MORGANTOWN, W.Va. — Parameters on how the Marilla Park Improvement Project will be supported through lease revenue bonds have now been given formal approval by the Morgantown City Council.
The council unanimously passed a supplemental parameter resolution during their regular meeting Tuesday, which authorized the conveyance of real property to the Morgantown Building Commission to support the sale and issuance of no more than $11 million in lease revenue bonds. The resolution also included aspects on how the bonds would be paid for with the support of city sales tax funds that would normally be allocated to BOPARC, with details on the timeline of bond issuance and ratings presented by Steptoe and Johnson Bond Counsel Tom Aman and Crews and Associates attorney Rob Steptoe.
“This is a Building Commission lease revenue bond transaction,” said Kay, Casto, and Chaney attorney representing the city, Ryan Simonton. “The Building Commission will own the property, lease it back to the city, and the city will make lease payments that will be assigned to the bondholder—the funding for those payments will come from BOPARC’s 25 percent allocation of the sales tax.”
The parameters of the issuance of the lease revenue bonds presented by Aman to the council on Tuesday will follow bond issuances that involved the Morgantown Building Commission in years past. While the details regarding the interest rates on the bonds and the repayment dates of the bonds are still ongoing, it was added that Crews and Associates representatives are expected to move forward with all the proper documentation by no later than Thursday. With the city already given favorable bond ratings ahead of any post to market, there’s an expectation that the city will be able to have demand for the bonds being issued.
“There’s another AA three-underlying credit rating for the city and also a bond rating, or transaction rating, of about A2 on the bonds, so that should help drive the interest rate down and drive demand up,” said Steptoe.
BOPARC Executive Director Melissa Wiles spoke about the project as a whole in front of the council on Tuesday, which she says will completely reimagine Lower Marilla Park. This includes the construction of 6 new tennis courts, 6 new pickleball courts, a new basketball court, and a 27,000-square-foot artificial turf field, along with an adventure/skate park that will be located at the former Marilla Pool site. This will all be located just below the new Marilla Aquatic Complex, which is considered the main driver for the project.
“That just opened up our minds and our hearts to Lower Marilla Park and everything that it means to the community,” said Wiles. “Because there are so many things going on in Lower Marilla.”
Renovations to the Marilla Center and the installation of two new standalone restrooms will also be supported as part of the project.
Morgantown Mayor and BOPARC Board Member Danielle Trumble also announced that $1 million in BOPARC reserve funds is already allocated ahead of the start of payment through the 25 percent portion of the municipal sales tax funds. This is supported by the establishment of a Capital Maintenance Reserve Fund, which was passed by the BOPARC board earlier this summer. With no direct fiscal impact reported on city general funds and a financial contribution coming directly from BOPARC municipal sales tax allocations, the city council had no issue moving forward.
“BOPARC just created a long-term maintenance account and deposited $1 million to start that in a high-yield investment account to make sure that, ongoing, it’s covered,” said Trumble.