File photo Elkins City Hall has been closed for restoration and recovery work since Aug. 31, 2024.

ELKINS — Elkins City Council has approved entering into an “engagement letter” with a law firm for “specialized legal services in connection with the City Hall Redevelopment Project.”

During Council’s July 9 meeting, seven present council members voted to approve Resolution 1936: “Acceptance and approval of FTB Gibbons Engagement Letter.” The resolution authorizes and directs Elkins Mayor Jerry Marco to “execute an engagement letter with FBT Gibbons LLP to provide specialized legal services in connection with the City Hall Redevelopment Project.” Second Ward Council member Lisa Severino, Fourth Ward Council member Andrew Carroll and Fifth Ward Council member Cody Thompson were absent from the meeting.

According to Resolution 1936’s agenda item report, the firm will advise the City on matters related to “the placement of historic tax credits and financing associated with the project, including financing through Mountain Valley Bank.” On June 11, 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.” The bank’s financing for the project includes a principal amount of $4,108,000, a term of 32 years and a fixed interest rate of 4.75 percent.

According to Resolution 1936, the City received an engagement letter dated July 2 from FBT Gibbons LLP to provide legal counsel and representation in connection with the historic tax credits and Mountain Valley Bank’s financing.

The engagement letter identifies the City of Elkins as the client in this matter and outlines the scope of legal services to be provided by the firm. It also states that FBT Gibbons LLP attorney Amy King Condaras will serve as counsel for the matter at an hourly rate of $578.00, “subject to future adjustments in accordance with the firm’s billing practices and the terms set forth in the engagement letter and attached Standard Terms for Client Engagements.”

Before Council voted to approve the resolution, Elkins City Attorney Geraldine Roberts explained that Condaras and FBT Gibbons LLP will handle the documentation surrounding Mountain Valley Bank financing the restoration project. She stated that the firm will also be putting together “a very nuanced way” of allowing the City to receive historic tax credits with the restoration project.

Roberts stated that getting the tax credits will not be contingent in the City paying Mountain Valley Bank’s financing loan back. She called the credits “icing on the cake” as they would be an additional revenue source in the City of Elkins’ General Revenue Fund that the City Council would get to approve. Roberts emphasized that, “at all times” the City will have the last word in this agreement with the firm.

While the City will not know the amount of historic tax credits they could receive until after the process begins, City Operations Manager Michael Kesecker stated that they could possibly receive over $500,000 “just simply by putting the effort in.”

“Whatever money we receive in (historic) tax credits is ours to do with as we please,” Kesecker explained to the Council. “It doesn’t have to go towards the loan for the City Hall Renovation. If we want to use it to purchase equipment, if we want to use it to pay off some other debt we have, that is our money and we can do that.”

Roberts and Kesecker also noted that Condaras will be at the next City Council meeting on July 23 to explain how things will work on her end of the agreement.

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, Kesecker told The Inter-Mountain that the City had hopes to have City Hall fully reopened by Aug. 31. During Council’s July 9 meeting, Kesecker stated that the restoration was still on schedule for the Aug. 31 deadline.

“Count down’s on. A few more Council meetings and we’ll be having them in Council Chambers,” Kesecker said. “I’m excited. The contractors are confident that we’re going to meet the deadline… We will be in the building.”

The Elkins City Council will meet again at 7 p.m. July 23 in the Phil Gainer Community Center.