Economic Development Authority

ECONOMIC DEVELOPMENT AUTHORITY of the CITY OF HAMPTON, VIRGINIA Minutes – Regular Meeting July 19, 2016 – 8:30 a.m. EDA Conference Room CALL Chair Brown called the meeting to order at 8:30 a.m. TO ORDER DIRECTORS Eleanor W. Brown, Wallace C. Arnold, Richard M. Bagley, Jr., PRESENT Michelle T. Ferebee, L. Scott Seymour and Anne W. Shuford. Also present was Secretary-Treasurer Leonard L. Sledge. STAFF Vanessa Valldejuli, Pete Peterson, Patricia Melochick, Terry PRESENT O’Neill, Robin McCormick, Susan Borland, Daniel Girouard, Michael Yaskowsky, Steven Lynch, and Brenda Bailey GUESTS Mayor Donnie Tuck PRESENT Daniel Morris – Peninsula Technology Incubator William Fredericks – Advanced Aircraft Company Weston Lewis – Advance Aircraft Company Lauren Riley – City Attorney Office Intern Ryan Murphy – Daily Press MINUTES Chair Brown stated the Minutes of the June 21, 2016 EDA board meeting were distributed. A motion was made by Ms. Ferebee and seconded by Mr. Bagley to approve the Minutes as presented. A roll call vote was taken which resulted as follows: Ayes: Arnold, Bagley, Seymour, Shuford, Ferebee and Brown Nays: None ADVANCED Mr. Bill Fredericks gave a brief overview and a handout describing AIRCRAFT the company and their product, Hercules, a long endurance multi- COMPANY rotor UAS (Unmanned Aircraft System). Mr. Bagley enquired PRESENTATION about the price of the product. Mr. Arnold asked about opportunities to demonstrate the product. Ms. Shuford questioned the number of competitors in the UAS field. Mr. Fredericks addressed the changes to current operation requirements. Ms. Brown thanked Mr. Fredericks for choosing Hampton to locate his business. LOAN Ms. Ferebee reported the Loan and Grant Review Committee met PROGRAM on July 5, 2016 and the meeting minutes were included in the REPORT package. Ms. Ferebee advised that an Economic Development grant request was received from EUP Management Group located at the Peninsula Technology Incubator for $25,000 for computer programming purchases. Due to the guidelines of the program for  significant economic activity and job creation the committee recommended denying the request. Ms. Ferebee reported that two loans are over 90 days delinquent. The committee is still working with Touch of Class while they make payments. Mr. Sledge confirmed that a payment was made after the report was generated. The committee also met with Rhonda Scales of Covenant Care. There were no questions or comments on the EDA Statement of Account dated June 1, 2016 through June 30, 2016. Mr. Bagley commented that it was interesting to hear from Mr. Fredericks that venture capital is needed by some companies to have operating capital to survive. He also commented that last-resort loans are not economic generators for the City of Hampton and suggested that the Board discuss during the upcoming retreat ways to work with local financial banking institutions and find more relevant methods to stimulate economic development. There were no further questions or comments on the EDA Loan/Grant Program Fund Balance Sheet as of June 30, 2016. ECONOMIC Mr. Sledge thanked Mayor Tuck for his attendance at this meeting. DEVELOPMENT Mr. Sledge stated the updated Status Report on EDA Actions was DEPARTMENT included in the package. Other items of interest: REPORT  Mr. Sledge sent an email to the Board members on July 1, 2016 highlighting some changes in responsibilities of Economic Development staff to better align the department, ensure maximum daily value in each role and venture into new areas such as workforce development opportunities.  The EDA retreat will be rescheduled. Mr. Sledge thanked the Board for their cooperation and flexibility in this effort.  The capital projects funding for the new fiscal year is in place. $187,500 is available for projects already planned in Hampton Roads Center Owners Association and Hampton Roads Center North.  On Friday, July 15 seven staff members from the Economic Development Department implemented an existing business visit blitz that resulted in about 30 face-to-face meetings. New opportunities have surfaced from that effort.  With Mayor Tuck’s approval, the department will continue to send welcome letters to each new business licensed in Hampton.  Mr. Sledge thanked Mr. Arnold and Ms. Shuford for their continued service to the EDA Board. Ms. Valldejuli advised that City Council has chosen to defer board and committee appointments at this time in favor of discussing the appointment process at their upcoming retreat. 2 RESOLUTION Mr. Sledge presented a Resolution of Economic Development GRANT TO Authority of the City of Hampton, Virginia approving the BOO WILLIAMS provision of a $219,304 Hampton Community Cultural, Athletic SPORTSPLEX and Visitor Attraction Grant to Boo Williams Sportsplex, LLC. Mr. Seymour questioned a previous grant amount given to Langley Speedway. Mr. Sledge advised that while Langley Speedway has been granted funds in previous fiscal years, no application has been received for the current fiscal year from Langley Speedway. A motion was made by Ms. Ferebee and seconded by Mr. Arnold to approve the Resolution as read. A roll call vote was taken which resulted as follows: Ayes: Arnold, Bagley, Seymour, Shuford, Ferebee and Brown Nays: None RESOLUTION Mr. Sledge presented a Resolution of Economic Development GRANT TO Authority of the City of Hampton, Virginia approving the VIRGINIA provision of a $200,000 Hampton Community Cultural, Athletic AIR & SPACE and Visitor Attraction Grant to the Virginia Air & Space Center. CENTER A motion was made by Mr. Bagley and seconded by Ms. Shuford to approve the Resolution as read. A roll call vote was taken which resulted as follows: Ayes: Arnold, Bagley, Seymour, Shuford, Ferebee and Brown Nays: None RESOLUTION Ms. Valldejuli presented a Resolution of the Economic HAMPTON Development Authority of the City of Hampton, Virginia (“EDA”) ROADS ratifying and approving the actions of EDA staff, City staff, ASSOCIATES bond counsel and legal counsel pertaining to the extension of the BASS PRO, LLC maturity date of the 2003 bond and loan between Hampton Roads Associates Bass Pro, LLC (“HRABP”) and Bank of America for the Bass Pro Project and the negotiation of a new financial arrangement with Old Point National Bank or any other lender selected by HRABP and under such terms as determined by EDA staff, City staff, their legal counsel, bond counsel and financial advisor. A motion was made by Mr. Seymour and seconded by Ms. Ferebee to approve the Resolution as read. A roll call vote was taken which resulted as follows: Ayes: Arnold, Seymour, Shuford, Ferebee and Brown Nays: None Abstained: Bagley 3 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 Hampton Roads Center North where discussion in an open meeting would adversely affect the bargaining position or negotiating strategy of the Authority and Section 2.2-3711.A.7 for consultation with legal counsel regarding specific legal matters requiring the provision of legal advice by such counsel. A motion was made by Mr. Arnold and seconded by Ms. Ferebee to go into the Closed Meeting. A roll call vote was taken which resulted as follows: Ayes: Arnold, Bagley, 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 Mr. Seymour 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, Seymour, Shuford, Ferebee and Brown Nays: None ADJOURNMENT There being no further business, the meeting was adjourned at 9:42 a.m. Respectfully submitted, Leonard L. Sledge Secretary-Treasurer LLS/bsb 4