Centre approves $10M loan to interim finance expansion of Public Safety Training Center
BELLEFONTE — Tuesday morning, the Centre County Board of Commissioners adopted a resolution to help finance an expansion of the county’s Public Safety Training Center.
The resolution permits the county to borrow up to $10 million through Juniata Valley Bank to provide interim financing for the project, which commissioners said will be fully funded by grants.
The loan will bridge the gap between construction costs and grant reimbursements for the $8 million project.
The county has long wanted to create a state-of-the-art facility that can train first responders and health science professionals and enhance the county’s emergency preparedness. The project would expand upon the existing training center on North Harrison Road in Spring Township.
Completed in partnership with the Central Pennsylvania Institute of Science and Technology, the project is being funded through three separate grant programs.
Commissioners said those grants reimburse expenses after they are incurred, meaning the county could be required to cover millions of dollars in construction costs before receiving grant funding.
County Administrator John Franek said the loan will provide the cash flow needed to keep construction moving while preserving the county’s operating reserves. Because funds can be borrowed as needed and repaid as grant reimbursements arrive, the county will avoid paying interest on the full amount at once. The arrangement also eliminates the need to divert money from other county priorities, officials said.
The resolution allows the county to draw on the loan for up to 18 months. Any funds borrowed will be repaid as grant reimbursements are received, they said.
County officials said the project’s timeline, which calls for completion in late 2027, is unusually aggressive for a capital project of its size. Waiting for all grant funding to be received could jeopardize that schedule, while completing the project in phases as grants are released could create compliance issues with other funding sources.
To reduce those risks, the commissioners approved the interim financing package, which includes the loan, the appointment of financial counsel and authorization for county officials to complete the necessary documentation.
Commissioner Chair Mark Higgins summarized five features of the loan that make this a highly desirable option for this project:
1. A fixed interest rate ensures stability in the maximum interest that the county will be accountable for paying.
2. Refinancing options remain, which would allow the interest rate to be adjusted. These adjustments would only lower the interest rate, benefiting the county.
3. The loan is up to $10 million, but there is no obligation to borrow the full amount. This allows the county to borrow only what is needed for the appropriate capital projects.
4. The county is able to pull money from the loan for up to 18 months. Again, this allows the county to borrow only what is needed as it is needed, minimizing excessive borrowing and unnecessary debt accumulation.
5. Flexible payment and repayment options give the county the chance to make payments to and pay off the loan early without penalty.
“Everyone has worked to cobble together all these grants for a project that will not only help first responders, but also train medical professionals well into the future. That is why it’s worth going through all this extra work,” said Commissioner Steve Dershem. “Is it going to be simple? No. Is it going to be timeline-sensitive? Yes. Is it going to be worth it in the end? Absolutely!”


