Economic Development Authority

ECONOMIC DEVELOPMENT AUTHORITY of the CITY OF HAMPTON, VIRGINIA Minutes – Regular Meeting December 17, 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 Steve Mallon – Craig Davis Properties PRESENT Tom Flake – Peninsula Technology Incubator J. R. Locke – Hampton University Small Business Incubator Doug Stanley – National Institute of Aerospace Dr. James Hubbard – Hubbard Innovative Systems Jim Hubbard – Hubbard Innovative Systems STAFF Pete Peterson, Terry O’Neill, Robin McCormick, Anthony Reyes, PRESENT Daniel Girouard, Susan Borland, Ellen Templeton, Michael Yaskowsky and Teresa Hudgins MINUTES Chair Joseph stated the Minutes of the November 19, 2013 EDA 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. PRESENTATION Dr. James Hubbard with Hubbard Innovative Systems gave a brief HUBBARD overview of the wireless sensor network business which has INNOVATIVE been in business for 18 months and is located at the Peninsula SYSTEMS Technology Incubator. Dr. Hubbard stated he will be seeking funding to start manufacturing the units and would like to remain in Hampton but Danville and the University of Maryland are possibilities. Mr. Joseph thanked Dr. Hubbard for attending the meeting and encouraged him to work with staff on his expansion plans. LOAN Mr. Pilgrim reported the Committee met on November 25, 2013 PROGRAM and reviewed the Loan Status Report as follows: The Healthy Connection and Unitech paid the October payments. The Unique Imaging Solutions account has been turned over to the Treasurer for collection.  Mr. Sledge reviewed the EDA Loan/Grant Program Fund Balances and said the $230,000 for the fab lab would be removed from FY14 committed funds. Additionally, City Council will consider the consolidation of the HBIC, Neighborhood Retail Revitalization Grant and Loan funds into the EDA Revolving Loan & Grant fund at its meeting on January 8th. Mr. Pilgrim stated the Committee reviewed changes to the Revolving Loan and Grant Fund Guidelines and recommends them for approval. A motion was made by Mr. Arnold and seconded by Mr. Williams to approve the guidelines as presented. A roll call vote was taken which resulted as follows: Ayes: Arnold, Bellinger, Ferebee, Pilgrim, 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  Since the November meeting we announced the Bay Disposal expansion-$1.5 million in capital investment, 32 jobs, 24,000 square feet  Herbal Pharmacy opened a store downtown  We had a good conversation with NASA’s technology transfer office about partnership opportunities  Since July we have worked on 15 projects representing $5.7 million in capital investment, 110 jobs and 117,000 square feet of new or renovated space OLD Mr. Joseph reported the Computer Cluster agreement with the BUSINESS NIA was fully executed. Also, a letter of support from Mayor Wallace for the fab lab was received although the grant submittal date for this project is now mid-March. A copy of both documents was included with the EDA package. The Hampton Roads Center Owners Association recommends Jim Wilson and Billy Hobbs be appointed to the board. The Association will also form a marketing committee which will have representation from the Economic Development Department. A motion was made by Ms. Shuford and seconded by Ms. Ferebee to approve the recommended appointees. A roll call vote was taken which resulted as follows: Ayes: Arnold, Bellinger, Ferebee, Pilgrim, Williams, Shuford and Joseph Nays: None 2  Mr. Locke with the Hampton University Small Business Incubator reported Global Wind graduated from the incubator in September and located in Norfolk and Richmond. Covenant Care will give a presentation to the EDA at its January meeting and is currently negotiating a lease at Harbor Center. He also asked if the incubator exposure on the city’s website could be improved. Staff will work with Marketing Inc. to enhance incubator visibility on our website. Dr. Stanley thanked the EDA for its support and said the computer would be up and running in three months. He also said he is working with Karen Jackson with the Commonwealth of Virginia for support of the fab lab project. 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 discuss or consider the acquisition of real property for a public purpose, or of the disposition of publicly held real property, where discussion in an open meeting would adversely affect the bargaining position or negotiating strategy of the Authority. A motion was made by Ms. Shuford and seconded by Ms. Ferebee to go into the Closed Meeting. A roll call vote was taken which resulted as follows: Ayes: Arnold, Bellinger, Ferebee, Pilgrim, 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 Mr. Pilgrim and seconded by Ms. Shuford to conclude the Closed Meeting and return to the Meeting. A roll call vote was taken which resulted as follows: Ayes: Arnold, Bellinger, Ferebee, Pilgrim, Williams, Shuford and Joseph Nays: None 3  A motion was made by Ms. Ferebee and seconded by Mr. Williams to approve the Resolution authorizing the execution and delivery of a Land Disposition, Option and Development Agreement with Craig Davis Properties and a grant to Craig Davis Properties from the EDA Revolving Loan and Grant Fund subject to City Council approval. A roll call vote was taken which resulted as follows: Ayes: Arnold, Bellinger, Ferebee, Pilgrim, Williams, Shuford and Joseph Nays: None OTHER Staff is working with Public Works in an effort to get the City of BUSINESS Newport News to move the Commander Shepard Boulevard extension up on its capital plan. Mr. Joseph asked the Nominating Committee to meet prior to the January board meeting. Mr. Sledge wished everyone a Happy Holiday and gave the board members a gift basket from the Virginia Store. The following EDA members left the meeting at 10:30: Mr. Joseph, Mr. Arnold and Mr. Pilgrim. The Nominating Committee which consists of Dr. Bellinger, Mr. Williams and Ms. Ferebee briefly met to discuss the slate of officers for the 2014 calendar year. Dr. Bellinger will present the recommendations at the January meeting. Mr. Williams left the meeting at 10:40. The Incubator Committee which consists of Ms. Shuford, Dr. Bellinger and Ms. Ferebee met with J. R. Locke, Doug Stanley and Tom Flake. Mr. Flake presented the Peninsula Technology Incubator July 2013 – September 2013 quarterly report. There are currently 12 clients and four virtual clients. Start! Peninsula operated at a slight profit with six companies receiving financial assistance. Mr. Locke presented the Hampton University Small Business Incubator July 1 – September 30, 2013 quarterly report. Global Wind graduated in September and Covenant Care will graduate in February leaving six clients and no virtual clients. 2014 goals are: communicate with Hampton University faculty and staff, create virtual membership, identifiable goals for incubator clients and initiate an incubator sponsorship program. Ms. Shuford asked Mr. Flake and Mr. Locke to look at their respective strategic plans and note any updates on the next report. The Incubator Committee will meet quarterly following the EDA meeting. 4 ADJOURNMENT There being no further business, Ms. Shuford adjourned the meeting was adjourned at 11:25 a.m. Respectfully submitted, Leonard L. Sledge Secretary-Treasurer LLS/tbh 5