Economic Development Authority

Economic Development Authority Meeting Agenda Tuesday August 2nd, 2022 v 7:00 pm NOTICE: This virtual meeting of the Economic Development Authority was held pursuant to and in compliance with the Virginia Freedom of Information Act, Section 2.2-3708.2 and state and local legislation adopted to allow for continued government operation during the COVID-19 declared emergency. All participating members of the Economic Development Authority were present at this meeting through electronic means. All members of the public may view this video of this meeting on the City’s website at www.fallschurchva.gov. 1. Call to Order 2. Reading of Virtual Meeting Notice 3. Roll Call EDA Members Present: Jim Coyle, Vice Chair Brian Williams, Matthew Quinn, Edward Saltzberg, Sandy Kiersz, Ross Litkenhous Student Liaisons Present: Mathew Downs City Staff Present: Jim Snyder, Val Weiner, Becky Witsman, Dana Lewis, Cindy Lewis, Wyatt Shields, Renee Rojural Public attendees: Letty Hardi, Phil Duncan, Debbie Hiscott, Joe Muffler 4. June 2022 Minutes: https://www.fallschurchva.gov/DocumentCenter/View/16546/Draft-June-2022- EDA-Meeting-Minutes Matt Quinn motion to approve the minutes, Sandy Keirsz seconded. Unanimous approval. 5. Founders Row 1 Theatre subsidy agreement Founders Row 1 Term Sheet: https://www.fallschurchva.gov/DocumentCenter/View/16547/Founders-Row---EDA-Term-Sheet--- 03242022-CLEAN The EDA received a presentation from City Manager Wyatt Shields and Mill Creek representative Joe Muffler on the updated MOU, some comments from the EDA include:  EDA members and Joe Muffler agreed the current market does not support a movie theater in this location without this deal  Joe Muffler noted this theater operator (Paragon) is able to structure a deal that will support their survival under current market conditions  If the market does return to pre-pandemic levels, the deal will revert back to the original deal.  City Council member Letty Hardi asked how this change in the theater agreement impacts the fiscal impact numbers in the original run. Staff will follow up.   Joe Muffler noted the residential is 60% leased and recently signed an additional commercial lease at about 25% leased. If the theater goes through, it will be 75%. Sandy Keirsz motioned to approve the following terms:  Extend expired 20 year ticket tax rebate agreement payment period to 30 years  City keeps first $20k; Developer receives next $340k  City receives over $360k  3% increase in Mill Creek earnings cap each year  Create a new meals tax sharing agreement for only theater meals  City receives first $10k in theater meals taxes  Mill Creek receives $150k in next increment of theater meals taxes  City receives all remaining theater meals taxes  3% increase in Mill Creek $150k earnings cap each year  Performance adjustment after 4 years (as discussed) Seconded by Matt Quinn. Unanimous approval, with Ross Litkenhous abstaining. 6. Wesley Memorandum of Understanding : Terms for Draft MOU: https://www.fallschurchva.gov/DocumentCenter/View/16549/Term-Sheet- Wesley-MOU Director of Housing and Human Services Dana Jones presented a full briefing and update on the updated terms for the draft MOU with Wesley housing. Notes included:  City Council members noted there should be a secure source of funds to cover any overages in capital or operating costs for the units.  EDA members asked for the status of the capital needs assessment, which staff noted is underway.  EDA members asked how quickly Wesley can acquire additional units. Staff noted it is in the MOU Mrs. Jones then presented a motion to be voted on at next month’s meeting. No action was taken. 7. Arts and Cultural District “The Little City” logo Matt Quinn motioned to approve the logo as presented to the group, Sandy Keirsz seconded. Unanimous approval. 8. Quarterly Update: https://www.fallschurchva.gov/DocumentCenter/View/16555/Economic- Development-Quarterly-Report-April-June-2022 Staff sent out the quarterly update to the EDA for their information.