MORGANTOWN, W.Va. — The City of Morgantown will move forward with the issuance of lease revenue bonds to construct the new Marilla Park Aquatic Complex.
A resolution that approves up to $16 million in bonds to be issued to support the construction of a new complex that would fund a relocation of the Marilla Park pool to a lower part of the park and add several amenities The bonding will be supported through the Morgantown Building Commission, which will use city property as collateral via lease agreements to help pay for bond financing. The resolution was approved unanimously by the Morgantown City Council.
“I have generally appreciated this BOPARC project because it came in right around the anticipated budget, unlike some of our previous projects,” said Morgantown City Councilor Danielle Trumble, who approved the resolution.
Construction of the Marilla Park Aquatic Complex is projected to cost just under $14 million and would account for several provisions included in the bond offering. The bid for construction will be valued at just over $12 million, which accounts for the new Marilla Pool, water slides, a lazy river, a “sprayground” area, and a zero-grade entry into the facility. The rest of the funds will be used to account for administrative costs and project overhead.
“The low bid accepted was roughly $12.1 million, plus the ten percent project contingency of about $1.2 million,” said Crews and Associates Bond Counsel Rob Steptoe on the project’s total costs. “Along with the miscellaneous cost of an additional $925,000.”
Bonds will be issued through the Morgantown Building Commission, which will use the lease agreement with the city to support the financing and repayment of the bonds. Any funds generated from the sale of bonds that aren’t used for the approximately $14 million project can be used to pay down the principle and help lower future interest rates.
“It approves the issuance of the bonds by the building commission, from the city’s standpoint, entering into the lease bond purchase agreement,” said Steptoe and Johnson Bond Counsel Tom Aman.
According to Steptoe, the City of Morgantown was awarded an AA3 bond issuer rating (considered a high grade), and bonds will be sold on an A2 rating (upper medium grade). These ratings will allow for interest rates to be lower on the bond offering and allow for an easier reach for potential investors. Steptoe also announced that when the bonds are put on sale next Thursday, they hope a combination of good credit scores by the city and interest rates that have remained steady in November will allow the city to be in a good position to not be negatively affected by the funding of the large-scale parks and recreation project.
“Those rates have come down to about a 4.75 (percent) right now,” said Steptoe. “And we’re hopeful that they will stay in that range for next week,” he said.
The existing Marilla Park Pool will be open for the 2024 season.