03-05-1992 Packet
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Chesterfield Board of Supervisors
Chesterfield Industrial Development Authority
Meeting and Dinner
March 5, 1992 - 5:30 p.m.
Ruth's Chris Steak House
BOARD OF SUPERVISORS
IDA BOARD MEMBERS
Mr. Harry G. Daniel
Chairman
Dale District
Mr. J. Thomas Steger
Dale District
Mr. James A. Spencer
Dale District
* *( unable to attend)
Mr. A.S. "Art" Warren
Vice Chairman
Clover Hill District
Mr. Gary W. Fenchuk
Clover Hill District
**(unable to attend)
Mr. l.. L. "Jack" McHale, III
Bermuda District
Mr. John W. Waddill
Bermuda District
Mr. Whaley M. Colbert
Matoaca District
Mr. Curtis C. Duke
Matoaca District
Mr.. Edward Barber
Midlothian District
Mr. William F. Seymour, III
Midlothian District
Mr. L. Todd Lumadue
Midlothian District
OTHERS ATTENDING
Mr. Jack Spain, Jr., Bond Attorney, Hunton & Williams
Mr. Lane B. Ramsey, County Administrator
Mr. Richard F.. Sale, Deputy County Administrator for Community Development
Mr. Gary R. McLaren, Director, Economic Development
Mrs. Elizabeth Kashurba, Administrative Assistant, Economic Development
Mr. Steve Micas, County Attorney
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History and Evolution of
Industrial Development Revenue Bond Act
The virginia Industrial Bond Act evolved from special acts
creating Industrial Development Authorities for Fairfax, Virginia
Beach and Chesapeake in 1963 and 1964.
After the constitutionality of the Acts was approved by the
Virginia Supreme Court in 1966, the statewide Industrial
Development and Revenue Bond Act (the virginia Act) was adopted
in 1966 -- generally the Virginia Act permitted each county, city
or town to create an industrial development authority which had
all the powers under the virginia Act, but was generally limited
to financing lIindustrial facilities".
The virginia Act was expanded specifically to include pollution
control and solid waste disposal facilities.
Beginning in the late 170s, several commercial facilities were
financed after approval by court validation proceedings. This
resulted in the Virginia Act being expanded in 1983 specifically
to permit financing of commercial facilities.
The Federal tax law amendments in 1982 required a public hearing
and approval by an elected body or official. The Virginia Act
was then amended to require a fiscal impact statement, the
required public hearing by the Authority and approval by the
County Board of Supervisors or city Council.
VI. The Federal tax law was amended in 1984 to apply a quota system
of $75 per head applicable to most IIprivate activity" bonds, but
not bonds for non-profit corporations. virginia adopted a quota
procedure giving each County or City priority on quota for most
of the year.
VII. The Federal tax law was again amended in 1986 to limit the quota
to $50 per head, to change the financings permitted under "small
issue industrial development bonds" from all types of IIfor
profitll facilities, including commercial facilities, to
IImanufacturing" and to repeal the exemption for pollution
control.
VIII. virginia then changed its quota system to a first-come-first
served statewide system.
IX. Under Federal and state law, among other things, bonds may still
be issued by industrial development authorities for solid waste
disposal facilities and facilities for non-profit corporations.
The manufacturing exemption under Federal tax law has been
extended on a year to year basis with the current expiration date
on June 30, 1992.
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The virginia Act was amended in 1991 specifically to permit
financing facilities for local governments where the bonds are
~ssued by the Industrial Development Authority and leased to the
County.
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Slides to be shown to reflect some of the bonds that have been issued.
1. A.G.!. Electronics - now Craftwise
1701 Touchstone Rd. (Appomattox)
Original amount: $3,000,000
Manufacture loud speaker systems and component parte
2. AVCOM of Virainia. Inc.
500 Southlake Blvd. (Southport)
Original amount: $1,380,000
Satellite and microwave communication products
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Chesterfield Hotel Associates - Sheraton Hotel
Midlothian Turnpike
Original amount: $8,915,000
Hotel
4. G.D. Packaae Machinerv. Inc.
501 Southlake Blvd. (Southport)
Two Issues - original amounts: $1,174,825
$1,000,000
Packaging Machinery for cigarette industry
5. Hoover and strano. Inc.
10700 Trade Road (Southport)
Two Issues - Original amounts: $1,000,000
$2,500,000
Refiners and manufacturers of precious metal products
IDA2F68/erk/3-5-92
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6.
Johnston Willis - original Doctor's Offices
Midlothian Turnpike
Original amount: $3,395,000
Doctor's Offices
7. Mitchell DistributinQ Company
1410 West Hundred Road, Chester
Original amount: $750,000
Off the road vehicals, earth movers etc.
8. Narox. Inc.
Rt. 827, Allied Chemical Road
Original amount: $1,700,000
Liquid nitrogen, liquid oxygen, gaseous nitrogen
9. Noland Company
2510 Sellwood Road
Original amount: $7,000,000
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Plumbing Distribution - serves DuPont with on-time parts
10. PMB. Inc.
8111 Virginia Pine court (Airpark)
Original amount: $180,000
Cigar Tobacco Packaging
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11. Safetex Corporation - now Aladan
16101 Continental Blvd. (Appomattox)
Original amount: $8,000,000
Condoms
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12. Sealeze Corporation
8013 Whitebark Terrace (Airpark)
Orginal amount: $350,000
Manufacture bru9~ weather stripping and seals
13. Ukrops Supermarkets, Inc. - Dot's Bakery
10911 Southlake court (Southport)
Original amount: $1,312,000
Dot's Bakery
14. Waverlv Textile ProcessinQ. Inc.
8401 Ft. Darling Road
Original Amount: $2,939,000
Textile printers
15. Weidmul1er
821 Southlake Blvd. (Southport)
Original amount: $2,300,000
Electrical and electronic connection systems
16. Western Reserve Plastics
7820 Whitepine Road (Airpark)
Original amount: $2,500,000
Decorative door trim
As of moat recent audit had issued over $260,000,000 in a 23 year period.
If Brandermill Woods issue is included, which was issued after audit period,
the amount would be over $300,000,000.
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Examples of Activities of other
Industrial Development Authorities
Some Authorities charge an application fee, plus a fee of 1/8 of
1% of the outstanding balance of the bonds, payable annually.
This is maximum allowed under the Federal income tax law.
Richmond is an example of an Authority that charges this fee.
Most of Richmond's financings had been for commercial facilities.
Chesterfield, which historically has limited its financing to
industrial or similar manufacturing facilities, has not charged a
fee.
At least one Authority, the Henrico Authority, has the Industrial
Development Authority in charge of its Department of Economic
Development. It is my understanding that the Administrator
reports to the Authority, rather than to the County
Administrator.
The Authorities in a number of jurisdictions own, operate and
control industrial parks to make land and facilities available to
industries.
Bonds to finance facilities for the County, including county
buildings, fire department buildings, etc., backed up by lease to
the county have been issued in some jurisdictions.
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