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Tazewell County IDA agrees to back $7 million Spring 2026 lease financing, accepts Huntington Bank bid
Summary
The Industrial Development Authority voted unanimously to participate in the County's Spring 2026 lease-financing plan, approved resolutions to pledge IDA-held property as collateral and accepted Huntington Bank's 4.12% bid; the IDA recessed to finalize documents with the Board of Supervisors on March 16.
The Industrial Development Authority of Tazewell County voted unanimously on March 11 to participate in the County's planned Spring 2026 lease financing and to approve related bond documents.
County Administrator Eric Young told the board the County is proposing roughly $7 million in borrowing that would refinance about $3 million in existing landfill debt and add roughly $4 million for new capital needs, including a second leachate tank, a new fire station, a tire shredder and renovations to the Cedar Bluff transfer station. Young said refinancing and the new borrowing were projected to reduce the County's annual debt payments (he first cited about $200,000 and later referenced about $240,000 when describing the Huntington Bank structure).
Davenport & Company, the County's financial advisor, presented two options: a Virginia Resources Authority (VRA) structure with an indicated 3.36% rate but limited prepayment options and an uncertain final rate until issuance, and a private-bank offer from Huntington Bank at 4.12% that includes strong prepayment flexibility. Davenport recommended Huntington Bank for the flexibility it provides; the board accepted Huntington's bid by a 5-0 vote.
The financing will be structured using lease/lease-back arrangements between the Board of Supervisors and the IDA so that rent payments on selected County properties serve as debt service. Young said several County properties were discussed as potential collateral; initial consideration of Raven Elementary (described in the meeting as valued around $1.7 million) shifted after internal review and the bank agreed to accept the Bluefield Branch of the Tazewell County Public Library (estimated at $980,000) along with the Tazewell library branch, two EMS stations and a recently purchased B & W Auto building that will back the new fire station.
Because final documents require IDA approval, the board recessed to a short meeting next week (March 16) to execute the financing paperwork with the Board of Supervisors. The IDA then approved a formal resolution to issue a lease revenue and refunding bond and to execute the related documents by unanimous vote. The meeting adjourned at approximately 4:20 p.m.; the next regular IDA meeting is set for April 8, 2026.
Actions taken: the IDA approved a participation resolution to take part in the financing (5-0), accepted Huntington Bank's 4.12% proposal (5-0) and approved a resolution authorizing the lease revenue/refunding bond documents (5-0).
