Title
Resolution Approving the Issuance of Tax Exempt Revenue Bonds by the Economic Development Authority of Montgomery County, Virginia for the benefit of Virginia Tech Foundation, Inc.
Purpose
PURPOSE/BACKGROUND:
The Virginia Tech Foundation, Inc. (the "Foundation") requested that the Economic Development Authority of Montgomery County, Virginia ("Montgomery County EDA") issue certain revenue bonds to assist the Foundation with the financing and refinancing of various projects throughout the Commonwealth. A portion of the Bonds are expected to be issued as tax-exempt, qualified 501(c)(3) bonds as defined by the Internal Revenue Code. A portion of the tax-exempt bond proceeds ($7 million, of an estimated $104 million) may be used for the acquisition, construction, equipping, and development the new Seafood Agricultural Research and Extension Center ("AREC") facility to be located on Rudd Lane, which will be owned by the Foundation and used by Virginia Tech. While those bonds will not be issued by the City or the Economic Development Authority of the City of Hampton, Virginia ("Hampton EDA"), and will not constitute a debt or pledge of the faith and credit of the City or the Hampton EDA, the Internal Revenue Code requires the governing body in each jurisdiction where the tax-exempt bond proceeds will be expended to consider an approval resolution after a public hearing has been conducted and the Virginia Code requires the approval of the host jurisdiction to any financing done by any economic development authority located outside its jurisdiction.
The Montgomery County EDA held a public hearing on this proposed issuance of the tax-exempt bonds on June 18, 2019, after which it adopted an inducement resolution (included in this agenda package). The Montgomery County Board of Supervisors was further expected to conduct a public hearing and opine on this request at its July 8, 2019 meeting, with the Hampton City Council then expected to act on July 10, 20...
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