Economic Development Authority

INDUSTRIAL DEVELOPMENT AUTHORITY of the CITY OF HAMPTON, VIRGINIA Minutes – Regular Meeting June 15, 2010 – 8:30 A.M. IDA Conference Room CALL Chair Benson called the meeting to order at 8:30 a.m. TO ORDER DIRECTORS William H. Benson, Wallace C. Arnold, Dr. Lewis J. Bellinger, PRESENT James R. Joseph, Anne W. Shuford, and Ben A. Williams, III. Also present were Secretary-Treasurer James L. Eason and IDA Attorney S. Frear Hawkins, II. STAFF Pete Peterson, Vanessa Valldejuli, Ellen Templeton, Susan PRESENT Borland, Michael Yaskowsky, Daniel Girouard, Jessica Spencer, Angela Freeman, Amy Jordan, Pamela Croom and Teresa Hudgins GUEST Councilman George E. Wallace, Councilman Joseph H. Spencer, PRESENT Councilman-Elect Donnie Tuck, Amory LeCuyer with LeCAM, LLC and Ronald Quinn with Q-Design MINUTES Chair Benson stated the Minutes of the May 18, 2010 IDA board meeting were distributed. A motion was made by Mr. Williams and seconded by Mr. Arnold to approve the minutes as submitted. The motion carried. LOAN Mr. Arnold reported the Loan Review Committee met on May 24, PROGRAM 2010. The Loan Status Report dated May 20, 2010 reflects several delinquent accounts. Avis Fraser-Williams and World Class Marketing are current and one of the Hampton Roads Charter loans will mature today. We have not received any communication from John Bane, attorney for Ms. Cawthorn, but staff will continue to follow-up. The Committee considered a Small/Minority Business Loan application from Ms. LaVonne Newman t/a I Love Your Style in the amount of $69,000 but did not recommend the loan for approval. The Committee considered the following Neighborhood Retail Revitalization Program Applications: Son Kim Properties, LLC in the amount of $1,051.37 for renovations to a free-standing building located at 49 W. Queens Way. A motion was made by Mr. Arnold and seconded by Dr. Bellinger to approve the request as presented. A roll call vote was taken which resulted as follows: Ayes: Arnold, Bellinger, Joseph, Shuford, Williams and Benson Nays: None Jan Miller d/b/a Mellen Street Graphics in the amount of $6,256.08 for renovations to a multi-story, free-standing building located at 9 E. Mellen Street in Phoebus. A motion was made by Mr. Arnold and seconded by Mr. Joseph to approve the request as presented. A roll call vote was taken which resulted as follows: Ayes: Arnold, Bellinger, Joseph, Shuford, Williams and Benson Nays: None Mr. Benson reported the Downtown Hampton and Phoebus Retail Incentive Program Committee met and considered a grant request in the amount of $305,000 from LeCAM, LLC for renovations to 197 W. Queen Street (former Brass Shop). The building has been vacant for several years and the LeCuyer family has executed a contract to purchase the property. The funds will be used to make interior and exterior improvements to the property, which will enhance the entrance into downtown, and provide additional retail space available for lease. Mr. LeCuyer will be relocating his existing business, Hampton House Auctions, from Kecoughtan Road to this location. Members of the LeCuyer family also own the Miller Mart and former ABC store property. We are encouraging them to make improvements to these properties as well in an effort to further enhance the gateway into downtown. Dr. Bellinger asked how much of the $305,000 would be going towards establishing new retail space. Mr. Benson replied the funds would be used to provide a nice shell space for the owner to build out as future tenants are secured. Dr. Bellinger expressed concern about creating another empty building and wanted to know what the plans were for the Kecoughtan Road property. Mr. Benson said the building would be demolished as part of the Kecoughtan Road Master Plan initiative. Mr. Williams wanted to make sure we had enough details on material, colors, etc… that were being used on the exterior of the building. Mr. Joseph asked if the façade improvements would be part of the first phase. Mr. LeCuyer said yes. 2  Dr. Bellinger asked about the parking lot. Mr. Eason responded the city owns the parking lot in front of the building but there are 16 designated spaces next to the building for this property. Mr. Joseph asked if there was any discussion about funding limits on the program. Mr. Benson said no. Mr. Eason added that when the program was being developed two key things came up – flexibility and meeting the financial gap, which is subjective in nature. Mr. Arnold said the Committee has been very sensitive to the overall purpose of the program and has complied with what City Council wants. Dr. Bellinger asked why the previous applicant in Phoebus did not apply for this grant. Ms. Freeman said the applicant could have applied for this grant but chose not to. Mr. Williams said we should be looking at repayment of grant funds should the applicant sell the property. He recommended a five year, 20% per year burn off clause be added to the grant agreement. Mr. Joseph said this was a great project and a unique retail business for downtown. He asked the council members if they had any concerns. Mr. Spencer said he trusts the IDA board and staff to implement the program. Mr. Wallace concurred. A motion was made by Mr. Williams and seconded by Ms. Shuford to approve the request subject to a five year burn off at 20% per year. A roll call vote was taken which resulted as follows: Ayes: Arnold, Bellinger, Joseph, Shuford, Williams and Benson Nays: None Mr. LeCuyer thanked the board and said the IDA should be proud of the Economic Development staff. ECONOMIC Mr. Eason said in response to a request from Mr. Williams at DEVELOPMENT the meeting last month, a copy of the department property REPORT