Economic Development Authority

INDUSTRIAL DEVELOPMENT AUTHORITY of the CITY OF HAMPTON, VIRGINIA MINUTES – REGULAR MEETING July 19, 2011 – 8:30 A.M. IDA Conference Room CALL Chair Jay 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 J. Bellinger, Leonard L. Sledge and Ben A. Williams, III. Also present were Secretary-Treasurer James L. Eason and IDA Attorney S. Frear Hawkins, II. GUESTS Dr. Robert E. Lindberg, NIA; Sherry Spring, DHDP; Amory LeCuyer, LeCam & Hampton House Auctions; Tammy Wallman, Harvey Lindsay Commercial Estate. STAFF Mary Bunting, Pete Peterson, Vanessa Valldejuli, Susan Borland, PRESENT Ellen Templeton, Michael Yaskowsky, Dan Girouard, Jessica Spencer, Terri McCann and Debbi Brightbill. MINUTES Chair Joseph stated the Minutes of the June 21, 2011 of the IDA Board Meeting were distributed. A motion was made by Mr. Sledge and seconded by Mr. Arnold to approve the minutes as submitted. The motion carried. ECONOMIC Mr. Eason stated three items included in the Status Report DEVELOPMENT including real estate actions and miscellaneous actions REPORT have been included on the agenda to discuss in today’s meeting. Status Report on Virginia Tech-National Institute of Aerospace Development Mr. Eason introduced Dr. Robert E. Lindberg, President & Executive Director of the National Institute of Aerospace. Dr. Lindberg distributed a “Project Summary Report” and presented an update on the design and construction of the project. DB/FY12JE1013 Dr. Lindberg displayed three proposed floor plans. He explained the various laboratories planned for the first floor, future expansion space planned for the second floor and the proposed office and conference areas for the Virginia Tech College of Engineering and the Hampton Technology Incubator on the third floor. Dr. Lindberg also explained NIA’s relationship to VA Tech as principle tenant of the building including their agreement to maintain the building, pay operating expenses, and to lease the space. NIA will be the Landlord to Virginia Tech and the Hampton Technology Incubator. Downtown Hampton/Phoebus Loan Assistance Program Administered by the Hampton Business Incentives Corporation (HBIC) Mr. Eason introduced Ms. Sherry Spring, Executive Director of the Downtown Hampton Development Partnership. Mr. Eason explained Ms. Spring is the current President of the HBIC and attended today to answer members’ questions. Mr. Eason also introduced Susan Borland as the City’s designee (appointed by the City Manager) to serve on the HBIC. A discussion was held regarding the HBIC’s funding, meeting schedule and loan activity to date. Mr. Eason stated an IDA board member needed to be appointed to serve on HBIC. At Chair Joseph’s request, Mr. Sledge agreed to be nominated for this position. Chair Joseph called for a motion to appoint Mr. Sledge to serve on the HBIC. The motion was made by Mr. Arnold and seconded by Dr. Bellinger. The motion carried. Mr. Sledge accepted the position. Others Items of Interest  Activity has increased and staff is encouraged. Through participation with the VEDP and the Hampton Roads Economic Development Group, staff recently responded to four proposals and anticipates visits in the near future.  Innovate Hampton Roads - Mike Yaskowsky updated members on the efforts of this organization formerly known as the Hampton Roads Research Partnership. This group’s focus is on a regional economic development strategy known as “Vision Hampton Roads”. A component of the vision is to focus on regional technology clusters. The inaugural “Meet & Greet” meeting for the aerospace cluster was held on Thursday, July 14 in the Hampton Veteran’s Conference Room. Seventy people registered and sixty attended. 2   NASA Langley-Hampton Collaboration – Mike Yaskowsky reported this effort has been designed to foster stronger relationships and ideas, find areas of opportunity and establish a strategic partnership to further collaborate the relationship between Hampton and NASA. Four areas have been identified: education and workforce, promotion and outreach, business development and green initiatives. The VEDP’s new marketing manager, Tracy Tynan, is focusing on aerospace clusters. She visited Hampton in June and toured Howmet and NASA Langley. Mike summarized Hampton is engaged not only on a state level, but also regionally and locally.  