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Halifax commissioners approve in principle $25M bond support for regional broadband expansion
Summary
The board approved a resolution April 6 permitting a public hearing requirement to be satisfied for tax‑exempt bonds enabling Encore Connects to expand fiber service to roughly 8,500 additional addresses in Halifax County; the action is limited to approving the financing principle, not county debt.
The Halifax County Board of Commissioners unanimously approved a resolution April 6 that satisfies federal tax‑code requirements for tax‑exempt financing and clears the way for a Public Finance Authority issuance of up to $25 million for Encore Connects’ broadband expansion in northeastern North Carolina.
Bond counsel Connor Cruz of McGuireWoods explained that the Public Finance Authority, a Wisconsin entity, would issue project revenue bonds for the benefit of Encore, a 501(c)(3) formed to acquire and expand fiber assets. Federal tax rules require a local elected body where financed facilities will be located to hold a public hearing and approve the financing in principle. Cruz said the plan will support an expansion of approximately 8,500 additional serviceable addresses in Halifax County beyond the roughly 2,200 addresses already served.
“Those will be located here in the county,” Cruz told the board in an overview of the project and of the LGC and federal steps that will follow. Sherry (Encore/Fibe) added that the buildout will include Littleton and Tillery areas and that the company hopes to complete the Halifax work later this year.
Commissioner Barrett introduced the resolution and Vice Chair Davis seconded it; the board approved the resolution by unanimous voice vote. County Attorney Rollins and staff clarified the approval is an ‘‘in principle’’ acknowledgement required by the tax code and that the bonds would not be county obligations. The county’s role is limited to holding the hearing and recording the resolution.
What happens next: Encore and its bond counsel will file applications with the state Local Government Commission and pursue regional approvals; staff will work with Encore to provide required documentation and follow up on a schedule for LGC consideration.
Quote: “We currently service about 2,200 addresses and will be building past approximately 8,500 additional addresses with this construction project,” an Encore representative told the board.
Ending: The board’s action cleared a procedural federal requirement and moves a regional broadband expansion closer to financing and construction steps pending LGC review and bond closing.
