JOHNSTOWN — Fulton County legislators on Wednesday approved a financing method for the Family Counseling Center’s planned addition, but it involves a Montgomery County entity.
The Fulton County Board of Supervisors’ Economic Development and Environment Committee approved issuance of obligations by the Montgomery County Capital Resource Corp., or CRC, to finance the Gloversville-based not-for-profit’s planned 18,578-square-foot addition.
The Family Counseling Center is seeking up to $10 million in tax-exempt revenue bonds to finance the project at 11-21 Broadway.
Scott Henze, Fulton County planning director, told the committee that industrial development agencies, such as the Fulton County IDA, were previously authorized by New York state to issue tax-exempt financing to not-for-profit corporations.
“That changed in 2008,” Henze said.
He said the state Legislature that year decided to not renew any IDA’s authorization to issue such financing. Instead, the state allows creation of CRCs under the state Not-For-Profit Corporation Law to issue such financing.
Henze said Fulton County has not created a CRC, but Montgomery County has. The action taken Wednesday by the Fulton County committee must now be approved March 9 by the full board. Since the Family Counseling Center also works in Montgomery County, that county’s CRC financing situation is applicable, he said, although the Montgomery County Legislature must approve similar action.
Henze told the committee he spoke with Fulton County Attorney Jason Brott, who has “no issues moving forward” with Fulton County lending its support to the Family Counseling Center seeking financing through the Montgomery County CRC.
Obligations to be issued by the Montgomery County CRC will never be a debt of Fulton County, nor will Fulton County be held liable, the committee noted.
The Family Counseling Center proposes to construct the addition to its existing building to include designated treatment space, an observation room, meeting space and a children’s room. The facility is also proposing to acquire and install various machinery and equipment for the addition.
Michael Anich covers Johnstown and Fulton County news. He can be reached at [email protected]