Board Approves Performance Agreement to Pursue Major Destination Retail Project at Gateway Crossing   Botetourt County, VA (Jan. 27, 2026) – The Botetourt County Board of Supervisors unanimously approved a performance-based economic development agreement to support a potential national destination retailer at the Gateway Crossing area near the Interstate 81 interchange at Exit 150. The agreement creates a framework for Botetourt County and the Botetourt County Economic Development Authority to enable Gateway Circle Properties to pursue development that would create jobs, increase the tax base, and provide desirable amenities to the County’s citizens. At the developer’s request, the retailer's name is not being disclosed at this time until key project milestones are reached. “This vote does not mean a project is guaranteed,” said Mac Scothorn, Board Chair. “It simply allows the developer to continue evaluating financing and project feasibility.” Why the Agreement Is Needed The Gateway Crossing site requires extensive site preparation and infrastructure improvements, including grading, road access, stormwater management and utility upgrades. These high upfront costs make traditional development difficult without a performance-based agreement. The agreement is structured as a form of synthetic tax increment financing, or TIF. Under this approach, a portion of the new tax revenue generated by a development is used to reimburse eligible project costs. The County does not issue debt or borrow money. Instead, the developer is responsible for securing private financing, and any reimbursement would be based solely on the project’s actual performance over time. Botetourt County Attorney Mike Lockaby reinforced that the agreement includes multiple safeguards for the County, including: • No county debt or borrowing • No payments unless the project is generating tax revenue • Hard and soft cost reimbursement cap of $69 million. Once the developer has secured financing, the board will consider any additional costs {00421359.DOCX } • Term of reimbursement will exceed no more than 20 years. • No loan guarantees or taxpayer backing • Independent audits of all reimbursed costs All taxes used under the agreement would be new local revenue — such as sales, meals and personal property taxes — that do not exist today. Once eligible costs are repaid, or after 20 years, all tax revenue generated by the project would remain with the County. Long-Term Benefits If completed, the project would bring unique shopping options closer to home for Botetourt residents while also attracting visitors from around the region to support Botetourt County businesses. Leaders view the effort as a potential catalyst for long-term redevelopment at Gateway Crossing, an area targeted for growth for more than 15 years.

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