Economic Development Authority

ECONOMIC DEVELOPMENT AUTHORITY of the CITY OF HAMPTON, VIRGINIA Minutes – Regular Meeting June 21, 2016 – 8:30 a.m. EDA Conference Room CALL Chair Brown 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 Vanessa Valldejuli, Pete Peterson, Karl Daughtrey, Terry O’Neill, PRESENT Patricia Melochick, Robin McCormick, Susan Borland, Steven Lynch, Daniel Girouard, Michael Yaskowsky, Greg Scialabba and Teresa Hudgins GUEST Betty Lewis - Boutique She-She PRESENT MINUTES Chair Brown stated the Minutes of the May 17, 2016 EDA board meeting were distributed. A motion was made by Dr. Bellinger and seconded by Mr. Arnold to approve the Minutes as presented. A roll call vote was taken which resulted as follows: Ayes: Arnold, Bagley, Bellinger, Seymour, Shuford, Ferebee and Brown Nays: None LOAN & GRANT Ms. Ferebee reported the Loan and Grant Review Committee met REVIEW on June 6, 2016 and reviewed the Loan Status Report dated COMMITTEE May 20, 2016. The City Attorney’s office will be sending a letter to Touch of Class Fencing. There were no questions or comments on the EDA Loan/Grant Program Fund Balance Sheet as of May 31, 2016. The Committee considered a $250,000 grant request from ETHOS Leadership Group and is not recommending the grant for approval. Ms. Ferebee said staff will follow-up with the applicant on other appropriate city/school resources. The Committee agreed with staff, based on the terms of the Grant Agreement and advice of counsel, to limit the rental assistance request from Richard Levin for Mango, Mango to two months instead of the six months requested because the tenant did not occupy the space during the entire six month period. ECONOMIC Mr. Sledge stated the updated Status Report on EDA Actions DEVELOPMENT was included in the package. Other items of interest: REPORT  Anticipate City Council appointing two new EDA board members at its July meeting  You will be receiving a survey questionnaire in advance of the EDA retreat  Thank you for supporting the Business Appreciation Golf Tournament; we had 60 participants  There is a community meeting tonight at 6:00 p.m. at Andrews PreK-8 school to discuss the land use for the Virginia School for the Deaf and Blind site  Both city staff and representatives from Hampton University desire to, and will be, scheduling a meeting to discuss long- term strategies and solutions to advance the accomplishment of our mutual and individual missions, goals, and objectives. Mr. Sledge will be working directly with Dr. Bill Thomas on this. 409 INDUSTRY Ms. Melochick reported there are repurchase options and deeded & 504 ROTARY covenant restrictions on both properties located in Copeland DEED Industrial Park sold by the city dating back to the 1960’s prior to RESTRICTIONS zoning ordinances which were discovered during a recent title search. On the suggestion of Terry O’Neill the Transaction Committee was advised of this matter due to the EDA’s involvement in the business parks. Chair Brown said the Transaction Committee recommends the EDA move to support the City Manager in wholly releasing both properties from all deed restrictions and repurchase options. Mr. Bagley said since this situation could come up again, can the EDA provide a Resolution to the City Manager to act on the matters when presented without coming before the EDA. Ms. Valldejuli said she will prepare a Resolution for consideration at the next meeting. Chair Brown said since the motion was coming from the Committee no second was required and called for the vote. A roll call vote was taken which resulted as follows: Ayes: Arnold, Bagley, Bellinger, Seymour, Shuford, Ferebee and Brown Nays: None RESOLUTION Mr. Sledge presented a Resolution approving an agreement PTI between the Economic Development Authority of the City of Hampton, Virginia and the Peninsula Technology Incubator at a FY17 funding level of $185,000 for 12 months. 2  Dr. Bellinger said it was frustrating to be awarding another contract for the incubators and asked if the city should be in this kind of business. Ms. Ferebee and Mr. Seymour both stated a timeline needs to be in place in order to examine the options and have a decision in place by November. Ms. Shuford said she has been on the Incubator Committee since 2007 and neither incubator has complied with the agreement. She recommended the board review the incubator executive summary during its retreat. Chair Brown thanked everyone for working through the RFP process which revealed a lot of interesting concepts. This item will be placed on the EDA retreat agenda so we can have a strategic discussion regarding business incubation in the city. A motion was made by Mr. Arnold and seconded by Mr. Bagley to approve the Resolution as presented. A roll call vote was taken which resulted as follows: Ayes: Arnold, Bagley, Bellinger, Seymour, Shuford, Ferebee and Brown Nays: None RESOLUTION Mr. Sledge presented a Resolution approving an agreement HUBI between the Economic Development Authority of the City of Hampton, Virginia and the Hampton University Business Incubator at a FY17 funding level of $60,000 for 12 months. A motion was made by Mr. Bagley and seconded by Dr. Bellinger to approve the Resolution as presented. A roll call vote was taken which resulted as follows: 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 discussion or consideration of the disposition of publicly held real property 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.A7 for consultation with legal counsel regarding specific legal matters requiring the provision of legal advice by such counsel. A motion was made by Ms. Ferebee and seconded by Mr. Arnold to go into the Closed Meeting. A roll call vote was taken which resulted as follows: 3  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 Ms. Shuford to conclude the Closed Meeting and return to the Meeting. A roll call vote was taken which resulted as follows: Ayes: Arnold, Bagley, Bellinger, Seymour, Shuford, Ferebee and Brown Nays: None NEW Chair Brown said the board needs to consider a Resolution BUSINESS of the Economic Development Authority of the City of Hampton, Virginia approving the extension of the maturity date of the 2003 loan between Hampton Roads Associates Bass Pro, LLC and Bank of America for the Bass Pro project with Bank of America or such other financial institution and under such terms as determined by EDA staff, its legal counsel, bond counsel and financial advisor. A motion as made by Mr. Seymour and seconded by Ms. Ferebee to approve the Resolution as presented. A roll call vote was taken which resulted as follows: Ayes: Arnold, Bellinger, Seymour, Shuford, Ferebee and Brown Abstain: Bagley Nays: None ADJOURNMENT There being no further business, the meeting was adjourned at 9:50 a.m. Respectfully submitted, Leonard L. Sledge Secretary-Treasurer LLS/tbh 4