Economic Development Authority

City of Petersburg Economic Development Authority Meeting Regular Meeting AGENDA January 21, 2021 5:00 p.m. Videoconference Join Zoom Meeting https://zoom.us/j/96507866720?pwd=VWhmSHdpMTJSVGUwZzE1TThaM0hOdz09 Meeting ID: 965 0786 6720 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) 1. Call to order – Mr. Samuel Rhue, Chairman 2. Roll call of members 3. Approval of the Minutes: December 17, 2020 4. Financial Report- Mr. Richard Taylor Secretary /Treasurer 5. Report from the Chairman- Mr. Samuel Rhue 6. New Business a. Project Tube Update, Jeremy Tennant, Assistant to the City Manager b. Technology Zone Update, Jeremy Tennant, Assistant to the City Manager 7. Old Business a. Update on Hotel Petersburg, Dr. Nat Cuthbert b. Economic Development Report, Jeremy Tennant, Assistant to the City Manager i. New Business List Update ii. Project List for Real Estate Development Update 8. Announcements a. Next meeting date-February 18, 2021 at 5:00pm 9. Adjournment 2 § 58.1-3245.12 3 4 The Machinery & Tools Tax (M&T) is a local tax that taxes production-related machinery & tools used in manufacturing. In Petersburg, the machinery & tools tax rate is $3.80 per $100 assessed value. The Code of Virginia authorizes the creation of Technology Zones which can provide tax incentives to stimulate economic development. To secure Project Tube and match the VEDP incentive package of $5.7 million, Petersburg will be utilizing a credit for up-to $2.9 million generated in M&T tax generated from taxes from Civica. 5 Initial request: March 22, 2018 Potential Extension: March 22, 2023 6 7 ▪ Identifies the Grant Administrator as the entity to certify the application prior to routing to the Commissioner of Revenue. ▪ Clarifies how the amount of the credit is determined, and the duration of the grant period. 8 • Clarifies the duration of the grant award and specifies the grant term. 9 Clarifies that the grant administrator may establish verification procedures with the Commissioner of the Revenue to ensure that all privacy concerns and rights are protected. 10 11 12 The proprietors for the Hotel Petersburg Development provided a presentation to the EDA on the December 17, 2020 meeting. As proposed, 65% of the Meal and Lodging taxes would filter through the City to the EDA who would act as the third-party lender of the gap financing to reimburse the Hotel Petersburg Development. During the December meeting, a proposal to fill the existing gap via a Cameron Foundation grant was introduced. The Letter of Intent (LOI) deadline for the Cameron Foundation Grant and Award Submission was on January 6, 2021. The next Cameron Foundation LOI deadline is May 3, 2021. The developer is preparing a Performance Agreement to share with the EDA for discussions to enter into an LOI. 2 3 0101-2021VacantCityOwnedRealEstatePropertyList (petersburgva.gov) 2 3  DATE # BUSINESS NAME BUSINESS ADDRESS OWNER NAME ESTABLISHED 1 11/1/2020 SUPERIOR PLUMBING, HEATING & MEADOWS GEOFF 2 11/1/2020 FRANCO'S LIBERTY BRIDGE INC. ST ANDREW STREET BRIDGE FRANCO FREDIS 3 11/4/2020 BUTTON'S FLAVA OF THINGS 1700 E WASHINGTON ST LEE TERRI 4 11/4/2020 INTERNATIONAL PLUMBING LLC 201 W WASHINGTON STREET CASTILLO MANUEL 5 11/4/2020 HI-TECH AUTO REPAIR, LLC 1300 E WASHINGTON STREET WARTHAN ROBERT 6 11/4/2020 A TOUCH OF HOPE HOME CARE, LLC 30 FRANKLIN STREET SUITE 201 RAMSEY LAKESHIA D 7 11/4/2020 RVA ROOFING SERVICES DBA 2476 POE LANE FERGUSON JR DONALD RAY 8 11/4/2020 SOUTHSIDE REGIONAL HOME HEALTH 601 OLD WAGNER ROAD SUITE A PETERSBURG HOME CARE SERVICES, 9 11/4/2020 ZDS CONSULTING 440 Spring Street STANISLAS-JOHNNZANA 10 11/4/2020 RICH OFF SMOKE, LLC 1136 ROME STREET