May 21,2013

Via First US Mail

West Virginia Ethics Commission
210 Brook?s Street, Suite 300
Charleston, West Virginia 25361

Re: Request for Advisory Opinion Regarding Proposed New Tax hment Financing Project Plan
For Greenbriet County TIF District No. 1 {White Sulphur Swings}

Deer Commissioners:

Based on the facts and described below, what steps, be taken to ensure
that the West Virginia Governmental Ethics Act, Chaplet 6B of the Code of West Virginie, 1931, 'as
amended (the ?Ethics Act?), will not he violated? As the Ethics Commission may know, I and! or members
of my family own, either individually or through omership interests in various other entities, or have a
controlling interest in the following companies: The Greenhrier Spotting Club Development Company,
Inc. (the ?Development Company?); (ii) The Greenbri'er Resort (the ?Greenbrier Reso?); and The
Greeubrier Sporting Club, Inc- (the ?Sporting Club? and collectively with the Development Company and
the Greenbrier Resort, the ?Greehhrier Companies?), There is anew Tax Inclement Einan'cing pu?ect plah
that islpeing pursued that will'grea?y?behe?t the people of Greenh?er'couhty and The Greeuhrier properties
as we .

Tax Increment Financing Generally

The West Virginia Tax Increment Financing Act Code et. seq.) (the ?1le 
permits the "capmre of 100% of the increases in property tax revenue gained by developing a discrete
geogtaphic area and the use of such increase to ?nance development or redevelopment projects. Section 8
of the Act sets forth the requirements for a development or redevelopment district project plamwhich
include a cost?bene?t analysis showing the economic hepact of the project plan on each levying body and
the impact on the economy if the project plan' is not completed. The basic intent oftax? itmrement ?n?ncing
is to leverage future moreases in tax revenue to fund emrent projects with the result being a higher property
tax revenues to the levying bodies a?er development or' redevelopment district is termhtated. No
development or redevelopment dishiet may be in existence for more than 30 years as provided in Section

10 ofthe 

State Capitol 1900 Kauawha Blvd, East, Charleston, WV 25305 (304) 558-2000

OFFICE or THE Govennoe
West Virginia Ethics Commission
PegeTWo
May21,2018

The TIF District

As pennilmci ?Imder the Til": Act, the County Commission of Greenbrier County (?le ?County
Commission?) created a Tax Increment DevelopmentiRedevelopment project area or district that
includes substantially all of the White Sulphur Magisterial District and is known as the ?Grembrier County
TIP District No. 1 (White Sulphur Springs)? (the District?) and (ii) approved a Project Plan for the
TIF District entitled ?White Sulphur Springs TIP District Project 1? (the ?Original ProjeCt 
Original Project Plan included the constrociion and equipping of a new treeonent plant for the
City of White Sulphur Springs (the ?City?), the construction "and equipping of improvements to the City?s
existing wastewater treahnent (the ?Original TIP Projects?) plant. The Comfy Connoission ?nanced the
costs of constructing and equipping the Original TIF Projects through the issuance of Tax Increment
Revenue Bonds. The two largest taxpayers in them District are the Greenbrier Resort and the Sporting
Club. As noted in the County Commission?s Of?cial Statement dated December 2013, the primary
economic engine within the TIF District is the development and related tax himenzent revenues generated
by the Sporting Ciub. Although the tax increment revenues gmereted by the Sporting Club ?ooded the
Original Projects, the Greenbrier Companies have not received any direct bene?t from the TIF District
to date. The Original TIF projects would not have been possible but for the development of The G1eenbrier

Sporting Club. In ori?ce to funding these projects, more than 300 oewjobs were created to run the club,
build homes and service the membership. 

As described below, the Development Company and the City are planning to submit a proposed
Project Plan Application to the County Commission in accordance with the TIF Act. The development
planned by the Development Company and other Greenbrier Companies will not occur without the ability
to utilize ?mding ??om Tex increment Revenue Bonds issued by the County Commission or tax increment
revenues paying for a portion of the project on a pey?as-you?go basis. If such development does not occur,
the County Commission and the other levying bodies will not realize the increase in property taxes resulting
from the planned development afterthe TIP Disbict tel-initiates, which at its latest would be December 14,
2034. In addition to the loss of future property taxes, an estimated 92 permanent and 20 temporary jobs
will not he created if this project does not move forward.

The Proposed Projects
museum for Valley Floor Development

Following the ?ood which occurred in Greenbrier County in the summer of 2.01 6, new valley ?oor
land became available for development. Design work, which is being funded from private sources, is
currently under way for planned improvements on this site. The Development Company currently
anticipates requesting that the County Commission issue Tax Increment Revenue Bonds to ?ind in
site preparation, in road improvements and utility eaaensions, and in water system
improvements related to the planned valley floor development. In addition to the improvements that would
be ?mded by Tax hicrement Revenue Bonds, it is anticipated that over of vertical development
funded through private sources will take place on the site.

