AGENDA DATE: 6/3/2026
TITLE:
Resolution of Approval and Concurrence of Bond Financing for Kappa Sigma Endowment Foundation through EDA of Appomattox County, VA
SUBJECT/PROPOSAL/REQUEST: Consider approving a Resolution to approve and concur with the Appomattox County Economic Development Authority (EDA) issuing a revenue bond for expansion of the Kappa Sigma Endowment Fund Headquarters and Museum at 1610 Scottsville Road in Albemarle County
ITEM TYPE: Consent Action Item
STAFF CONTACT(S): Richardson, Henry, Kilroy
PRESENTER (S): N/A
LEGAL REVIEW: Yes
REVIEWED BY: Jeffrey B. Richardson
BACKGROUND: Kappa Sigma Endowment Fund (KSEF), along with its limited liability corporation, Scottsville Road Holdings LLC, is expanding its museum and headquarters with cash and tax-exempt revenue bond financing through the Appomattox County EDA. Albemarle County’s EDA cannot issue “bank-qualified” bonds (BQ Bonds) under the Internal Revenue Code (IRC) since a locality is limited to $10 million in tax-exempt bonds in a calendar year to qualify as BQ Bonds and Albemarle County has issued more than $10 million in tax-exempt bonds in 2026. Another locality’s EDA is needed for KSEF’s BQ Bonds to proceed.
KSEF built its original museum in Albemarle County with similar BQ bonds in 2006, and the Albemarle County Board of Supervisors approved Nelson County’s EDA issuing bonds for the project. The Albemarle Board also approved a later bond issue by Appomattox County’s EDA for KSEF in 2012. The Virginia Industrial Development Authority Act and the IRC require the local governing body (Board of Supervisors) to approve and concur in the financing of a project located in its county if another locality’s EDA will issue bonds for the project.
The Appomattox County EDA approved the KSEF bond issue on April 27 after a public hearing, and the Appomattox County Board of Supervisors approved the bond issue on May 18. The Albemarle County EDA held its public hearing and recommended approval on May 19, and recommends that the Albemarle Board approve and concur in the bond issue. The KSEF Bond Issue is planning to close in early June following the Albemarle Board meeting. Neither Albemarle County nor the Albemarle EDA have any liability for the KSEF Bond Issue being issued by the Appomattox EDA.
STRATEGIC PLAN: To enhance the well-being and quality of life for all community members through the provision of the highest level of public service consistent with the prudent use of public funds.
DISCUSSION: This action is the same action that the Board of Supervisors took in 2006 and in 2012 to allow Kappa Sigma Endowment Fund to finance its original national headquarters and museum facility in Albemarle County at 1610 Scottsville Road. KSEF is expanding these facilities with a new tax-exempt revenue bond issue, again issued by the EDA of Appomattox County, VA, in order for the bonds to be Bank-Qualified and more attractive for lending by a bank (First National Bank).
The Albemarle County EDA has held a public hearing on May 19 and approved a resolution recommending that the Albemarle County Board of Supervisors approve and concur in the Appomattox County EDA issuance of a revenue bond for Kappa Sigma Endowment Fund and Scottsville Road Holdings LLC to expand its National Headquarters and Museum facilities in Albemarle County as required by State and Federal law (the VA IDA Act and Internal Revenue Code). All approvals have taken place in Appomattox County with approval by the Appomattox EDA after public hearing and by the Appomattox County Board of Supervisors.
Once the Albemarle County Board of Supervisors approves its resolution, the KSEF Bond Issue will proceed to closing in early June. Expanding the museum and national headquarters for Kappa Sigma Endowment Fund in the County will increase tourism and promote the County to visitors to the museum and national headquarters.
BUDGET IMPACT: There is no budget impact associated with this resolution.
RECOMMENDATION:
Recommendation
Staff recommends that the Board approve the attached Resolution (Attachment A) to approve and concur in the bond issue for Kappa Sigma Endowment Fund to be issued by the Appomattox EDA.
ATTACHMENTS:
A - Resolution