Economic Development Authority

ECONOMIC DEVELOPMENT AUTHORITY of the CITY OF HAMPTON, VIRGINIA Minutes – Regular Meeting October 15, 2013 – 8:30 A.M. EDA 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. PRESENT Lewis J. Bellinger, Michelle T. Ferebee, Perry T. Pilgrim and Ben A. Williams, III. Also present were Secretary-Treasurer Leonard L. Sledge and EDA Attorney S. Frear Hawkins, II. GUESTS Doug Stanley – National Institute of Aerospace PRESENT Tom Flake – Peninsula Technology Incubator Kasia Grzelkowski – Versability Resources Carl Mertig – Kimley Horn Robin Niss – Kimley Horn STAFF Cynthia Hudson, Pete Peterson, Terry O’Neill, Anthony PRESENT Reyes, Robin McCormick, Gloria Washington, Sunshine Torrey, Marcie Sagiao, Daniel Girouard, Ellen Templeton, Michael Yaskowsky, Terri McCann, Jessica Spencer and Teresa Hudgins MINUTES Chair Joseph stated the Minutes of the September 17, 2013 EDA board meeting were distributed. A motion was made by Dr. Bellinger and seconded by Mr. Williams to approve the minutes as presented. The motion carried. OVERVIEW Ms. Kasia Grzelkowski with Versability Resources gave a brief VERSABILITY presentation on the services offered by the organization located in RESOURCES Copeland Industrial Park. Mr. Joseph thanked Ms. Grzelkowski for attending the meeting. PRESENTATION Gloria Washington, Director of the Budget office, gave a brief CIP PROCESS presentation on the city’s CIP process. Mr. Sledge reported input was received from EDA board members and the department submitted seven projects. If a project did not meet CIP guidelines it will be addressed by staff. PRESENTATION Carl Mertig and Robin Niss with Kimley Horn gave a presentation KIMLEY HORM on the HRC North Phase II storm water study as well as recommendations on how to meet future requirements. Mr. Sledge said this project was submitted as part of the CIP funding request. LOAN Mr. Pilgrim reported the Committee met on September 23, 2013 PROGRAM and reviewed the Loan Status Report as follows: Unitech has made one payment and staff is scheduling a meeting with Unique Imaging Solutions. There were no questions or comments on the Old Point Statement of Account dated September 1, 2013 through September 30, 2013. Ms. Shuford inquired about the progress on consolidating the grant and loan programs. Mr. Sledge said it would be finalized at the November meeting. INCUBATOR Ms. Shuford reported the Committee met to consider two COMMITTEE proposals and recommends both for approval: The super computer will be a unique resource for Hampton Roads. The cost is $200,000, which will be in the form of a one-time grant payment to the NIA. The fab lab acquisition cost to the EDA is $230,000 and will be paid over a two year period. This amount will be matched by the city of Virginia Beach, and combined, will meet the match requirement of a Federal EDA grant PTI is pursuing to purchase the equipment. Mr. Joseph asked Mr. Sledge what he recommended. Mr. Sledge said he supports the purchase of the super computer but has reservations about the fab lab and suggested tabling it for further analysis. Dr. Stanley said the NIA would own or lease the super computer and incur all costs to maintain and operate it. He further stated the equipment would be an asset to the area and help grow PTI companies. Mr. Arnold said normally a grant request would have come through the Loan Review Committee to review and make a recommendation. Ms. Shuford said the request was being made by the Incubator Committee and not the NIA or PTI. A motion was made by Mr. Williams and seconded by Mr. Arnold to approve a $200,000 grant to the NIA to purchase a super computer, subject to the Loan Review Committee drafting the agreement in collaboration with the Incubator Committee, and presenting it to the board at its November meeting for approval. A roll call vote was taken which resulted as follows: Ayes: Arnold, Bellinger, Ferebee, Williams, Shuford and Joseph Nays: None 2  Ms. Shuford said the Committee was not aware Mr. Sledge had concerns regarding the fab lab. Mr. Flake said he believed the lab would attract the number of people projected in the model, and if the fab lab was not successful, the equipment could be sold. The PTI will be applying for the grant as a subsidiary of NIA. Mr. Flake will forward a copy of the Virginia Beach letter to Mr. Sledge. A motion was made by Dr. Bellinger and seconded by Mr. Williams to deliver a letter of support for the project by November 20, 2013. A roll call vote was taken which resulted as follows: Ayes: Arnold, Bellinger, Ferebee, Williams, Shuford and Joseph Nays: None ECONOMIC Mr. Sledge stated the updated Status Report on EDA Actions DEVELOPMENT was included in the package. Other items of interest: REPORT  Measurement Specialties was named to the Forbes Top 100 List  Threat Tech closed on 34 Research Drive  The Bay Disposal use permit was approved by the Planning Commission  Schmidt Baking Company has opened its facility in Copeland Industrial Park The EDA board did not go into Closed Session. Mr. Sledge reported staff is working with Threat Tech on signage and concerns regarding the assessment. Staff is recommending the EDA consider approving a grant in the amount of $15,000 to Threat Tech. A motion was made by Mr. Williams and seconded by Ms. Ferebee to approve the grant request in the amount of $15,000. A roll call vote was taken which resulted as follows: Ayes: Arnold, Bellinger, Ferebee, Williams, Shuford and Joseph Nays: None OLD Mr. Sledge said he has had on-going dialogue with the City BUSINESS City Manager on the intent of the Hampton Community Cultural, Athletic and Visitor Attraction Grant Program. The City Manager has recommended the EDA proceed with making grant payments to the Boo Williams Sportsplex and Virginia Air & Space Center. A copy of the draft guidelines and application were included in the package. 3  Dr. Bellinger asked how much revenue would be generated the first year. Mr. Peterson said the estimate is $430,000 with the grant payments being made semi-annually. The first payment will be made in advance of the collection. Mr. Joseph asked Mr. Sledge for written confirmation from City Council on which entities will receive the grant payments. Staff will meet with the organizations to begin assembling the required information which will be submitted through the Loan Review Committee. Staff will also revise the guidelines and present the final draft at the November meeting. ADJOURNMENT There being no further business, the meeting was adjourned at 10:40 a.m. Respectfully submitted, Leonard L. Sledge Secretary-Treasurer LLS/tbh 4