TUCKER JR CRAIG 11 11/5/2020 TWIN BULL TREASURES LLC 39 BOLLINGBROOK STREET GEIGER SHANNON 12 11/5/2020 WAYNE DEAN DOJO 2793-L S CRATER ROAD DEAN-RAMSEY LISA 13 11/5/2020 SASHAE'S BEAUTY SALON, LLC 107 N SYCAMORE STREET FORDHAM SASHAE 14 11/5/2020 BUILDIN BLOCKS DAYCARE, LLC 2901 S CRATER ROAD WRIGHT JAIMESON G 15 11/6/2020 KEMP'S HANDYMAN SERVICE, LLC 1857 S SYCAMORE STREET WASHINGTON JOSEPH 16 11/9/2020 RIDDICK REPAIR SERVICE LLC 426 HOLLY HILL DRIVE RIDDICK JR OLLIE L 17 11/10/2020 5IVE STAR DIVAS & ALL STAR 1236 W WASHINGTON STREET NEVERSON CRYSTAL 18 11/10/2020 HEAVENLY PASTRIES LLC 2135 S CRATER ROAD TYSON CATHERINE 19 11/12/2020 SO FRESH FOOD 1900 W WASHINGTON STREET SO FRESH ENTREPRISE INC 20 11/13/2020 OUT THE MUD TRUCKING LLC 2129 JACKSON CT PENDLETON JR STEVEN MARK 21 11/16/2020 FIELDS LAWN CARE 2616 HOMESTEAD DRIVE FIELDS SR WARREN DARNELL 22 11/17/2020 2UNIGUEDESIGNS LLC 27 CORLING STREET APT B GRANT AISHA S 23 11/18/2020 PLAZA CLEANERS 1604 E WASHINGTON STREET YI SANG 24 11/18/2020 D.W. DELIVERIES LLC 1701 S HALCUN DR WASHINGTON DARELL NATHANIEL 25 11/19/2020 TWIN POWERED PROPERTY 129 RICHLAND RD MAYER VONDA 26 11/25/2020 VICKIE'S CRAFTY CREATIONS 8 W BANK STREET MAYTON VICTORIA 27 11/30/2020 ALLEN ALIZIA 107 N SYCAMORE STREET ALLEN ALIZIA 28 11/30/2020 VIRGINIA VAPOR LLC 1952-58 S SYCAMORE ALKATTEEB GAMAL 29 11/30/2020 EZRI BUILDERS, INC. 3300 S CRATER ROAD HOLCOMB SHARON 30 11/30/2020 SALSA CONTRACTORS 440 SPRING ST STANISLAS GREGORY C 2 DATE BUSINESS NAME BUSINESS ADDRESS OWNER NAME ESTABLISHED 12/1/2020 SMS GROCERY AND DELI 2210 COUNTY DR ETHMANE LLC 12/1/2020 THE XCLUSIVE AUTO CENTER INC 2023 E WASHINGTON STREET SALEM MOHAMMAD 12/2/2020 EDWARDS-BROOKS SAREENA 107 N SYCAMORE STREET EDWARDS-BROOKS SAREENA 12/7/2020 ALLEN COURTNEY 107 N SYCAMORE STREET ALLEN COURTNEY 12/8/2020 M&G ELECTRICAL AND CONTRACTING 3330 S CRATER RD MARTIN WILLIAM 12/9/2020 FLEMING RAS JOSEPH N 904 WILLCOX STREET FLEMING RAS JOSEPH N 12/28/2020 DON JOSE LLC 101 S CRATER ROAD GALO JOSE 3 4 On July 24, 2020 the Virginia Economic Development Partnership (VEDP) proposed a Financial Offer for Project Tube via the Commonwealth’s Opportunity Fund (COF).VEDP was created in 1995 by the Virginia General Assembly to “encourage, stimulate, and support development and expansion of the Commonwealth’s economy.” Project Tube is located within the I-95 Technology Zone. 2 Project Tube consists of three separate companies that have joined forces as one to manufacture pharmaceuticals: 3  Project Tube Utah Site Current AMPAC Facility 4 AMPAC Fine Chemicals (AFC), an SK pharmteco company, is a United States-based, custom manufacturer of active pharmaceutical ingredients (APIs, Drug Substances) and registered intermediates. AFC solves problems through technology and innovation to reliably deliver quality products that save and improve lives. With over 75 years of experience, AFC has mastered challenging chemistries, enabling us to provide the highest quality services to their customers. 5 Phlow is a public benefit corporation founded to manufacture affordable, high quality, essential drugs in the United States. To help the United States secure its own strategic drug reserve, Phlow uses novel and innovative methods in the drug manufacturing industry to reduce the United State’s dependency on foreign supply chains. Established in spring of 2020, they are headquartered in Richmond and developing facilities in Petersburg. 