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About NNEDA/NNIDA

POWERS
The powers of the Newport News Industrial/Economic Development Authority (NNEDA) have been granted by the Virginia General Assembly. The Authority acts as the development arm for the City. It accomplishes economic development activities that are difficult or impossible for city government to undertake. In many instances this means avoiding bureaucratic red-tape.

Among other things, the Authority has the power to:
  • buy and develop land for industrial and business parks, and for other economic development purposes;
  • build facilities for sale or lease to private companies;
  • issue taxable and tax-exempt Industrial Revenue Bonds either to finance the Authority's projects or to provide financing for facilities and machinery by a private company; and
  • provide incentives to attract new companies to Newport News or to induce existing companies to expand here.
The Authority is careful to spend public dollars wisely and recognizes, evaluates and takes very seriously the implications of competing with the private sector to meet short and long-term economic development goals and objectives.
  • When the Authority takes on a developer's role, it does so only because a private developer would not be able to muster the financial resources, be patient for a return on investment or provide the incentives that are needed to promote economic development in today's intensely competitive environment.
  • It is the responsibility of the company benefiting from an Industrial Revenue Bond to either repay the bond directly or have its lease payments to the Authority be used to repay the bond.
  • The Authority uses economic development incentives judiciously after conducting a thorough cost-benefit analysis to make sure that increased tax revenue will repay the cost of an incentive within a few years. By being aggressive and offering incentives, flexibly and creatively delivered, Newport News has been able to compete globally and has continued to grow.

 

Updated: 06.29.07
 
 
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