EDA plays key community role

When the economy slows it’s as if a pause button has been pressed on normal life. Projects are shelved, building plans are put on hold and “for sale” signs become something akin to decoration rather than a marketing strategy.  Localities rarely complain about having too much growth or business, but lately economic development is the term on county officials’ lips, the solution to lingering financial woes. The economic downturn has raised the importance and profile of Orange County’s economic development office and the economic development authority (EDA) are two entities tasked with creating the solution.

In 1966, Virginia’s General Assembly passed the Industrial Development and Revenue Bond Act, which enabled localities to create an authority tasked with revenue building for economic development purposes. Nine years later Orange County’s board of supervisors passed an ordinance establishing its own industrial development authority, which was renamed the Economic Development Authority in 2006. The name change attempted to reflect a change in the perception that economic vitality was limited solely to industrial manufacturing.

“The authorities of the EDA are established by state law and mainly involve raising money,” said District 2 Supervisor Jim White, who served as the EDA chairman for five years prior to being elected supervisor last fall.

At the disposal of the EDA, said White, was the ability to issue revenue bonds to finance economic development projects.

“These are a special type of tax-free municipal bond where repayment isn’t an obligation of the county,” said White. “Rather, the principle and interest are repaid exclusively from the proceeds, or revenue of the project through rent collected or fees paid.”

White pointed to Dogwood Village and the new courthouse as projects financed in part by revenue bonds. These bonds were also issued to help fund the projects of Zamma Corporation, PBM, Lohmann, MPS, Aerojet and Timber Truss. He said the EDA can also negotiate lower interest rate loans, such as it did to help with the construction of Montpelier’s visitor’s center. White said the EDA also works to apply for grants to fund infrastructure projects, such as those for sewer and water lines.

The greatest asset of the EDA, though, is Lee Industrial Park, which the body owns and oversaw its construction and opening in 1995.

“In 1991, the citizens approved a $1 million bond referendum to complete the [park],” said White. “Currently there are four businesses operating in the park, employing between 150-200 people, depending on the time of year.”

The EDA is comprised of seven board of supervisors-appointed volunteers, one from each district, as well as one each from the Town of Orange and the Town of Gordonsville. Replacing White as chairman for 2012 is District 5 representative Winston Sides.

“The job of the EDA is promoting business in the county by courting potential business prospects, applying for grants,” said Sides. “Whatever it takes for us to become involved in bringing a business to the county, that’s what we do.”

In addition to the revenue raising and negotiating responsibilities of the EDA, the authority also serves as an advisory arm of the board of supervisors on all matters related to economic development.  In the two most recent meetings, EDA members discussed strategies for improving Orange County’s broadband coverage, the proposed CTE center and back in the summer, Charles King’s land donation offer of a Route 3 parcel on which he proposed to build the corridor’s infrastructure.

“[The EDA] provides policies impacting the county’s economic development efforts,” said Karen Epps, Orange County Economic Development Director. “It provides input and advice on possible incentives and can also issue resolutions supporting economic development projects.”

Epps said that the EDA, though, does not solicit businesses, which is the responsibility of her office. Before projects can make it into a discussion before the EDA, it must first reach, or be found by, Epps.

“You find these projects by building relationships at the state and regional economic development offices,” said Epps. “Then, they might say to a business, ‘I think Orange County has a building or a property that could possibly meet your needs. But you have to keep those relationships up, because it’s not like we’re in downtown Richmond. You try to attend different meetings and events and keep your face out there.”

In the past year Epps said she’s received a dozen requests from companies for information on Orange. She said, though, that the names of those companies and the status of those negotiations had to be kept out of the public view for negotiation purposes. She did say, however, that no project has opened this year.

“We haven’t had any big projects from requests for information that we’ve received,” said Epps.  “I don’t think a year is enough time to expect to land a project, given all the work that’s involved… There’s a code of ethics that you don’t talk about the projects you’re working on. You hold it close to your chest; you don’t show your cards.”

The Thomas Jefferson Partnership for Economic Development, Orange County’s regional economic development office, is in the process of completing a target market study, analyzing its localities strengths for attracting businesses. Epps said that her office isn’t looking for specific industries, but is hoping to land projects with high paying jobs.

“We’d like to have companies with high-paying jobs, better than average pay, not just warehousing jobs,” said Epps, adding that the state offers an incentive to companies paying more than $12 an hour. “But regardless of how big or small a project is, it gets the same level of attention and work”

The EDA meets on Wednesday of every other month, typically in the basement meeting room of the Gordon Building. Their next scheduled meeting is March 29 at 6:30 p.m.