MCD approves $10 million cash commitment for Heritage Plaza project

The Midlothian Community Development Corporation voted April 23 to commit $10,000,000 in cash to the Heritage Plaza project, directing staff to pay invoices as they are presented rather than immediately disbursing the full amount.

Board members heard an extended presentation from Mark McCline (presenter) and staff about funding scenarios, including borrowing over 5, 10 or 20 years and a hybrid of cash and bonds. Staff told the board the full project was in the roughly $17–18 million range and reminded members the CDC had previously authorized a $2,000,000 commitment. The board discussed coverage ratios, projected interest costs and the trade-offs between locking in lower interest rates with bonds versus preserving cash for future projects.

Several board members advocated minimizing long‑term debt. One committee member stated that "less debt is better," arguing that the CDC has funds available now and could avoid paying higher interest later. Mark McCline explained implementation options, saying staff could "hold the money, earn the interest, and pay us when the bill comes in" if the board preferred to keep the cash until invoices are submitted. The board voted in favor of a motion to approve a $10,000,000 cash-only option and to have staff reimburse contractors as invoices are received.

The motion was approved by voice vote. Staff indicated invoices are likely to begin arriving in June–July and that payments could be processed monthly to match contractor billing. The board directed staff to manage the project fund administratively and to return to the board with any significant changes or requests for additional action.