EDA issues $6 million bond to Christendom
The Warren County-Front Royal Economic Development Authority met Friday morning for the purpose of issuing a bond to Christendom College of up to $6 million for the purpose of building a new dormitory among other things.
Given Christendom’s 501(c)(3) status, the roughly 30,000-square-foot dormitory will be paid for via tax exempt bond.
The Economic Development Authority is acting as intermediary for the bond issuance, the money for which is coming from Wells Fargo Bank.
Jesse Bausch, an attorney with Sands Anderson representing the EDA, explained the situation.
“Christendom College is a 501(c)(3), so they can do tax exempt financing if they go through a public body,” he said. “The approval (of the bond issuance) is conditioned on the county meeting to approve it, and the town also has to meet and approve it because it’s located in the county. They (Warren County and Town of Front Royal) both have to approve it for tax purposes… You need a bond issued by some sort of public entity for it to be able to be tax exempt.”
As payment for the EDA’s facilitation of the bond issuance, the authority will be paid one-eighth of 1 percent of the outstanding principal each year.
County Administrator Doug Stanley also gave his report at the meeting. He reported that county staff took part in a teleconference with the Virginia Department of Health on the Zika virus threat. Also, Stanley reported that roughly 40 percent of the forthcoming Warren County Middle School is complete.
Also provided was an update on construction for the first six months of the current fiscal year. There were 75 new home starts in that time. Six of those were in Front Royal town limits with the rest falling outside the town.
Stanley also reported that the eighth and final soccer field at the Skyline Soccerplex was completed. Those fields are expected to be usable by fall off 2016. An update was also given on the conversion of the former Warren County Courthouse Jail into court holding cells. Lantz Construction, of Winchester, is roughly 90-percent finished with that process.
Also, Warren County is nearing completion on the Shenandoah Farms public boat ramp. Construction is expected to be finished by Sept. 1.
Contact staff writer Nathan Budryk at 540-465-5137 ext. 155, or email@example.com