As of the May 10, 2011, City Council session, the possibility of the City availing itself of an $8M bridge loan for the purpose of completing the acquisition of Pleasure House Point remains alive and well.  Delegate Chris Stolle and the Trust for Public Land worked together with state officials to identify potential funding sources.  The following information comes to us courtesy of City Councilman Bill DeSteph.

Facts Regarding the State Loan Available for the Purchase of Pleasure House Point:

-The source of the loan that is available for the purchase of the property is the Virginia Department of Environmental Quality’s (DEQ) Clean Water Revolving Loan Fund – Land Conservation Program.  Every state has such a revolving loan fund to provide low cost financing to local governments for water and sewer infrastructure projects that improve water quality.  Some states, including Virginia, have also made a portion of their loan pool available for purchases of land which will help protect and/or improve water quality.

-The Trust for Public Land, believing that this project would qualify, applied for the loan in July, 2010 through the DEQ’s annual loan request process to provide maximum flexibility and options to the partners while they worked together to pursue federal and state grant opportunities to try and preserve the whole property.

-The loan request was then evaluated by DEQ staff with other agency input and recommended for funding to the State Water Control Board at its September, 2010 meeting.  After consider by the board and after being open for public comment, the SWCB authorized a loan for the project at its December 2010 meeting, and set the terms of the loan:  $8 million available for up to 10 years at an interest rate of .25%.  This essentially establishes that the project meets their water quality and loan purpose criteria, and sets the general terms.

-If the City would like to avail itself of the loan, the next step is for the City to work through the financial evaluation process with the Virginia Resources Authority (VRA) which is the source of financing.  If the VRA approves, they will issue a commitment letter to the City.  The City can then formally elect to utilize the loan.

-Del. Stolle’s role has been to write to the Governor late last summer to express his support for conserving Pleasure House Point and requesting his assistance with any sources of funding that may be available through the state, and to organize a meeting last winter with state natural resource agencies and TPL to fully discuss all funding options.  Through those discussions, it was determined that the above loan that was approved, and the upcoming Virginia Land Conservation Foundation grant round were the two most likely sources of state funding.  Del. Stolle has also spoke with a number of other elected officials to express his support.