Council pauses REDI payment to Radford University Foundation, asks for agreement amendment

The Radford City Council voted not to appropriate funds this fiscal year for a Radford Economic Development Incentive (REDI) grant requested by the Radford University Foundation for the Highlander Hotel and asked the Economic Development Authority (EDA) and the foundation to negotiate an amendment extending the performance agreement by one year. City staff said the EDA had reviewed the foundation's request of $128,686.37 and determined the hotel met performance requirements, but the city's difficult fiscal position this year prompted the request to defer payment and extend the agreement so the foundation can receive the number of grant years originally contemplated. The performance agreement, effective Jan. 1, 2023, authorizes annual REDI payments up to a formula based on real property taxes and a share of meals and transient-occupancy taxes, with a maximum equivalent of 80% of property taxes in any grant year. Mayor Horton declared a conflict of interest and abstained from the vote because Radford University has an investment in the hotel project and the mayor is an employee of Radford University; the council had sought counsel on ethics before proceeding. The council voted (four yes, one abstain) to exercise its authority under the performance agreement to withhold appropriation this year and request an amendment to extend the agreement term.