AGENDA DATE: 6/3/2015
TITLE:
Amendments to Economic Development Authority Rules and Procedures
BODY
SUBJECT/PROPOSAL/REQUEST: Resolution to approve amendments to the Economic Development Authority's Rules and Procedures
ITEM TYPE: Consent Action Item
STAFF CONTACT(S): Kamptner, Catlin, McClintic
PRESENTER (S): N/A
LEGAL REVIEW: Yes
REVIEWED BY: Thomas C. Foley
BACKGROUND: The Albemarle County Economic Development Authority's (EDA) Rules and Procedures govern how applications for industrial development revenue bond financing are submitted to the EDA, impose application and administrative fees, and establish rules and procedures for other related matters. Section 4.3(a) of the Rules and Procedures establish an annual administrative fee for each bond issue in the amount of $1,000 per $1,000,000 (1/10 of 1%) of bonds issued until the bonds are paid in full. The administrative fee applies only to the first $40,000,000 of bonds issued. Bonds issued for the benefit of the County are not subject to the administrative fee. The administrative fee has a June 30, 2015 sunset clause. Section 4.3(c) of the Rules and Procedures authorizes the EDA to expend funds it receives to support economic development initiatives that benefit the County, as determined by agreement between the EDA and the Board of Supervisors.
STRATEGIC PLAN: Economic Prosperity: Foster an environment that stimulates diversified job creation, capital investments, and tax revenues that support community goals
DISCUSSION: At its May 12, 2015 meeting, the EDA discussed amending several of the provisions in Section 4.3(a) of the Rules and Procedures, and reached consensus on proceeding to amend Section 4.3(a) by: (1) removing the June 30, 2015 sunset clause; (2) removing the cap on administrative fees to the first $40,000,000 of a bond issue; and (3) imposing an administrative fee on issues of refunding bonds. Under County Code ? 2-605, any changes to the Rules and Proc...
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