Economic Development Authority

INDUSTRIAL DEVELOPMENT AUTHORITY of the CITY OF HAMPTON, VIRGINIA Minutes – Regular Meeting June 19, 2012 – 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 Pete Peterson, Vanessa Valldejuli, Terry O’Neill, Anthony PRESENT Reyes, Susan Borland, Ellen Templeton, Michael Yaskowsky, Arnelia Hancock, Amy Jordan and Teresa Hudgins GUEST Thomas Flake – Peninsula Technology Incubator PRESENT Tom O’Grady – Clancy & Theys MINUTES Chair Joseph stated the Minutes of the May 15, 2012 IDA board meeting were distributed. A motion was made by Mr. Arnold and seconded by Mr. Williams to approve the minutes as submitted. The motion carried. LOAN Mr. Pilgrim reported the Loan Review Committee met on May PROGRAM 21, 2012. The Loan Status Report reflects two loans over 30 days past due: Hampton Roads Charter and Avis Fraser-Williams. Both loans are now current. Kleemeier & Hinshelwood, LLC, a property owner in Langley Research & Development Park, applied for a $48,000 loan to upgrade the existing sewer system. The Committee recommends the loan for approval based on the following terms and conditions: Loan Amount: $48,000 Interest Rate: 3% Loan Term: Five years Conditions: Loan payments set up on an automatic draft Financial statements received annually Personal Guaranty: Carol Kleemeier, Geoffrey and Cheryl Hinshelwood A motion was made by Mr. Pilgrim to approve the loan as recommended by the Committee. A roll call vote was taken which resulted as follows:  Ayes: Arnold, Bellinger, Pilgrim, Williams, Shuford and Joseph Nays: None Note: Mr. Sledge was not present for the vote In an effort to assist existing small business loan clients, the Committee recommends the interest rate on the Coastal Machine and Sunset Creek Properties loans be modified to three percent (3%) for the remaining loan term. A motion was made by Mr. Pilgrim and seconded by Mr. Williams to approve the loan modifications as presented. 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  SEI Group closing will take place in July  Anticipate receiving the wetlands permit from DEQ for HRC North within the next two weeks  The science park feasibility study should be completed by the end of June  We are working with two companies in Langley Research & Development Park on significant expansions  Cordish paid real estate taxes on the 11-acres Mr. Eason provided an update on the LeCam agreement extension:  Green Apple Concepts has moved into its new space  Staff has reviewed preliminary signage and landscaping plans  Exterior improvements are scheduled to start this week  Negotiating leases with two tenants HAMPTON Mr. Eason said staff had met with Dr. Bellinger and considered MANUFACTURING comments made at the last IDA meeting regarding simplifying the ASSISTANCE program. Dr. Bellinger added the program should be user GRANT friendly and staff should actively solicit manufacturing firms to PROGRAM apply for funds. A motion was made by Mr. Sledge and seconded by Mr. Williams to approve proposed changes to the program as presented. A roll call vote was taken which resulted as follows: Ayes: Arnold, Bellinger, Pilgrim, Sledge, Williams, Shuford and Joseph Nays: None 2 CLOSED Chair Joseph stated a Closed Meeting will now be held in MEETING accordance with Section 2.2-3711 A.3 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. Sledge and seconded by Ms. Shuford 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 recorded in the Minutes. Chair Joseph asked for any statements. There were none. A motion was made by Ms. Shuford and seconded by Mr. Williams to conclude the Closed Meeting and return to the Meeting. A roll call vote was taken which resulted as follows: Ayes: Arnold, Bellinger, Pilgrim, Sledge, Williams, Shuford and Joseph Nays: None A motion was made by Mr. Pilgrim and seconded by Mr. Sledge to defer the Peninsula Technology Council contract deadline to July 31, 2012 subject to Peninsula Technology Council signing an agreement. A roll call vote was taken which resulted as follows: Ayes: Arnold, Bellinger, Pilgrim, Sledge, Williams, Shuford and Joseph Nays: None OTHER Mr. Flake with the Peninsula Technology Council gave a status BUSINESS report on progress to date. Mr. Joseph thanked Mr. Eason again for his service to the City and the IDA. 3 ADJOURNMENT There being no further business, the meeting was adjourned at 9:15 a.m. Respectfully submitted, James L. Eason Secretary-Treasurer 4