Commissioners approve $50,000 refundable deposit to secure $20 million New Markets Tax Credit for new high school project

The Northampton County Board of Commissioners voted to approve a reservation agreement with BlueHub Capital Incorporated and to authorize a $50,000 refundable deposit to secure a second New Markets Tax Credit allocation for the county's new high school construction project.

County staff told commissioners the project received a $20,000,000 allocation from BlueHub Capital and that, together with earlier financing, the allocation is expected to reduce the county's obligation on the project and yield an estimated net benefit of about $4,000,000 to the county. "Tonight, I am pleased to report that the project has received a second new markets tax credit allocation from BlueHub Capital Incorporated in the amount of $20,000,000," the county presenter said.

The presenter reviewed prior commitments by the county, including a waiver of up to $1,200,000 in state sales-tax reimbursements and roughly $4,200,000 from the county's unrestricted fund balance. With the new allocation, staff said the county's additional cash contribution could be reduced or extinguished, though some upfront money is required to complete paperwork.

Board members discussed the financing terms and the deposit. The county presenter said the $50,000 upfront deposit pays initial closing costs and professional fees to BlueHub and will be refunded to the county at closing. The presenter added that closing is anticipated in the spring. "That deposit will be refunded to the county at the time of closing, which, again, is anticipated to happen this spring," the presenter said.

Vice Chairman moved to approve the reservation agreement and the deposit; Commissioner Edwards seconded. The motion passed by voice vote.

Next steps: staff will proceed with the BlueHub reservation agreement toward closing and return to the board with closing details and any required appropriations or adjustments once the transaction advances.