Economic Development Authority

ECONOMIC DEVELOPMENT AUTHORITY of the CITY OF HAMPTON, VIRGINIA Minutes – Regular Meeting December 16, 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, Eleanor W. Brown and Michelle T. Ferebee. Also present was Secretary-Treasurer Leonard L. Sledge. STAFF Pete Peterson, Vanessa Valldejuli, Terry O’Neill, Tony Reyes, PRESENT Bruce Sturk, Robin McCormick, Bonnie Brown, Daniel Girouard, Susan Borland, Michael Yaskowsky and Teresa Hudgins GUESTS Robert Brauchle, Daily Press PRESENT Marty Kaszubowski, Old Dominion University MINUTES Chair Joseph stated the Minutes of the November 18, 2014 EDA board meeting were distributed. A motion was made by Ms. Ferebee and seconded by Ms. Brown to approve the minutes as submitted. The motion carried. VENTURE Marty Kaszubowski with Old Dominion University gave a brief CAPITAL presentation on venture capital formation in Hampton Roads. PRESENTATION Mr. Kaszubowski reported Hampton Roads has failed in the funding spectrum due to culture and unfamiliarity; however, there is a new effort underway known as “757 Angels”. The group will hold an event every six weeks. Members have to be credited investors, pay a $1,000 yearly fee and commit to invest up to $10,000 over a three year period. Mr. Joseph would like to schedule a follow-up meeting with Mr. Kaszubowski to discuss the EDA incubators and underutilized loan/grant programs. UPDATE ON Bruce Sturk updated the EDA on strategic property acquisitions CLEAR ZONE in the Langley clear zone. The initial $6 million is almost ACQUISITIONS depleted. There is another round of funding of $2.5 million (half from the state and half from the city) for acquisitions. The Air Force is pleased with the progress to date. TOURISM Susan Borland gave a presentation on the Tourism Zone which ZONE was also presented to City Council. The EDA’s role will be in gap PRESENTATION financing. Staff will continue with the next steps to establish the zones to include defining the areas, developing guidelines and adopting an ordinance. The estimated timeframe for this is first quarter 2015. LOAN Mr. Arnold reported the Loan Review Committee met on PROGRAM November 24, 2014. The I Love Your Style loan is now paid in full. Staff continues to work within the legal framework on the Unitech default. The Committee approved a discounted amount on a former Neighborhood Retail Revitalization grant. The City Attorney’s office is proceeding on the Unique Imaging judgment. There were no questions on the EDA Loan/Grant Program Fund Balance Sheet as of November 30, 2014 which was included in the package. ECONOMIC Mr. Sledge stated the updated Status Report on EDA Actions DEVELOPMENT was included in the package. Other items of interest: REPORT  During the fiscal year there has been $45.4 million in capital investment, 1,303 new jobs and 460,000 square feet of commercial building activity. Major announcements include Ferguson, Liberty Source, FedEx Ground, Lockwood, Pressure Works and WalMart Market. The WalMart Market opening was successful.  The department has launched a “building blitz” initiative; the first visit enabled us to identify some short-term expansion opportunities.  The Hampton Urban Zone will expire on December 31, 2014. The application for extension has been submitted and we are waiting to hear from the Virginia Department of Housing & Community Development. From 2005 – 2012 Hampton businesses received $4.2 million in grants.  The EDA Chairman has agreed to serve on the interview panel for the business development team leader.  Susan Borland is developing a proposal for new funding through the Brownsfield Grant Program.  PTI was name one of four finalists for the “Best New Knowledge Based Incubators in the World” by Technopolicy.  The Disparity Study is complete and it was presented to City Council; utilization has increased. CLOSED Chair Joseph stated a Closed Meeting will now be held in MEETING accordance with Section 2.2-3711 A.1 of the Code of Virginia for discussion or consideration of appointments to the Economic Development Authority. A motion was made by Ms. Brown and seconded by Ms. Ferebee to go into the Closed Meeting. A roll call vote was taken which resulted as follows: Ayes: Arnold, Bellinger, Brown, Ferebee, Shuford and Joseph Nays: None 2 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 Ms. Brown to conclude the Closed Meeting and return to the Meeting. A roll call vote was taken which resulted as follows: Ayes: Arnold, Bellinger, Brown, Ferebee, Shuford and Joseph Nays: None OLD A copy of the letter dated November 13, 2014 from Craft BUSINESS Machine Works, Inc. regarding the City Line Road conveyance was included in the package. OTHER Mr. Sledge thanked the board members and legal counsel for their BUSINESS service and presented them with a holiday gift. ADJOURNMENT There being no further business, the meeting was adjourned at 9:45 a.m. Respectfully submitted, Leonard L. Sledge Secretary-Treasurer LLS/tbh 3