Economic Development Authority

ECONOMIC DEVELOPMENT AUTHORITY of the CITY OF HAMPTON, VIRGINIA Minutes – Regular Meeting October 20, 2015 – 8:30 a.m. EDA Conference Room CALL Chair Arnold called the meeting to order at 8:30 a.m. TO ORDER DIRECTORS Wallace C. Arnold, Eleanor W. Brown, Richard M. Bagley, Jr., Dr. PRESENT Lewis J. Bellinger, Michelle T. Ferebee, L. Scott Seymour and Anne W. Shuford. Also present was Secretary-Treasurer Leonard L. Sledge. STAFF Mary Bunting, Pete Peterson, Vanessa Valldejuli, Patricia PRESENT Melochick, Terry O’Neill, Robin McCormick, Steven Lynch, Michael Yaskowsky, Alison Alexander, Vanessa Rogala and Teresa Hudgins GUESTS Councilman Donnie Tuck PRESENT Dr. Douglas Stanley – National Institute of Aerospace Daniel Morris – Peninsula Technology Incubator Steve Mallon – Craig Davis Properties Ryan Murphy – Daily Press MINUTES Chair Arnold stated the Minutes of the September 15, 2015 EDA board meeting were distributed. A motion was made by Ms. Brown and seconded by Ms. Ferebee to approve the Minutes as presented. The motion carried. INCUBATOR Mr. J. R. Locke with the Hampton University Business Incubator PRESENTATIONS (“HUBI”) could not attend the meeting so Mr. Sledge read the update dated October 19, 2015 into record. The HUBI added two new client companies, an existing client company is negotiating a major contract with Bon Secours and the update highlighted five recent company successes. In the update Mr. Locke thanked the City of Hampton for its support. Dr. Douglas Stanley with the National Institute of Aerospace (“NIA”) provided a copy of the Peninsula Technology Incubator (“PTI”) 3rd quarter report and introduced Daniel Morris as the new Executive Director. Dr. Stanley reported four new companies have joined PTI and IV Watch signed a lease for 8,000 square feet in the NIA lab building with 25 jobs. PTI has received two SBA grants and recently submitted a joint proposal for the Unmanned Aerial Systems Proof of Concept Center. PTI is re-focusing its efforts on Hampton companies. Dr. Stanley thanked the City of Hampton for its support. LOAN Ms. Ferebee reported the Loan Review Committee met on PROGRAM September 28, 2015 and reviewed the Loan Status Report dated September 21, 2015. The two delinquent accounts are being handled by the City Attorney’s Office. There were no questions or comments on the EDA Old Point Trust & Financial Services Statement of Account dated September 1, 2015 through September 30, 2015 which was included in the package. There were no questions on the EDA Loan/Grant Program Fund Balance Sheet as of September 30, 2015 which was included in the package. Mr. Bagley asked if a “commitment” column could be added to the City Managed Accounts. Staff will revise the report. Ms. Ferebee made a motion to approve a Hampton Revolving Loan & Grant Fund Building Improvement Grant to Mellen Street Creative/Studio 9 in the amount of $5,121.36. A roll call vote was taken which resulted as follows: Ayes: Bagley, Bellinger, Ferebee, Seymour, Shuford, Brown and Arnold Nays: None Ms. Ferebee asked Mr. Seymour to present the grant request for the Unmanned Aerial Systems Proof of Concept Center and she did not participate in the discussion. Mr. Seymour said the EDA heard a presentation from NASA at the last meeting regarding a joint grant proposal in which the NIA/PTI would be the project lead and prime applicant. Mr. Seymour made a motion to approve a $50,000 grant to be paid over a three year period with Economic Development staff providing in-kind staff services. A roll call vote was taken which resulted as follows: Ayes: Bagley, Bellinger, Seymour, Shuford, Brown and Arnold Nays: None Abstain: Ferebee Ms. Ferebee made a motion to write off the Cawthorn’s Cut and Fit Centers, LLC EDA debt based on the United States Bankruptcy Court Discharge of Debtor Notice. A roll call vote was taken which resulted as follows: Ayes: Bagley, Bellinger, Ferebee, Seymour, Shuford, Brown and Arnold Nays: None 2 ECONOMIC Mr. Sledge stated the updated Status Report on EDA Actions DEVELOPMENT was included in the package. Other items of interest: REPORT  Notice was sent to City Council and the EDA regarding the new Enterprise Zone designation for Hampton Roads Center  Mr. Sledge briefed the EDA on the Hampton Hotel Strategy that was presented to City Council last week EDA Ms. Melochick presented changes to Article IV - Standing BYLAWS Committees on page 6 of the EDA Bylaws. A motion was made by Ms. Ferebee and seconded by Ms. Brown to approve the EDA Bylaws as presented. A roll call vote was taken which resulted as follows: Ayes: Bagley, Bellinger, Ferebee, Seymour, Shuford, Brown and Arnold Nays: None REVISIONS Mr. Sledge presented revisions to