Economic Development Authority

INDUSTRIAL DEVELOPMENT AUTHORITY of the CITY OF HAMPTON, VIRGINIA Minutes – Regular Meeting March 15, 2011 – 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, 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, Cynthia Hudson, Vanessa Valldejuli, PRESENT Bruce Sturk, Terry O’Neill, Michael Yaskowsky, Jessica Spencer, Angela Freeman, Pam Croom and Teresa Hudgins GUESTS Dr. Robert E. Lindberg, Jr. – National Institute of Aerospace PRESENT Steve Mallon – Craig Davis Properties MINUTES Chair Benson stated the Minutes of the February 2, 2011 and February 15, 2011 IDA board meetings were distributed. Dr. Bellinger noted a change on the February 15, 2011 minutes on page 2, last paragraph, third line “proposal. Dr. Lindberg will begin …” A motion was made by Mr. Williams and seconded by Ms. Shuford to approve the minutes with the noted correction. The motion carried. LOAN Mr. Pilgrim reported the IDA Loan Review Committee met on PROGRAM February 22, 2011. The Loan Status Report reflects three loans on the over 60 days past due. EDL has made one payment. Mr. Hawkins has sent a letter to Bobby’s Auto Shop and Avis Fraser-Williams requesting payments be made to avoid further action. Also, Brazilian Bronze has filed for Chapter 7 bankruptcy. The Committee considered a Neighborhood Retail Revitalization Program Application for KENILWORTH, INC d/b/a Best of British in the amount of $436.13. A motion was made by Dr. Bellinger and seconded by Mr. Williams to approve the request as presented. A roll call vote was taken which resulted as follows: Ayes: Arnold, Bellinger, Shuford, Williams, Pilgrim and Benson Nays: None The Committee reviewed collateral submitted by Touch of Class Fencing, Inc. to support a $120,000 loan request the Committee considered at its January meeting. The Committee recommends the loan for approval as follows: Loan Amount: $120,000 Loan Structure: $80,000; 4.5%; 5 year term $40,000 line of credit to be used to support new contracts; 6%; 90 day term; minimum draws $5,000 Collateral: A first lien security interest in the following equipment: Hyster forklift, Hitachi table saw, router (estimated value $42,500) Title to the following vehicles: 2008 F150 Ford truck (estimated value $19,825) 2007 F350 Ford truck (estimated value $15,850) 2008 Ford explorer (estimated value $18,100) 1999 Chevy 3500 truck (estimated value $0) (values based on NADA 2011 clean trade in) Conditions: Personal guaranty, financial statements reviewed on a quarterly basis, loan payments set up on an automatic draft, payments made directly to Ford Credit Commercial Leasing to payoff vehicles at loan closing Dr. Bellinger said he could support the $40,000 line of credit based on collateral but thought the IDA would be doing the applicant a disservice by exposing him to this amount of debt. A motion was made by Ms. Shuford to approve the request as presented by the Committee. Mr. Arnold seconded the motion. Dr. Bellinger made a substitute motion to reduce the amount from $120,000 to $80,000 based on the collateral. There was no second to Dr. Bellinger’s motion. A roll call vote was taken on the first motion which resulted as follows: Ayes: Arnold, Shuford, Williams, Pilgrim and Benson Nays: Bellinger Mr. Pilgrim would like for staff to monitor this loan closely to see if it is a success or failure. 2 ECONOMIC Mr. Eason asked Michael Yaskowsky to give an update on the new DEVELOPMENT NIA building. Mr. Yaskowsky updated the board on the REPORT construction progress and stated the building is still on track to be completed by February 2012. Mr. Eason stated the updated Status Report on IDA Actions was included in the package. The Hampton Roads Center Owners Association has signed the agreement regarding the declarant rights and we are proceeding with the bidding process. The Army Corps of Engineers has extended the wetlands permit for Hampton Roads Center North for an additional 15 years. We will be submitting an application to the Department of Environmental Quality (DEQ) later this week. Regarding the three-acre parcel (former Lang parcel), the Corps noted there was less than one-tenth of an acre of wetlands on the site. The Corps said we could move forward without a permit. The DEQ informally