ELKINS — Mountain Valley Bank will provide “permanent financing” for the restoration of Elkins City Hall after the Elkins City Council accepted the bank’s funding proposal.

During the council’s June 11 meeting, all nine present council members voted in favor of Resolution 1931, which accepted and approved “a proposal from Mountain Valley Bank for financing of the City Hall renovation project.” First Ward Council member Robert Chenoweth was absent from the meeting.

Elkins City Hall has been closed for restoration and recovery work since Aug. 31, 2024, after a sewage overflow incident flooded the building’s basement and first floor, including the Elkins City Police Department. In March, Elkins City Operations Manager Michael Kesecker told The Inter-Mountain that the City had hopes to reoccupy the building in July with City Hall fully reopening by Aug. 31. During the June 11 meeting, it was announced that the Elkins City Police Department was operating inside of City Hall again.

According to Resolution 1931, Mountain Valley Bank’s proposed financing includes a principal amount of $4,108,000, a term of 32 years and a fixed interest rate of 4.75 percent. The loan will reportedly be secured by “first deeds of trust” on City-owned real properties located at 401 Davis Avenue, 142 Robert E. Lee Avenue and 216 Fourth Street in Elkins. The resolution stated that the council found the terms of the financing proposal to be “reasonable, competitive and in the best interest of the City and its residents.”

Before the council voted, Elkins City Treasurer Tracy Judy addressed the resolution and Mountain Valley Bank’s proposal during her officer report. Judy said she was “very pleased” that Mountain Valley Bank was committing to funding the entire project for the same term and interest rate the USDA had offered for just partial funding.

Fifth Ward Council member Cody Thompson asked Judy if switching from the USDA to Mountain Valley Bank would impact any grants or tax credits the City was trying to get to help with the project. Judy said it would not impact anything, adding that it will be easier to work with Mountain Valley Bank than the USDA due to recent changes with the USDA “cleaning house” and not getting back to the City’s contact with information.

According to Resolution 1931, Judy and Kesecker, Mountain Valley Bank reached out to the City first regarding fully funding the restoration project.

“When Doug Weese, who is the president and CEO of Mountain Valley Bank, reached out with the offer, I was a little surprised, but grateful that we could work with a local bank on the project,” Judy told the council Thursday night. “I hope the financing is approved tonight since we’re nearing the end of the project.”

Kesecker also told the council that members of the bank did a walk through of the City Hall construction site that morning and were “very impressed” with the work. He said they were also excited to work with the City.

“We are very pleased to serve as a partner with the City of Elkins on multiple financing projects and deposit relationships,” Weese said in the funding proposal letter to the City dated June 3. “The city continues to be a valuable customer of Mountain Valley Bank and we remain committed to providing premier customer service and value added solutions for all the city’s banking needs.”

The Elkins City Council will meet next on June 25 at 7 p.m. in the Phil Gainer Community Center.