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Celebrate Va. hits hard times page 5
The Silver Cos. and its investment partners owe about $5 million in back taxes and special assessment payments.

Date published: 4/22/2011

continued

Still, the situation in Stafford isn’t perfect. Nearly $1.3 million in late taxes and assessments are owed within Celebrate Virginia North, nearly all of which is owed by Silver and its partners in the form of special assessments, according to Stafford’s Treasurer’s Office.

The CDA reserve fund balance of $1.02 million is less than half the $2.46 million requirement.

The last time the Celebrate Virginia North CDA bonds traded on the open market, according to a disclosure with the Municipal Securities Rulemaking Board, they were sold for 75 cents on the dollar for an effective 9.3 percent tax-free yield on an issuance that initially yielded 6.75 percent.

Honaker said his company is talking to a user that is interested in two 50,000-square-foot office buildings on the corporate campus part of Celebrate Virginia North. Proceeds from that would be used to pay back taxes and replenish reserves.

MOVING ON

In retrospect, given the timing, Honaker would not have supported selling $56 million worth of bonds to build the developments’ infrastructure. In the case of Celebrate Virginia South, payments on the debt could stretch into 2036.

But hindsight is 20–20, so he and his employees at Silver are doing what they can to push the project forward—seeking out potential customers in hopes that times get better soon.

Bill Freehling: 540/374-5405
bfreehling@freelancestar.com


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