Preston Hollow LLC continues push to refinance bonds for Farms of New Kent
A request to restructure and refinance bonds for the Farms of New Kent will have to wait at least a couple of months.
New Kent’s Board of Supervisors continued to defer action on a request from Preston Hollow LLC (PHLLC) during the Aug. 22 special work session.
In October 2023, PHLLC proposed $97 million in bond refunds, with $45 million as new money. At a follow-up meeting in November 2023, District 1 representative Thomas Evelyn asked for more solid numbers, stating that he wanted to see more solid numbers and not put New Kent County in a financial hole. Those sentiments were echoed by former board members Tommy Tiller and John Lockwood.
For the last nine months, PHLLC has been working to bring stability and reassurance to the board. At the Aug. 22 meeting, PHLCC representative Ramiro Albarran represented to New Kent supervisors, pointing to how the company has attempted to address issues and meet all major planning and urban development (PUD) requirements.
Albarran commented that the Four Seasons community has had repairs to damage sidewalks and streets, along with a new well water supply to the tune of $605,000. The group has also contributed $256,000 for an investment in Land Bay 3 for the community farmers’ market as well as an additional $750,000 and 10 acres of land in Land Bay 4 for a new fire station. The group also said that they have been in constant communications to improve the community which would include grocery stores, restaurants, assisted living, childcare facilities, medical facilities, and outdoor spaces, all requests that were made by county residents.
Albarran added that the group would bring in tax revenue in the amount of $416 million within the next 35 years. The group is adding that they are proposal to purchase up to $89 million in series 2024B bonds to refund existing series 2021B bonds. PHLCC is also looking at future development in Land Bay 3 in 2025, which will run nearly adjacent to Land Bay 5 that is slated to be the home of Buc-ee’s. That total investment would come to a tally of $13.3 million.
Other developments would include residential homes in Land Bay 5 ($48.2 million), commercial in Land Bay 4 by 2027 ($7.6 million), residential homes in Land Bay 3 in 2025 ($4.7 million), an assisted living facility in Land Bay 3 by 2027 ($2.4 million), and residential homes in Land Bay 4 by 2027 ($3 million). When questioned about the 2023 talks with a major grocery story, Albarran responded by saying that the chain would need 22 acres but would not confirm the group because of a confidentiality agreement.
PHCC concluded that to make an investment up to $45 million in new money towards the Farms of New Kent, existing 2021B bonds would need to be refunded to provide consolidated, tax-exempt structures. Currently, the bonds are currently valued at 52 cents on the dollar.
But once again, New Kent’s Board of Supervisors had reservations, especially with Evelyn being absent due to having a previous obligation. Board members voted to defer any action, with October being the earliest it would take place.
In other board business:
–Received an update from New Kent Fire Chief Rick Opett on the cost to purchase new equipment for a new Food and Drug Administration locker system. Opett commented that the $56,000 unfunded mandate comes as drug boxes in ambulances have been controlled by hospitals and regional allowances. The boxes are undergoing an overhaul, with EMS agencies now being their own agencies to control these boxes due to profit centers. The lockers would cost the county $23,000 annually to operate but added that he is currently not asking for any funding as he is looking at saving costs from equipment that needs to be replaced and delaying that for the time being.
–Approved 4-0 to contribute $188,150 to upgrade the DMV Select in the county. The upgrade comes as the DMV Select must meet updated needs for the facility as part of the American Disabilities Act amendments and assessments requirements.