CFFICE OF THE GOVERNOR
West Virginia Ethics Commission
Page'l?hree
May21,2018

Site Work and In??asgucmrc fer Replacement Laundrv Facility

The Greenbricr Resmt?s laundry facility was moved during the ODDSIIECHOII of the new Center
Court at Creekside tennis stadimn. Since that time, laundry has been trucked to Virginia, processed and
rammed to the Grecnbrier Resort. Establishing a new Iauodiy facility on the prcperty is anticipated to
create approximately 27 new jobs. The cost of this facility is and the site is shovelwready. The
Development Company Gamay anticipates requesting that the County Commission issue Tax Increment
Revenue Bonds to ?md approximately of the site preparation, road improvements, and utility
extensions which are needed inconcectico with this facility.

Kate?s Mommiaslgi Area

For many years, the Gzeenbrier Companies have been considering a ski area on Kate?s Mountain.
in 2013, the Justice family purchased over 3,000 acres of Kate?s Mountain for over $10 million as a ?rst
step toWard this project. SE Group, the top old-momma design ?rm in the United States, was retained to
design a ski mountain that would include li?s, a fully automated snow-making system, approxhnately 240
skiable acres of terrain (20% greater than the size of Snowshoe), a base lodge and 011?111an restate-ants.
To make this project possible, improvements to or replacement of the bridge over the railroad tracks at
the entrance to Kate Momtaio Road, as well as improvements to the intersection, will be required. In
addition, The Greenbrier Gun Club would need to be relocated This ski area would also contain a
residential component (home and ecodos) ?'lat will greatly benefit the area in the wintertime, in addition to
increasing the tax base and bed ions: revenue The total cost ofthis ski area is in excess of $100 million and
is anticipated to be built in phases The Greenhzier Companies are requesting the utilization of
appioximately $500}: or more of the remaining available proceeds of Tax Increment Revenue Bonds
requested to be issued by the County Commission or ?pay as you go? funds from the TIF Distn?ct to firiance

start?up costs for the ski area (roads, bridges, militias, etc 

mom?er Pmmd. moose

The Development Company and the City of White Sulphur Springs are planning to prepose a new
project plan for the TIF District (the ?New Ploject Plan?). In addition to the projects deecribed above, the
New Project Plan would propose ?mdiog approximately of repairs to water lines in the City?s
waterworks system and approximately of sewer line extensions to connect the town of Caldwell to
the City?s-wasteWater comment plant. The city of White Spring currently loses more than 60% of
their ?oated water through leaks. Repairing mesa leaks would be allow for more service and be better for
the environment. Caldwell currently does not have a connection to the wastewater technent plant This is
an environmental issue and a deterrent to development in this area. The connection to Caldwell to the
wastewafer plant would great bene?t those residents and all who use the Greenb?er River for recreation.
The Project Plan would require the approval of the County Commission and the Executive Director of the
West Virginia Development Of?ce (the ?Executive Directof?} as provided in the TIF Act. 

Requested Advisory Opinion

I respect?illy request that the West Virginia Ethics Commission issue an advisory opinion pursuant
to Article 2, Section 3 of the Ethics Act as to whomer the facts and above would give lice to
a violation of the Eddcs Act if the County Commission and the Executive Director were to approve the
New Project Plan for the District and if the County Commission were to issue Tax Increment Revenue

OFFICE or THE GOVERNOR
West Virginia Ethics Commission
PageFour
May21,2018

Bonds or other obligations under the TIF Act or utilize tax increment revenues of the TIF District on a ?pay
as you go? basis to ?nance costs of the projects described above. Please also consider that the County
Commission may entef into a Development Agreement or o?aer contract with one or more of the Greenbrier
Companies to carry out the development of all or a pm?on of the TIF Projects.

As previously stated, I and/or members of my family own, either individually or through ownership
interests in various other eoti?es, or have a controlling interest in the Greenb?er Companies. Additionally,
some of the proposed projects described above would be constructed on properties which are owned by
certain ofthe Greenbrier Companies and such properties and the Greeobrier Companies which own such
properties would stand to bene?t from the constipation of such TIF Projects on the properties. However,
the real winner would no douht'be the residents ofGreenbrier County by signi?cant increase in tax revenue
and jobs. As indicated above, the Executive Director is responsible under the TIF Act for approving or
disapproving-me New Project Plan if the same is submitted by the County Commission to the Executed
Director for consideration of approval. The Executive Director is appointed to such position by the
Governor of West Virginia and serves atthe will and pleasure of the Governor.

I appzeciate your consideration of this request. Please fee! free to contact me if any additional
izlfonnation is needed in connection with this request for an advisory opinion.