Board approves Economic Development Authority reissuance for Friendship Foundation up to $60 million

The Roanoke County Board of Supervisors approved a resolution April 23 consenting to the Economic Development Authority's issuance of revenue refunding bonds in an aggregate amount not to exceed $60,000,000 for the benefit of Friendship Foundation.

County Attorney Peter Lubeck outlined the background: in 2019 bond proceeds financed the construction of senior-living facilities; the original owner (Richfield) later entered forbearance with bondholders during the pandemic period. In 2023 Friendship Foundation acquired the facilities, assumed obligations under the bond documents (with EDA consent), and subsequently negotiated amendments with bondholders that reduce outstanding principal, adjust interest rates and revise covenants. Lubeck said the amended transaction is treated as a reissuance for tax purposes and noted the transaction required an EDA public hearing and EDA approval before the board's consideration.

Lubeck told supervisors the county and the EDA will not incur new expenses from the reissuance, but the EDA's administrative fee will decline because outstanding principal is being reduced: "for example, in fiscal year 2025 the EDA would have collected approximately $56,000 and will now, under the new agreement, collect approximately $37,000 in fiscal year 2025," he said. Staff recommended board approval.

The board voted to adopt the resolution; roll-call results were recorded as unanimous (5-0).

What happens next: the EDA will proceed with the reissuance under the amended and restated trust indenture and loan agreement; the county will receive a reduced administrative fee stream as principal declines.