Economic Development Authority

INDUSTRIAL DEVELOPMENT AUTHORITY of the CITY OF HAMPTON, VIRGINIA Minutes – Regular Meeting November 16, 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, Perry T. Pilgrim, Wallace C. Arnold, Dr. PRESENT Lewis J. Bellinger, 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, Bruce Sturk, Terry O’Neill, PRESENT Susan Borland, Daniel Girouard, Jessica Spencer, Angela Freeman, Michael Yaskowsky, Pam Croom and Teresa Hudgins GUESTS Amory LeCuyer with LeCAM, LLC PRESENT Eddie Wolcott and C. Arthur Robinson, II with Wolcott Rivers Gates MINUTES Chair Benson stated the Minutes of the October 20, 2010 IDA board meeting were distributed. A motion was made by Mr. Arnold and seconded by Mr. Williams to approve the minutes as submitted. The motion carried. LOAN Mr. Pilgrim reported the Loan Review Committee met on PROGRAM November 3, 2010. The Loan Status Report reflects several loans as 30 days delinquent. Mr. Pilgrim reported EDL, LLC paid the September payment. The Committee considered a Small/Minority loan request from Ms. LaVonne Newman with I Love Your Style, a high-end consignment store, and recommends the loan for approval based on the following terms and conditions: Loan Amount: $90,000 Interest Rate: 5% Loan Term: Five (5) years with interest only payments for the first six (6) months Amortization: Ten (10) years Collateral: A first Deed of Trust on real property located at 6921 Warwick Boulevard, Newport News, Virginia and a first lien security interest in furniture, fixtures and equipment Guaranty: LaVonne N. and Antonio C. Newman Conditions: - Financial statements reviewed on a quarterly basis - Loan payments automatically drafted from an account designated by borrower for the term of the loan - A fully executed copy of the Lease Agreement provided at loan closing - Landlord’s Lien Waiver A motion was made by Ms. Shuford and seconded by Mr. Williams to approve the loan based on the above terms and conditions. A roll call vote was taken which resulted as follows: Ayes: Arnold, Bellinger, Joseph, Shuford, Williams, Pilgrim and Benson Nays: None The Committee considered a Small/Minority loan request in the amount of $100,000 from Covenant Care, LLC, a home health care company located in the Hampton University Small Business Incubator, and recommends the loan for approval based on the following terms and conditions: Loan Amount: $100,000 Interest Rate: 4.5% Loan Term: Five (5) years with interest only payments for the first six (6) months Amortization: Ten (10) years Collateral: A second Deed of Trust on real property located at 637 Ridgeway Avenue and 5 N. Curry Street, Hampton, Virginia Guaranty: Rhonda M. and Elwood Scales and Karon J. Shields Conditions: - Financial statements reviewed on a quarterly basis - Loan payments automatically drafted from an account designated by borrower for the term of the loan - Medicare accreditation maintained during the term of the loan A motion was made by Mr. Williams and seconded by Ms. Shuford to approve the request as submitted. A roll call vote was taken which resulted as follows: Ayes: Arnold, Bellinger, Joseph, Shuford, Williams, Pilgrim and Benson Nays: None 2 ECONOMIC Mr. Eason stated the updated Status Report on IDA Actions was DEVELOPMENT included in the package. REPORT Other items of interest: • The grand opening of the Proton Therapy Institute took place on October 21 • City Council approved the Cooperation Agreement for the 11 acres site on November 10 • Peninsula Town Center received four HRACRE Design Awards • Yaromir Steiner was the key note speaker at the DHDP annual meeting and Perry Pilgrim was recognized as Downtowner of the Year • Several staff attended the Hampton Innovation Fair on October 20 • Mike attended the 50th Anniversary of the Transonic Dynamics Tunnel at NASA • Staff is working on proposed changes to the E-Commerce Grant Program • The Incubator Committee will provide a report to the board at the December meeting • Staff is meeting with Steve Mallon of Craig Davis Properties to discuss moving forward on another building in HRC North • Before the next meeting we anticipate having a proposal from Bob Lindberg with the National Institute of Aerospace on what he and others believe to be the real potential for HRC North Mr. Joseph asked if there was an update on the C & D Store Development issue. Mr. Eason said there has been no contact and the matter was in the court system. RESOLUTION Mr. Hawkins presented a Resolution of the Industrial Development HRC NORTH Authority of the City of Hampton, Virginia approving the COVENANTS Amendment to the Declaration of Protective Covenants for Hampton Roads Center North dated July 1, 2004 and recorded in the Clerk’s Office of the Circuit Court for the City of Hampton, Virginia, document number 040019426, as amended from time-to- time, (The “Declaration of Covenants”) to allow the Authority, as Declarant as set forth therein, to grant exceptions to the Declaration of Covenants and to except the 5.38 acres parcel of land to be donated to Virginia Polytechnic Institute and State University (“Virginia Tech’’) from the Declaration of Covenants. A motion was made by Mr. Arnold and seconded by Mr. Williams to approve the Resolution as presented. A roll call vote was taken which resulted as follows: 3  Ayes: Arnold, Bellinger, Joseph, Shuford, Williams, Pilgrim and Benson Nays: None OLD Mr. Hawkins provided an update on the Downtown Hampton and BUSINESS and Phoebus Incentive Program grant to LeCAM, LLC. Mr. Hawkins reported the grant was made to LeCAM, LLC, however, the applicant titled the property at 197 and 199 W. Queens Way as West Queen LeCAM EAT, LLC. Since this was a different LLC he thought it should come before the board. Mr. LeCuyer and his attorneys were present at the meeting and explained why the property was titled as such and that LeCAM, LLC would take title to the property when the Kecoughtan Road property was sold to the City of Hampton or 180 days have passed in accordance with the reverse, like-kind property exchange rules. A motion was made by Mr. Williams and seconded by Mr. Arnold to amendment the documents to include West Queen LeCAM EAT, LLC and allow the applicant to apply for a distribution of funds under the agreement. Prior to acquiring title, applicant can draw up to $100,000 subject to staff’s review of sources and use of funds. A roll call vote was taken which resulted as follows: Ayes: Arnold, Bellinger, Joseph, Williams, Pilgrim and Benson Nays: None Abstain: Shuford OTHER Mr. Arnold recognized and thanked staff for all of their hard work. BUSINESS ADJOURNMENT There being no further business, the meeting was adjourned at 9:35 a.m. Respectfully submitted, James L. Eason Secretary-Treasurer /tbh 4