Economic Development Authority

INDUSTRIAL DEVELOPMENT AUTHORITY of the CITY OF HAMPTON, VIRGINIA Minutes – Regular Meeting December 21, 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 Mary Bunting, Pete Peterson, Vanessa Valldejuli, Ellen PRESENT Templeton, Susan Borland, Daniel Girouard, Terri McCann, Jessica Spencer, Angela Freeman, Michael Yaskowsky, Pamela Croom and Teresa Hudgins GUESTS Councilman Chris Stuart PRESENT Randy Gilliland MINUTES Chair Benson stated the Minutes of the November 16, 2010 IDA board meeting were distributed. A motion was made by Mr. Williams and seconded by Mr. Joseph to approve the minutes as submitted. The motion carried. LOAN Mr. Pilgrim reported the Loan Review Committee met on PROGRAM December 1, 2010. The Loan Status Report reflects several loans as 30 days delinquent. Mr. Pilgrim reported the Avis Fraser-Williams loan is current and EDL, LLC paid the October payment. The Committee considered a request from Mr. Chuck Lee with Church’s Chicken to take a first Deed of Trust on real property located at 512 Blount Point Road, Newport News, Virginia in addition to the collateral originally pledged. Mr. Pilgrim reported the Committee agreed to accept this property as additional collateral to secure the Note. Mr. Pilgrim also reported the Committee met with Mr. Joe King who represents a 501(C)(3) known as the Garden City Historical & Cultural Society. The Committee asked the applicant to provide additional information but it is unlikely the organization will qualify for a loan based on the program guidelines. The Committee also encouraged Mr. King to apply for historical grants.  The Committee received a request from Ms. Lavonne Newman with I Love Your Style to waive IDA attorney fees and the loan origination fee. The Committee did not waive said fees. ECONOMIC Mr. Eason stated the updated Status Report on IDA Actions was DEVELOPMENT included in the package. REPORT • Mr. Eason said he had a conversation with Craig Read regarding the Spectrum legal issue. The matter is scheduled for another round of mediation and a trial date is scheduled for May 5, 2011 with Judge Taylor. Mr. Read is making monthly interest payments and the bank has not called the Note. Other items of interest: • The Virginia State Chamber of Commerce held its economic summit in Williamsburg and the Proton Therapy Institute was awarded the Torch Bearer Award. Peninsula Town Center was the runner up. • Phase I of Commander Sheppard Boulevard is open. Phase II and III are in various planning stages. • Site work has begun on the second NIA building. • We plan to have Dr. Lindberg with the NIA attend the January meeting to discuss a proposal to provide a feasibility study for a sciene park at HRC North. • The Community Plan update has started and the Economic Development Department is responsible for the economic base, regionalism, transportation, and infrastructure focus groups. • The City closed on the Kecoughtan Road property owned by LeCAM, LLC on December 13. • NCO Financial Group announced the layoff of 368 employees. Mr. Eason asked Ms. McCann to update the board on the situation. Ms. McCann said she attended a rapid response team meeting and layoffs are expected in late February and early March. Job fairs have been scheduled and the three local call centers have been contacted regarding placement opportunities. RESOLUTION Mr. Girouard presented a Resolution of the Industrial Development APPROPRIATION Authority of the City of Hampton, Virginia requesting $113,000 OF FUNDS from the Economic Development Fund be appropriated to the Department of Economic Development to make improvements within Hampton Roads Center and Hampton Roads Central and South Campuses. Mr. Girouard said the repairs are necessary before the Hampton Roads Center Owners Association would accept the Declarant responsibilities. Mr. Joseph stated an agreement with the Association should be in place before the repairs are made. 2  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: Ayes: Arnold, Bellinger, Joseph, Shuford, Williams, Pilgrim and Benson Nays: None RESOLUTION Mr. Benson presented a Resolution of the Industrial Development HAMPTON E- Authority of the City of Hampton, Virginia modifying certain COMMERCE provisions of the Hampton E-commerce Grant Program. Mr. GRANT Benson said City Council requested the IDA consider increasing PROGRAM the grant amount awarded to applicants in an effort to enhance electronic commerce technology and growth of Hampton businesses. Ms. Bunting stated she would include additional funding for this program in the upcoming budget. Mr. Arnold expressed concern regarding the approval criteria. Mr. Gilliland stated he had several concerns regarding the proposed changes to the program. He prepared a memorandum to Mr. Eason and IDA board members dated December 20, 2010 (copy attached) outlining his concerns which were the quote requirements, the Administrator’s sole discretion to determine eligibility, grants limited to for-profit entities, grant funds cannot be awarded for projects initiated before the approval of the grant application and not allowing on-line submittal of grant applications. Mr. Williams agreed with the changes but suggested the policy and procedures be clarified. A motion was made by Mr. Arnold and seconded by Mr. Williams to approve the Resolution as presented with the understanding that the Chairman will appoint a Committee to clarify the administrative procedures. A roll call vote was taken which resulted as follows: Ayes: Arnold, Bellinger, Joseph, Shuford, Williams, Pilgrim and Benson Nays: None INCUBATOR Ms. Shuford stated the Incubator Review Committee had met, REVIEW conducted site visits and met with the managers of the two COMMITTEE Hampton incubators and visited four other incubators in the REPORT state. She reviewed the 2010 Incubator Review Committee Report Executive Summary and distributed the 2010 Incubator Review Committee Report. The Committee also looked at standards recommended by the National Business Incubation Association 3  (NBIA). The Committee has established a number of recommendations regarding management of the program which include board oversight, reporting requirements and the ability of the incubators to reach self-sustainability. Mr. Gilliland said he was volunteering to be the Incubator Committee Chairman on the Technology Council. He stated he had read the report and concurred with the recommendations. Mr. Joseph asked if the two incubators could be joined at one location and what would the role of the NIA, Virginia Tech and Hampton University be going forward. Mr. Benson thanked Ms. Shuford, Dr. Bellinger and staff for all their hard work on this effort. The mission now is to review the information and come back to the next meeting with concepts. Mr. Pilgrim suggested the next agenda be limited if there was going to be an in-depth discussion on the incubator program. OTHER Mr. Benson recognized and thanked staff for all of their hard work. BUSINESS ADJOURNMENT There being no further business, the meeting was adjourned at 10:45 a.m. Respectfully submitted, James L. Eason Secretary-Treasurer /tbh 4