Economic Development Authority

City of Petersburg Economic Development Authority Meeting Special Meeting AGENDA December 17, 2020 5:00 p.m. Petersburg Area Transit 100 W. Washington Street Petersburg, VA 23805 Virtual Meeting Topic: EDA Monthly Meeting Time: Dec 17, 2020 05:00 PM Eastern Time (US and Canada) Join Zoom Meeting https://zoom.us/j/96507866720?pwd=VWhmSHdpMTJSVGUwZzE1TThaM0hOdz09 Meeting ID: 965 0786 6720 Passcode: 738053 One tap mobile +13126266799,,96507866720#,,,,,,0#,,738053# US (Chicago) +19292056099,,96507866720#,,,,,,0#,,738053# US (New York) Dial by your location +1 312 626 6799 US (Chicago) +1 929 205 6099 US (New York) +1 301 715 8592 US (Washington D.C) +1 346 248 7799 US (Houston) +1 669 900 6833 US (San Jose) +1 253 215 8782 US (Tacoma) Meeting ID: 965 0786 6720 Passcode: 738053 1. Call to order – Chairman Samuel Rhue 2. Roll call of members 3. Approval of the Minutes: July 2, 2020 November 19, 2020 4. Financial Report- Mr. Richard Taylor Secretary /Treasurer 5. Report from the Chairman- Mr. Samuel Rhue 6. New Business a. FOIA & COIA Training -Mr. Anthony Williams, EDA Attorney 7. Old Business a. Update on Hotel Petersburg, Dr. N. Cuthbert b. Economic Development Report, Kelly Evko 8. Announcements a. Next meeting date-January 21, 2021 at 5:00pm 9. Adjournment  City of Petersburg Economic Development Authority Meeting Special Meeting Minutes November 19, 2020 5:00 p.m. Petersburg Area Transit 100 W. Washington Street Petersburg, VA 23805 Virtual Meeting Topic: EDA Monthly Meeting Time: Nov 19, 2020 05:00 PM Eastern Time (US and Canada) Join Zoom Meeting https://zoom.us/j/93329767764?pwd=YzZuY1NMdW9LcU0vd1lkbEFtWHVsUT09 Meeting ID: 933 2976 7764 Passcode: 559880 One tap mobile +13017158592,,93329767764#,,,,,,0#,,559880# US (Washington D.C) +13126266799,,93329767764#,,,,,,0#,,559880# US (Chicago) Dial by your location +1 301 715 8592 US (Washington D.C) +1 312 626 6799 US (Chicago) +1 646 558 8656 US (New York) +1 253 215 8782 US (Tacoma) +1 346 248 7799 US (Houston) +1 669 900 9128 US (San Jose) Meeting ID: 933 2976 7764 Passcode: 559880 Find your local number: https://zoom.us/u/adnHDPQV6D 1. Call to order: Vice Chairman Samuel Rhue Vice Chairman Mr. Samuel Rhue started the meeting at 5:00pm 2. Roll call of members Ms. Cynthia Boone conducted the roll call of members. Mr. Samuel Rhue, Mr. Raymond Crockett, and Dr. Ahkinyala Abdullah were present in person. Mr. Richard Taylor, Mr. Layfette Jefferson, Mr. Winston Sanders, Mr. Michael Packer (joined via ZOOM). City Staff present: Lionel Lyons, Deputy City Manager; Anthony Williams, City Attorney; Clay Mansell, Economic Fellow; Cynthia Boone, Administrative Assistant 3. Introductions: New Members Mr. Rhue introduced the new members and provided them an opportunity to expound on their background and experience. Dr. Ahkinyala Abdullah arrived at the meeting at 5:15pm and gave her remarks after the Old Business. She stated that she is a professor at Virginia Union University. She stated how she see a lot of development in the city and is excited about serving the city of Petersburg. Mr. Raymond Crockett discussed how he has lived in the city over 48 years and how he is a business owner (Crockett Store, laundromat, and real estate), and how he has served on the Zoning Board and on other community groups. 4. Approval of the Minutes: Mr. Rhue stated that the meeting minutes for July 2, 2020 have not been completed therefore, they will be read and approved during the December 17, 2020 meeting. 5. Financial Report: Mr. Richard Taylor Secretary /Treasurer stated that the EDA currently have $105,995.85 in their account. There has been no deposits or withdrawals out of the account since July 2020. Mr. Rhue made a motion for the financial report be  accepted. Mr. Raymond Crockett 2nd the motion. The motion was approved unanimously by the board. 6. Report from the Vice Chairman: Mr. Rhue reported that he has been a member of the EDA for over a year. He expressed how it is time to move Petersburg to the next level by working collaboratively with the city and community leaders. He stated that is why it is important that the EDA meet monthly to show they are vested in Petersburg. He stated that working together we can make a difference. He expressed the need and importance of offering EDA 101 training to the new members so that they can be aware of what they can and cannot do as members and this will help them moving forward in the New Year. 7. New Business: a. FOIA Training -Francis Poulin, Director of Neighborhood Services, City of Petersburg. The FOIA training was cancelled due to the guest speaker not being able to attend. This training will be rescheduled for the December 17, 2020 meeting. b. Election of Officers: Mr. Rhue stated that the Chair position is currently vacant and needed to be filled according to the EDA bylaws. He moved that they nominate and hold a vote for a new chair. Mr. Richard Taylor nominated and made a motion for Mr. Rhue to be elected the chair. Mr. Packer 2nd the motion. Mr. Rhue asked if there were any other nominees. Mr. Taylor moved that the nomination be closed and be accelerated and called for vote. All the members, with the exception of the Dr. Abdullah who was not present for the vote, accepted. Mr. Rhue was chosen by majority vote to be the chair of the EDA. Mr. Rhue accepted and stated that they are now accepting nominees for Vice Chair. Mr.  