the next meeting.