2024-12-02 Moral Obligation Support PITTSYLVANIA COUNTY BOARD OF SUPERVISORS
RESOLUTION#2024-12-02
MORAL OBLIGATION SUPPORTING GPIN# 1366-12-5834
VIRGINIA: The Pittsylvania County Board of Supervisors ("Board") adopted the
following Resolution at its Business Meeting on December 17, 2024:
WHEREAS, the Board of Supervisors of Pittsylvania County, Virginia (the "Board of
Supervisors")has determined that it is in the best interests of the County of Pittsylvania,Virginia
(the "County") to lend its assistance to the Danville-Pittsylvania Regional Industrial Facility
Authority, a political subdivision of the Commonwealth of Virginia(the"Authority"), of which
the County is a member locality,in the issuance of the Authority's promissory note in the original
principal amount of up to $1,895,000.00 due and payable in full in approximately 10 years (the
"Note") for the acquisition of that certain real property consisting of approximately 289.47 acres,
being GPIN 1366-12-5834, commonly known as Berry Hill Road / 863 Dan River-Oak Hill Tr,
together with all easements, rights-of-way and appurtenances thereunto belonging (the "Land")
and any improvements made to or upon the Land (collectively known as the "Property"),by the
pledging of the County's moral obligation to pay amounts due on the Note that are not paid when
due by the Authority; and
WHEREAS,the proceeds of the Note and the loan evidenced thereby(the"Loan")are to
be used (i) to pay costs of the Property and (ii) to pay the costs of issuance of the Note, all to
accomplish certain purposes of the Virginia Regional Industrial Facilities Act(the"Act"); and
WHEREAS,there has been presented to the Board of Supervisors a plan for the financing
of the Property involving the issuance of the Note by the Authority and the pledge of the moral
obligation of the County, which would not create debt of the County for purposes of the Virginia
Constitution and would promote industry and increase commerce in the County and the
Commonwealth of Virginia; and
WHEREAS,the Authority expects to receive a proposal from the Virginia Small Business
Financing Authority, a political subdivision of the Commonwealth of Virginia ("VSBFA") for
purchase of the Note,pursuant to a Loan Agreement between the Authority and VSBFA providing
for the purchase of the Note and the loan of the monies from the sale of the Note to pay certain
costs of acquiring the Property(the"Loan Agreement"), and the Authority will acquire and own
the Property. Payment of the Note will be secured by, among other things, a lien on and security
interest in the Property between the Authority and VSBFA, and in connection therewith, VSBFA
has requested a moral obligation support agreement be entered into between the Authority and the
County and a moral obligation support agreement be entered into between the Authority and the
City of Danville, Virginia; and
WHEREAS,there has been presented to this meeting a draft of a Moral Obligation Support
Agreement between the County and the Authority for the County to undertake a non-binding
obligation to appropriate from time to time monies in connection with payments due under the
Loan Agreement and the Note(the"Support Agreement").
NOW,THEREFORE,BE IT RESOLVED BY THE BOARD OF SUPERVISORS
OF PITTSYLVANIA COUNTY,VIRGINIA:
1. The following plan for financing the Property is hereby approved. The Authority
will be requested to issue the Note in the maximum amount of $1,895,000.00 and to use the
proceeds therefrom to finance costs of the Property and pay costs of issuance of the Note. The
Authority will sell the Note to VSBFA and agree to repay the same pursuant to the Loan
Agreement. The obligation of the County to make any payments under the Support Agreement
will be subject to the Board of Supervisors making appropriations for such purpose from time to
time. It is expected that the Note will be secured by the Loan Agreement, a certain lien on and
security interest in the property, and the Support Agreement. It is hereby found and determined
that the above-described plan is in the public interest, will benefit the inhabitants of the County,
will increase commerce and will promote the safety, health, welfare, convenience and prosperity
of the County and its citizens.
2. The Chairman or Vice Chairman of the Board of Supervisors, either of whom may
act, is hereby authorized and directed to execute and deliver the Support Agreement. The
Chairman or Vice Chairman of the Board of Supervisors, either of whom may act, is hereby
authorized and directed to acknowledge and consent,as necessary,to the provisions of the Support
Agreement and any other agreements, instruments, certificates or other documents required to be
executed by the County in connection with the issuance of the Note.
3. The Support Agreement shall be in substantially the form submitted to this meeting,
which is hereby approved, with such completions, omissions, insertions, and changes as may be
approved by the officer executing it,his execution to constitute conclusive evidence of his approval
of any such completions, omissions, insertions and changes.
4. The Board of Supervisors, while recognizing that it is not empowered to make any
binding commitment to make appropriations beyond the current fiscal year,hereby states its intent
to make annual appropriations in future fiscal years in amounts sufficient to make all payments
due under the Note pursuant to the Support Agreement to the extent such payments are not made
when due by the Authority and hereby recommends that future Boards of Supervisors do likewise
during the term of the Note.
5. All other acts of the Chairman or Vice Chairman of the Board and other officers of
the County that are in conformity with the purposes and intent of this resolution and in furtherance
of the plan of financing, the issuance and sale of the Note and the financing of the Property are
hereby approved, ratified and confirmed.
6. Nothing in this Resolution or the Support Agreement, the Note or any related
documents shall constitute a debt or a pledge of the faith and credit or the taxing power of the
County with respect to any sums which are or may become payable under the Support Agreement.
All obligations of the County and the Board of Supervisors under the Support Agreement are
subject to and dependent upon appropriation of funds by the Board of Supervisors, and the Board
of Supervisors shall have no legally binding obligation under this resolution or in the Support
Agreement to make any such appropriation or the payments provided for in the Support
Agreement, the Support Agreement being a statement only of the present intent of the Board of
Supervisors.
7. This resolution shall take effect immediately.
Adopted this 17th day of December, 2024.
milivroco�` a �'` .4 ell W. Dalton(Chairman)
-40'
--� _ - County of Pittsylvania, Virginia
ATTEST: J
Kaylyn Cluster, Clerk
Board of Supervisors
County of Pittsylvania, Virginia
The Resolution set forth above was adopted during an open meeting at a regular meeting of the
Board of Supervisors of the County of Pittsylvania, Virginia, held on December 17, 2024, all in
accordance with law,by the following votes:
Vote
Darrell W. Dalton(Chairman) Yes
Robert M. Tucker,Jr. (Vice-Chairman) Yes
Kenneth L. Bowman Yes
Timothy W. Dudley Yes
Eddie L. Hite,Jr. Yes
William V. ("Vic") Ingram Yes
Murray W. Whittle Yes
Ayes 7 Nays 0 Abstentions 0