(EDITOR'S NOTE: Pursuant to the Industrial Development and Revenue Bond Act (Title 15.1, Chapter 33, now Title 15.2, Chapter 49, of the Code of Virginia of 1950, as amended), the Industrial Development Authority of Loudoun County, Virginia, was created by an Ordinance of the Board of Supervisors passed March 5, 1974. Ordinance 83-03, passed February 22, 1983, ratified the creation of the Industrial Development Authority, required approval by the Board of Supervisors of bonds issued by the Authority and imposed restrictions on the use of bond proceeds. Ordinance 83-03, as amended in 1984, 1998 and 2013, is set forth in full below. By ordinance adopted on June 5, 2013, the Board of Supervisors changed the name of the “Industrial Development Authority of Loudoun County, Virginia” to the “Economic Development Authority of Loudoun County, Virginia.”)
(a) Creation of Authority.
(1) By this section, there is affirmed and ratified the creation of a political subdivision of the Commonwealth, with such public and corporate powers as are set forth in the Industrial Development and Revenue Bond Act, constituting Chapter 33 of Title 15.1, now Chapter 49 of Title 15.2, of the Code of Virginia of 1950, as amended, except as such powers are limited herein.
(2) The name of the political subdivision so created shall be the Economic Development Authority of Loudoun County, Virginia, hereinafter sometimes referred to as the Authority. The Economic Development Authority of Loudoun County, Virginia shall be considered for all purposes a continuation of the political subdivision created in 1974 and formerly named the Industrial Development Authority of Loudoun County, Virginia. The powers, assets, duties and obligations of the Industrial Development Authority of Loudoun County, Virginia, shall continue under the name “Economic Development Authority of Loudoun County, Virginia.”
(3) The Board of Supervisors hereby reserves the right to limit the type and number of facilities which the Authority might otherwise finance through bond issues.
(b) Requirements for Approval of Tax Exempt Industrial Development Bonds.
(1) All tax exempt industrial development bonds issued by the Authority shall be approved by the Board of Supervisors. As used herein, “tax exempt" means, with respect to any bond (or issue), that the interest on such bond (or on the bonds issued as part of such issue) is excluded from gross income for purposes of federal income taxation.
(2) In furtherance of the purposes of this section, the following requirements (in addition to any requirements under applicable federal and state law) shall apply to the issuance of any tax exempt industrial development bond by the Authority:
A. The Authority shall give public notice of its intent to issue an industrial development bond and shall advertise the same for public hearing once a week for two consecutive weeks in a newspaper having general circulation in the County. The hearing shall occur not less than six days nor more than twenty-one days after the second advertisement has appeared in such newspaper.
B. After conducting a public hearing on the matter, the Authority shall notify the County Administrator of its intent to issue an industrial development bond. Such notice shall certify to the Board of Supervisors that the applicant has submitted a complete application for the issuance of an industrial development bond and that, based upon a finding that issuance of the bond would further the purposes of the Industrial Development and Revenue Bond Act (Section 15.2-4900 et seq. of the Code of Virginia of 1950, as amended), the Authority has issued a resolution of inducement on the application. The notice shall be accompanied by a report of the public hearing, setting forth a summary of any presentation made during the course of the hearing and of any questions directed to persons appearing, and subsequent responses thereto.
C. After the Authority has conducted a public hearing on the matter, the Board of Supervisors shall grant or deny approval of the issuance of an industrial development bond to finance the proposed facility.
D. The County Administrator shall promptly provide the Authority with a written notification of the decision of the Board of Supervisors.
E. The Authority shall notify the Board whenever an approved industrial development bond is issued. The Authority shall also provide an annual report of the current status of all approved industrial development bonds.
(c) Criteria for Approval.
(1) The Board of Supervisors may withhold approval of a tax exempt industrial development bond issue if limitation of the type and number of facilities which the Authority proposes to finance is deemed to be in the best interest of the community.
(2) In accordance with applicable federal and state law, no tax exempt industrial development bond shall be approved for issuance where the proceeds of such bond is to be applied to the acquisition, purchase, expansion or construction of a facility, the primary purpose of which is one of the following:
A. Automobile sales or service;
B. Banks, savings and loan institutions or mortgage loan companies;
C. Recreation or entertainment; or
D. Retail food or beverage services (other than grocery stores).
(3) In accordance with applicable federal and state law, no industrial development bond shall be approved for issuance where any proceeds of the bond will be used to finance the acquisition, purchase, expansion or construction of any of the following types of facilities:
A. A private or commercial golf course;
B. A country club;
C. A massage parlor;
D. A tennis club;
E. A racquet sports facility, including any handball or racquetball court;
F. A skating facility, including roller skating, skateboard, and ice skating;
G. A hot tub facility;
H. A suntan facility;
I. A racetrack;
J. An airplane;
K. A skybox or other private luxury box;
L. A health club facility;
M. A facility primarily used for gambling; or
N. A store, the principal business of which is the sale of alcoholic beverages for consumption off the premises.
(4) Notwithstanding the foregoing, the Authority shall not issue any bonds for the purpose of financing the acquisition, purchase, expansion or construction of a facility for a commercial retail use. As used in this paragraph, “commercial retail use” means a retail trade, including the sale of goods or equipment directly to the general public; an entertainment or recreational service; or a personal service which is performed at a residential dwelling or for an individual for personal or family use. As used in this paragraph, "commercial retail use" does not include an enterprise whose primary purpose is to provide lodging, shelter or conference facilities, with or without board, on a fee basis, to transient guests; to provide business services or to sell goods or services to retailers, or to industrial, commercial, institutional, farm or professional business users, or to other wholesalers, or to persons acting as brokers or agents in buying merchandise for or selling merchandise to such persons or users; or to provide insurance, legal, health, investment management, real estate, news gathering or dissemination or social services to any person, user or other entity.
(d) Taxable Bonds.
(1) To the extent permitted by federal and state law, the Authority may issue taxable bonds for the type of facilities described in Subsection 260.02
(d)(2). As used herein, "taxable bonds" means, with respect to any bond (or issue), that the interest on such bond (or on the bonds issued as part of such issue) is not excluded from gross income for purposes of federal income taxation.
(2) The types of facilities for which the Authority may issue taxable bonds is limited to the following: (i) facilities to be owned, used, and/or operated by the County of Loudoun; or (ii) facilities related to a project of the County of Loudoun or a project for which the County of Loudoun has made a financial commitment.
(3) The provisions of Subsection 260.02
(b) shall not apply to the issuance of taxable bonds except to the extent required by applicable federal and state laws.
(Ord. 84-09. Passed 10-15-84; Ord. 98-01. Passed 3-18-98; Ord. 13-07. Passed 6-5-13; Ord. 14-09. Passed 10-1-14.)