The bonds come at no cost to the county.
Frederick, MD – In a Frederick County Council Meeting Tuesday evening, a request from the YMCA of Frederick was granted for the county to issue economic development revenue bonds in an amount not to exceed $20 million.
The county can issue the bonds and lend the proceeds to a 501(c) charitable organization under state and federal law, and allows the organization to have tax-exempt interest rates on their project.
The YMCA is responsible for paying the county’s out-of-pocket expenses, an administrative fee, and will compensate all of the county’s future costs. They also will pay all administrative fees related to the formation and maintaining of the bonds.
“We have no obligation to pay [the bonds] off,” Division of Finance Director Lori Depies said. “There’s no cost to issue for the county to issue these bonds.”
The bonds are sold strictly on the charity’s credit strength.
The funds from the bond will be used towards the construction of 60,000 square foot full-service YMCA facility located on 22 acre parcel in the Urbana area.
The YMCA is anticipating six annual installments of $600,000 in capital funds from the county as part of the county’s Memorandum of Understanding from 2017 for YMCA to construct an enhanced aquatics center at the new facility.
“I amk thankful that we’re going to be able to have a facility that will have our high school swim teams have a little more access to pools,” County Councilman Jerry Donald said. “This improves our situation greatly.”
The new facility will create at least 100 jobs and will collaborate with Frederick County Public Schools to accommodate FCPS swim teams.
The facility is planned to open in January, 2021.
By Timothy Young