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JACKSON – The Northampton County Board of Education held a special called meeting on Monday, Nov. 25 to consider a potential funding option for the new high school construction project.

The district has received a total of $62 million from the state through the Needs-Based Public School Capital Fund. But they need approximately $6 million more in funding to move forward with the construction as planned.

On Monday, Board Attorney Rod Malone told school board members about a potential option to use New Markets Tax Credits (NMTC) to make up for the shortfall. He noted that other school districts in North Carolina, such as Jones County and Hoke County, have used this option for their construction projects in the past.

The NMTC program was created by the federal government several years ago in order to attract wealthy individual and corporate investors to low-income communities. Those investors receive tax credits in return for investing in intermediaries called community development entities, who then invest the funds in projects in low-income areas. The US Treasury awards only a certain amount of New Market Tax Credits each year.

“You would use these funds to bridge the gap between the $62 million that you have from your Needs-Based grant, and the $68 million that your bids are currently showing that this project will cost you,” Malone explained.

He presented the board with a contingency collaboration agreement with True Mountain Holdings, a company which will help the district try to find available NMTC funding.

According to the text of the agreement, the district will not have to pay anything upfront to True Mountain Holdings. If the company is able to secure funding for the district, then their fee will be 2.5 percent of the allocation amount.

He also added that he had shared the information with the Northampton County Manager and their board attorney, since the district approved an agreement last year to let the county recoup the sales tax from the construction project.

Board Chair Barbara Stephenson asked if exploring the NMTC option would delay the project.

Malone explained that it typically takes a few weeks to check if NMTC funding is available, and the closing on those funds would then take a few months. So there could be delays, but they’re also looking at whether they can move forward with the high school construction at only $62 million, and perhaps add on more later.

But he emphasized that the only decision the board needed to make at Monday’s meeting was whether or not to approve the agreement with True Mountain Holdings.

“It’s a no-brainer,” said board member Rhonda Taylor in support of the proposal. “We don’t have to put anything up.”

Board member Tony Burnette asked if this option would incur any costs or tax increases to the citizens.

“That’s what’s uniquely great about this $6 million if we get it,” Malone answered. “It’s kind of free cash to the county. It doesn’t have to be paid back in any way. It doesn’t impact any tax consequences for the residents.”

Board member Garry Elliott said he thought they should have more discussion with the county commissioners first, so they’ll be up-to-date on the project.

Board member Clinton Williams agreed, but also said he didn’t see why the commissioners would have any problems with them exploring the option. Without this funding, he said, the board might have to ask the county for the money instead.

Taylor motioned to accept the agreement, and board member Catherine Moody seconded. The vote was unanimously in favor.

The board also voted to schedule a meeting with the commissioners soon to get them up to speed.

The new high school has been in the works since the district was awarded their initial $40 million Needs-Based grant in May 2022. They were then awarded more funds from the state budget, bringing the total to $50 million later that year. To address rising costs, the state allocated more funds to school construction projects throughout North Carolina in 2023, bringing Northampton’s total to the current $62 million.

The school will be located on a 63-acre parcel, purchased by the county, located on Highway 305 just outside of the Jackson town limits.