Economic Development Authority of the City of Richmond
Board Meeting
January 29, 2009
Members present:
Richard Johnson, Chair
Anne Gordon Greever, Vice-chair
Helen Alli
Kelvin Hanson
Dennis Ryan
Tonya Scott-Hickman
Others present:
Denise Lawus, Department of Economic Development
Bonnie Ashley, Assistant City Attorney
Alan Reese, Reese and Associates
Ben McDearmon, Economic Development Authority
I. Call to Order
Mr. Johnson called the meeting to order at 4:08 pm in the boardroom on the eighth floor of the AdvanTech building at 501 E. Franklin Street.
II. Public Comment
No members of the public attended the meeting.
III. Approval of Minutes of the Previous Meeting
Ms. Greever moved that the Board approve the minutes from the December meeting as drafted. Ms. Scott-Hickman seconded the motion, which carried unanimously.
IV. Unfinished Business
A. Payoff of 501 E. Franklin: Mr. Johnson reported that Sally Wetzler, Treasurer and chair of the Finance Committee, had been working on a resolution to this issue but that she was out of town and she had not had an update the last time they had spoken. The proceeds from the sale of the property at 10th and Broad was currently in short-term investments in a Wachovia Money Market account, but Mr. Reese noted he could not guarantee the return from that account. A meeting with Consolidated Bank was set for February 5.
B. Loan Administration: Ms. Lawus had submitted a memo summarizing the duties of the proposed loan administration position and the anticipated fees to support the cost of the position. Ms. Alli stated that after reviewing the situation, she believed that the position would require a full-time employee to do the work and that the fees were sufficient to cover the costs. Mr. Reese and Ms. Lawus updated the Board on the steps that were being taken to make the in-house loan servicing system operational and to determine what additional information would be needed from Richmond Economic Development Corporation. Mr. Reese explained that the total cost of the loan program would include personnel salary and benefits, accounting costs, and audit fees. The estimated total of these expenses would be between $75,000 and $79,000.
Ms. Greever asked whether the Authority had an interest in taking over the Neighborhoods In Bloom loan program, as suggested by Ms. Lawus in her memo, and if so whether the Board should take official action to consider this. Ms. Alli moved that the Authority move forward to request that the Department of Economic Development contract with the Authority to administer the Neighborhoods in Bloom program. Ms. Scott-Hickman seconded the motion. Mr. Ryan questioned whether the Board should vote to take on this role without having fully developed its plan for how to handle loan administration. Ms. Greever stated that in order to make the loan program a more important part of the Authoritys overall mission, a full-time position might be the best way to go, and the additional fees from the Neighborhoods in Bloom program appeared to make that more feasible. The motion carried 5-1, with Mr. Ryan opposed and all other members in favor.
Mr. Johnson directed the Loan Committee to create a specific job description which determines exactly how many hours per week the job requires and how much the Authority should pay. Ms. Greever suggested that the Loan Committee consider the question of whether the person should serve as an independent contractor, which would be a procurement item and require an RFP, and issue a recommendation at the next Board meeting if possible.
C. CARE Loan 5012: Ms. Alli moved that the Authority accept the proposed settlement from Ms. Wanda Stallings, which would clear the outstanding loan balance of $696.00 for a payment of $348.00, or one-half the total balance. Ms. Scott-Hickman seconded the motion, which carried unanimiously.
D. CARE and Extra CARE Cooperation Agreements: Mr. Johnson read the following resolution to enter into the Sixteenth CARE Cooperation Agreement with the City:
The Economic Development Authority of the City of Richmond, Virginia Resolves: 1. That the Chair of the Economic Development Authority of the City of Richmond, Virginia (the EDA), for and on behalf of the EDA, be and is hereby authorized to enter into the Sixteenth Commercial Area Revitalization Effort Program Cooperation Agreement between the City of Richmond and the EDA for the purpose of providing for the operation of the Commercial Area Revitalization Effort (CARE) Program. Such agreement shall be substantially in the form of the document attached to this resolution and approved as to form by the EDAs general counsel. 2. This resolution supersedes and renders ineffective the resolution adopted November 18, 2008 regarding the previously presented Cooperation Agreement. 3. This resolution shall be in force and effect upon adoption.
Ms. Greever seconded the motion, which carried 4-0-2, with Mr. Hanson and Ms. Scott-Hickman abstaining.
Mr. Johnson read the following resolution to enter into the Sixth Extra CARE Cooperation Agreement with the City:
The Economic Development Authority of the City of Richmond, Virginia Resolves: 1. That the Chair of the Economic Development Authority of the City of Richmond, Virginia (the EDA), for and on behalf of the EDA, be and is hereby authorized to enter into the Sixth Extra Commercial Area Revitalization Effort Program Cooperation Agreement between the City of Richmond and the EDA for the purpose of providing for the operation of the Extra Commercial Area Revitalization Effort (Extra CARE) Program. Such agreement shall be substantially in the form of the document attached to this resolution and approved as to form by the EDAs general counsel. 2. This resolution supersedes and renders ineffective the resolution adopted November 18, 2008 regarding the previously presented Cooperation Agreement. 3. This resolution shall be in force and effect upon adoption.
Ms. Alli seconded the motion, which carried 4-0-2 with Ms. Hanson and Ms. Scott-Hickman abstaining.
V. Financial Overview
Mr. Reese reported that a meeting with Consolidated Bank had been set for February 5, and that he had spoken with the auditors to coordinate the start of the FY 2008 audit. He also stated that he would be meeting with the Department of Economic Development to resolve the amount of salaries due back to the City from 2007-2008. The final amount totaled $27,513.56. An idea had been suggested to use the balance due to offset the Department of Economic Developments rent. Mr. Johnson stated that as long as the matter was handled within the proper guidelines, he supported whatever steps needed to be taken to clear up the debt.
