Developer seeks Madison County resolution to apply for Virginia industrial revitalization fund for Krueger's Mill Elementary rehab

A private developer asked the Board of Supervisors to adopt a resolution supporting a Madison County application to Virginia’s Department of Housing and Community Development (DHCD) Industrial Revitalization Fund (IRF) to finance rehabilitation of the former Krueger's Mill Elementary School.

Felix Shapiro, who identified himself as owner of the former school property, told the board he is not seeking county dollars but requested a resolution from the county authorizing submission of the application: "Merely a requirement is a resolution from the county government supporting the loan application to the state," he said.

Shapiro described expected program terms and project finance basics as he understands them: he said the IRF can provide up to $600,000 per project in the current program round, requires a 1-to-1 local/private match, has historically offered subsidized interest (about 2.5 percent in prior iterations) and often uses a 20-year amortization in past projects. He said Locus (formerly Virginia Community Capital) has administered similar loans for localities and would charge a modest servicing fee (about 1 percent) to handle monthly draws and administration.

Tory McGowan and Jeff (DHCD program staff) joined the meeting by phone and explained program mechanics. DHCD clarified the IRF is structured as a grant to a locality that the locality then lends to a private developer; if the county or its IDA administers the fund the repayments typically flow back to the locality’s revolving loan fund. If an outside servicer (e.g., Locus) administers the loan, repayments could be returned to the servicer’s redeployment fund rather than to the county, DHCD staff said. DHCD staff also said the program requires a performance agreement and loan documentation; funds are disbursed on an invoice/reimbursement basis as project costs are documented.

Board members discussed administration options. Several supervisors signaled interest in minimizing county administrative burden and asked staff to explore using a third‑party servicer (Locus) to administer the loan; others asked whether the county or county IDA could receive repayments and set up a local revolving loan fund. DHCD staff said jurisdictions that administer loans locally can retain repayments to build a local revolving loan account for future projects; if Locus administers the loan, the repayments would be handled by Locus in its redeployment fund.

No formal board resolution was adopted at the meeting. Supervisors asked county staff, the developer and DHCD to return with a proposed path forward and recommended documentation (application materials, proposed performance agreement and a staffing/administration recommendation). The county indicated staff will work with the applicant and DHCD to complete an application window that opens April 1 and closes May 30.