AGENDA DATE: 10/2/2019
TITLE:
Title
Approval of the SOCA/Fluvanna County EDA Private Activity Bond Proposal
BODY
SUBJECT/PROPOSAL/REQUEST: Approve by resolution the Fluvanna County EDA's issuance of private activity bonds to finance the SOCA field house in Belvedere
ITEM TYPE: Regular Action Item
STAFF CONTACT(S): Richardson, Kamptner, DeLoria
PRESENTER (S): Richard DeLoria and Richard L. Hurlbert, Jr., Bond Counsel for Fluvanna Economic Development Authority
LEGAL REVIEW: Yes
REVIEWED BY: Jeffrey B. Richardson
BACKGROUND: The Soccer Organization of Charlottesville Area, Inc., (SOCA) a Virginia nonstock not-for-profit corporation, whose principal place of business is presently located at 1685 Polo Grounds Road, wishes to build an approximately 50,000 square foot field house (39,000 square foot footprint) on Belvedere Boulevard. To finance the costs of the acquisition, construction, and equipping of the facility, the Fluvanna County Economic Development Authority (EDA) agreed to issue private activity bonds, which the Fluvanna County EDA and the Fluvanna County Board of Supervisors have approved. Such governing body approval allows the Fluvanna County EDA to issue bank qualified tax-exempt bonds for not-for-profit organizations such that SOCA will obtain more favorable and affordable financing terms. Board approval on October 2 will help SOCA and the Fluvanna County EDA to close before the interest rate lock expires.
Before approaching the Fluvanna EDA, SOCA inquired if the Albemarle County EDA would be able to issue bank qualified bonds and was told there was no capacity for the Albemarle County EDA to issue bank qualified bonds, also known as tax exempt qualified obligations, in 2019. In determining capacity, the IRS aggregates the County's, its public schools, and its authorities and commissions calendar year issuances.
The planned indoor field house is a permitted use included in the Belvedere Neighborhood Code of Development. Belveder...
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