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Granville board approves resolution enabling tax‑exempt bonds to back Encore Connect broadband expansion
Summary
After a public hearing, the Granville County Board of Commissioners adopted a resolution approving in principle the issuance of up to $25 million in tax‑exempt project revenue bonds to support Encore Connect’s broadband expansion in Granville and three neighboring counties. County officials emphasized the county assumes no liability.
Granville County commissioners on April 20 voted to approve a resolution that enables Encore Connect (the nonprofit formed from Rowan‑Oak Electric Cooperative assets) to issue tax‑exempt project revenue bonds to help finance a broadband expansion in Granville and nearby counties.
At a public hearing, Connor Cruz, an attorney with McGuireWoods representing Encore Connect, described the financing mix: federal grant dollars from state broadband programs plus tax‑exempt debt to cover remaining costs. "Approving that resolution does not subject the county to any type of liability or cost in any way," Cruz told the board, adding that the issuer and borrower — not the county — would be responsible for repayment.
Sam Sed, Encore Connect's director of field operations, told commissioners the company has roughly 200 miles of design planned across the county and expects construction to begin in late April or May, proceeding in phases. Sed said the project aims to "pass approximately 5,000 service locations" once built.
County staff and the county attorney confirmed the legal structure required by the federal tax code: an elected jurisdiction must hold a public hearing and adopt a sponsoring resolution to permit 501(c)(3) entities to issue tax‑exempt debt in that jurisdiction. The county attorney said his office had performed a high‑level review and "didn't see any issue with the execution of the documents," while noting he relied on bond counsel representations that no county pledge of full faith and credit was required.
After questions from commissioners about grant coordination and county exposure, the board voted to adopt a resolution approving in principle the issuance of a not‑to‑exceed $25 million project revenue bond series for Encore Connect. Commissioners noted the approval is required by federal tax rules to maintain the tax‑exempt status of the borrowing and that the resolution, as presented, places no financial obligation on Granville County.
The resolution was described by staff as a jurisdictional approval only; detailed bond documents, bond counsel certifications and closing paperwork will come later in the financing process. The board's action was a favorable step for Encore Connect's planned expansion into unserved and underserved pockets of the county.
