Economic Development Authority of the City of Richmond
Board Meeting
February 26, 2009
Members Present:
Anne Gordon Greever, acting Chairperson
Dennis Ryan
Sally Wetzler
Others Present:
Betty-Anne Teter, Department of Economic Development
Bonnie Ashley, Assistant City Attorney
Alan Reese, Reese and Associates
Doug Sbertoli, LeClairRyan
Ben McDearmon, Economic Development Authority
I. Call to Order
Ms. Greever called the meeting to order at 4:03 pm in the boardroom on the eighth floor of the AdvanTech building at 501 E. Franklin Street.
She noted that the Board did not have a quorum present, but that she was hopeful that Kelvin Hanson would be able to attend the meeting, at which point the requirements for a quorum would be met. The remaining three Board members had given notice that they would be unable to attend the meeting.
II. Public Comment
No members of the public were present.
III. Approval of Minutes of the Previous Meeting
Approval of the January 29, 2009 Board meeting minutes was postponed until a quorum was present.
IV. Unfinished Business
A. Approval of Bond Fee Structure/Bond Conflict of Interest Memo: Ms. Greever explained that the Development Committee had made a recommendation for a fee structure for bond issuances and that Mr. Sbertoli had prepared a memo outlining the extent to which Mr. Ryan had a conflict of interest as both a member of the Board of the EDA and a shareholder in the firm of LeClairRyan. However, as the Board did not have a quorum present, no action could be taken at that time.
B. Loan Administration: The Loan Committee had been asked at the previous Board meeting to create a job description for a loan administrator position, including salary recommendations and a suggested number of hours per week that the job would require. The Loan Committee did not meet in February, and would address this item at its March meeting.
Mr. Reese updated the Board on the progress made by members of his staff, working with the Authority, on the transition of loan servicing from Richmond Economic Development Corporation to an in-house operation. He reported that all current loans had been entered into the servicing software and that tests were being run on the interest rates and reports. However, during the transition several questions had arisen which the Authority would need to have answered by REDC. The Loan Committee was instructed to arrange a meeting with REDC to tie up these loose ends.
C. Payoff of 501 E. Franklin Street: Ms. Wetzler reported that she had received an official loan payoff from Wachovia which was good through March 15, 2009. The penalty for early payoff would be $50,094.00 at that time. The interest expense remaining on the life of the loan would be $81,583.52. The Authority would see a savings of $31.489.52 by paying off the loan early. Ms. Wetzler recommended that the Board approve paying off the loan on the building.
V. Financial Overview
Mr. Reese reviewed the monthly financial statements prepared by his firm. He noted that the variance on the budget to date was fairly minimal. He also reported that the audit for FY 2008 was on track for completion by April 15. Mr. Reese then updated the Board on the progress of cleaning up the issues found by the auditors, and he stated that he hoped the final items requested would be ready by the following week.
Ms. Greever asked for an update on the status of reimbursement from the City for the CARE and Extra CARE loan programs as outlined in the Cooperation Agreements the Authority had entered into. Ms. Teter acknowledged that she would follow up with the City Administration to find out where those requests were in the process.
VI. Reports of the Officers
A. Report of the Secretary: Ms. Teter reported on behalf of Mr. Currin that the Urban Land Institutes report on the Technical Assistance Panel session for the Authoritys property at 2nd and Marshall should be ready the following day. Ms. Teter stated that she would follow up if she had not heard from ULI by Friday afternoon.
B. Report of the Chairman: Ms. Greever reported on behalf of Mr. Johnson that he had traveled with Mr. Currin on February 23 to Fredericksburg to meet with hotel developers who are interested in developing a Hyatt Place hotel in Richmond and want to investigate the 2nd and Marshall location. Ms. Greever noted that at the moment, the Development Committee was waiting to receive the official report from ULI before discussing the future development plans for the property. The committee also wanted to meet with the owner of the adjoining Bliley Garage to discuss possible joint development opportunities once the final report had been issued.
Ms. Greever reported that she attended a City Council Finance Committee Economic Development Retreat the previous month as a representative of the Authority. The Retreat was held to discuss ways various entities with interests in economic development in the City could play a part in the Citys Comprehensive Economic Development Strategy (CEDS). Ms. Greever noted that during the retreat, Mr. Stephen Schley, President and CEO of REDC, expressed concerns about REDCs working relationship with the EDA and the Department of Economic Development. She asked Mr. Currin to proactively address any problems between his department, the EDA, and REDC
VII. Committee Reports
A. Executive Committee: The minutes from the meeting stand as the committees report.
B. Development Committee: Jackson Center Limited Partnership, who currently leases 75 monthly parking spaces from the EDA at the 2nd and Marshall parking lot, notified the EDA that day of their desire to extend their agreement for an additional month, though the end of July 2009. Ms. Ashley was directed to look into whether the Board needed to vote to approve this extension or whether the current contract allowed such an extension to be made without formal approval. If a vote of the Board was deemed necessary, the item would be placed on the agenda for the March meeting and Jackson Center would be notified that the Board is favorably inclined to grant the extension at that meeting. If no Board action is necessary, then the Board consented to let Mr. McDearmon work with the management of Jackson Center to execute the extension.
C. Loan Committee: The committee did not meet during the month of February.
D. Finance Committee: Ms. Wetzler reported that since the committee met that month, she had been working with Mr. McDearmon to set up a list of procedures and policies for daily operations, from which a flow chart could be made.
E. Incubator Committee: The committee reported that it had requested that Mr. McDearmon create a list of capital improvement priorities that could be paid for with the funds budgeted for that purpose. He would present that list at the committees March meeting, as well as an updated proposal from Madison & Main for website upgrades and internet marketing for the Incubator.
Mr. Ryan exited the meeting at 5:10 pm.
VIII. Bond Issuance Presentation
Mr. Sbertoli gave a presentation to the Board outlining the bond issuance process and the steps his firm would take to work with the Authority to establish the necessary policies and procedures. He reported that LeClairRyans marketing department was working on a final draft of a press release about the Authoritys selection of LeClairRyan counsel for bond issuances.
Ms. Greever reported that she would make an announcement about the selection of bond counsel to the Department of Economic Development at its next monthly staff meeting.
IX. Adjournment
The meeting was adjourned at 5:50 pm.