Economic Development Authority

INDUSTRIAL DEVELOPMENT AUTHORITY of the CITY OF HAMPTON, VIRGINIA Minutes – Regular Meeting June 21, 2011 – 8:30 A.M. IDA Conference Room CALL Chair Joseph called the meeting to order at 8:30 a.m. TO ORDER DIRECTORS James R. Joseph, Anne W. Shuford, Dr. Lewis J. Bellinger, Perry PRESENT 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 Mary Bunting, Pete Peterson, Cynthia Hudson, Vanessa Valldejuli, PRESENT Terry O’Neill, Ellen Templeton, Susan Borland, Michael Yaskowsky, Jessica Spencer, Pam Croom and Teresa Hudgins GUEST PRESENT Geoff Owens with the James River Journal MINUTES Chair Joseph stated the Minutes of the May 17, 2011 IDA board meeting were distributed. A motion was made by Mr. Williams and seconded by Mr. Pilgrim 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 is now current and EDL owes one payment. Avis Fraser-Williams remains on the loans over 60 days past due. She is paying extra each month to bring the account current. The Committee considered a Small/Minority business loan application from The Healthy Connection, Inc. in the amount of $45,000. The business is located at the intersection of Armistead Avenue and Mercury Boulevard. The loan funds would be used to purchase inventory and a new sign. The Committee recommends the loan for approval based upon the following terms and conditions: Loan Amount: $45,000 Interest Rate: 4.5% Loan Term: 5 years Guaranty: Gilda & Jeffrey Fykes Collateral: A first Deed of Trust on real property located at 387 Woodland Road, Hampton, Virginia Conditions: Financial statements reviewed on a quarterly basis and loan payments set up on an automatic draft  A motion was made by Mr. Pilgrim and seconded by Ms. Shuford to approve the loan as presented. A roll call vote was taken which resulted as follows: Ayes: 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 We met with Cordish in Baltimore and a report will be given in Closed Session. ¾ C & D Store Development Company – met with Craig Read last week. The court hearing has been rescheduled to October. There continues to be conversations between both parties. Pending Miscellaneous Actions ¾ We will discuss the incubator agreements in Closed Session. Mr. Eason asked Michael Yaskowsky to provide an update on the new NIA building and the NIA consultant agreement. Mr. Yaskowsky updated the board on the construction progress of the new NIA building. Mr. Joseph asked if an operating agreement was in place for the building. Mr. Yaskowsky said he did not know but would find out and report back to the board. Mr. Joseph asked future updates include a report on specific uses/occupants of the building. Regarding the NIA consultant agreement, Mr. Yaskowsky reported the NIA issued an RFP with responses due by July 5. Other items of interest: ¾ The former Holiday Inn property has been sold and we will be meeting with the new owners in the near future. ¾ Old Point National Bank held its groundbreaking ceremony. ¾ There are conversations regarding a possible change in ownership of the Harbor Center building. ¾ We met with Raj Randeria, the owner of the Post Office building, last week to discuss the status of the project. ¾ We received a very good unsolicited proposal for the property located at the corner of Woodland Road and Mercury Boulevard. The proposal will be presented to City Council at its July meeting. ¾ We are seeing an increase in economic development activity. 2  ¾ Several new hires with the Virginia Economic Development Partnership were here last week to meet with staff and tour the business parks. ¾ We met with representatives from Hampton University to discuss potential research spinoff opportunities. ¾ The NASA-Hampton Collaboration Day was held on June 7; this was an opportunity for us to discuss ways we could work together. ¾ We met with representatives from Divaris to discuss real estate activities at Fort Monroe. We are trying to determine what kind of product will be available for marketing, potential uses and the process for working with prospects. ¾ There was a ribbon cutting ceremony for the new NASA headquarters last Friday. ¾ We have concluded meetings on the Community Plan update. Dr. Bellinger asked if staff was working on a retail/restaurant district along the Magruder Boulevard Corridor. Mr. Eason replied there have been no active efforts over the last several months. We did explore retail options at Magruder Boulevard and Butler Farm Road; however, there are zoning issues. Mr. Joseph commented the second phase of the NIA consultant study would probably include revisions to the master plan which will include retail/restaurant uses. CLOSED Chair Joseph 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. Sledge and seconded by Mr. Williams to go into the Closed Meeting. A roll call vote was taken which resulted as follows: Ayes: Bellinger, Pilgrim, Sledge, Williams, Shuford and Joseph Nays: None CERTIFICATION Chair Joseph 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 3  recorded in the Minutes. Chair Joseph asked for any statements. There were none. A motion was made by Mr. Williams and seconded by Mr. Pilgrim to conclude the Closed Meeting and return to the Meeting. A roll call vote was taken which resulted as follows: Ayes: Bellinger, Pilgrim, Sledge, Williams, Shuford and Joseph Nays: None A motion was made by Mr. Williams and seconded by Mr. Pilgrim to accept the conditions as set forth in the Ground Lease Agreement for the 11-acres conditioned upon the Chair, Mr. Eason and legal counsel (Ms. Hudson, Mr. Hawkins and Ms. Valldejuli) determining the appropriate language on the approval processes, modification to the construction period and any other items they deemed appropriate for clarification. A roll call vote was taken which resulted as follows: Ayes: Bellinger, Pilgrim, Sledge, Williams, Shuford and Joseph Nays: None A motion was made by Mr. Williams and seconded by Mr. Pilgrim to accept the modification of percentage rent with regard to the credit for the NASCAR Grill and the elimination of the percentage rent over the next 25 years. We will establish a new method of implementing equivalent rent to begin the 26th year. A roll call vote was taken which resulted as follows: Ayes: Bellinger, Pilgrim, Sledge, Williams, Shuford and Joseph Nays: None OTHER Mr. Joseph asked for information on the HBIC before a BUSINESS Committee appointment was made. Mr. Williams reported that during the meeting with Cordish a comment was made that the Downtown Saturday night “block parties” were negatively impacting the Power Plant’s business. Cordish asked that consideration be given to having some of the “block parties” at the Power Plant. Mr. Williams offered to introduce Cordish to the owners of Langley Speedway to see if there are any opportunities for co- promotions. 4 ADJOURNMENT There being no further business, the meeting was adjourned at 10:20 a.m. Respectfully submitted, James L. Eason Secretary-Treasurer 5