Attorney General's Opinion 1981-82 #439
VIRGINIA FREEDOM OF INFORMATION ACT. OYSTER POINT DEVELOPMENT CORPORATION CAN MEET IN EXECUTIVE SESSION TO DISCUSS BOND FINANCING FOR DEVELOPMENT, ACQUISITION AND SALE OF PROPERTY FOR PUBLIC PURPOSES. IT CANNOT MEET IN EXECUTIVE SESSION TO DISCUSS FUNDING FOR DEVELOPMENT DR ACQUISITION OF PROPERTY FOR PRIVATE PURPOSES.
September 14, 1981
The Honorable Theodore V. Morrison, Jr.
Member, House of Delegates
81-82 439
This is in reply to your request for my opinion as to whether executive sessions may be held by the Oyster Point Development Corporation (hereinafter "OPDC") for discussion of the following topics: industrial revenue bond financing to develop sites owned by OPDC and acquire property for OPDC; the sale of land owned by OPDC to private persons for industrial and commercial purposes; and industrial revenue bond financing for industrial or commercial development of property not owned by OPDC or within the tract managed by it.
You have described OPDC as a political subdivision created by the legislature for the primary purpose of developing and marketing parcels of real estate from a large tract of land formerly owned by the City of Newport News. In furtherance of this purpose, the legislature has given OPDC authority to issue industrial revenue bonds to finance the purchase and development of sites within that tract, and also for the financing of industrial revenue bonds for sites in areas beyond the tract. See Ch. 285 [1979] Acts of Assembly 391.
The Virginia Freedom of Information Act requires that public bodies meet in public session except as otherwise provided by law. See 2.1-343 of the Code of Virginia (1950), as amend §§ 2.1-344(a)(1) through 2.1-344(a)(9) authorizes executive or closed meetings in certain circumstances. Section 2.1-344(a)(2) permits public bodies to meet in executive session to discuss the "condition, acquisition or use of real property for public purpose[s], or.. the disposition of publicly held property...." The purpose of this exception is to avoid premature exposure of the public body's interest in acquiring and developing land. See Report of the Attorney General (1976-1977) at 316.
Financing Purchase and Sale of Land
The discussion of bond financing to acquire property for OPDC and to develop property owned by OPDC clearly is a subject which may be discussed in executive session. See §2.1-344(a)(2). In addition, discussions regarding the sale of OPDC property is also covered because it involves disposition of publicly held property. For this reason, it is my opinion that these topics can be discussed in executive session.
Discussion of Financing
You also ask whether the discussion of bond financing for industrial or commercial development of property not owned by OPDC constitutes an exception covered by 2.1-344(a)(2). The discussion of financing for development of privately owned property for private purposes does not fall within the exception outlined in §2.1-344(a)(2), since they do not concern "condition, acquisition or use of real property for sic purpose[s], or. the disposition of publicly held property...." (Emphasis added.) See Report of the Attorney General (1978-1979) at 314.
You also suggest that OPDC can meet in executive session to discuss the development of privately owned property under §2.1-344(a)(6). You state that the discussion of an inducement resolution is a potential contract and thus a legal matter falling within this exception. A resolution, however, cannot be considered a contract because it is merely a formal expression of opinion expressed by a public body. Since such a discussion does not relate to pending litigation or other legal matters, it must comply with the open meeting provisions of §2.1-343. See Report of the Attorney General (1976-1977) at 316.
Accordingly, it is my opinion that the OPDC is authorized to meet in executive session to discuss bond financing for the development and sale of property owned by OPDC. In addition, acquisition of property for OPDC may also be discussed in such sessions. The corporation, however, cannot meet in executive session to discuss industrial revenue bond financing of privately owned property for private commercial or industrial purposes.
