And the saga continues. We voted this down already and now they want us to back the loan in case the gambling revenue doesn't come through (which it won't)

http://www.poconorecord.com/apps/pbc...NEWS/100809924

Debate over NCC project pits benefits versus risks

A risky financial scheme that could backfire and lead to higher taxes, or a sure bet that will improve the quality of life in Monroe County for generations?

That was the dire frame set out by critics and supporters of the financial arrangements for a new Monroe County campus of Northampton Community College.

Both sides attested to the value of education and the need for the project. But the biggest bone of contention is whether local taxpayers should guarantee a 20-year bond to backstop $2.4 million yearly payments that are earmarked for the project from gambling funds.

A guarantee provided by Monroe County taxpayers means that $31 million be available to fund the $72 million project. If there is no guarantee, the risk to lenders increases — as does the interest rate charged on the bonds — which leaves less money to pay for the costs of the project itself.

In the end, without a county guarantee, about $2.4 million less would become available to build the new campus on Route 715 in Tannersville, according to Commissioner Janet Weidensaul. NCC cannot levy taxes, so it cannot guarantee the bond on its own.


‘Absolute miracle'

Monroe County is negotiating terms on a memorandum of understanding with NCC. Under legislation written in November 2009 and passed in January, the new campus — which is more than double the size of the current facility — will be built with the share of revenue dedicated to economic development that is generated from slot machines at Mount Airy Casino Resort.

In 2008, Monroe County's commissioners declared the new campus to be the top economic development priority of the county.

“When the legislation was written, I just thought it was an absolute miracle,” Monroe County Commissioners Chairwoman Suzanne McCool said at a meeting Wednesday morning. “For once, people on the state level were listening to us in the county.”

But opponents of the arrangement worry what will happen if Mount Airy's revenues falter, the law changes, the casino license is sold or the facility closes sometime over the next two decades.

“If you co-sign that debt, you're liable,” said P. Patrick Morrissey Jr., who spoke out against the project, describing how the potentially higher taxes could push home foreclosures to skyrocket even higher. “There is a substantial risk this county will implode.”

Others described the taxpayers' resources as a dry well that cannot be tapped any further.

But supporters of the project point to the need for expanded space at a campus that is already the most popular destination for graduates from Monroe County's high schools, and the benefits that these new facilities will have on job training for out-of-work laborers.

“The county will implode for the lack of an educated work force,” said LeVaughn Nesbitt, an NCC graduate.

Matt Connell, dean of the Monroe campus, cited economic projections estimating that the project would create 500 construction jobs — a sector that has been hit especially hard by the foreclosure crisis and drop in housing starts. Within five years of the project's completion, another 100 jobs would be created both on campus and nearby, he said.


‘Negligible risk'

One opponent asked whether the risk had been adequately weighed, and whether McCool and Commissioner Theresa Merli's support for the project blinded them to its flaws.

“We're focusing on a negligible risk,” said Merli, who added that she was satisfied that financial professionals had already quantified the risk, and that the county will maintain an ongoing cushion good for one year's payment. “We are creating a fog on the opportunity.”

Merli asked, if the opponents to the funding mechanism support the larger purpose of the new campus, how else they would find the money. “How much do you think it would cost to build a Monroe Community College?” Merli asked. “Where do you think that money would come from? It'd have to come from us.”

But many opponents said they wanted NCC to borrow the money itself through a commercial lender. The Pennsylvania Department of Education has already committed $36 million to the project, contingent on a local match. The college is raising between $5 million and $7 million.

Opponents also cite the failed November referendum that would have put the local share on the backs of Monroe County's taxpayers. But supporters argue that the vote against the referendum wasn't against the campus or project, but taxes.

“They voted no on Monroe County people paying a tax to build a school,” said John Christy. “That's a different issue.”

While opponents decry the underwhelming impact of slots revenue on property tax relief, the money that will fund the NCC project comes from a separate pool of money that is dedicated to economic development. It does not affect money earmarked for property taxes.

Earlier comments from commissioners projected the memorandum of understanding to come up for a vote Aug. 18. But there was some suggestion at Wednesday's meeting that this may be pushed back to September.

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in addition to all this, Monroe residents STILL pay a much higher / credit cost then Northampton residents and why it would be called NCC instead of MCC is beyond me