The Economic Development Authority

of
Page County, Virginia
P. O. Box 151
Luray, Virginia 22835
540-743-6493
Fax 540-743-9587

July 16, 2010

Johnny Woodward, Chairman

Board of Supervisors of Page County
117 South Court Street
Luray, Virginia 22835

Re: Outstanding Obligations of the

Economic Development Authority of Page County

Dear Chairman Woodward,

As of July 12, 2010, the Economic Development Authority has outstanding financial
obligations which were contracted in good faith prior to the Board’s decision to eliminate all
funding for the Authority in the current fiscal year’s budget as follows:

Shen. Valley Electric Coop. Electric Bill $17.37 monthly

BotkinRose Legal Advice $1,425.14
Robinson, Farmer, Cox Annual Audit $2,000.00
Civic Plus Web Site Fee $620.00 monthly
Linda Fisher Web Site Consultant $110.00
B&B Postage $8.97
Main Street Bakery Lunch Meeting 6/17/10 $90.00
Stowe Engineering Survey Work - 38 Acres $800.00
Carolyn Miller Secretary - Three Meetings $120.00 quarterly
Amanda Seal Bookkeeping Services $250.00 quarterly
Rebecca Hudson Legal & Accounting $8,500.00
Appraisal USA Clover Appraisal $4,000.00 approximate
Carolyn Miller Recording Device $62.99
Linda Fisher Web Site Email Access $20.00 annually

Sub-Total: $18,024.47

Bank Balance - 7/12/10 = $4,564.50

Unfunded Balance on Letter Perfect Loan= $8,777.71

Total: -$22,237.68
Johnny Woodward, Chairman
July 16, 2010
Page 2
In the normal course of business, the Authority would have been able to honor these
obligations using the usual budget appropriation to the Authority in the amount of
$19,000.00 annually. As you can see, under our current circumstances, we do not have
sufficient funds to cover our obligations.

In addition to the sums above, we have an ongoing commitment to Civic Plus in the amount
of $620.00 per month for maintaining the Authority’s web site which is currently our only
marketing tool for the properties held by the Authority and for any opportunity to expand our
business and industrial tax base. This contract runs until July of 2012. If funds are not
available to support this web site, Civic Plus will shut the site down and the Authority will
still be liable for payment of the balance owed through July of 2012.

While the members have waived their monthly stipend in order to reduce the Authority’s
budget, our other ongoing obligations are to Mrs. Miller at $40.00 per meeting as Secretary
of the Authority, to Mrs. Seal at $250.00 per quarter for bookkeeping services, a small
electric bill and the annual fee of $20.00 for web site email services.

It is important the Authority remain an active and vital organization because it has the
following economic development commitments in addition to its financial obligations.

The Authority has a loan fund of $100,000 available for loans to local business.
Currently Letter Perfect of Shenandoah has borrowed $99,000 from this fund to help re-
establish their business after a damaging fire.

The Authority is a current co-maker of a $1,000,000 loan in coordination with the

Virginia Department of Business Assistance which was used to renovate the Mimslyn
Hotel, increasing the tax base and creating 20 new jobs.

The Job Incentive / Retention Programs are administered by the Authority and currently
EMCO and KVK are receiving grants from this program. VF Jeanswear is considering
an application.

The Authority has committed 15 acres to Premier Technical Services, the planned
database center adjacent to Project Clover, as a match to the Governor’s Opportunity
Award of $300,000 in support of 97 new jobs.

The Authority’s website promotes Page County to site selectors and new businesses. The
Real Estate Locator on the website is being used by local real estate firms and individual
building owners to advertise available sites to site selectors and businesses.

The Authority is the current financial conduit for the USDA loan to the Airport
Commission for the new hangers.

The Authority is the issuing agency for the bonds purchased by SunTrust in an original
amount of approximately $900,000.00 using the Page County Jail as collateral and is
responsible for their retirement.
Johnny Woodward, Chairman
July 16, 2010
Page 3
I hope you will also agree that it is very important for agencies appointed by the Board of
Supervisors to maintain financial credibility with our local vendors, and therefore, on behalf
of the Authority, I am requesting that the Board of Supervisors consider assisting the
Authority in meeting its obligations by appropriating the necessary funds.

We would appreciate the favor of a reply following the Board’s meeting on July 20th.

Thank you for your consideration,

Lowell B. Baughan
Chairman

cc: Supervisors Cave, Griffith, Short, Sours and Vaughan

Members of the Authority
Mark Reed, Authority Counsel
Carolyn Miller, Secretary