Economic Development Authority of the City of Richmond, VA
Board Meeting
August 27, 2009
Members present:
Mr. Richard S. Johnson, Chair
Ms. Anne Gordon Greever, Vice-chair
Mr. Dennis Ryan
Ms. Helen T. Alli
Ms. Tonya Scott-Hickman
Mr. Kelvin Hansen
Others present:
Ms. Dara Glass, Department of Economic Development
Ms. Bonnie Ashley, City Attorneys Office
Mr. Alan Reese, Reese and Associates
Mr. Kevin Brown, Economic Development Authority
Mr. Mark A. Ellison, Economic Development Authority
I.Call to Order
•The Executive Board Committee meeting was called to order at 4:03pm in the 8th Floor Conference Room of the Advantech building at 501 E. Franklin Street.
II.Public Comment
•Sharon Dabney-Wooldridge, President of KleaneKare, was present to discuss the termination of her cleaning contract with the Advantech Building. Ms. Dabney-Wooldridge expressed concerns that they were not given enough time to show improvement. She shared that they are trying to rectify various concerns and would like to continue cleaning services for the building. Ms. Greever asked if she had received a thirty day notice. It was at this time Ms. Dabney-Wooldridge said she had not. Ms. Greever also asked her what contractual agreement was set into place. Ms. Dabney-Wooldridge noted that the current agreement was year-to-year.
•When Ms. Dabney-Wooldridge exited the meeting, Ms. Greever asked Mr. Ellison to pass along any correspondence to Ms. Ashley for review, items such as the 30 day notice Ms. Dabney-Wooldridge claimed not to have received.
III.Approval of Minutes of the Previous Meeting
•Motion to approve with corrections.
IV.Unfinished Business
A.Update on the EDA Revolving Loan Fund Closeout
•Ms. Ashley, Ms. Alli and Mr. Raymond Payne met to discuss all information to substantiate the cash balance and revolving loan fund. Ms. Ashley has put together a letter detailing what Mr. Raymond Payne has sent to the Federal EDA. This letter is to go out by UPS on 8/28/09. The deadline is in two weeks but Ms. Ashley had this letter ready early to show them that we are very willing to work with them to get this issue taken care of. The matter is under review.
i.Ms. Ashley talked with woman at the Secretary of Commerce
ii.Mr. Johnson noted that we may be able to move forward if they would like to. Mr. Johnson .
iii.Mr. Reese reported that the numbers are exactly the same.
iv.Ms. Alli stated that there were some withdrawals, so we do not have $70,000 of the money. Mr. Reese noted that there was $800,000 total $600,000 came from them and $200,000 was matched by the EDA.
v.Ms. Greever asked to discuss the account in terms of $600,000 because the loan program was terminated.
vi.Mr. Johnson suggested that the Board refer this issue to Carthan because staff of the DED did not respond on time which was noted as a very big lapse of information.
B.Status of the CARE, Extra CARE and EZIL loan Program
The Board is still trying to get a grasp of how much money we have to actually loan out, then will work on marketing the program to send money to those in the community that could benefit from our loan programs.
•Ms. Greever offered congratulation for the 15th and 16th loan money, but raised the question as to whether or now we still needed to use a Department of Economic Development employee for these loans.
i.Ms. Alli stated that Mr. Brown is capable of handling the loan money and in that case, Mr. Brown can start loaning monies.
ii.Mr. Johnson then asked Mr. Brown to meet with Ms. Denise Lawus and discuss where she is on the 7th and 17th and if it can be passed to Kevin to take care of. Mr. Johnson also asked Mr. Brown to create a notebook on procedures. Noting the statements. Mr. Johnson noted that we dont know how much money we will have, but we do know what the existing monies we do have to use. Please document procedures if we ever have a personnel change. Mr. Johnson asked Mr. Brown to put together a program and email program details and requirements to the loan committee for review
•Mr. Johnson asked Kevin to spearhead on working with Ms. Scott Hickman, Ms. Alli, Ms. Ashley and any DED staff to put together how this process works, and where we want to take it. Ms. Greever suggested that Ms. Alli should do the process. Ms. Alli asked do we know what is in the job description for the DED vs. EDA. Ms. Ashley commented that there used to be someone who did it. The underwriting used to be handled by REDC. It should work that the city and EDA are working together. She also questioned if maybe the Deputy Chief Administrator is willing to help. Ms. Greever asked if there is a statue or anything we must abide by. Ms. Ashley commented that this could be in a packet format
•Mr. Brown expressed to the board that he and Ms. Lawus are going have a presentation at the next Board meeting worried about current loans this activity is not not going to happen again.
•Mr. Ryan also stated that it would be valuable to know what the process was and then compare them to the new way. Mr. Johnson made it clear that a better process is needed to make sure we make loans to people in the community that are constructive.
•Mr. Reese added that the CARE loans are in a good portfolio helped by real estate. All info is on one application. If you wanted to do a project, you would come in and get a loan for 50K. There is a lack of communications, therefore Mr. Brown is cleaning portfolio.
