Albemarle EDA adopts $1,000 refinancing application fee, approves amendment to Thomas Jefferson Foundation bond

The Albemarle County Economic Development Authority approved a $1,000 application fee for refinancing requests and authorized amendments to a revenue refunding bond issued for the Thomas Jefferson Foundation, the authority voted.

The fee — described by staff as intended to cover legal costs and staff time for handling refinancing applications — was adopted as a temporary application fee while staff researches fee schedules used by other development authorities. The board then approved a resolution authorizing an amended and restated bond for the Thomas Jefferson Foundation to change the bond's interest-rate mechanics and extend the underlying credit relationship with the lender.

Jim Bowling, bond counsel, described the bond as long-standing. "The bond... goes back to 2011 and was issued to refinance some existing bonds," Bowling said, and said the amendment primarily changes how the interest rate is set rather than the foundation's substantive obligations. He added that the amended bond would be "substantially similar" to the existing bond aside from interest-rate mechanics and that the foundation remains solely obligated on the debt.

Board members moved and seconded the application-fee resolution and the bond amendment resolution; votes were taken by voice and recorded as "Aye." The board also agreed to an amendment allowing the assistant secretary to sign closing documents for the Thomas Jefferson Foundation transaction. In response to that proposed administrative change, DW Bruno, counsel for the foundation, said, "you can add that the assistant secretary can sign that. That's fine with me."

Under the action the authority will: (1) apply an immediate $1,000 application fee for consideration of the Thomas Jefferson Foundation refinancing while staff surveys other authorities' fee schedules, and (2) adopt the amended and restated revenue refunding bond and related amendment to the bond purchase and loan agreement that adjusts interest-rate mechanics and the put date with the existing lender. Board members said the change does not create liability for the authority or its directors.

The EDA did not specify a schedule for publishing the staff's comparative fee research. The assistant secretary was authorized to sign the transaction documents as amended at the meeting.

Votes at a glance: The authority approved (a) a motion to adopt a $1,000 application fee for refinancing consideration and to seek to amend Article 4 of the rules and procedures regarding the bond issuance fee schedule; and (b) a resolution approving certain modifications to terms of the revenue refunding bond issued for the Thomas Jefferson Foundation, Inc. Both motions were seconded and approved by voice vote (recorded as "Aye").