Radford City Council Suspends Tax Rebate for Hotel

By DAVID QUESENBERRY

Patriot Publishing

The Radford City Council at its Tuesday night meeting, decided, at least for this year, not to issue a tax rebate grant to the Radford University Foundation for the Highlander Hotel. Council’s reason for postponing the grant was the City’s current financial situation.

The rebate was to be issued under the City’s REDI grant program. According to Mayor David Horton, the program was established to provide assistance to local businesses. The amount of the rebate is determined by conditions set out in a performance agreement between the City’s Economic Development Authority (EDA) and the program participant. Businesses in the program are eligible to receive a maximum rebate of up to 80 percent of the real property taxes on the assessed value of their property. The EDA annually reviews the conditions under the performance agreement to determine if the goals have been met. The EDA then informs City Council that the performance measures have or have not been met. Payment of the rebate however, is subject to Council approval.

Last year the Foundation received $150,198.73 from the City on its first grant received under the REDI program. For this year, the second year of the program, the rebate to the R.U. Foundation totaled $128,687.37. Council had postponed acting on the grant request at its March 24^th and May 12^th meeting.

Given the financial situation in the City and in consultation with the EDA and involved parties, Council approved a motion to exercise its authority under the performance agreement to not make the appropriation for this grant year and request that the EDA and the Foundation develop and amendment to the performance agreement that would extend its term an additional year. This would allow the Foundation to be eligible to receive the number of years of grant awards as originally agreed to, subject to the requirements in the performance agreement. The motion was approved by four votes of Council with Mayor Horton abstaining.

In other action, Council conducted a public hearing on Ordinance 1817 for General Obligation Debt Restructuring. Mayor Horton said what was proposed was issuing six million dollars in General Obligation Bonds to restructure a portion of the City’s existing debt. In working with Davenport and Associates as bond counsel, the City was able to work out an arrangement to borrow, $6 million at a 4.95 percent interest rate. Issuing the bonds would free the City from having to issue another revenue anticipation note and result in net present value saving of $68,000 over the fifteen year term of the bonds. Council voted unanimously to approve the ordinance.

In his comments to the Council later in the meeting, Interim City Manager Craig Meadows told Council that approval of the debt issuance “will allow the City not to borrow an additional $4 million going into July for cash flow. This debt restructuring and funding takes care of that issue. It provides the funding to pay off the existing RAN (revenue anticipation note). It also give us some flexibility with some cash flow going into July.”

Council next conducted a public hearing on a proposed FY 2025 School Board Budget Amendment. The School Board had requested to increase their budget from $46,803,799 to $51,890,511 to account for additional revenues and expenditures across all funds of the School System. Amendments included $35,401 in state funding for the Textbook Fund; $4,685,805 for the School Board Operating Fund for expenditures and additional revenues; and $365,506 in new grant funding for the Grants Fund. Mayor Horton highlighted the fact that because the additional revenues received came from other sources, no additional funds from the City’s General Fund were needed. With no comments being received during the public hearing, Council voted unanimously to approve the amended budget.

During the meeting, Council also approved Ordinance 1818, a pole relocation agreement with Norfolk Southern; Appropriation Ordinance 1802.30 accepting a $5,000 grant from the New River Resource Authority; and the 2025-2026 Council meeting calendar.

Council also made appointments to the following boards and commissions: Agency on Aging Sally Ann Stapleton; Economic Development Authority Jeff Cumberland; Library Board Joshua Osemobor and Carol Hurd; Recreation Commission Joseph Johnson and Nancie Brossoie; Building Code Board of Appeals Chris Quesenberry; and Zoning Board of Appeals John Giesen.

The next meeting of the Radford City Council will be at 7:00 pm, Monday July 14, 2025 in the Council Chambers of the Radford City Hall at 10 Robertson Street.