Economic Development Authority of the City of Richmond
Board Meeting
January 28, 2010
Members present:
Jane Ferrara, Executive Director
Richard Johnson, Chair
Anne Gordon Greever, Vice-chair
Helen Alli
Kelvin Hanson
Others present:
Bonnie Ashley, City Attorneys Office
Alan Reese, Reese and Associates
Doug Sbertoli, LeClairRyan
Robert Dawson, Sands Anderson Marks and Miller
Dan Siegel, Sands Anderson Marks and Miller
Paulette McElwain, The Virginia League for Planned Parenthood
Mark Ellison, Economic Development Authority
I. Call to Order
Mr. Johnson called the meeting to order at 4:06 pm in the boardroom on the eighth floor of the AdvanTech building at 501 E. Franklin Street.
II. Public Hearing
A Public hearing was held by The Virginia League of Planned Parenthood, Inc. for seeking assistance from the EDA in connection with bond financing of structure. Ms. Greever motioned to approve the resolution as previously distributed, a copy of which is attached hereto and incorporated herein by reference which was seconded and carried unanimously.
III. Approval of Minutes of the Previous Meeting
Ms. Greever moved that the Board approve the minutes from the December meeting with changes. Mr. Hanson seconded the motion, which carried unanimously.
IV. Unfinished Business
A.Update on EDA Revolving Loan Fund Closeout: Ms. Ashley shared with the Board that she is expecting to receive a letter updating the Board on the loan fund closeout. She anticipates a successful resolution to this matter.
B.Status of CARE and Extra CARE loan program: Ms. Ferrara stated that she had no update from the administration. Ms. Ashley stated that she would need a letter from the CAO. Ms. Ferrara indicated that she would meet with Mr. Chapman to address this matter and determine how to proceed and the timing for action.
C.Status of the 2nd and Marshall Property: The Development Committee met and authorized quotes from several appraisals. Knight Dorin and Roundtrey were chosen. Ms. Ferarra has approved the appraisal and will report at the next Development Committee meeting. Ms. Betty-Anne Teeter and Mr. Dino Brazianos created staff reports to compare each option and their effect on the economy in the downtown area. Ms. Teeter and Ms. Ferrara have been authorized to negotiate the sale once a decision on which potential purchaser to work with has been approved by the EDA.
D.Credit Reports: Ms. Alli inquired about credit reports for both the Incubator and the Loan Committee. Mr. Johnson moved to authorize Mr. Ellison to engage a credit reporting company after Ms. Ashley has fully reviewed the terms/conditions as well as the actual language of the contract. This motion was moved by Ms. Alli. Mr. Hansen seconded the motion, which carried unanimously.
E.Incubator Director Position: Ms. Alli introduced to the Board a job description for the Incubator Director. It was discussed by the Board that there would be a work session with Ms. Ferrara to explore options and how the Board could use various talents of the DECD.
V. Financial Overview
Mr. Reese, of Reese and Associates, announced that all accounts are running smoothly. He did note that with rent collections, the Incubator has broken even for the month. Mr. Reese and his firm have been covering entering loan payments, sent out interest statements and 1099s. Ms. Greever asked Mr. Reese in he felt comfortable providing this servicing work for the loan portfolio. Mr. Reese responded that he was comfortable with this work arrangement, but that the Authority needs a third party for underwriting. Once the attorney closes on the loan, that is when the processing work by Reese and Associates begins. He stated that he is comfortable with this process up to the point where payments stop, at which point the loan would be referred to our attorney for collection.
Audit Review: Mr. Reese presented the Audit from 6/30/09 to the Board and then answered several questions. Mr. Johnson noted that the Finance Committee received the Audit from our auditor and noted that we once again received a clean opinion on our Financial Statements. The Finance Committee also received the Management Letter from our auditor which, for the first time, reported no material weaknesses in our Financial Statements or operations
.
VI. Report of the Officers
Report of the Chairman: Mr. Johnson reported that most of his activities for the month had already been covered. Mr. Johnson confirmed that he would like to set-up a time to have a work session with our Executive Director to address staffing needs. He also shared with the Board our progress on working with Alan Reese on loan collections.
A.Possible New Treasurer: Mr. Johnson made note that Bill Hardy was invited to sit in at the previous Finance Committee meeting. Mr. Hardy is committed to working on the Board, however he wanted the Board to be aware his acceptance of a position on the Board should be approved only subject to knowledge that of time limitations on his part in February and March. The Board acknowledged this limitation and confirmed that the time limitation should not prohibit his participation.
B.Possible New Board Member: Councilwomen Graziano has advised the Board of her intention to nominate Ms. Greta Harris for the vacant seat open on the EDA Board.
Report of the Secretary : Ms. Ferrara will submit a written report to the Board concerning the new Department of Economic and Community Development.
VII. Report of the Committees
A.Executive Committee: Mr. Johnson stated that the minutes from the Committees meeting sufficed for a report.
B.Development Committee: Ms. Greever reported that much of her activities of the month had already been covered.
C. Finance Committee: Mr. Johnson covered information delivered earlier in the meeting.
D. Loan Committee: Ms. Alli is working with Mr. Kevin Brown to underwrite a loan.
E. Incubator Committee: The Incubator Committee introduced a proposal to work on needed pointing up of the brick and mortar of The AdvanTech Building. Mr. Ellison is to bring an actual contract for Ms. Ashley to review. Ms. Greever asked Mr. Reese to please determine and advise how much money we have spent up to date on major improvements to the AdvanTech Building and to please forward a copy of that summary via email to each Board Member.
VIII. New Business
A.Election of Officers: Ms. Greever moved to defer election to February. Mr. Hanson seconded the motion, which carried unanimously.
B.Review of Audit and Audit Engagement for FY 2010: Ms. Ashley advised the Board to defer engagement until she can review the by-laws regarding costs related to the Audit and the form and substance of the actual audit contract.
C.EDA v. Barbara and Portia: Ms. Greever moved to approve the settlement as negotiated by the City Attorneys office and to authorize Mr. Johnson to sign documents on behalf of the EDA to resolve this matter. Ms. Alli seconded the motion, which carried unanimously.
D.Resolution of AppreciationTonya Scott Hickman: Mr. Johnson presented a Resolution of Appreciation to be presented to Ms. Tonya Scott Hickman for her service of the Board of the EDA Ms. Greever moved approval of the resolution. The motion was seconded by Mr. Hanson, which carried unanimously.
IX. Adjournment
The meeting was adjourned at 5:58 pm.