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Gloucester supervisors reaffirm support for volunteer fire station, authorize financing steps
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Summary
After a detailed presentation from Davenport on options to finance a new Gloucester Volunteer Fire & Rescue station, the Board voted to reaffirm its commitment to fund the project and authorized staff to solicit bank proposals and pursue a credit rating to compare bank loan and public bond options.
The Gloucester County Board of Supervisors voted this evening to reaffirm its support for a new Gloucester Volunteer Fire & Rescue station and to authorize county staff and financial advisers to move forward with steps to identify financing.
Davenport senior vice president Ted Cole told the board the "current working estimate for the project cost is $17.05 million," plus an 8% contingency and issuance costs, producing a working financed amount in the roughly $19 million range. Cole said the county could pursue either a direct bank loan or a public bond issuance; a public sale would require the county to obtain a bond rating. “There needs to be a very clear and identifiable commitment from the county board of supervisors to make the annual payment on the debt,” Cole said, noting lenders also need clarity on collateral and remedies if payments aren’t made.
Volunteer-fire leaders urged the board to end delays. JD Clements, chief of Gloucester Volunteer Fire and Rescue, told supervisors he and his volunteers have worked with the county for years and described the experience of repeatedly being told the station would be funded: “Can you believe how frustrating it is to me as fire chief telling you what a need that we had and the board being so non transparent that you couldn't share any information whatsoever?” he said.
The board’s action came in two parts. First, Supervisor Dr. Lemming moved that the Board "agree by affirmative vote to move forward with funding this project," which passed on a roll call where supervisors recorded affirmative votes. Later the board approved a narrower resolution directing Davenport and the county director of finance to request nonbinding proposals from banks and to pursue a credit rating so the board can compare a bank loan to a public issuance. The motion to authorize bank solicitations and a credit rating passed after discussion about whether rating fees (Cole estimated about $30,000 per rating agency) would be expended and how the county would pay those costs.
Davenport presented scenarios showing the tradeoffs: a 20-year bank loan had shorter procurement timelines but generally higher annual payments and limited long-term term options, while a 25–30 year public issuance typically carries higher issuance costs and a longer timeline but lower annual payments. In sample numbers presented by staff, a 20-year public-sale scenario produced annual debt service in the approximate range of $1.0 million; a 30-year structure lowered annual payments but increased total payback.
Board members asked detailed questions about prepayment penalties, whether a short-term construction loan could be refinanced later through the state Virginia Resources Authority (VRA), and staff time required to support either path. Cole said VRA participation was not available in the immediate term because the project was part of a failed referendum; VRA could be an option in a later pool once updated audits and application materials are available.
The board also authorized staff to solicit bank bids on an estimated not-to-exceed amount (staff used $20 million as an estimate for the solicitation) while keeping the final borrowing aligned to actual project bids. Cole said the county’s approach could be to run parallel tracks — solicit bank RFPs now and, if bank proposals are not competitive, move to a public issuance with a rating in hand.
The board did not adopt final borrowing documents tonight. Next steps identified by staff include issuing the bank RFP, engaging (if desired) rating agencies and returning to the board with specific proposals and recommended structure once bids and/or rating feedback are in hand.
The meeting also included public commentary from volunteer company leaders who said they had invested money and time and urged faster progress. Supervisor disclosures and a discussion of who would hold long-term responsibility for payments and ownership were part of the deliberations. The board’s motions were recorded by roll call and carried.