the Downtown Hampton DHPRIP Phoebus Retail Incentive Program (DHPRIP) Guidelines which GUIDELINES incorporate the Arts & Cultural Districts as set forth by the Ordinance passed by City Council on October 14, 2015 as well as additional changes recommended by staff. The Loan Review Committee discussed the changes at its last meeting and the comments were incorporated into the final document. A motion was made by Ms. Ferebee and seconded by Ms. Shuford to approve the Guidelines as presented. A roll call vote was taken which resulted as follows: Ayes: Bagley, Bellinger, Ferebee, Seymour, Shuford, Brown and Arnold Nays: None REVISIONS Mr. Sledge presented revisions to the Hampton Revolving Loan HAMPTON & Grant Fund Guidelines which includes qualification language REVOLVING for the Arts & Cultural Districts as well as other changes LOAN & GRANT identified by staff. The Loan Review Committee discussed FUND the proposed changes at its last meeting and the comments were GUIDELINES incorporated into the final document. A motion was made by Mr. Seymour and seconded by Ms. Ferebee to approve the Guidelines as presented. A roll call vote was taken which resulted as follows: Ayes: Bagley, Bellinger, Ferebee, Seymour, Shuford, Brown and Arnold Nays: None 3 DESIGNATION Mr. Sledge presented an Escrow Agreement with Old Point OF ESCROW Trust & Financial Services to serve as the escrow agent pursuant AGENT to the terms of the Land Disposition, Option and Development Agreement that the EDA entered into with Craig Davis Properties. Mr. Seymour disclosed that his firm represents Craig Davis Properties but he does not personally represent the client. Ms. Shuford stated she has a conflict and will abstain from the discussion and vote. A motion was made by Ms. Ferebee and seconded by Ms. Brown to approve the Escrow Agreement as presented. A roll call vote was taken which resulted as follows: Ayes: Bagley, Bellinger, Ferebee, Seymour, Brown and Arnold Nays: None Abstain: Shuford EDA ADVISORY Mr. Sledge recommended the EDA authorize the appointment of COMMITTEE the Authority Advisory Committee for the purpose of advising the EDA regarding design and architectural review. The Advisory Committee will consist of two EDA board members, up to two property owner representatives with the assistance of an architectural consultant. Mr. Sledge recommended Ms. Ferebee and Mr. Seymour serve as the two EDA appointed members. Dr. Bellinger asked if the property owners would be paid to serve on this Committee. Mr. Sledge said no but the architectural firm would be paid under contract. A motion was made by Ms. Brown and seconded by Mr. Bagley to establish the Authority Advisory Committee with Ms. Ferebee and Mr. Seymour serving as the EDA representatives. A roll call vote was taken which resulted as follows: Ayes: Bagley, Bellinger, Ferebee, Seymour, Shuford, Brown and Arnold Nays: None CLOSED Chair Arnold stated a Closed Meeting will now be held in MEETING accordance with Section 2.2-3711.A.3 of the Code of Virginia for discussion or consideration of the acquisition of real property for a public purpose in Coliseum Central where discussion in an open meeting would adversely affect the bargaining position or negotiating strategy of the Authority, 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 2.2-3711.A.6 for the discussion or consideration of the investment of public funds where competition or bargaining is involved, where, if made public initially, the financial interest of the Authority would be adversely affected. A motion was made by Ms. Shuford and seconded by Ms. Brown to go into the Closed Meeting. A roll call vote was taken which resulted as follows: 4  Ayes: Bagley, Bellinger, Ferebee, Seymour, Shuford, Brown and Arnold Nays: None CERTIFICATION Chair Arnold 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 Arnold asked for any statements. There were none. A motion was made by Mr. Bagley and seconded by Mr. Seymour to conclude the Closed Meeting and return to the Meeting. A roll call vote was taken which resulted as follows: Ayes: Bagley, Bellinger, Seymour, Shuford and Arnold Nays: None Note: Ms. Brown and Ms. Ferebee left the meeting at 10:25 and were not present for the vote A motion was made by Dr. Bellinger and seconded by Ms. Shuford to proceed with the Request for Proposals – Business Incubation Program Operator with the proposal due date changed to the end of January and adding “Sample Reports” to the RFP document. A roll call vote was taken which resulted as follows: Ayes: Bellinger, Seymour, Shuford and Arnold Nays: Bagley ADJOURNMENT There being no further business, the meeting was adjourned at 10:40 a.m. Respectfully submitted, Leonard L. Sledge Secretary-Treasurer LLS/tbh 5