Kutak Rock Serves as Bond Counsel for Radford University Hotel and Conference Center ProjectNews | April 15, 2021
Kutak Rock acted as Bond Counsel to the Economic Development Authority of the City of Radford, Virginia in connection with the issuance of its Economic Development Authority of the City of Radford, Virginia, Revenue Bonds (Provident Group – Radford University Hotel Project), Series 2021A-C. The proceeds of the Series 2021 Bonds were loaned by the Authority to Provident Group – Radford Properties LLC and were applied, together with other moneys, to (a) finance a portion of the costs of the acquisition, construction and equipping of an approximately 124-key hotel consisting of approximately 88,000 gross square feet, including approximately 4,000 gross square feet of conference space, on a site owned by RUF Hotel Land, LLC, an affiliate of Radford University Foundation, Incorporated, and located within the 600 block of Tyler Avenue in the City of Radford, Virginia (directly across from the Radford University campus and its largest outdoor function space, known as Moffett Lawn), (b) fund deposits to debt service reserve funds and operating reserve funds, (c) pay capitalized interest on the Series 2021 Bonds and working capital, and (d) pay costs of issuance of the Series 2021 Bonds.
The Hotel will be owned, operated and principally used by Provident Group – Radford Properties LLC for the benefit of Radford University and the Foundation. The Hotel will be a six-story structure and will include 124 guestrooms, including four suites. The ground level will include a 4,000 square foot ballroom with an additional 2,000 square feet of pre-function space. The lobby level will also include a visitor center, a coffee shop and a 500 square foot private dining room for up to 20 people. The rooftop level will include a 2,750 square foot indoor rooftop bar and restaurant, a 1,650 square foot rooftop terrace and a 1,450 square foot rooftop event terrace. In total, the Hotel will include 12,350 square feet of function space.
The Series 2021 Bonds have been issued as “Sustainability Bonds” based on Provident Group – Radford Properties LLC’s use of the proceeds of the Series 2021 Bonds. The purpose of identifying the Series 2021 Bonds as Sustainability Bonds is to allow investors to invest directly in obligations that finance socially beneficial and sustainable projects. Social benefits may include, but are not limited to, supporting and enhancing learning environments and educational opportunities and lessening governmental burdens by fostering economic development and promoting the public good and general welfare of residents of the community the Borrower serves. Provident Group – Radford Properties LLC has developed and adopted a framework based on guidance from the International Capital Market Association and the United Nations Sustainable Development Goals. Provident Group – Radford Properties LLC aims to use proceeds of the Series 2021 Bonds to further several of the UN SDGs, including Goal 4 (Quality Education), Goal 8 (Decent Work and Economic Growth), Goal 9 (Industry, Innovation and Infrastructure) and Goal 11 (Sustainable Cities and Communities).