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Commission reviews plan to use food-and-beverage tax revenue and short-term notes to accelerate parks projects
Summary
Financial adviser Jason Semler told the commission that the recently adopted food-and-beverage tax could produce an estimated $1.5 million annually; he outlined using short-term bond anticipation notes (roughly $4–5 million) to start parks projects now and refinancing with long-term bonds (roughly $7–8 million) after revenue history is established.
Financial adviser Jason Semler of Baker Tilly briefed the Richmond Redevelopment Commission on Jan. 20 on options to accelerate parks projects using revenue from the commission’s recently adopted food-and-beverage tax.
Semler described a two-step financing approach: issue short-term 'bond anticipation notes' to provide money up front so projects can begin this summer, then issue long-term bonds later in the year once several months of actual tax receipts establish the revenue stream. "We have an estimate about $1,500,000 is what we think the city may receive on an annual basis," Semler said, adding that the commission should gather a few months of receipts before making a full long-term commitment.
Semler said short-term notes might be in the $4 million to $5 million range while the eventual long-term bonds could total on the order of $7 million to $8 million, although he emphasized those figures are preliminary. He outlined options to strengthen marketability and lower interest rates, including a property-tax backup or contingent use of Tax Increment Financing (TIF) in the event food-and-beverage receipts fall short. Semler said those options would be intended as security for bond buyers, not an immediate pledge of TIF or property tax.
Beth told the commission that moving forward would require amending the spending plan previously submitted to the state because the plan did not contemplate using redevelopment funds for these projects. Semler and Beth said they would present the proposal to the food-and-beverage implementation team at its Feb. 10 meeting and, if supported, would aim for a follow-up with the commission in late winter or spring. Commissioners raised questions about whether certified technology-park funds could be reallocated; staff said they do not have authority to use those funds without confirmation and would verify restrictions.
No formal vote was taken; the session was informational and intended to gauge member interest and next steps.
