Company A leased distribution facilities located in Stillwater from a general partnership called B Leasing. B does not have operations separate from the leasing of these distribution facilities. The general partner of B is A's Chairman of the Board and a significant shareholder in A.

B financed the construction of these distribution facilities via issuance of industrial development bonds totaling $33.2M. The bonds are collateralized by the distribution facility and also require A to maintain certain financial covenants.

The lease agreements require Ivivva to pay annual rent and applicable taxes, insurance and maintenance expenses. The lease terms are for 15-20 years. A is obligated to renew the leases until the bonds are fully repaid. The lease terms were set so that the lease would meet the FASBs requirements for an operating lease.

Required: Who are the variable interests? Is B a VIE? If so, should A consolidate?