acquisition procedures and checklist was provided in your package. Mr. Williams thanked Mr. Eason for providing the list. 3  Mr. Joseph asked where the list came from. Mr. Eason said it was an internally prepared document. Mr. Joseph asked if the IDA required “as built” ALTA surveys. Mr. Hawkins said not for property acquisitions. Mr. Joseph and Mr. Williams will look at similar lists in their offices and send them to Mr. Hawkins to cross check. Mr. Eason said the updated Status Report on IDA Actions was included in the package. Other Matters of Interest  City Council took final action on the sign ordinance  Old Point has started demolition and will be doing an archeological dig on the site  The Proton Therapy Center will open in August  There is a ribbon cutting on June 30th for the new Sentara Orthopedic wing  Staff continues to have conversations with Riverside and Sentara regarding future expansion plans RESOLUTION Mr. Benson said City Council appropriated funds in the FY11 AGREEEMNTS budget to support the Hampton Roads Technology Council WITH HRTC (HRTC) and Hampton University Small Business Incubator & HUSBI (HUSB) and asked if the Incubator Committee had anything to add. Ms. Shuford said the Committee met with Dan Girouard and set some objectives. The Committee will be meeting with the managers of the incubators and providing reports to the IDA. Ms. Shuford asked if anyone had any questions or thoughts regarding the incubators to e-mail her. A motion was made by Mr. Arnold and seconded by Dr. Bellinger to approve the Resolution approving agreements between the Industrial Development Authority of the City of Hampton, Virginia and the Hampton Roads Technology Council and the Hampton University Small Business Incubator. A roll call vote was taken which resulted as follows: Ayes: Arnold, Bellinger, Joseph, Shuford, Williams and Benson Nays: None DISCUSSION Mr. Benson stated the Association started in 1998 and the IDA HRC OWNERS has been trying to assign the Declarant rights to the Association. ASSOCIATION Mr. Girouard reported the Association has been reluctant to accept responsibility until the irrigation system in the median on Butler Farm Road in HRC Central is repaired, repairs to the “H” in the HRC South lake are made and the electrical panel in HRC South is relocated. The Association also requests the City/IDA assume the 4  cost of insuring the entrance signs. Mr. Joseph suggested staff work with the Association to confirm the outstanding items that need to be addressed and determine the cost. Mr. Eason said once the costs are identified we could ask City Council to appropriate funds from the Economic Development Fund to make the repairs so responsibility can be assigned to the Association and removed from the IDA. Mr. Williams asked Mr. Peterson if the City could insure the signs. Mr. Peterson said no because the City is self-insured. Mr. Eason said staff will communicate with the Association this week. RESOLUTION Mr. Eason presented a Resolution authorizing the Chair or Vice LINEAR PARK Chair to grant the City of Hampton a Linear Park Easement and EASEMENT execute an easement agreement for the Newmarket Creek Park NEWMARKET and Trail System along Coliseum Lake on the property known as CREEK the 11 acres parcel in the Crossroads area of Coliseum Central. Ms. Shuford asked if there were any adverse consequences. Ms. Valldejuli said the City does not want to condemn the property. Ms. Shuford said she was impressed with Parks creating more kayaking launch sites. A motion was made by Mr. Joseph and seconded by Mr. Williams to approve the Resolution as presented. A roll call vote was taken which resulted as follows: Ayes: Bellinger, Joseph, Shuford, Williams and Benson Nays: None Note: Mr. Arnold left the meeting prior to the vote BRIEFING Mr. Hawkins updated the IDA on conversations being held with LAND Virginia Tech’s legal counsel. Specific issues being discussed are CONVEYANCE IDA design review, the Declaration of Protective Provisions and HRC NORTH Covenants and the reverter clause. Virginia Tech’s position is the TO VA TECH provisions do not apply to it based on laws governing state owned property. Mr. Joseph said he would be concerned with the aesthetics. Mr. Benson said the state would approve the plans but the IDA would be granted a courtesy review. 5  Mr. Hawkins suggested an amendment be made to the Covenant to allow the IDA to grant exceptions. A motion was made by Mr. Joseph and seconded by Mr. Williams to amend the Declaration of Protective Provisions and Covenants for Hampton Roads Center North II to allow the IDA to grant exceptions. A roll call vote was taken which resulted as follows: Ayes: Bellinger, Joseph, Shuford, Williams and Benson Nays: None Note: Mr. Arnold left the meeting prior to the vote Mr. Hawkins will prepare a Resolution for consideration and approval. A motion was made by Mr. Williams and seconded by Mr. Joseph to delegate the Chairman, Mr. Hawkins and staff to negotiate the list of exclusions to the best of their ability. A roll call vote was taken which resulted as follows: Ayes: Bellinger, Joseph, Shuford, Williams and Benson Nays: None Note: Mr. Arnold left the meeting prior to the vote OTHER Mr. Hawkins asked if he could release the funds being held in BUSINESS escrow from the CDP land sale in HRC North. Mr. Benson said the funds could be released. Mr. Benson said he was appointing Mr. Arnold as Chairman of the Downtown Hampton and Phoebus Retail Incentive Program Committee and would be calling on another board member to serve on the Committee. ADJOURNMENT There being no further business, the meeting was adjourned at 10:30 a.m. Respectfully submitted, James L. Eason Secretary-Treasurer /tbh 6