With County EDA in Place, Dumfries Seeks More Control Over Business Development

The Town of Dumfries is considering forming its own Economic Development Authority (EDA), a move that town leaders say would give them more flexibility and control over how to attract, retain, and grow businesses within the town’s borders.

At its April 1, 2025 meeting, the Town Council received a detailed presentation outlining the authority and potential benefits of creating an EDA under the Virginia Industrial Development and Revenue Bond Act, passed by the state legislature in 1966. The act allows localities to establish Economic or Industrial Development Authorities (EDAs or IDAs) as separate legal entities to facilitate economic development.

The proposed EDA would have powers to acquire, lease, and sell property, issue tax-exempt revenue bonds for private or public development projects, and make business loans or grants. However, EDAs cannot tax or operate businesses themselves.

Dumfries already falls within the jurisdiction of the Prince William County Industrial Development Authority, which provides similar services across the county. The county’s IDA supports local business development by facilitating financing and development incentives for qualified projects. More information is available at pwcida.org.

Despite the existing county authority, Dumfries officials said a town-level EDA could act more nimbly and focus solely on the town’s priorities. The local EDA would serve as a strategic partner to the council, working closely with the business community to identify opportunities, administer local incentive programs, and assist in development planning.

Local Oversight, Independent Action

The proposed authority would be governed by a seven-member board of directors appointed by the Town Council. Directors must be Dumfries residents and would serve staggered terms ranging from one to four years initially, then four-year terms for subsequent appointments. Board members would not be paid a salary but could receive up to $200 per meeting and be reimbursed for travel and other necessary expenses.

The board would operate independently from the Town Council, similar to the town’s Board of Zoning Appeals. Council members would have no authority to direct or regulate board decisions once members are appointed.

Council members discussed transparency requirements, particularly around the board’s ability to sell property without a public hearing. Staff confirmed that while meetings would be public and minutes available, public hearings would not be required for decisions made by the EDA.

The Town Attorney and staff noted that this level of autonomy is granted under state law and is one of the primary benefits of forming a separate authority. They said the flexibility would allow the EDA to act quickly and creatively in support of economic development, particularly in areas where the Town Council itself may face legal constraints.

Funding Still Unclear

Council members also discussed how the EDA would be funded. By law, EDAs cannot impose taxes but can receive funds from property leases, asset sales, or dedicated portions of town revenue—such as a slice of the real estate or meals tax. They can also access grants from state or federal programs.

Vice Mayor Nickerson raised concerns about how the authority would be funded, particularly since the current fiscal year budget does not account for EDA startup costs. The town manager noted that establishing the authority would not require upfront capital unless the council chose to fund stipends or provide operational support. Over time, the EDA could generate revenue through economic activity or be funded through agreements approved by the council.

Council Member Russell Young asked about residency requirements and qualifications for board members. Staff confirmed that directors must live in Dumfries. While the state doesn’t require any particular experience, the draft ordinance gives preference to individuals with business, planning, or financial expertise.

Others emphasized the importance of moving forward strategically and with intention, pointing out that while the EDA would be independent, its success would depend on clear expectations and qualified leadership.

A public hearing on the creation of the EDA is expected to be scheduled in the coming weeks. In the meantime, the town staff will prepare a proposal outlining potential funding options and the structure of the authority for further council review.