Mr. Reese and Ms. Lawus reported to the Board that a series of checks for the CARE account had been stolen by a former temporary employee with the Department of Economic Development and that the matter had been resolved with the bank, the old account had been cancelled and new checks had been ordered. All properly authorized outstanding checks would be passed through the new account. They noted that the matter had been turned over to the police.
Mr. Reese summarized the monthly financial statements prepared by his office.
VI. Report of the Officers
A. Report of the Chairman: Mr. Johnson reported that much of his activities for the month had already been covered. He noted that Hirschler Fleischer had issued a small refund from the escrow account from the sale of 10th and Broad which would come back to the Authority.
B. Report of the Secretary: Ms. Lawus gave the Secretarys report on behalf of Mr. Currin, who was unable to attend. She reported that following the theft of the checks, Mr. Currin and his staff had been working on addressing internal controls, and that a safe would be installed in the EDA office on the first floor to hold all checkbooks.
VII. Report of the Committees
A. Executive Committee: Mr. Johnson stated that the minutes from the committees meeting sufficed for a report. He also noted that a potential candidate to replace Mr. McDearmon in July had attended to allow her to meet the committee and to become more familiar with the Authoritys operations.
B. Development Committee: Ms. Greever stated that the minutes from the committees meetings covered most of the items in her report, and that an additional item would be covered under new business. Ms. Greever also reported that she would be attending City Councils Finance Committee retreat the following day, representing the Board at that meeting.
C. Finance Committee: Ms. Wetzler was unable to attend the meeting. The minutes as drafted stand as the committees report.
D. Loan Committee: Ms. Alli stated that the minutes as drafted covered the committees report.
Ms. Alli moved that the Board approve full write-downs for EZIL Loans 5166 (Virginia Tours) and 5041 (American Metal Fabrications) based on tax credits submitted to the Loan Committee. Ms. Scott-Hickman seconded the motion, which carried unanimously.
E. Incubator Committee: No meeting was held in January. Mr. McDearmon reported that an advertisement for the AdvanTech incubator had run in a special business edition of the Richmond Times-Dispatch earlier in the month and that he had already received several inquiries as a result. He also noted that he would be traveling to William and Marys Economic Development Office the following week along with Mr. Currin and members of his staff to discuss incubator program ideas. He invited the members of the Committee to attend if possible.
VIII. New Business
A. Selection of Authority Counsel for Bond Issuance: Ms. Greever explained that the Development Committee had interviewed five law firms that had submitted proposals in response to a letter that went out to nine firms selected by recommendation from Davenport and Company. The five firms submitting proposals were Hirschler Fleischer, Sands Anderson Marks & Miller, LeClairRyan, McGuireWoods, and Williams Mullen. Ms. Greever proposed that the Board go into Executive Session to discuss the Committees recommendation with Ms. Ashley.
IX. Executive Session
Mr. Johnson moved that the Authority go into closed session pursuant to Section 2.2-3711(A)(29) of the Virginia Code to discuss matters involving the award of a public contract involving the expenditure of public funds, including interviews of bidders or offerors, and discussion of the terms or scope of such contract, where discussion in an open session would adversely affect the bargaining position or negotiating strategy of the public body. Ms. Alli seconded the motion, which carried unanimously.
The Board entered Executive Session at 6:22 pm.
Mr. Ryan announced that he would be abstaining from voting on the matter due to his firm being among the candidates, and he exited the meeting at 6:24 pm. Mr. Hanson exited the meeting at 6:46 pm.
The Board came out of Executive Session at 6:48 pm. Mr. Johnson read the following certification:
Whereas, the EDA Board has convened in closed meeting on this date pursuant to an affirmative recorded vote and in accordance with the provisions of the Virginia Freedom of Information Act; and Whereas, Section 2.2-3712 of the Code of Virginia requires a certification by this Board that such closed meeting was conducted in conformity with Virginia law; Now, Therefore, Be It Resolved: That the Board hereby certifies that to the best of each members knowledge (i) only public matters lawfully exempt from open meeting requirements by Virginia law were discussed in the closed meeting to which this certifying resolution applies; and (ii) only such public business matters as were identifies in the motion convening the closed meeting were heard, discussed of considered by the Board. Witness the following vote of Board members, as recorded by Ben McDearmon.
The Board unanimously confirmed the certification, and Mr. Johnson circulated the document for signatures.
Ms. Greever read the following resolution: Whereas, the Economic Development Authority of the City of Richmond, Virginia (the EDA), undertakes certain activities involving matters of public finance; Whereas, the EDA is in need of legal services related to such activities; Whereas, the Virginia Public Procurement Act, Virginia Code Section 2.2-4344, exempts the purchase of legal services from competition; however, Whereas, the Development Committee of the Authority received and evaluated several competitive proposals from various providers of legal services relating to public finance; Now, Therefore, The Economic Development Authority of the City of Richmond Resolves: 1. That procurement of legal services for matters of public finance is necessary; 2. That the Chair or Vice Chair, or a designee thereof, is authorized to negotiate a contract with the law firms of LeClairRyan and McGuireWoods for the provision of said legal services. The contract shall be reviewed and approved as to form by counsel for the EDA. 3. This resolution shall be in force and effect upon adoption.
Ms. Scott-Hickman seconded the motion, which carried unanimously, 4-0-0.
X. Adjournment
The meeting was adjourned at 6:50 pm.