Commission on Local Government reviews proposed Covington–Alleghany growth‑sharing agreement

The Commission on Local Government on March 13, 2017 held a public hearing in Covington to review a proposed voluntary economic growth‑sharing agreement between the City of Covington and Alleghany County, Commission Chair Diane M. Linderman said. The agreement would allow the two localities to make joint investments through their joint Industrial Development Authority and share revenue from those joint projects.

Under the proposal, the City and County would share only tax increment revenue and certain proceeds from the sale, lease, management or financing of joint projects. Chair Diane M. Linderman said the tax sources subject to sharing are limited to real estate taxes, personal property taxes, machinery and tools taxes, and professional and occupational license taxes; by default tax increments would be split 50/50. Any shared project would be governed by separate performance agreements that set (1) the investments of the City and County (normally 50/50), (2) the rights and obligations of any economic development prospect, and (3) the revenue‑sharing arrangement.

J. David Conmy, the Commission’s Local Government Policy Administrator, said the Commission’s review is conducted under the authority of the Code of Virginia and that the Commission had received materials from the submitting localities, conducted a site tour earlier in the day, and heard oral presentations that afternoon. Conmy said the Commission will keep its written record open for additional citizen comment through March 27, 2017 and expects to issue a report to the affected local governments before the end of May 2017; the Commission is scheduled to meet again on May 9, 2017.

Two local officials spoke at the public hearing in support of the proposed agreement. Mr. David Oliver of Alleghany County, identified in the record as Chair of the Industrial Development Authority, spoke in support of regional cooperation on economic development. Ms. Susan Adcock of Clifton Forge, identified as a member of the Alleghany County Board of Supervisors, also urged the Commission to be supportive and characterized regional efforts as impactful.

Because of a forecasted snowstorm that might prevent staff and commissioners from holding a separately scheduled executive session the next morning, Commissioner Victoria L. Hull moved that the Commission meet in executive session under §2.2‑3711 of the Code of Virginia and 1VAC50‑20‑160 of the Virginia Administrative Code to discuss matters related to the proposed growth‑sharing agreement. The Commission voted unanimously to enter executive session at 7:20 p.m. (Goodson, Hull, Reynolds, Linderman). The executive session concluded at 8:07 p.m. after a unanimous roll call ending the closed session.

The Commission’s public record on the proposed voluntary economic growth‑sharing agreement will remain open for written comment until March 27, 2017, after which the Commission expects to prepare and transmit its report to the City of Covington and Alleghany County prior to the end of May 2017.