Economic Development Authority

ECONOMIC DEVELOPMENT AUTHORITY of the CITY OF HAMPTON, VIRGINIA Minutes – Annual Meeting January 19, 2016 – 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, Brian DeProfio, Robin McCormick, Denise Howard, Sunshine Torrey, Tory Askew, Dacia Hollis, Susan Borland, Steven Lynch, Michael Yaskowsky, Daniel Girouard and Teresa Hudgins GUESTS Councilman Donnie Tuck PRESENT Kevin M. Sweeney, Interim President and CEO – HREDA Ronald and Carrie Quinn – Q. Design, PLC MINUTES Chair Arnold stated the Minutes of the December 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. NOMINATING Ms. Ferebee reported the Committee met and puts forth the COMMITTEE following slate of officers for the 2016 calendar year: REPORT Eleanor W. Brown, Chair Michelle T. Ferebee, Vice Chair Leonard L. Sledge, Secretary-Treasurer Susan M. Borland, Assistant Secretary Steven L. Lynch, Assistant Treasurer Mr. Arnold asked if there were any other nominations from the floor. There were none. A motion was made by Mr. Bagley and seconded by Dr. Bellinger to approve the slate of officers as presented. A roll call vote was taken which resulted as follows: Ayes: Bagley, Brown, Bellinger, Ferebee, Seymour, Shuford and Arnold Nays: None  Mr. Arnold expressed his appreciation to serve the community on the EDA for two terms and as Chair for the previous year. He asked if the EDA packages could be sent out electronically for future meetings. The members agreed as long as several copies are available at the meeting. RESOLUTION Ms. Brown read a Resolution into record to honor the service of WALLACE Mr. Arnold. A motion was made by Mr. Bagley and seconded by ARNOLD Ms. Shuford to approve the Resolution as presented. The motion carried. HREDA Kevin Sweeney, Interim President and CEO of HREDA gave an PRESENTATION update on activity over the last year and said a committee is currently interviewing six candidates for the President and CEO position. Changes have been implemented to increase communication with stakeholders (public and private), the website has been redesigned and the 2016 officers have been elected. The snapshot of Hampton highlighted five announcements, 667 new jobs and $5.5 million in capital investment. Hampton will be participating in marketing missions to New York/New Jersey and New England during the first and second quarters of 2016. The annual meeting will be held on Thursday, January 28th at 4:30 p.m. at the Half Moon Cruise and Celebration Center. Dr. Bellinger asked for one example of a HREDA success story for Hampton. Mr. Sledge said Liberty Source at Fort Monroe and Cosentino in Copeland were both successful Hampton HREDA projects. Mr. Sledge will send out information on the annual meeting, and if anyone would like to attend, please let Teresa know and she will make your reservation. CIP Sunshine Torrey with the Budget Office gave a brief overview of PRESENTATION the Capital Improvement Plan for fiscal years 2017-2021 which will align with City Council’s strategic initiatives. Ms. Torrey invited the EDA members to provide their input via the on line survey. Ms. Bunting added if a project is not on the list or if any project should be accelerated, please include that information when completing the survey. PRESENTATION Denise Howard with the Finance Department gave a presentation OF FINANCIAL on the EDA Fund Financial Statements for year ended June 30, STATEMENTS 2015. Mr. Seymour had a question on page 2, Operating Income (Loss). Mr. Sledge said he will provide a detailed explanation for the figures listed on this line item. 2 LOAN & GRANT Ms. Ferebee reported the Loan and Grant Review Committee met REVIEW on January 11, 2016 and reviewed the Loan Status Report dated COMMITTEE December 18, 2015. The City Attorney’s Office has sent a letter to The Healthy Connection and there are on-going collection efforts on the Covenant Care and Unique Imaging Solutions accounts. There were no questions or comments on the EDA Statement of Account dated December 1, 2015 through December 31, 2015. There were no questions or comments on the EDA Loan/Grant Program Fund Balance Sheet as of December 31, 2015. Ms. Ferebee said the Committee is recommending the EDA write off the Unitech, Inc. debt in the principal amount of $242,943.93 as uncollectable based on the collection efforts and advice of counsel with the understanding that the EDA can pursue Unitech or its officers if it discovers assets are available to satisfy a judgment; however, the chance of success of any such action would likely be low. Dr. Bellinger asked what lesson was learned from this matter. Mr. Sledge said Unitech had a proven track record with the EDA, there was a change in leadership and the company was still viable. The City Attorney’s Office will work with the Committee regarding collateral on loans; we are doing more grants and partnering with lending institutions on loans. A roll call vote was taken which resulted as follows: Ayes: Arnold, Bagley, Bellinger, Seymour, Shuford, Ferebee and Brown Nays: None Ms. Ferebee also informed the EDA that the Committee waived the default on the Old Hampton Ice Cream Parlor grant because the owner substantially complied with the terms of the agreement until the death of the owner. AUTHORITY Mr. Seymour reported the Committee is in need of a professional ADVISORY architectural firm to assist with reviewing architectural and site COMMITTEE plans for compliance with protective provisions and covenants and to develop formal design review guidelines for the EDA parks. The Committee received three responses to an RFP; Q. Design was interviewed and selected based on experience and cost. Mr. Seymour presented a Resolution of the Economic Development Authority of the City of Hampton, Virginia approving an agreement with Q. Design, PLC for design and architectural review services. 