§ 9-246. Plan of finance; issuance of bonds.

(a)

The improvements, services and operations to be undertaken by the CDA, as described herein and in the petition, shall be funded from all or some of the following sources: (i) the bonds to be issued by the CDA and (ii) special assessments to be levied pursuant to Code of Virginia, §15.2-5158A5, as more particularly described in the petition and in a special assessment agreement to be entered into by the CDA, the county and the landowner or its successors in interest. Portions of the Lower Magnolia Green property which are dedicated for public purposes or which are conveyed to an owners association as open space or common areas shall not be subject to assessment.

(b)

Upon the enactment of this article, the CDA will engage a professional administrator to prepare, with the assistance of the county, an assessment roll for all parcels of land within the CDA district. Such administrator will annually prepare a report which details the amount of the special assessment owed by the owner of each parcel of land within the CDA district.

(c)

The bonds to be issued by the CDA may be tax-exempt or taxable and will not exceed a maximum aggregate principal amount of $35,000,000.00. The bonds shall be issued as soon as can practically be achieved (anticipated to be during the first quarter of 2008) and the proceeds from the sale of the bonds will be used to pay the costs of the improvements as described herein and in the petition, the costs of issuing the bonds and funding any required reserves, and paying capitalized interest on the bonds for a period of up to 36 months after the issuance of the bonds. If there are any proceeds from the sale of the bonds remaining after the payment of these costs, such excess proceeds shall be used to prepay a portion of the bonds. If the proceeds from the sale of the bonds are insufficient to pay these costs, the landowner shall be solely responsible for paying any deficiency, subject to the limitation contained in exhibit B to an ordinance adopted Aug. 22, 2007.

(d)

If the CDA encounters problems in issuing the bonds due to adverse market conditions, the CDA shall give notice to the petitioner and provide the petitioner with an opportunity to assist in issuance of the bonds.

(e)

Any bonds issued by the CDA or any other financing arrangements entered into by the CDA will be debt of the CDA, will not be a debt or other obligation of the county and will not constitute a pledge of the faith and credit of the county.

(Ord. of 8-22-07, § 1)

(Ord. of 8-22-07, § 1)