IDA to consider loan application for Fay-Penn
The Fayette County Industrial Development Authority (IDA) has set the foundation for another county entity to pursue a loan through the agency.
In unanimous action Wednesday, board members Bernard “BJ” John, Jeff McWilliams, Jess C. Ball, Carol Capozza and Ruby Jackson approved a resolution that will allow Fay-Penn Economic Development Council to submit an application for the purchase and renovation of a county office building.
Solicitor Ernest DeHaas said while the details about the project were limited, the board was permitted to adopt a resolution that verifies the board will consider an application if one is submitted in the future.
According to the document, Fay-Penn would purchase the building and after renovations, lease it to “commercial tenants.” The estimated price tag listed in the resolution is $700,000.
DeHaas speculated that Fay-Penn will likely purchase the building in advance of submitting an application to the IDA due to the timing of an agreement with the current owner.
“Ordinarily, the procedure would be that there would not be an expenditure of funds for the project before the approval by (the IDA) and the state Department of Community and Economic Development (DCED),” he said. “Because of the circumstances, Fay-Penn may have to close the purchase using its own funds or funds through a bridge loan.”
The resolution allows for the reimbursement of the purchase price should an application be submitted and approved.
The authority was created by the county commission in 1967 and organized under the Pennsylvania Industrial Development Act, with the purpose to aid small entities and businesses in obtaining low-interest loans to expand, purchase equipment or other financial needs, with it serving as a “pass through” organization.
The borrower is solely responsible for any loan repayment.
Last year the IDA facilitated a $4 million loan for Fayette Thermal of East Millsboro to allow the company to repay an outstanding 2001 bond issue.
While the board raised questions about the proposed project, DeHaas explained that should Fay-Penn submit an application, the location, business purpose and other details would be revealed.
Fay-Penn would also be required to participate in a public hearing about the project and have the application reviewed and approved by the DCED.
There is no timetable for the application to be submitted to the board.
Turning to other matters, the board reorganized, retaining the same officers for 2017, including John as chairman; McWilliams, vice chairman; Ball, treasurer; Capozza, secretary, and Jackson, assistant secretary/treasurer.