EDA approves resolution to allow $10 million Kappa Sigma nonprofit bond issuance

The Albemarle County Economic Development Authority voted to adopt a resolution concurring with a proposed $10 million qualified nonprofit revenue bond for the Kappa Sigma Endowment Foundation after a staff-led public hearing and a legal briefing by outside counsel.

Dan Siegel, an attorney with Sands Anderson who led the presentation, said the issue is required by federal and state rules when a project located in one county is financed by an issuing authority in another. He told the authority that the county itself would not be financially liable: "There is not [a financial risk]. In fact, you're not listed or anything," Siegel said when asked about county exposure.

The presentation explained that the issuing entity is the Appomattox County Economic Development Authority and that Albemarle is the host locality required to hold a public hearing and concur, not the issuer of the bonds. Siegel described prior similar transactions in 2006 and 2012 and said the proposed financing would support an expansion of the Kappa Sigma national headquarters and museum in Albemarle County.

After the public hearing produced no speakers, a director moved to adopt the resolution and the authority approved it by voice vote. Appomattox County's EDA previously held a hearing and approved the issuance, and the Albemarle County Board of Supervisors is scheduled to take its required action in June if the EDA’s positive action stands.

The authority did not record a roll-call tally in the transcript; the chair called for the voice vote and members present said "Aye." The approval advances the project to the next local procedural steps, where the board of supervisors and Appomattox officials will complete their required actions.