Economic Development Authority

ECONOMIC DEVELOPMENT AUTHORITY of the CITY OF HAMPTON, VIRGINIA Minutes – Regular Meeting May 20, 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, Dr. Lewis J. Bellinger, PRESENT Eleanor W. Brown, Michelle T. Ferebee 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 PRESENT Brown, Robin McCormick, Susan Borland, Daniel Girouard, Michael Yaskowsky, Terri McCann, Weston Young, Lynn Allsbrook and Teresa Hudgins GUESTS Doug Stanley – Peninsula Technology Incubator PRESENT Tom Flake - Peninsula Technology Incubator MINUTES Chair Joseph stated the Minutes of the April 15, 2014 EDA board meeting were distributed. A motion was made by Mr. Williams and seconded by Dr. Bellinger to approve the minutes as submitted . The motion carried. HRC NORTH Mr. Young and Mr. Allsbrook with Public Works have reviewed STORMWATER the studies prepared by Kimley Horn and, in their opinion, Kimley STUDIES Horn is guiding the EDA in the right direction. They did recommend the EDA retrofit the existing ponds (the cost for two outfalls is $50,000) and the irrigation re-use. Mr. Joseph asked if the city’s stormwater funds could be used for this expense. The city attorney is reviewing. Mr. Peterson said funds could be set aside from land sale proceeds for stormwater expenses. Ms. Brown would like a copy of the studies. UPDATE Terry O’Neill will give an update at the June EDA meeting. COMMUNITY DEVELOPMENT DEPARTMENT LOAN Ms. Hudgins reported the Loan Review Committee did not meet PROGRAM in April and reviewed the Loan Status Report as follows: The Healthy Connection paid the February payment. Mr. Hawkins is filing the judgment against Unique Imaging Solutions.  There were no questions on the EDA Loan/Grant Program Fund Balance Sheet which was included in the package. Staff received a Neighborhood Retail Revitalization grant application from Mr. Richard Levin for improvements made to the property at 30 E. Mellen Street which is now The Point restaurant. Staff is recommending the grant for approval in the amount of $17,066. The board agreed to consider this application under the former program guidelines. A motion was made by Mr. Williams and seconded by Ms. Ferebee to approve the grant request as presented. A roll call vote was taken which resulted as follows: Ayes: Bellinger, Brown, 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  Faneuil leased 22,000 square feet at Peninsula Town Center; $2 million investment; up to 400 new jobs  WalMart Neighborhood Marketplace is under construction at Mercury Plaza; fall opening  Ruhrpumpem in Copeland expanded by 24,000 square feet; $350,000 investment; six new jobs  Moholland Moving leased 24,000 square feet at 905 G Street  American Medical Response leased 9,000 square feet; $500,000 investment; 50 jobs  Panda Express and Massage Envy opened at Peninsula Town Center  City Council approved the FY15 budget  Old Point National Bank, Tysinger and Altair held ribbon cutting ceremonies  Ellen participated in the HREDA Dallas marketing mission  The Virginia Aerospace Business Association gala was held at the Hampton Roads Convention Center  We have met with Harvey Lindsay, Steve Jurzek at NASA Langley and incubator companies  State of the Workforce Report showed a drop in Hampton’s population; this is a census error; staff is working with Matthew James to amend the report CLOSED Chair Joseph stated a Closed Meeting will now be held in MEETING accordance with 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 and Section 2.2-2711 A.7 to consult with legal counsel regarding specific legal matters requiring the provision of legal advice by such counsel and. A motion was made by Ms. Brown and seconded by Ms. Shuford to go into the Closed 2  Meeting. A roll call vote was taken which resulted as follows: Ayes: Bellinger, Brown, Ferebee, 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. Ferebee and seconded by Ms. Brown to conclude the Closed Meeting and return to the Meeting. A roll call vote was taken which resulted as follows: Ayes: Bellinger, Brown, Ferebee, Shuford and Joseph Nays: None Note: Mr. Williams left the meeting at 9:30 A motion was made by Ms. Brown to accept the proposed PTI contract and proceed on terms discussed which is funding at $185,000 with accelerated payments over 11 months with the final month being unfunded. The motion was seconded by Ms. Shuford. Dr. Bellinger expressed his concern about the accelerated payments and views it as an advanced loan payment. He said this is a situation created by NIA/PTI management and not the EDA. He further stated the other incubator (HUSBI) should be entitled to the same terms. Dr. Stanley said he would be willing to sit down with Dr. Bellinger to go over the numbers. Ms. Brown asked if the contract would be renewed if the EDA did not accelerate the payment. Ms. Shuford said she was not sure but got the impression operations would cease without the accelerated payment. Additionally, this proposal was just received last week Ms. Ferebee moved the question. A roll call vote was taken which resulted as follows: Ayes: Brown, Ferebee, Shuford and Joseph Nays: Bellinger 3 HAMPTON Ms. McCann briefed the board on the Hampton Urban URBAN Enterprise Zone which will sunset on December 31, 2014. Staff ENTERPRISE is working on the renewal. ZONE OTHER Ms. Shuford said she prepared a white paper on the incubators BUSINESS for the meeting today but will revise it and send out an amended version. Additionally, Mr. Joseph asked staff to send out the incubator quarterly reports to the EDA members for their review. Mr. Joseph will review the EDA committee assignments before the next meeting. Mr. Girouard received a request from Brass Pro to hold a 5K run in September and provided insurance coverage for the EDA and Cordish. The board approved the request. Mr. Joseph asked staff to prepare a letter from the EDA approving the request. The summary of the loan/grant program was deferred to the next meeting. ADJOURNMENT There being no further business, the meeting was adjourned at 10:35 a.m. Respectfully submitted, Leonard L. Sledge Secretary-Treasurer LLS/tbh 4