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Select Board assents to YMCA collateral assignment of groundwater discharge rights to support project financing
Summary
The Select Board granted assent to a collateral assignment of groundwater discharge rights tied to the YMCA project at 487 Brick Kiln Road, enabling the YMCA to use the rights as collateral for bridge/construction financing while campaign pledges are collected.
Counsel and YMCA representatives asked the Select Board to assent to a lender request for a collateral assignment of groundwater discharge rights that the town previously granted to the YMCA for the project at 487 Brick Kiln Road. Attorney Kevin Clauer explained this is standard practice for construction loans to assign licenses and permits to a lender while a borrower obtains financing. YMCA President Stacy Pugh described the financing as bridge financing to cover timing gaps between construction and pledge collections: "It is bridge financing... while we are collecting on campaign pledges," she said, and reported $36.2 million raised to date toward the campaign with roughly $6.3 million remaining.
The board voted to assent and authorized execution of the assignment documents to allow the lender to secure the loan; the motion passed without recorded opposition.
