Economic Development Authority Special Meeting (Virtual)   3/6/2025

So Emily, did you want to talk about the slides or I wasn't sure who we're going to do that to start with.

So the liability for making payments on the bonds lies with the obligor, so the project in this case, and not the EDA.

for the state taxes that they would be saving.

Jim, do you have a good response for that?

Thank you.

And that's all the prepared remarks we have for today.

I'm just trying to, you know, as we kind of talked about this, think about in the future what we might be able to do with this.

I know Chair Long has some experience looking into you.

We can get that money down the road.

The term sheet that was given me very recently has a 10-year period to it, so we're not looking at 20 years, we're looking at 10 years before all this may disappear if that's a help to you in your operations.

I'm not saying that's not relevant because why bother if it doesn't work for us as a county, but at the same time, where do we need to set this so that we have an attractive offering, at least for the current option before us and hopefully if we're going through this effort to have subsequent companies that would be interested in doing the same thing.

I don't have experience knowing one way or the other on that.

That sounds crazy, but that's, I mean, I sense they're in a hurry to close if that helps too.

J.T., am I remembering that correctly?

And so we landed on $750 per million issued.

That would be my view.

So I'm in line with you, Don, that we are more in line, we choose something that's more in line with the PFA rate than trying to, you know, maximize what we, you know, are, you know, what we could get out of it the most, you know, and then just especially because it's the first go round and could potentially open the doors for other opportunities.

I thought you were a big advocate of closing fee.

It says three basis points, closing fee of $40,000, total annual fee $54,000.

So I think we're, yeah, I like your idea.

I don't know if others have thoughts.

Plus, I think I'm pretty certain that they'll get some subsidiary benefits from using U2.

So it's either 45 or 40?

Yeah, I mean, I think it's

So definitely something to think about.

And then McGuire-Woods is the attorney for the applicant in this case.

2.75 and 45k, easy.

But as a way just to get in and test the waters, I think it's a good strategy.

David, do you have any thoughts one way or the other?

I did have one question about what he meant by the subsidiary benefits that they'd be getting beyond the 5.75% savings.

And I'm led to believe they're getting something here.

I think that's probably what it is.

And I like Jeff's point that, that if we find 2.75 and we're just getting too much business, clearly we haven't priced it properly and we can revisit that at a later date.

Or is that not in your purview or you're not able to do that?

And he seemed we don't know the future, but he seemed to indicate that these things are going to become more more prevalent than they are now.

So does anybody want to make a motion?

I move that the EDA adopts this resolution amending Article IV of the Rules and Procedures as proposed.

Do we need to identify what the actual rate is?

I was going to ask, we've got a blank with dollars and I understand that's going to be filled in with $45,000 and then we have administrative fee equal to and I'm going to fill in 2.75 basis points.

That's correct.

I believe they have been.

It has.

Here is the actual doctor itself.

There you go.

Exactly.

And then we have the date of amendment.

So it gives us the ability to change that in the future.

So we're adding in terms of an annual administrative fee equal to no less than 2.75 basis points.

So an annual administrative fee, it's a closing fee and it's what we're talking about at 2.75 basis points, correct?

No, that's a flat fee, I think.

I mean, is that reserved for another day?

Yeah, I think at this point we should just stick with the 45 and then we can cross that bridge when we come to it.

I mean, I know we could do this exercise whenever needed, but the rule doesn't allow the EDA expressly to change that 2.75.

We do it on a case-by-case basis, or does it have to be set out in here and we can't change it?

that have a specific amount here kind of makes sense.

is sometimes more important than sort of an uncertain outcome, but knowing that maybe there's room to negotiate, if that makes sense.

Anytime, yeah.

Yeah.

equal to 2.7.

All right.

The second.

All right, Richard, you wanna just call the roll on this one probably?

So Director Long?

Aye.

Let's see, Director Hood?

Aye.

Is Andy here?

Just hit I.

Can you hear me?

Yeah, we didn't hear you.

Oh, sorry, sorry.

And Director Storm?

I.

All right.

Yes, sir.

Sounds good.

This is good stuff.

Can I add, Emily, could you put together an email informing Mike Graff what the decision is and also put it in a chart form, which I think will be helpful?

Yes, I can do that.

I guess is what I'm saying.

Yeah.

OK.

And I imagine that that is, as long as all those steps have been taken, that we're in the clear for that person to participate in the consideration of this issuance.

I think Richie can second me, but I think that if you get him sworn and you dot all your i's and cross all your t's, then he can participate in the board's meeting on this matter to consider the resolution.

So I feel comfortable this will happen with, I don't know who the new appointee is, but I feel comfortable it'll happen.

It's Frank Friedman.

OK.

Jim, a pleasure working with you today.

Nice seeing everybody.

Thanks, everybody.

Bye.