6 Civica Rx is a non-profit focused on making essential generic medications accessible and affordable. Civica Rx partners with healthcare systems to ensure that generic drugs are affordable and available as soon as possible. Civica Rx is focused on bringing value — in supply, quality, and price to the market. Established in 2018, they are headquartered in Lehi, Utah. 7 8 9 10 11 12 Today, on January 21, 2021, the Governor’s Office announced that pharmaceutical manufacturer, Civica RX. will establish its first in-house pharmaceutical manufacturing operation in the City of Petersburg. The projected total capital investment from CIVICA RX is $124,562,136 along with a net of 186 new jobs with the annual salary ranging at approximately $83,978; while the total potential state and local financial support is projected to be $11,864,438. Of the total projected financial support, approximately $2,900,000 will be provided by the City of Petersburg via the City’s Technology Zone & Machinery and Tolls Tax Grant Program. 13 The Performance Agreement between VEDP, Project Tube and the City of Petersburg is near completion. Staff is reviewing the document for final execution. The Memorandum of Understanding for the Infrastructure Development Agreement between the Project Tube and the City is still pending; however, it is also near completion as the City is currently in wait as the representatives from Project Tube provide the timeline for the duration of terms. VEDP has compiled quotes from stakeholders consisting of partners and elected officials for the Project Tube Press Release. The date for the Governor’s press release will be announced soon. 14 Early 2020: Phlow is founded in Richmond, VA. May 2020: Phlow wins a $354 million, 4-year grant from U.S. Department of Health and Human Services to domesticate the U.S.’s pharmaceutical supply chain in the face of supply upheaval in the face of COVID-19. June 2020: Phlow and partners and City of Petersburg Team meet to discuss this opportunity. Petersburg and Virginia Economic Development Partnership (VEDP) discuss details, outline, and incentives for Project Tube. NDA’s signed. July 2020: VEDP proposes Commonwealth Opportunity Fund (COF) – requires a match; Machinery & Tools (M&T). Conversations with AMPAC, Phlow, Civica, VEDP, and City. Meetings on infrastructure begin. August 2020: Project Tube meeting regarding utility and infrastructure needs. Phlow and City begin weekly site planning and infrastructure meetings. September 2020: City negotiations with VEDP and Phlow regarding infrastructure and MOU. Council passes ordinance subdividing AMPAC land into two unique tax parcels. Council passes ordinance amending the Technology Zone to extend to the new parcel. October 2020: Phlow purchases the newly created parcel from AMPAC. January 2021: Civica is announced to invest $124.5 million to establish a new facility adjacent to Phlow Corporation 15 16 2 § 58.1-3245.12 3 4 The Machinery & Tools Tax (M&T) is a local tax that taxes production-related machinery & tools used in manufacturing. In Petersburg, the machinery & tools tax rate is $3.80 per $100 assessed value. The Code of Virginia authorizes the creation of Technology Zones which can provide tax incentives to stimulate economic development. To secure Project Tube and match the VEDP incentive package of $5.7 million, Petersburg will be utilizing a credit for up-to $2.9 million generated in M&T tax generated from taxes from Civica. 5 Initial request: March 22, 2018 Potential Extension: March 22, 2023 6 7 ▪ Identifies the Grant Administrator as the entity to certify the application prior to routing to the Commissioner of Revenue. ▪ Clarifies how the amount of the credit is determined, and the duration of the grant period. 8 • Clarifies the duration of the grant award and specifies the grant term. 9 Clarifies that the grant administrator may establish verification procedures with the Commissioner of the Revenue to ensure that all privacy concerns and rights are protected. 