City staff and the Lynchburg Redevelopment & Housing Authority (LRHA) presented an overview of a proposed conduit financing transaction to support the redevelopment of the Barker Jennings building at 1300 Campbell Avenue into workforce housing.

Staff said Estoria/Astoria Housing requested the authority issue $30 million in tax‑exempt revenue bonds; state statute requires governing‑body approval in addition to the authority’s action. The proposed conversion would create about 120–125 units targeted for households at roughly 60–80% of area median income, with a mix of studios and one‑ and two‑bedrooms and projected rents ranging from about $930 (studio) to $1,195 (two‑bedroom), staff said.

Herschel Keller of the LRHA explained the bonds are conduit financing and the authority and the city carry no repayment liability; the structure uses tax‑exempt bonds layered with low‑income housing tax credits to reduce the developer's capital costs. Keller said the authority vetted the developer and that bond counsel and other experienced firms are advising the transaction.

Council members asked for additional developer information and noted that the developer team had multiple projects in progress; staff said the competitive tax credit process and LRHA review were parts of the vetting. Staff emphasized there is no financial obligation for the city or the housing authority under the conduit bond structure, though the authority would collect an administrative fee.