Commission discusses SCEIDA loan for Hilltop Montessori
The Shelby County Commission discussed a $5.3 million loan for Hilltop Montessori at its July 27 meeting.
The loan, agreed to by the Shelby County Economic and Industrial Development Authority, will be used to refinance the school’s current investment and continue expansion into phase three.
Some commissioners had questions regarding the loan as well as the Commission’s role in approving it.
“This is a highly unusual entity to finance under this structure,” said commissioner Lindsey Allison.
This is the third time SCEIDA agreed to this sort of financing for Hilltop Montessori, with the last time in 2011, said Ann Watford of Maynard, Cooper and Gale, bond council for SCEIDA.
Watford said SCEIDA unanimously approved the plan on July 16, and although the Authority will issue the obligation, the school is responsible for making all of the payments. There is no economic recourse to SCEIDA or Shelby County, Watford said, and the resolution was brought before the commission as a matter of federal tax law.
“[Hilltop Montessori] is eligible for tax-free financing, but they need to jump through a couple of legal hoops, and one of those … requires approval of the governing body of the area where the project is located,” Watford said. “This formality serves that purpose.”
An amendment to the Mt Laurel master plan was approved at the July 21 Shelby County Planning Commission meeting. The change, submitted by John Freeman of EBSCO Development Company, re-designated two common areas at the corner of Kessler Avenue and Dunnavant Valley Road to commercial and institutional areas.
A gymnasium for Hilltop Montessori will be built on the institutional area.
It will be the size of the school’s existing building and two stories high, said Head of School Michele Wilensky. Although the gymnasium is two stories, Wilensky said the grade of the land means the building won’t be obtrusive.
The Commission passed the resolution unanimously.
In other news, the Commission:
- Accepted a bid to paint the exterior of the Shelby County Sheriff’s Office Operation Center and adult jail.
- Accepted a bid for calcium hypochlorite tablets.
- Reappointed Chelsea Fire Chief Wayne Shirley and Southeast Shelby Rescue Squad Chief Mark Bray to the Shelby County 9-1-1 Board.