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Council adopts reimbursement resolution to enable TIF bond financing for Momentum Adventure Park and West Fork River Trail
Summary
The Fairmont City Council voted to adopt a resolution declaring its intent to reimburse project expenditures from future tax-increment bonds, a step toward financing the Momentum Adventure Park, West Fork River Trail extension and related redevelopment; the measure passed 7-1.
The Fairmont City Council on May 26 adopted a resolution declaring the city's official intent to reimburse certain project expenditures from the proceeds of future bonds or other obligations, clearing a procedural prerequisite for possible TIF-backed financing of the Momentum Adventure Park and an extension of the West Fork River Trail.
City Manager Travis Blosser told council the resolution is an administrative step required by U.S. Treasury rules and that the cited maximum "does not mean we intend to issue $20 million." He said the figure is a legal ceiling used in reimbursement resolutions and that the actual bond issuance would likely be substantially lower and only follow detailed analysis by retained bond counsel and underwriters.
The clerk read that the resolution anticipates bonds in a maximum principal amount of $20 million to support redevelopment projects in Redevelopment District No. 1, including construction work on the trail, the Momentum Adventure Park, and redevelopment related to a structure described in the resolution as the former Davis Electric Building. Blosser said the city has retained bond counsel Tom Amon of Steptoe & Johnson and underwriters (Crews and Associates) to evaluate whether the TIF increment can sustain any proposed bond obligations.
Council took a roll-call vote and approved the resolution. Recorded votes in the transcript show seven yes and one no (Council Member Webber voted No). The record indicates Deputy Mayor Rice was excused from the meeting earlier in the agenda. The city manager said any later ordinance or bond issuance would return to council for required readings and a public hearing before bonds could be issued.
What happens next: staff and the finance team will work with bond counsel and underwriters to model the increment and project projections; any formal bond issuance or ordinances will come back to council for further action and public hearings.
