Economic Development Authority

ECONOMIC DEVELOPMENT AUTHORITY of the CITY OF HAMPTON, VIRGINIA Minutes – Regular Meeting February 18, 2014 – 8:30 A.M. EDA Conference Room CALL Vice Chair Shuford called the meeting to order at 8:30 a.m. TO ORDER DIRECTORS Anne W. Shuford, Wallace C. Arnold, Dr. Lewis J. Bellinger, PRESENT Perry T. Pilgrim and Ben A. Williams, III. Also present were Secretary-Treasurer Leonard L. Sledge and EDA Attorney S. Frear Hawkins, II. GUESTS Craig Cope – Liberty Property Trust PRESENT Doug Blount – DLBA Robotics STAFF Pete Peterson, Vanessa Valldejuli, Terry O’Neill, Bonnie Brown, PRESENT Daniel Girouard, Ellen Templeton, Michael Yaskowsky and Teresa Hudgins MINUTES Vice Chair Shuford stated the Minutes of the January 21, 2014 EDA board meeting were distributed. A motion was made by Mr. Williams and seconded by Dr. Bellinger to approve the minutes as presented. The motion carried. PRESENTATION Mr. Blount gave a brief presentation on DLBA Robotics, an DLBA ROBOTICS advance technology manufacturer of patterns and molds for the composite industry, located in Copeland Industrial Park. The business started in 1999 and has 15 employees in Hampton and 24 in Chesapeake. LOAN Mr. Pilgrim reported the Committee met on January 27, 2014 PROGRAM and reviewed the Loan Status Report as follows: The Healthy Connection and Unitech have paid one payment and I Love Your Style is current. He also reported the amount allocated for grants during the remainder of FY14 is $114,529. Mr. Arnold added that Covenant Care gave a presentation to the board at its last meeting and is graduating from the Hampton University Small Business Incubator. After a review of the financial statements, staff arranged for a consultant to work with them to improve the financial condition of the business. The Committee will get an update at the next meeting. ECONOMIC Mr. Sledge stated the updated Status Report on EDA Actions DEVELOPMENT was included in the package. Other items of interest: REPORT   City Council appointed Mr. Sledge as the city representative on the Thomas Nelson Community College board; the “I Choose Hampton” campaign was launched; Council approved the sale of 2.16 acres of land for the Rite Aid development on Fox Hill Road; began discussing upcoming appointments to the EDA  The city budget and CIP process is underway; Mr. Sledge is serving on both committees  Vanessa Valldejuli was appointed City Attorney effective February 18th; she will be the lead attorney on economic development matters  There were two ribbon cuttings in downtown: Mint Julep and Mango Mango Mango  Mike participated in Aerospace Day at the General Assembly  Staff participated in the Youth Career Expo  Mr. Sledge met with two existing businesses: Registrar Corp and SSAI  Since the January meeting we have had two project inquiries from HREDA and added one active office project  We will be discussing the addition of two representatives to the EDA Loan Review Committee which will require a change to the Bylaws  Hampton will be the host city for the Virginia Economic Developers Association (VEDA) spring conference April 10- 11 at Crowne Plaza; will ask the EDA to be a sponsor  The department is hosting a series of small business workshops  Mr. Sledge will be meeting individually with EDA members to discuss the strategic plan RESOLUTION Mr. Girouard presented a Resolution of the Economic Development HAMPTON Authority of the City of Hampton, Virginia approving a provision COMMUNITY, of a $180,000 Hampton Community, Cultural, Athletic and Visitor CULTURAL, Attraction Grant to Boo Williams Sportsplex, LLC. A motion was ATHLETIC made by Mr. Pilgrim and seconded by Mr. Williams to approve the AND VISITOR Resolution as presented. A roll call vote was taken which resulted ATTRACTION as follows: GRANTS Ayes: Arnold, Bellinger, Pilgrim, Williams and Shuford Nays: None Mr. Girouard presented a Resolution of the Economic Development Authority of the City of Hampton, Virginia approving a provision of a $277,000 Hampton Community, Cultural, Athletic and Visitors Attraction Grant to the Virginia Air and Space Center. A motion was made by Mr. Pilgrim and seconded by Mr. Williams to approve the Resolution as presented. A roll call vote was taken which resulted as follows: Ayes: Arnold, Bellinger, Pilgrim, Williams and Shuford Nays: None 2 RESOLUTION Ms. Shuford presented a Resolution of the Economic Development SEI GROUP Authority of the City of Hampton, Virginia approving the Fourth Amendment to the Purchase and Sale Agreement with the SEI Group, LLC. A motion was made by Mr. Williams and seconded by Mr. Arnold to approve the Resolution as presented. A roll call vote was taken which resulted as follows: Ayes: Arnold, Bellinger, Pilgrim, Williams and Shuford Nays: None CLOSED Vice Chair Shuford 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 in Hampton Roads Center, where discussion in an open meeting would adversely affect the bargaining position or negotiating strategy of the Authority. A motion was made by Mr. Pilgrim and seconded by Mr. Williams to go into the Closed Meeting. A roll call vote was taken which resulted as follows: Ayes: Arnold, Bellinger, Pilgrim, Williams and Shuford Nays: None CERTIFICATION Vice Chair Shuford 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. Vice Chair Shuford asked for any statements. There were none. A motion was made by Mr. Pilgrim and seconded by Mr. Arnold to conclude the Closed Meeting and return to the Meeting. A roll call vote was taken which resulted as follows: Ayes: Arnold, Bellinger, Pilgrim, Williams and Shuford Nays: None A motion was made by Mr. Pilgrim and seconded by Mr. Williams to approve a Resolution of the Economic Development Authority of the City of Hampton, Virginia approving a Second Option Agreement between the Economic Development Authority of the City of Hampton, Virginia and Liberty Property Limited Partnership for the purchase of 5.00 acres of land, more or less, in Hampton Roads Center. A roll call vote was taken which resulted 3  as follows: Ayes: Arnold, Bellinger, Pilgrim, Williams and Shuford Nays: None OTHER Mr. Williams asked if contact should be made with Senator BUSINESS Warner’s office regarding the drone program. Mr. Sledge said staff is working on several initiatives in relation to this matter. Mr. Sledge reported the Memorandum of Understanding has been prepared for the city Treasurer to proceed with collection efforts on behalf of the EDA; however, the Treasurer’s office has additional constitutional powers which allow it to collect beyond what is secured by the Security Agreement. Mr. Williams has stated if the EDA restricts his ability to collect the debt he would not be able to assist with collection efforts. The EDA will have to hire outside legal counsel for collection accounts. Ms. Valldejuli will provide a legal opinion at the March meeting. There was a discussion on how the EDA or other organizations could assist businesses. Ms. Shuford would like to see greater synergy between the Loan Review Committee and Incubator Committee and suggested a joint meeting be scheduled. ADJOURNMENT There being no further business, the meeting was adjourned at 10:15 a.m. Respectfully submitted, Leonard L. Sledge Secretary-Treasurer LLS/tbh 4