The Town Council of Clayton on Tuesday adopted two resolutions to authorize the issuance and sale of multifamily housing notes and revenue bonds for the Pritchard Woods development.

Financial Director Robert McKee told the council the town would act only as a conduit issuer and would not be liable for repayment. "We have no liability to repay these. We're not taking on any debt. We're not providing any funding in whatsoever with any manner," McKee said.

Why it matters: The council’s action clears a financing step for a mixed-income rental project that town staff and the developer say will add affordable units to Clayton’s housing stock. Council members clarified that the town’s role is administrative and does not create an obligation for the town’s taxpayers.

Details and background: McKee said council previously approved an inducement resolution on Dec. 4, 2023, and the developer, Dominion, secured mixed-use conditional rezoning on Sept. 2. Because the county does not have a housing authority, state statutes allow the town to act as a conduit debt issuer so the bonds can be issued for multifamily housing projects.

Council procedure and outcome: The town attorney advised taking separate votes on the pair of resolutions. The council voted first to adopt Resolution 2025-597 and then Resolution 2025-598; both motions carried after the council recorded voice votes of "aye." No council member recorded a roll-call vote in the transcript.

What was not decided: The council did not commit town funds or pledge its credit; McKee reiterated the borrower — not the town — will be responsible for bond payments. The transcript does not include bond terms, interest rates, or the number of units and affordability levels; those items were not specified during the hearing.

Next steps: With the town’s conduit approvals in place, the financing team assembled by the borrower can proceed with issuance and sale of the bonds per the approved resolutions.