by Kate Shunney
The Morgan County Commission held its first reading of an ordinance that would authorize the creation and sale of lease revenue bonds in the amount of $2.7 million to pay for design and construction of a county wellness center.
Commissioners have been pursuing the option to buy Rankin Fitness Center in Berkeley Springs and turn the private facility into a county-owned wellness and recreation center.
On Wednesday, July 17, Commission President Sean Forney introduced the ordinance, which must have two readings to go into effect. Under the proposal, the Morgan County Building Commission would sell $2.7 million in bonds to the U.S. Department of Agriculture (USDA). According to the ordinance, the Building Commission will lease the facility to the Morgan County Commission.
The ordinance states: “[T]he County Commission hereby finds and determines that the acquisition by the Building Commission of the site of the Project, together with all existing improvements and personal property in connection therewith, the design, acquisition, construction, equipping and financing of the Project by the Issuer and the leasing thereof and the other Facilities to the County Commission from the Issuer is desirable and needed and will benefit the inhabitants of Morgan County and will promote the general health and welfare of the citizens and residents of Morgan County…”
It also specifies the County Commission will use its funds in the amount of $1.25 million “to pay a portion of the costs of the design, acquisition, construction and equipping of the Project,” and that payment will be an “equity contribution” to the project.
Commissioners for months have been working with auditors to complete a financial analysis proving they can afford to purchase and run a public fitness center operation.
The step to approve bonds will finance the purchase of the facility from Rankin & Associates LLC, founded by county native Kelly Rankin more than 20 years ago.
A second reading of the ordinances is set for August 7, with bond counsel scheduled to be on hand to answer any questions about the financing mechanism.
Under the ordinance, the County Commission will name the State Director of the USDA, Rural Development office, as the Trustee under a Deed of Trust to be established for the property purchase.
County officials have been working on the deal since May of 2023, when they announced they had negotiated the option to purchase the private fitness center for $3.65 million.
Their original plan was the secure a $2.15 million load from USDA and make a $1.5 million down payment on the property from combined American Rescue Plan (ARP) funds and local Hotel/Motel taxes from FY 2023 and FY 2024.
Commission President Sean Forney, who brokered the purchase option with Rankin, said a long-term lease with a physical therapy company working out of the building would help cover the payments for the facility. Those, along with fitness center memberships and facility rentals, would make the center financially self-sustaining, Forney has said.
H2 Health leases half of Rankin Fitness Center for their physical therapy business and has a lengthy lease agreement with the facility’s owners. County officials have said that H2 Health has agreed to remain in the facility if they purchase it.