Subject:
Title
Consider a resolution on the issuance of up to $40,000,000 of Revenue Bonds by the Industrial Development Authority of the Town of Broadway, Virginia, for the Benefit of Virginia Mennonite Retirement Community, Inc
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Presented By: City Attorney Brown
Recommendation and Review
The Industrial Development Authority (IDA) of the town of Broadway intends to issue up to $40,000,000 of revenue bonds for the benefit of Virginia Mennonite Retirement Community, Inc (VMRC). Under Section 15.2-4905 of the Code of Virginia, the Harrisonburg City Council must concur with this financing. This concurrence is necessary because VMRC is located in the city, but is using the Broadway IDA for the issuance. There is no financial obligation for the city related to the concurring resolution. Unfortunately, the Harrisonburg IDA was unable to issue these bonds because the city needs the IDA’s bond issuing capacity for a large upcoming city financing.