10 11 12 The proprietors for the Hotel Petersburg Development provided a presentation to the EDA on the December 17, 2020 meeting. As proposed, 65% of the Meal and Lodging taxes would filter through the City to the EDA who would act as the third-party lender of the gap financing to reimburse the Hotel Petersburg Development. During the December meeting, a proposal to fill the existing gap via a Cameron Foundation grant was introduced. The Letter of Intent (LOI) deadline for the Cameron Foundation Grant and Award Submission was on January 6, 2021. The next Cameron Foundation LOI deadline is May 3, 2021. The developer is preparing a Performance Agreement to share with the EDA for discussions to enter into an LOI. 2 3  DATE # BUSINESS NAME BUSINESS ADDRESS OWNER NAME ESTABLISHED 1 11/1/2020 SUPERIOR PLUMBING, HEATING & MEADOWS GEOFF 2 11/1/2020 FRANCO'S LIBERTY BRIDGE INC. ST ANDREW STREET BRIDGE FRANCO FREDIS 3 11/4/2020 BUTTON'S FLAVA OF THINGS 1700 E WASHINGTON ST LEE TERRI 4 11/4/2020 INTERNATIONAL PLUMBING LLC 201 W WASHINGTON STREET CASTILLO MANUEL 5 11/4/2020 HI-TECH AUTO REPAIR, LLC 1300 E WASHINGTON STREET WARTHAN ROBERT 6 11/4/2020 A TOUCH OF HOPE HOME CARE, LLC 30 FRANKLIN STREET SUITE 201 RAMSEY LAKESHIA D 7 11/4/2020 RVA ROOFING SERVICES DBA 2476 POE LANE FERGUSON JR DONALD RAY 8 11/4/2020 SOUTHSIDE REGIONAL HOME HEALTH 601 OLD WAGNER ROAD SUITE A PETERSBURG HOME CARE SERVICES, 9 11/4/2020 ZDS CONSULTING 440 Spring Street STANISLAS-JOHNNZANA 10 11/4/2020 RICH OFF SMOKE, LLC 1136 ROME STREET TUCKER JR CRAIG 11 11/5/2020 TWIN BULL TREASURES LLC 39 BOLLINGBROOK STREET GEIGER SHANNON 12 11/5/2020 WAYNE DEAN DOJO 2793-L S CRATER ROAD DEAN-RAMSEY LISA 13 11/5/2020 SASHAE'S BEAUTY SALON, LLC 107 N SYCAMORE STREET FORDHAM SASHAE 14 11/5/2020 BUILDIN BLOCKS DAYCARE, LLC 2901 S CRATER ROAD WRIGHT JAIMESON G 15 11/6/2020 KEMP'S HANDYMAN SERVICE, LLC 1857 S SYCAMORE STREET WASHINGTON JOSEPH 16 11/9/2020 RIDDICK REPAIR SERVICE LLC 426 HOLLY HILL DRIVE RIDDICK JR OLLIE L 17 11/10/2020 5IVE STAR DIVAS & ALL STAR 1236 W WASHINGTON STREET NEVERSON CRYSTAL 18 11/10/2020 HEAVENLY PASTRIES LLC 2135 S CRATER ROAD TYSON CATHERINE 19 11/12/2020 SO FRESH FOOD 1900 W WASHINGTON STREET SO FRESH ENTREPRISE INC 20 11/13/2020 OUT THE MUD TRUCKING LLC 2129 JACKSON CT PENDLETON JR STEVEN MARK 21 11/16/2020 FIELDS LAWN CARE 2616 HOMESTEAD DRIVE FIELDS SR WARREN DARNELL 22 11/17/2020 2UNIGUEDESIGNS LLC 27 CORLING STREET APT B GRANT AISHA S 23 11/18/2020 PLAZA CLEANERS 1604 E WASHINGTON STREET YI SANG 24 11/18/2020 D.W. DELIVERIES LLC 1701 S HALCUN DR WASHINGTON DARELL NATHANIEL 25 11/19/2020 TWIN POWERED PROPERTY 129 RICHLAND RD MAYER VONDA 26 11/25/2020 VICKIE'S CRAFTY CREATIONS 8 W BANK STREET MAYTON VICTORIA 27 11/30/2020 ALLEN ALIZIA 107 N SYCAMORE STREET ALLEN ALIZIA 28 11/30/2020 VIRGINIA VAPOR LLC 1952-58 S SYCAMORE ALKATTEEB GAMAL 29 11/30/2020 EZRI BUILDERS, INC. 3300 S CRATER ROAD HOLCOMB SHARON 30 11/30/2020 SALSA CONTRACTORS 440 SPRING ST STANISLAS GREGORY C 2 DATE BUSINESS NAME BUSINESS ADDRESS OWNER NAME ESTABLISHED 12/1/2020 SMS GROCERY AND DELI 2210 COUNTY DR ETHMANE LLC 12/1/2020 THE XCLUSIVE AUTO CENTER INC 2023 E WASHINGTON STREET SALEM MOHAMMAD 12/2/2020 EDWARDS-BROOKS SAREENA 107 N SYCAMORE STREET EDWARDS-BROOKS SAREENA 12/7/2020 ALLEN COURTNEY 107 N SYCAMORE STREET ALLEN COURTNEY 12/8/2020 M&G ELECTRICAL AND CONTRACTING 3330 S CRATER RD MARTIN WILLIAM 12/9/2020 FLEMING RAS JOSEPH N 904 WILLCOX STREET FLEMING RAS JOSEPH N 12/28/2020 DON JOSE LLC 101 S CRATER ROAD GALO JOSE 3 4 0101-2021VacantCityOwnedRealEstatePropertyList (petersburgva.gov) 2 3