Jason Pizatella, Esq. Counsel jpizatella@spilmanlaw.com OVERVIEW of ENABLING LEGISLATION FOR COUNTY AND MUNICIPAL DEVELOPMENT AUTHORITIES (wvc chapter 7, article 12) Jason Pizatella, Esq. Counsel jpizatella@spilmanlaw.com

Overview The governing body of every municipality and the county commission of every county is authorized to create and establish a development authority The purposes for which the authority is created are to promote, develop and advance the business prosperity and economic welfare of the municipality or county for which it is created Encourage and assist through loans, investments or other business transactions in the locating of new business and industry and to rehabilitate and assist existing businesses and industries

Overview To stimulate and promote economic development that will improve the quality of life of the citizens within the county or municipality Cooperate and act in conjunction with other organizations, federal, state or local, in the promotion and advancement of economic development initiatives; and To furnish money and credit, land and industrial sites, technical assistance and such other aid as may be deemed necessary

Overview Management and control is vested in a board of directors appointed by the county commission for a county development authority or the municipal governing body for a municipal development authority No member of the authority shall receive any compensation, whether in formal salary, per diem allowance or otherwise, in connection with his or her services as such member; board members are entitled to reimbursement of reasonable expenses in connection with the performance of his or her general duties as a board member Normal conflict of interest provisions apply

Powers and Duties Development authorities have broad, wide-ranging statutory authority to carry out its public purposes: Enter into contracts and leases with public or private corporations, government agencies, etc. to promote economic development Acquire, own, convey, and lease real property Acquire, own, convey and lease personal property Apply for, receive, and use grants and other aid Invest the authority’s funds Issue debt, including bonds and other instruments secured by mortgages or deeds of trust Exercise the power of eminent domain Tax exempt

Powers and Duties Expend its funds in the execution of the powers and authority to achieve or effectuate a public purpose and use, in the public interest, and for the general welfare of the people of West Virginia, to alleviate and prevent economic deterioration and to relieve the existing critical condition of unemployment existing within the state Enter into joint development agreements: Coordinated economic development efforts Any three or more county development authorities may contract to share expenses for and revenues derived from joint economic development projects within their respective geographic territories.

Joint Development Entities Any combination of two or more county governing bodies, municipal governing bodies, municipal development authorities or county development authorities may jointly form and hold all of the partnership, ownership or membership interests in a partnership, corporation or limited liability company A joint development entity is a public corporation and a political subdivision and instrumentality of its partners, owners or members and has the powers, rights and privileges of an authority in addition to those granted to partnerships, corporations and limited liability companies For West Virginia tax purposes, a joint development entity is a political subdivision of the State of West Virginia and is exempt from all state and local taxation and all real and personal property owned by a joint development entity

Other Provisions Upon the dissolution of the authority, all of its assets and property shall revert to and become the property of the county or municipality for which said authority was created The county commission or municipal corporations authorized and empowered to transfer and convey to the said authority property of any kind acquired by said county commission or municipal corporation for or adaptable to use in industrial, economic and recreational development, such transfers or conveyances to be without consideration or for such price and upon such terms and conditions as the said county commission or municipal corporation deems proper

What about a non-profit? PRO: flexibility on size and membership of the board of directors PRO: not subject to traditional rules governing political subdivisions PRO: privacy, Freedom of Information Act do not apply CON: no access to BRIM insurance CON: cannot establish a PILOT CON: tax exemption not guaranteed CON: must annually certify charitable purpose for IRS designation as a non-profit

Questions? Jason Pizatella, Esq. (304) 340-3868 jpizatella@spilmanlaw.com