agrees with this decision. Other items of interest: ¾ The landscaping and signage improvement project along Magruder Boulevard and Hampton Roads Center Parkway is complete. ¾ We have processed four new E-commerce Grant Applications with 33 processed since the program started in February 2009. The average grant amount is $1,660 with approximately $48,000 remaining in the program. ¾ Staff is working with a 70,000 square foot prospect in Copeland Industrial Park. This would be a new company to Hampton with a significant tax base. ¾ The Business & Retail Development and Master Plan Implementation teams are working on 18 active projects and have some type of involvement in 67 other projects. ¾ The potential sale of the Holiday Inn property should be completed by the end of April. ¾ Site work is continuing at the Old Point National Bank site. ¾ Renovations to the former Brass Shop are well underway. ¾ The Parade of Homes site in Buckroe is progressing. ¾ Staff has acquired 34 of 49 parcels needed for the Buckroe school site. ¾ There has been some interest in the parcel located at the corner of Mercury Boulevard and Woodland Road. ¾ We have received an unsolicited proposal for the parcel located across from Farm Fresh in Phoebus. 3  ¾ Staff has assembled a 20-acre parcel on Kecoughtan Road for a residential project; we are working to acquire the last parcel. Dr. Bellinger stated he was concerned about the two closures at the Power Plant. Mr. Eason said staff met with a potential user of the former Johnny Carino’s site. Ms. Freeman stated the owner of El Pollo Loco severed ties with the franchise and she is working with Cordish on a new restaurant concept. RESOLUTION Mr. Eason presented a Resolution of the Industrial Development HRC NORTH Authority of the City of Hampton, Virginia to enter into an CAMPUS agreement with the National Institute of Aerospace to undertake a Science Park Feasibility Study for Hampton Roads Center North Campus in an amount not to exceed $120,000. A motion was made by Mr. Pilgrim and seconded by Mr. Williams to approve the Resolution as presented. A roll call vote was taken which resulted as follows: Ayes: Arnold, Bellinger, Shuford, Williams, Pilgrim and Benson Nays: None CLOSED Chair Benson stated a Closed Meeting will now be held in MEETING accordance with Sections 2.2-3711 A.3 & A.7 of the Code of Virginia to discuss or consider the disposition of publicly held real property in the Coliseum Central area where discussion in an open meeting would adversely affect the bargaining position or negotiating strategy of the Authority and to consult with legal counsel regarding specific legal matters requiring the provision of legal advice by such counsel. A motion was made by Mr. Pilgrim and seconded by Ms. Shuford to go into the Closed Meeting. A roll call vote was taken which resulted as follows: Ayes: Arnold, Bellinger, Shuford, Williams, Pilgrim and Benson Nays: None CERTIFICATION Chair Benson stated it was now appropriate to take a Roll OF CLOSED Call vote and that to the best of our knowledge (i) only public MEETING business matters lawfully exempted from open meeting requirements under this chapter, and (ii) only such public business matters as were identified in the motion by which the Closed Meeting was convened were heard, discussed, or considered in the Closed Meeting. Any member who believes there was a departure from the requirements of subdivisions (i) and (ii) shall so state prior to the Roll Call vote, indicating the substance of the departure that, in his/her judgment has taken place. Such statements shall be recorded in the Minutes. Chair Benson asked for any statements. There were none. A motion was made by Mr. Pilgrim and seconded by Ms. Shuford to conclude the Closed Meeting and 4  return to the Meeting. A roll call vote was taken which resulted as follows: Ayes: Arnold, Bellinger, Shuford, Williams, Pilgrim and Benson Nays: None OTHER Chair Benson appointed Dr. Bellinger and Mr. Williams to serve BUSINESS on the Nominating Committee. He also thanked the board and staff for their support and service over the years. ADJOURNMENT There being no further business, the meeting was adjourned at 9:30 a.m. Respectfully submitted, James L. Eason Secretary-Treasurer /tbh 5