Henrico County’s Economic Development Authority was born out of the success of its first incarnation—the County’s Indus - trial Development Authority. The IDAwas formed by act of the Virginia legislature to issue industrial development bonds that helped launch new companies and facilities throughout the County.
The Authority actually does not loan anyone any money. Businesses getting Indus - trial Revenue Bonds still borrow money from banks and private lenders—but with the Authority’s involvement, the transaction becomes exempt from federal and state income taxes so that a lower rate of interest can be charged. Neither the Authority nor the County is responsible for the repayment of borrowed funds.
Since 1968, Henrico has issued bonds worth $844.5 million to businesses, for an average of $21.1 million a year. Current bonds outstanding total more than $600 million.
Just who qualifies for a bond is controlled and defined by federal enabling legislation. Today, only manufacturers and charitable organizations as defined by federal law qualify for an Industrial Revenue Bond.
Jack Ferguson, the IDA’s first chairman, recalled the formation of the authority in 1968 after Morton Marks wanted to build a new plant in eastern Henrico.
As the industrial and corporate sector bloomed in Henrico—creating scores of new facilities and thousands of new jobs for County residents—the Authority’s success led to the next stage of development in the early 1980s, Ferguson recalled. “The County Board of Supervisors approached us and said, ‘Why don’t you become the economic development agency for the County?’” Ferguson, a timber management exec utive, said the IDA was will- ing to take on the responsibility.
In 1999, the Industrial Development Authority changed its name to reflect its current mission, becoming the Economic Development Authority of Henrico County.
“Today, the authority is composed of a 10-member Board of Directors, two assigned from each magisterial district by the Board of Supervisors,” explained Fred Agostino, executive director of the Henrico County EDA. Agostino, who plans to retire later this year, was hired in 1985 to become the first full- time executive of the EDA.
Stephanie Ford, chair of the Board of Directors of the EDA, said, “More than ever, the EDA is focused not only attracting new businesses to the county, but also on retain- ing the vital business resources that are already here. In an increasingly competitive marketplace, our team continues to connect the diverse global economy with our vibrant local economy.”
Ferguson is proud of the self-sustaining nature of the Authority. But mostly, he is proud of the way it has helped generate jobs for Henrico’s citizens. He noted how the Authority’s lending authority allowed bonds to be issued for health care construction that helped Bon Secours, Henrico Doctors’, Westminster Canterbury, and others to build new facilities. “They are tremendous employers,” he said of the health care and continuing care companies.
“The most significant comparison you could make,” Ferguson added, “was that in 1968, when the Authority was created, 80 percent of the people who lived in Henrico worked somewhere out of the County.” Today, he said, that number has been just about reversed, with the majority of County citizens able to work in their home county. As he told a 2008 high school graduating class, “I’m proud that when you graduate from this institution, if you want a job, you can get it in Henrico County.”
