Board debates EDA MOU terms, leans toward charging 1% fee only on external funds

Emily Kilroy, Albemarle County's director of economic development, and Don Long, chair of the county’s Economic Development Authority (EDA), presented a draft term sheet that would form the basis of an updated MOU. The term sheet would align the EDA with an adopted county economic development strategic plan, authorize use of certain statutory powers consistent with the comp plan, and describe a modest incentive framework (an example amount of $250,000 was discussed) for targeted industries and business retention activities.

Board discussion focused on two core issues: (1) whether the EDA's activity should be tightly restricted to a stated set of target industries or instead be framed as "with an emphasis on" those industries to preserve flexibility, and (2) how to structure a 1% administrative/fiscal-agent fee to cover the county finance department's overhead. Supervisors debated an "all funds" version (1% on all incoming funds passed through the EDA) and an "external option" (1% only on external, non-county funds). Jacob Sumner, chief financial officer, advised that a 1% fee on all incoming funds historically would equate to on the order of $7,000–$15,000 annually; several supervisors indicated preference for the external option to avoid charging the county on internal pass-throughs. Staff will work with the county attorney to draft formal MOU language reflecting the board's guidance and return with a draft for review.