Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: FRIDAY, January 1, 1993 TAG: 9301010085
SECTION: VIRGINIA PAGE: B3 EDITION: HOLIDAY
SOURCE: JOEL TURNER STAFF WRITER
DATELINE: LENGTH: Medium
SALEM HELPS COUNTY FUND PROJECT
Don't say that localities in the Roanoke Valley never cooperate.Sometimes, they do.
Case in point:
Salem City Council voted Thursday to approve $3.8 million in tax-exempt revenue bonds to finance an expansion by the Richfield Retirement Community.
Richfield is located in Roanoke County, on U.S. 11 west of Salem.
But it sought Salem's assistance because changes in tax laws now limit a locality to issuing $10 million in tax-exempt bonds each year.
If the county had approved Richfield's request, it would have exceeded the limit for its tax-exempt bonds.
Al Knighton, an attorney for Richfield, said localities can issue more than $10 million in revenue bonds a year, but there is a limit on those with tax-exempt status.
The money will be used to construct and equip a 120-bed assisted-living home for the elderly, according to Joan Price, assistant vice president for Richfield.
At Richfield's request, the Salem Industrial Development Authority agreed to issue the bonds, according to Stephen Yost, Salem city attorney. The authority is the agency that issues the bonds.
The authority needed City Council's approval before it could issue the bonds.
The authority and council approved the bonds at special meetings Thursday morning. The county Board of Supervisors also concurred with the bond deal at a special meeting in the Salem City Council Chamber.
"The county approved the project, even though it won't be involved with the bonds," said Knighton.
The bonds are not an obligation of Salem taxpayers. Revenue-bond financing is a mechanism that enables private companies to obtain tax-exempt financing. The private companies are responsible for repaying the bonds and their property secures the debt.