Graphic courtesy of Botetourt Co.
By Matt de Simone
In a surprise move during its January meeting, the Botetourt County Board of Supervisors unanimously approved a performance agreement tied to a proposed major retail development, an item added to the agenda as a walk-on without advance public notice.
County Administrator Gary Larrowe presented the agreement, describing it as a preliminary step to allow a developer to seek financing for a “confidential” national destination retailer proposed for the Gateway Crossing area near the Interstate 81 Exit 150 interchange. The retailer’s identity has not been disclosed, citing competitive and contractual considerations.
Larrowe emphasized that the board’s action does not guarantee the project will be built.
“Approval today is limited to allowing the developer to seek appropriate financing,” Larrowe said. “This does not mean that anything will happen with the project.”
The performance agreement establishes a partnership between Botetourt County, the county’s Economic Development Authority and Gateway Circle Properties. Under the agreement, the county would reimburse certain verified infrastructure and development costs using a portion of new tax revenue generated by the project over time.
Economic Development Director Kyle Rosner said the agreement uses a “synthetic” tax increment financing structure. Unlike traditional TIFs, the county would not issue debt, guarantee loans or advance public funds. Payments would only occur after the retailer opens and begins generating tax revenue.
“This is a self-funding development,” Rosner said. “We are essentially using the project’s future success to fund its present needs.”
Staff estimates project-related development could generate about $175 million in new local tax revenue over 20 years, based on analyses from the developer, the Roanoke Regional Partnership and the county’s financial advisors. The agreement would apply only to incremental taxes that do not currently exist, such as sales, meals and personal property taxes.
County Attorney Mike Lockaby outlined multiple safeguards, including strict third-party audits of eligible costs, performance requirements and a cap of $69 million on reimbursable expenses. He stressed there is no financial recourse against the county.
“The county is not borrowing money and is not guaranteeing any debt,” Lockaby said.
Attorney Neil Keesee, representing Gateway Circle Properties, called the proposal a “once in a lifetime opportunity” and highlighted what he described as significant potential tax revenue compared with the site’s current contribution of roughly $19,000 annually.
“This is money that will not exist if the performance agreement is not approved and the project is not completed,” Keesee said.
Before the vote, newly elected Board Chair Mac Scothorn asked Lockaby to summarize exactly what action the board was taking, underscoring that additional approvals would be required before construction could occur.
Buchanan District Supervisor Linda Rottman said she had discussed the proposal with residents in her district and found broad support.
“Overall, the overwhelming opinion of the people in my district who I spoke with was to approve the project,” Rottman said.
The board approved the performance agreement unanimously. During public comment, some speakers criticized the lack of advance notice and confidentiality surrounding the item, referring to it as “Google 2.0” in comparison to past high-profile development discussions.
In other business, the board elected its leadership for 2026. Supervisors unanimously selected Mac Scothorn of the Valley District as chair. Brandon Nicely of the Fincastle District was elected vice chair by a 3-2 vote.
Public comments earlier in the meeting also included suggestions that the board consider rescheduling its meeting start times to better align with surrounding localities, some of which begin meetings between 6 p.m. and 7 p.m.
County officials said additional details about the proposed retail project will be released once financing and contractual conditions allow.