SYCC Financing Update Provided by City Attorney Tom O'Neill

December 6, 2022

Mountaineer News

Buckhannon City Council

City Attorney Tom O'Neill discusses the processes of moving forward with funding options for the SYCC addition during the December 1st Buckhannon City Council meeting.

BUCKHANNON - During the December 1st City Council meeting, City Attorney Tom’ O’Neill discussed the upcoming processes for obtaining financing for the Stockert Youth & Community Center addition.

O’Neill stated that he, Mayor Robbie Skinner, City Recorder Randy Sanders and City Finance Director Amberle Jenkins recently met with Mr. Tom Aman with the firm of Steptoe & Johnson to discuss engaging that firm as bond counsel for being the issuer of bonds for the project.

“Technically, it will be the Building Commission that engages Steptoe & Johnson as bond counsel. They will be the issuer of the bonds. This is intended to proceed much like the financing for the new facility out at Mud lick road... It will kind of take a similar path to that, except with this one, we’re going to pursue a duel track and try to fund this through USDA and the Firm, Steptoe (& Johnson) will be involved with whichever path we choose, but we’re going to plant both seeds to see which one sprouts,” O’Neill said.

O’Neill went on to say that two items will be before Council during their next scheduled meeting (or if there’s a need to have a special meeting prior to):

1. Approval of the engagement letter with Steptoe & Johnson via the Building Commission and approval from City Council.

"The Building Commission will need to have a meeting soon… I’d say within the next week, hopefully; a noticed, agended, public meeting as well, where they will consider the engagement of Steptoe & Johnson as bond counsel. Their fees will be paid out of closing as part of the transaction," O'Neill said.

2. He also discussed an agended reimbursement resolution that will enable the city to be reimbursed for any expenses it may occur between now and when the bonds close (assuming first quarter of next year); Federal Treasury regulations require the adoption of the reimbursement resolution.

"The engagement letter is for $4 million worth of financing. That is an anticipation to try to plan for how construction bids may come in .We want to try to reasonably ensure that we would have enough financing to cover a reasonable bid range. If that needs to be adjusted, that can be adjusted", he said.

O’Neill concluded that an RFP (Request for Proposal) will also be issued for the non-USDA portion of the funding alternatives to seek quotes from local lenders, “just to see which path is going to be the most fruitful by proceeding down a duel track, and choose one at the appropriate time,” he said.

Watch the entire address from City Attorney Tom O'Neill: