Economic Development Authority

INDUSTRIAL DEVELOPMENT AUTHORITY of the CITY OF HAMPTON, VIRGINIA Minutes – Regular Meeting November 15, 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, 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 Mary Bunting, Pete Peterson, Vanessa Valldejuli, Gloria PRESENT Washington, Jonathan McBride, Ellen Templeton, Susan Borland, Michael Yaskowsky, Daniel Girouard, Jessica Spencer, Pam Croom and Teresa Hudgins GUEST Councilman Donnie Tuck PRESENT Amory LeCuyer with LeCam, LLC Adam Ritt with Hoy Construction Company MINUTES Chair Joseph stated the Minutes of the October 18, 2011 IDA board meeting were distributed. A motion was made by Mr. Arnold and seconded by Mr. Williams to approve the minutes as presented. The motion carried. LOAN Mr. Pilgrim reported the Loan Status Report reflects three loans on PROGRAM the over 90 days past due. Mr. Hawkins has sent the required notice to call the EDL and Bobby’s Auto Shop loans and is preparing a Modification Agreement for Avis Fraser-Williams. In response to comments made at a previous board meeting, the Committee reviewed loan terms and concluded the loans were made at or below market conditions at the time they were closed and should remain unchanged. Loans being closed now are consistent with current market conditions. The Committee would like to have a discussion with the board regarding what we are trying to accomplish with the loan program and identify the types of loans we should be making. ECONOMIC Mr. Eason stated the updated Status Report on IDA Actions was DEVELOPMENT included in the package. Several items will be discussed in Closed REPORT Session. Mr. Eason asked Michael Yaskowsky to give an update on the Hampton Roads Center North feasibility study. Mr. Yaskowsky reported the first draft is being reviewed by staff and the formal report will be presented to the board in January. Mr. Eason asked Daniel Girouard to give an update on the Magruder Boulevard/Commander Sheppard Boulevard Corridor enhancement project. Mr. Girouard reported the contract should be awarded on or before November 22nd with work commencing in December. Mr. Eason asked Ellen Templeton to report on recent prospect activity from the Virginia Economic Development Partnership (VEDP) and Hampton Roads Economic Development Alliance (HREDA). Ms. Templeton reported on the following projects: ƒ Defense contractor; Phase I 50 jobs paying an average of $31,000; $1 million in capital investment. Phase II expansion into 110,000 square feet; 100 jobs; capital investment to be determined ƒ Call center; 250-300 seats; 500-600 jobs paying an average of $35,000 ƒ Developmental center; 100,000 square feet of Class A office space; 800 jobs paying an average of $70,000 - $90,000; capital investment to be determined ƒ Start-up biotech company; 10 jobs; trying to secure working capital DOWNTOWN Mr. Eason reported LeCam, LLC completed Phase I and is well HAMPTON & into Phase II of the project. Mr. LeCuyer is requesting an PHOEBUS extension of the grant agreement for an additional 180 days to RETAIL May 14, 2012. INCENTIVE PROGRAM Mr. LeCuyer stated the project is progressing nicely. They have leased space to Green Apple Concepts and continue to receive serious inquiries from local and national companies. Hampton Auction House has increased sales by 30% and was recognized by DHDP as Stakeholder of the Year. Miller Mart is upgrading visual aspects to its corner location. A motion was made by Mr. Williams and seconded by Mr. Arnold to approve the request as presented. A roll call vote was taken which resulted as follows: 2  Ayes: Arnold, Bellinger, Pilgrim, Sledge, Williams, Shuford and Joseph Nays: None RESOLUTION Mr. Eason reported the E-Commerce Grant Program continues REALLOCATE to be successful with 50 grants being funded and 39 certified FUNDS TO E- service providers. The funds allocated for this program have COMMERCE been exhausted and we have identified $50,000 in the Hampton GRANT Manufacturing Assistance Grant Program which could be re- PROGRAM allocated to this program. There are currently five grants awaiting funding. A motion was made by Mr. Arnold and seconded by Mr. Pilgrim 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 PRESENTATION Ms. Bunting stated the city is presenting this information to all CIP FY13-17 boards and commissions to ask for input into this financial planning process. The power point presentation was given by Gloria Washington and Jonathan McBride. Ms. Bunting said she looked forward to receiving comments/suggestions from board members. CLOSED Chair Joseph stated a Closed Meeting will now be held in MEETING accordance with Section 2.2-3711 A.7 of the Code of Virginia 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 Mr. Sledge to go into the Closed Meeting. A roll call vote was taken which resulted as follows: Ayes: Arnold, 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 Dr. Bellinger to conclude the Closed Meeting and return to the Meeting. A roll call vote was taken which resulted as follows: Ayes: Bellinger, Williams, Shuford and Joseph Nays: None Note: Mr. Arnold, Mr. Pilgrim and Mr. Sledge left the meeting prior to this vote ADJOURNMENT There being no further business, the meeting was adjourned at 10:45 a.m. Respectfully submitted, James L. Eason Secretary-Treasurer 4