3  Dr. Bellinger asked why this service could not be provided by another city department. Ms. Valldejuli said it creates a conflict of interest. Mr. Bagley wants to make sure we are encouraging development in the parks and speeding up the design review process not slowing it down or asking developers to comply with additional approval processes. Mr. Sledge said there would be no additional processes. A roll call vote was taken which resulted as follows: Ayes: Arnold, Bagley, Bellinger, Seymour, Shuford, Ferebee and Brown Nays: None ECONOMIC Mr. Sledge stated the updated Status Report on EDA Actions DEVELOPMENT was included in the package. Other items of interest: REPORT  We are advertising for a new Marketing & Research Coordinator  The city ran an ad in the Daily Press and Inside Business highlighting recent success stories (copy of the ad distributed)  Responses to the incubator RFP are due by January 29th  As a reminder, please forward your Strategic Plan comments to Dan Dr. Bellinger commented that the city is doing a poor job in hotel management. Mr. Sledge replied that the city has a hotel initiative and strategy in place and will share additional information during the Closed Meeting. EXTENSION OF Mr. Girouard stated PTI and HUBI have provided notice to request PTI & HUBI a monthly extension of the respective operating agreements. Staff AGREEMENTS recommends the EDA approve the request for the month of January for both incubators. Mr. Seymour wants to confirm that PTI will continue to send monthly extension requests. Mr. Girouard said it would. Ms. Ferebee asked Ms. Valldejuli if she should abstain from any discussion or vote due to her involvement with the NIA. Ms. Valldejuli said there was no conflict since this matter only involves PTI. Ms. Brown asked Mr. Girouard to have the extension requests a month in advance. A motion was made by Mr. Arnold and seconded by Dr. Bellinger to approve the requests as presented. A roll call vote was taken which resulted as follows: 4  Ayes: Arnold, Bagley, Bellinger, Seymour, Shuford, Ferebee and Brown Nays: None CLOSED Chair Brown stated a Closed Meeting will now be held in MEETING accordance with Section 2.2-3711.A.3 of the Code of Virginia for the discussion or consideration of the acquisition of real property for a public purpose in Old Hampton where discussion in an open meeting would adversely affect the bargaining position or negotiating strategy of the Authority 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 Dr. Bellinger and seconded by Ms. Ferebee to go into the Closed Meeting. A roll call vote was taken which resulted as follows: Ayes: Arnold, Bagley, Bellinger, Seymour, Shuford, Ferebee and Brown Nays: None CERTIFICATION Chair Brown 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 Brown asked for any statements. There were none. A motion was made by Ms. Ferebee 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: Bellinger, Seymour, Shuford, Ferebee and Brown Nays: None Absent: Mr. Bagley left the meeting at 10:45 and Mr. Arnold had stepped out of the room during the vote A motion was made by Mr. Seymour and seconded by Ms. Ferebee to approve a Resolution accepting the transfer from the City of Hampton to the Economic Development Authority of the City of Hampton, Virginia of a lot in Old Hampton (LRSN: 13002628) also known as 334 West Queen Street. A roll call vote was taken which resulted as follows: 5  Ayes: Arnold, Bellinger, Seymour, Shuford, Ferebee and Brown Nays: None Ms. Brown had to leave the meeting at 10:50 and Ms. Ferebee, as Vice Chair, continued with the remainder of the meeting. OTHER Dr. Bellinger and Mr. Arnold expressed concern regarding the BUSINESS announcement that Macy’s was closing the location at Peninsula Town Center. Mr. Sledge said this was a nationwide move to downsize and the ownership of Peninsula Town Center is aggressively identifying new opportunities for the site. Mr. Sledge added that the City Council will be having a retreat tomorrow and he can provide an update at the next meeting. Also, it might be a good idea to have a joint EDA/City Council meeting to discuss strategic initiatives. Ms. Ferebee said the HREDA presentation was helpful and asked if a document could be provided that identifies other regional entities to include its mission and board members. Mr. Arnold thanked Ms. Hudgins for her administrative support to the EDA. ADJOURNMENT There being no further business, the meeting was adjourned at 11:05 a.m. Respectfully submitted, Leonard L. Sledge Secretary-Treasurer LLS/tbh 6