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EDA approves waiver of select covenants for 29 Millrace Drive to clear title for KNDS purchase
Summary
The Lynchburg Economic Development Authority authorized the chair to execute a resolution waiving limited protective covenants on 29 Millrace Drive so KNDS can complete a purchase and potential future expansion; a member raised concerns the waiver sounded perpetual, which staff clarified is limited to resubdivision and the Authority's repurchase condition.
The Lynchburg Economic Development Authority on Tuesday authorized the chair to execute a resolution waiving specific protective covenants on 29 Millrace Drive to clear title for a prospective purchaser, KNDS.
The action followed a staff summary included in the meeting packet explaining that the covenants — in place for decades and tied to prior subdivisions — restrict resubdivision and contain a repurchase clause if construction does not occur within a specified period. An EDA member asked whether the resolution would “abandon any of our rights” and render the waiver effectively perpetual. The member said, “We're waiving basically any opportunity to have the property be developed in a way that would be amenable to us. Is that correct?” (Unidentified EDA member, Speaker 4).
An EDA representative (Speaker 3) answered that the waiver is not an unconditional abandonment of Authority rights. “No. There are limited — the paper is limited to the ability to resubdivide,” the speaker said, explaining the measure reapproves prior subdivisions and addresses the Authority’s repurchase provision tied to a one-year construction requirement. Staff said the parcel had previously been resubdivided and no construction followed; the recommended waiver is intended to deliver a clean title so KNDS can complete the purchase and expand at its existing Millrace location rather than relocate outside the park.
A motion to authorize the chair to execute the resolution was made, seconded and approved by voice vote.
Next steps: staff will execute the resolution to clear the title and proceed with the KNDS transaction. The Authority moved on to other business and later recessed into a closed session to discuss prospective property acquisition and business recruitment under state law.
Votes at a glance: The motion to authorize the chair to execute the covenant-waiver resolution was approved by voice vote; the minutes record a motion, a second and a unanimous-sounding voice vote but do not list a named roll-call tally.