Crockett made a motion to nominate Mr. Packer to be the vice chair. Mr. Taylor 2nd the motion. Mr. Rhue called for the vote. All the members, with the exception of the Dr. Abdullah who was not present for the vote, accepted and Mr. Packer was elected as Vice Chair of the EDA by majority vote. 8. Old Business: a. Resolution to Set Regular Meetings- Mr. Rhue made a motion that the resolution be accepted. All members voted to accept. The resolution was adopted and regular monthly meetings of the EDA will be held the 3rd Thursday of every month at 5pm. The calender for November 2020- December 2021 was accepted. A new calendar will be adopted on January 20, 2022. b. Update on Hotel Petersburg- Mr. Clay Mansell provided an update on hotel Petersburg in the absence of Ms. Kelly Evko. He stated that they are still seeking financing due to the denial of GAP funding by VTC. Mr. Rhue asked for a description of the project for the new members. Mr. Mansell discussed how the hotel will be located in historic downtown Petersburg and how it will provide the citizens and tourist and upscale, boutique style accommodations with a roof top dining experience. He elaborated on how Dr. Cuthbert and his team have already made significant investment into this project and Dr. Cuthbert is seeking additional private financing. Mr. Raymond Crockett asked how many rooms will there be? Mr. Mansell answered stating that there will be 68. Mr. Sanders asked how close they to completion are. Mr. Mansell answered that he the project is expected to be complete by the end of 2022. Mr. Johnson asked what percent of the workforce will be from Petersburg. Mr. Mansell stated that he was unsure, and he would try to gather this  information for the committee. Mr. Rhue asked that Mr. Mansell get with Ms. Evko and provide an update to the committee by Monday. c. Economic Development Report- Mr. Clay Mansell provided the Economic Development Report in the absence of Ms. Kelly Evko. The following items were discussed. The City is in the process of reforming our Disposition process to better serve the community. The Site Plan Development approval phase regarding the AMPAC and Phlow development is underway. Neighborhood Services is working to address blight across the City. New businesses continue to open up across the City, many being home businesses. Some notable new businesses downtown include the Sweet Bliss Café, Ta Bon Fry Southern Eats, and the Traveling Vine. Some other businesses include the development of future metal storage facilities, a cigar lounge, a Dollar Tree and a Dollar General. New housing developments are being constructed along Hinton Street. A church is seeking to be rezoned to Multi-Family housing on High Street. New Single and Multi-Family housing along Crater Road. The new Park & Ride structure broke ground. The facility, which is being funded through VDOT, will begin construction January 2021, with an estimated finish date of end-of-year 2022. Some City departments have moved into the old Dominion Energy building. The St. Andrews Bridge groundbreaking took place on September 21, 2020. Construction will begin before the end of the year 2020. 9. Announcements a. Next meeting date-December 17, 2020 at 5pm 10. Adjournment- the meeting was adjourned at 5:25pm. The ZOOM connection was interrupted at/ around 5:20pm. It is noted that this was during the announcements of the next EDA meeting, which has been provided to the committee via email, typed inside of the resolution and posted on their website. The EDA committee members were emailed immediately after the meeting and provided an explanation of the interruption and of the announcement. Attachments: A RESOLUTION TO SET REGUALR MEETINGS OF THE ECONOMIC DEVELOPMENT AUTHORITY WHEREAS, the Petersburg Economic Development Authority (hereinafter “EDA”) is a political subdivision of the Commonwealth of Virginia formed by act of City Council (Ordinance No.: 6913 adopted 11/20/1973) in accordance with Code of Virginia §§15.2-4903 et. seq.; and WHEREAS, Section 3.2 of the EDA Bylaws provides that the regular meetings o the EDA shall be held “at such time and place as shall from time to time [be] determined by resolution of the Board of Directors;” and WHEREAS, similar language is included in §15.2-1416 of the Code of Virginia for establishing a schedule of Regular Meetings; and WHEREAS, it is the desire of the EDA to adopt a schedule for its Regular Meetings to occur at 5:00 p.m. on the third Thursday of each month for the remainder of year 2020 and through year 2021 with a new schedule adopted annually at its first meeting beginning in year 2022; and WHEREAS, the location of said meetings shall be the Petesrburg Area Transit, 100 West Washington Street, Petersburg, Virginia 23803. NOW therefore be it RESOLVED that the Petersburg Economic Development Authority does hereby adopt the following Schedule of Regular Meetings to be held at the Petesrburg Area Transit unless otherwise amended or cancelled by majority vote of its Members: December 17, 2020 at 5:00 p.m. January 21, 2021 at 5:00 p.m. February 18, 2021 at 5:00 p.m. March 18, 2021 at 5:00 p.m. April 15, 2021 at 5:00 p.m. May 20, 2021 at 5:00 p.m. June 17, 2021 at 5:00 p.m. July 15, 2021 at 5:00 p.m. August 19, 2021 at 5:00 p.m. September 16, 2021 at 5:00 p.m. October 21, 2021 at 5:00 p.m. November 18, 2021 at 5:00 p.m. December 16, 2021 at 5:00 p.m. January 20, 2022 at 5:00 p.m. *(New Schedule to be annually adopted) BE it further RESOLVED that the EDA shall adopt a new schedule annually beginning at its first meeting of year 2022 and does hereby reserve the right to amend or modify this schedule and call for such additional Special Meetings as may be deemed necessary in accordance with the laws of the Commonwealth of Virginia and the Bylaws adopted and approved by the EDA. 69 guest rooms 3.5+ star/diamond boutique hotel Restaurant and bar seating 90 Outdoor patio seating 24 Rooftop bar accommodating 45 2100 sq. ft. of meeting space including a 1085 sq. ft. banquet room 60 full time and 40 part time employees Annual: Room rentals ……….............……...18,385 room days Room revenue ....................................$2,611,000 Food & beverage revenue ………….$1,790,000 Group event revenue ………………$ 268,000. Total annual revenue………….…….......... $4,669,000  Development Investment: Land…………………………….…….. $ 200,000 Construction…………………..……… $12,300,000 Furniture, fixtures and equipment...... $ 2,000,000 Deferred fee……………….….............. $ 1,983,000 Architectural, eng., legal, acct., etc..…$ 793,000 Closing Cost……………………….......$ 200,000 Total…………………………………... $17,476,000  Funding Sources: Equity, Historic Tax Credits, Deferred Fee ………..….. $ 8,840,000 First Mortgage……………………………………............$ 6,000,000 Gap financing…………………………...………...….......$ 2,636,000 Total………………………………………………........... $17,476,000  Historic Structure Rehabilitation Local Real Estate Tax Incentive – Enterprise Zone Petersburg City Code Sec. 106-134. - Rehabilitated commercial real estate located in the urban enterprise zone; qualifications; application and fee; building permits; verification. (a)Exemption from taxation of real estate which has been substantially rehabilitated shall be granted subject to the following provisions: (1)For the purpose of this section, any real estate located in the urban enterprise zone, as described by section 38-62, shall be deemed to have been substantially rehabilitated when a structure which is no less than 25 years of age has been so improved as to increase the assessed value of the structure by no less than 60 percent without increasing the total square footage of such structure by more than 25 percent. (2)The exemption provided in subsection (a)(1) of this section shall be an amount equal to the rehabilitation of the commercial or industrial structure, as determined by the city assessor; and this amount only shall be applicable to any subsequent assessment or reassessment. The exemption shall be limited to the first $2,000,000.00 of increased value. (3)The exemption shall run with the real estate for a period of five years.  Local Tourism Zone Meal &Lodging Tax Incentive: For 10 years, 65% of meal and lodging taxes paid by patrons through the Hotel to the City will, in turn, be transferred from the City to the EDA. The EDA, with the funds transferred, will either: 1. Pay principal and interest to the third-party lender of the gap financing. -or- 2. In the event EDA receives a grant, EDA lends grant funds to Hotel and retains the 65% meal and lodging funds transferred for other economic development projects. -or- 3. A combination of 1. and 2. above. Customers City Third Party Lender 65% M & L Tax EDA OR Customers City Gap Loan From Grant EDA EDA Retains Payments to Support Other Econ. Dev. Projects Net Revenue to City After Incentives  NO Net Revenue to City After Incentives INCENTIVES