IDA members are invited to attend a community discussion meeting on August 3, 2011 at the Hampton Convention Center from 8:30 to 10:30 a.m. to identify key initiatives and directions for the future. Leaders from the “technology and knowledge” sectors of the community are being invited to attend this event sponsored by City Council and the City Manager’s office. An official invitation from Mayor Ward will be mailed this week. LOAN Mr. Arnold reported a loan extension of 120 days to PROGRAM November 16, 2011 has been requested by Amory LeCuyer of LeCam and Hampton House Auctions. Phase I has been completed but Phase II has been delayed due to the termination of the prime contractor. Mr. Joseph asked if money has been released. Mr. Eason replied funds have only been released based on actual expenditures incurred. Mr. Joseph invited Mr. LeCuyer to comment. Mr. LeCuyer explained Phase I was the renovation and build out of the principal tenant, Hampton House Auctions and invited members and guests to visit the building. Phase II includes the 197 W. Queen Street property as well as the renovations of 199 W. Queen Street, the former VA ABC store. Also included in Phase II are refacings and new designs along Old Hampton Lane as well as Settler’s Landing Road that will offer new retail storefronts. Dr. Bellinger asked if the current expenses incurred are consistent with the current project schedule. Mr. LeCuyer replied the project was stopped until the extension request could be approved. Mr. Hawkins asked if a CO has been received. Mr. LeCuyer replied he received a temporary CO for the principal tenant, Hampton House Auctions. Mr. Sledge inquired if weather might affect completion of the project. Mr. LeCuyer stated he is currently negotiating with a new contractor for a 60-75 day timeframe to complete the project so the 120 days should be more than adequate to complete the project. 3  The Committee recommends approval of the extension request. A motion was made by Mr. Arnold and seconded by Mr. Williams to approve the extension as requested. A roll call vote was taken which resulted as follows: Ayes: Arnold, Bellinger, Sledge, Williams and Shuford Nays: None Abstain: Joseph Mr. Arnold reported the Loan Status Report reflects two loans on the over 30 days past due: EDL, LLC has paid its May payment but owes for June and July. Avis Fraser-Williams remains on the loans over 60 days past due. She paid the March loan payment but owes for April, May, June and July. Staff is in contact with her regarding repayment options. Mr. Arnold reviewed the Old Point Statement of Account for June 1, 2011 through June 30, 2011. There were no items requiring action by the Committee. CLOSED Chair Joseph stated a Closed Meeting will now be held in MEETING accordance with Virginia Code, Sections 2.2-3711.A.3 to discuss or consider the contract with the Hampton Technology Incubator (HTI) and the ground lease for the 11 acres with Cordish 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 and seconded to go into the Closed Meeting. A roll call vote was taken which resulted as follows: Ayes: Arnold, Bellinger, Sledge, Williams, Shuford and Joseph Nays: None CERTIFICATION Chair Joseph stated it is now appropriate to take a Roll Call OF CLOSED 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 that 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 Joseph asked 4  for any statements. There were none. A motion was made to conclude the Closed Meeting and return to the Regular Meeting. The motion was seconded. A roll call vote was taken which resulted as follows: Ayes: Arnold, Bellinger, Sledge, Williams, Shuford and Joseph Nays: None A motion was made by Dr. Bellinger and seconded by Mr. Sledge to forward the revised contract between the City of Hampton and the Hampton Technology Incubator to HTI for execution. A roll call vote was taken which resulted as follows: Ayes: Arnold, Bellinger, Sledge, Williams, Shuford and Joseph Nays: None ADJOURNMENT There being no further business, the meeting was adjourned at 10:40 a.m. Respectfully submitted, James L. Eason Secretary/Treasurer JLE/dhb 5