Economic Development Authority

INDUSTRIAL DEVELOPMENT AUTHORITY of the CITY OF HAMPTON, VIRGINIA Minutes – Regular Meeting May 17, 2011 – 8:30 A.M. IDA Conference Room SWEARING IN Linda Smith, Clerk of Circuit Court for the City of Hampton, CEREMONY attended the meeting to swear in James R. Joseph and Leonard L. Sledge CALL Chair Joseph called the meeting to order at 8:30 a.m. TO ORDER DIRECTORS James R. Joseph, Anne W. Shuford, Wallace C. Arnold, Dr. Lewis PRESENT J. Bellinger, Perry T. Pilgrim, Leonard L. Sledge and Ben A. Williams, III. Also present were Secretary-Treasurer James L. Eason and IDA Attorney S. Frear Hawkins, II. STAFF Vanessa Valldejuli, Michael Yaskowsky, Daniel Girouard, PRESENT Jessica Spencer, Angela Freeman and Teresa Hudgins GUEST W. P. McLaughlin, Jr. with SEI Group, LLC PRESENT Councilman Donnie R. Tuck RESOLUTION Daniel Girouard presented a Resolution of the Industrial SALE OF LAND Development Authority of the City of Hampton, Virginia TO SEI GROUP approving the sale of 1± acres in Langley Research and Development Park to SEI Group, LLC. A motion was made by Mr. Williams and seconded by Ms. Shuford to approve the Resolution as presented. A roll call vote was taken which resulted as follows: Ayes: Arnold, Bellinger, Pilgrim, Sledge, Williams, Shuford and Joseph Nays: None MINUTES Chair Joseph stated the Minutes of the April 19, 2011 IDA board meeting were distributed. A motion was made by Dr. Bellinger and seconded by Mr. Williams to approve the minutes as submitted. The motion carried. LOAN Mr. Pilgrim reported the Loan Status Report reflects two loans on PROGRAM the over 30 days past due: Bobby’s Auto owes the April payment and Coastal Machine is now current. There are three loans on the over 60 days past due: EDL has paid the March payment, Avis Fraser-Williams will pay $750 in June and July and Unique Imaging Solutions is now current.  The Committee considered a loan request in the amount of $108,000 from The Healthy Connection to complete leasehold improvements, purchase new equipment and inventory and working capital. After reviewing the information and meeting with the applicant, the Committee voted not to recommend the loan for approval based on lack of sufficient collateral and credit worthiness of the applicant. The Committee considered a loan request in the amount of $250,000 structured as a line of credit for Marton Technologies to provide working capital, if needed, to support a large government contract it was awarded. The Committee agreed to accept an assignment agreement on the contract as collateral. We have been advised the government will not enter into an assignment agreement. The Committee is recommending this loan for approval based upon the following terms and conditions: Loan Amount: $250,000 line of credit Interest Rate: 4.5% Guaranty: Jacqueline M. Walton Collateral: To be determined Mr. Williams suggested the check be made payable to Marton but mailed to this address. Mr. Pilgrim said the Committee will explore all options at its meeting on May 23rd. A motion was made by Mr. Arnold and seconded by Mr. Sledge to approve the loan as presented subject to the Loan Review Committee working with the applicant to secure sufficient collateral. A roll call vote was taken which resulted as follows: Ayes: Arnold, Bellinger, Pilgrim, Sledge, Williams, Shuford and Joseph Nays: None ECONOMIC Mr. Eason stated the updated Status Report on IDA Actions was DEVELOPMENT included in the package. REPORT Pending Real Estate Actions ¾ There is a meeting scheduled for June 9th with the Cordish Group in Baltimore. Attending the meeting will be Mary Bunting, Ben Williams, Vanessa Valldejuli and Jimmy Eason. ¾ C & D Store Development Company court hearing has been rescheduled for August but there appears to be an effort by both parties to resolve the issue. 2 Pending Miscellaneous Actions ¾ The NIA consultant agreement has been executed and it is in the process of selecting the consultant team. ¾ Incubator agreements for FY12 have been prepared and delivered. Mr. Eason asked Ms. Shuford if she would like to provide a report. Ms. Shuford said the Incubator Committee met with representatives from the HUSBI and the agreement has been signed. She said the Committee scheduled a meeting with representatives of the HRTI, however, that meeting did not take place. The agreement was delivered but it has not been signed. Ms. Shuford stated the Committee would be meeting quarterly with each incubator and reviewing standardized reports. Mr. Eason asked Michael Yaskowsky to give an update on the new NIA building. Mr. Yaskowsky updated the board on the construction progress and provided a copy of the Progress Summary Report dated May 12, 2011. Other items of interest: ¾ We have processed 39 E-Commerce Grants totaling $72,000 since the program started in February 2009 with a remaining balance of $31,000. There are 26 service providers. ¾ City Council approved a conditional use permit for Bay Disposal at the former Valeo building. ¾ The Holiday Inn property sale is scheduled to close the end of May. ¾ Groundbreaking on the Old Point National Bank site is scheduled for the first week of June. ¾ Redevelopment of the former Brass Shop is underway and site work has started on Walgreens. ¾ City Council approved the FY12 budget. We will be losing the Retail Business Development Manager position which is being vacated by Angela Freeman. Several projects were not funded in the Capital Improvement Plan budget. We are exploring funding options to maintain the appearance of the Magruder Boulevard Corridor including the Commander Shepard Boulevard interchange. ¾ Mr. Eason welcomed Mr. Sledge to the IDA and reported staff met with Mr. Sledge on May 5th for an orientation. 3 DOWNTOWN Mr. Arnold stated the Committee met and reviewed the guidelines HAMPTON & and application. There were several changes made in an effort PHOEBUS to clarify and streamline the application process. RETAIL INCENTIVE Councilman Tuck stated several businesses in Phoebus expressed GRANT an interest in learning more about the program and how they PROGRAM can participate. Mr Arnold said he would be willing to attend a meeting with Phoebus businesses to provide information on the program. OTHER Chair Joseph asked staff to prepare a list of IDA Committees BUSINESS and e-mail it to the board members. Each board member introduced themselves and welcomed Mr. Sledge to the IDA. ADJOURNMENT There being no further business, the meeting was adjourned at 9:40 a.m. Respectfully submitted, James L. Eason Secretary-Treasurer /tbh 4