Economic Development Authority

ECONOMIC DEVELOPMENT AUTHORITY of the CITY OF HAMPTON, VIRGINIA Minutes – Regular Meeting March 18, 2014 – 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. Lewis PRESENT J. Bellinger, Michele 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. STAFF Pete Peterson, Vanessa Valldejuli, Terry O’Neill, Bonnie Brown, PRESENT Anthony Reyes, Fred Gaskins, Ellen Templeton, Michael Yaskowsky and Teresa Hudgins MINUTES Chair Joseph stated the Minutes of the February 18, 2014 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. LOAN Mr. Pilgrim reported the Committee met on February 24, 2014 PROGRAM and reviewed the Loan Status Report as follows: The Healthy Connection has not made a payment but did sign a lease at Sentara Careplex. Unitech paid one payment and the Committee granted interest only payments for six months (March through August). Dr. Bellinger suggested staff explore the Economic Gardening Program. Mr. Joseph asked staff to look at a long term analysis of the program (10 years). Mr. Pilgrim stated staff received two Neighborhood Retail Revitalization grant applications (The Barking Dog and The Point) during the consolidation process and asked the board for its approval to process these applications under the former guidelines. The Board approved this request. The EDA Loan/Grant Program Fund Balance Sheet was included in the package. Mr. Joseph would like for staff to revise the worksheet for better understandability. Mr. Sledge presented changes to the Hampton Revolving Loan and Grant Fund Guidelines which the Committee recommends for approval. Dr. Bellinger expressed his concern about the program being seen as an “angel investor”. A motion was made by Ms. Ferebee and seconded by Mr. Arnold 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 There was a discussion on how collection accounts will be handled. Mr. Hawkins prepared a Memorandum of Understanding for the city Treasurer to collect the debt but the agreement contained language limiting the Treasurer’s ability to use all means available to its office. The Treasurer is not willing to proceed under these terms. Mr. Sledge, Ms. Valldejuli and Mr. Hawkins will resolve this issue. All future agreements will contain language that the loan and/or grant are subject to all collection powers granted under Virginia Code to the Treasurer to collect the debt. ECONOMIC Mr. Sledge stated the updated Status Report on EDA Actions DEVELOPMENT was included in the package. Other items of interest: REPORT  City Council approved the transaction for 41 Floyd Thompson Drive  The budget and CIP process is underway  Met with Virginia Business Magazine for an article on key initiatives, participated in the HREDA U.K. marketing mission with seven good leads, met with the owners of Riverdale Plaza and Virginia STEAM Academy regarding possible location at Ft. Monroe  The Virginia Economic Developers Association (VEDA) spring conference will be held April 10-11 at the Crowne Plaza  The department is hosting a series of small business workshops  City Council is discussing appointments to the EDA RESOLUTION Mr. Joseph thanked Mr. Pilgrim for his service on the EDA board PERRY T. and presented him with a Resolution expressing the board’s PILGRIM appreciation and best wishes for his future endeavors. RESOLUTION Ms. Templeton presented a Resolution of the Economic THREAT TECH Development Authority of the City of Hampton, Virginia GRANT approving the provision of $15,000.00 in Economic Development Grant Funds to Threat Tech, LLC. Mr. Sledge stated there were minor changes to the prior approval. A motion was made by Mr. Williams and seconded by Ms. Ferebee to approve the Resolution as presented. A roll call vote was taken which resulted as follows: Ayes: Arnold, Bellinger, Ferebee, Pilgrim, Williams, Shuford and Joseph Nays: None 2 RIGHT OF Mr. Sledge said the EDA and Hampton Roads Associations, LLC FIRST REFUSAL has the first right of refusal on the sale of the property to a third FORMER party. There is a Purchase and Sale Agreement on the property CARINO’S with 3 Perez, LLC and the EDA has 20 days to exercise its right of ITALIAN GRILL first refusal. A motion was made by Mr. Williams and seconded by Mr. Pilgrim to waive the right of first refusal. A roll call vote was taken which resulted as follows: Ayes: Arnold, Bellinger, Ferebee, Pilgrim, Williams, Shuford and Joseph Nays: None CLOSED Chair Joseph stated a Closed Meeting will now be held in MEETING accordance with Section 2.2-3711 A.3 and A.7 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 Langley Research & Development Park, where discussion in an open meeting would adversely affect the bargaining position or negotiating strategy of the Authority and to consult with legal counsel regarding specific legal matters requiring the provision of legal advice by such counsel and Section 2.2-3711.A.5 to discuss a prospective business or industry or the expansion of an existing business or industry where no previous announcement has been made of the business’ or industry’s interest in locating or expanding its facility in the community. A motion was made by Mr. Arnold and seconded by Mr. Williams to go into the Closed Meeting. A roll call vote was taken which resulted as follows: Ayes: Arnold, Bellinger, Ferebee, Williams, Shuford and Joseph Nays: None Note: Mr. Pilgrim left the meeting before the motion was made to go into the Closed Meeting. 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. Arnold 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: 3  Ayes: Arnold, Bellinger, Ferebee, Williams, Shuford and Joseph Nays: None A motion was made by Ms. Ferebee and seconded by Mr. Williams to amend the Resolution of the Economic Development Authority of the City of Hampton, Virginia approving a Second Amendment to the Purchase and Sale Contract between the authority and SDC 24 Norfolk, VA, L.L.C., (successor to SunCap Property Group, LLC) to state the non-refundable deposit will be paid upon the execution of the Amendment and will be retained by the EDA. A roll call vote was taken which resulted as follows: Ayes: Arnold, Bellinger, Ferebee, Williams, Shuford and Joseph Nays: None OTHER Dr. Bellinger asked if the EDA could get an update on activity BUSINESS at Peninsula Town Center. Mr. Sledge will schedule Mr. Raymond Trip to attend the next meeting. Mr. Sledge provided an update on the Craig Davis Properties (CDP) agreement to develop shell buildings in Hampton Roads Center North. CDP requested a five year option with the ability to terminate the option after three years. A memo has been sent to City Council advising them of the change. The documents should be signed on or before March 28, 2014. Mr. Sledge reported staff is working on establishing a tourism zone in the city. He will also be meeting individually with board members to discuss the strategic plan. Mr. Williams mentioned the article in the Daily Press this morning about the Hampton Roads Community Foundation regional economic development initiative. ADJOURNMENT There being no further business, the meeting was adjourned at 10:10 a.m. Respectfully submitted, Leonard L. Sledge Secretary-Treasurer LLS/tbh 4