•Ms. Greever asked about where we are in the 7th and 17th Extra CARE and CARE process. Mr. Hanson noted that this could be something on someones desk with no clear deadline or accountability when in actuality, these need to be a work in progress.
•Mr. Johnson agrees and there is a problem that needs to be addresses. We need to take care of our own destiny. We cannot rely on other departments. We now have sufficient staff, so lets get it done.
C.RFQ- 2nd and Marshall Update
Ms. Greever shared that the board approved the Issuance of the RFQ which has been advertised in newspapers and posted on the website. It has been emailed to multiple developers. The Development Committee will dwindle down the Developers to show the board.
•Mr. Johnson asked Ms. Greever to explain why we went with the RFQ process and not an RFP. Mr. Hanson questions how the decision will be made. Ms. Greever explained that the Development Committee wanted to say to potential developers: we have property; here is what we have found out (with the TAP report). Rather than giving them more flexibility.
Mr. Hanson has problem with RFQ because someone have a great idea, but they themselves would not be qualified. Mr. Johnson assured Mr. Hanson that the Board was looking for quality developers. Ms. Greever noted that there is nothing in the RFQ that will eliminate anyone. Who are you and what would you do? Is what the Development Committee is seeking. They have not made a decision in what we are expecting. Mr. Johnson explained that this was similar to what the City did with Broad Street. Ms. Ashley noted that there is not a procurement issue because the EDA is not looking to hire a builder. Mr. Johnson noted that until we get responses, we will not know what we are doing.
•Ms Scott Hickman asked what we are expecting. Ms. Greever stated that she thinks that we will get a proposal for a hotel or apartments. Although we do not really know. The Development Committee will review the interested parties and pick the best one. The might ground lease it or sell it.
•Mr. Hanson noted that there needs to be an evaluation process in order and some criteria need to be established.
•Mr. Johnson asked Mr. Ellison to follow up with Hull Street project and (1221 Hull Street) and take pictures of the process.
•Ms. Greever ended site visit which Betty-Anne Teeter will be going. She is going to record the questions and reply to all.
V.Financial Overview
•Mr. Reese shared with the Board that everything is running smoothly. We are in line with budget. Mr. Reese that not all invoices were paid for July and that we have broke even. We have $571,000 for CARE and $180,000 in EZIL. Mr. Reese ended with a report about the auditors. We have a list of items to complete and will be done soon.
VI.Reports of the Officers
A.Report of the Chairman.
•Rich had meeting with new Mayor and several other City Departments. It is the citys practice now that these meetings are being held and the EDA has been asked to attend. Mr. Currin was not able to be at the Board meeting because of this meeting.
i.Ms. Alli noted that she has had five meetings set with Mr. Currin, all of which were canceled by his secretary. Ms. Greever would like to look at the relationship of Mr. Currin with the board. Mr. Johnson likes idea of an executive session with all parties to hash out the details. Mr. Johnson asked the board to please email thoughts and ideas.
•Ms Greever asked the question as to what the Board expects from Mr. Currin. She questioned whether or not Mr. Currin should be in attendance for discussion of the duties of Executive Director at the closed session and how to approach issues.
ii.Mr. Johnson asked about the NSIAD study that the city is working on it. It is a Federal mandate which must be done. If not, we may not get stimulus money. Ms. Greever noted that she had submitted it, but it was kicked back a year ago and nothing has been resent. Ms. Scott Hickman asked who moved on this. Ms. Alli asked how this report was handled before. Ms. Greever said that is was a report. Mr. Hanson asked who did the report. Ms. Greever noted that the DED did it. Ms. Glass made mention that another company was handling this report. Mr. Johnson said the buck stops here. Lets get it done so we do not lose any assistance.
VII.Committee Reports
•A. Executive Committee
i.Nothing to report other than what was discussed earlier in this meeting.
•B. Development Committee
•C. Finance Committee
i.Mr. Johnson would like the Board to be on the lookout for CPAs that may be interested in serving on the board, noting that they must live in the City of Richmond.
•D. Incubator Committee
i.Ms. Scott Hickman announced that we need to act soon in order to keep our lease for not only our basement tenant, but for the internet service provider for the Building. They have been without AC since April 2008. Temperature controlled rooms are essential for their business. Mr. Johnson advised that Mr. Ellison make a commitment that we are going to address it. However Mr. Johnson asked Mr. Ellison to collect more bids.
ii.It was announced that Peter Chapman would occupy a space on the 7th floor of the AdvanTech Building.
iii.Mr. Ellison also shared with the board that we are in need of tuck pointing for the building. He noted that he and Mr. Alexander have received 3 quotes. The two will meet with all 3 at one time and compare each bid. Mr. Ellison was told that we can move forward with the bid no more than $40,000.
iv.Mr. Scott Hickman announced the plan for bringing cleaning services in house. After each board member reviewed the proposal created my Mr. Ellison, much discussion such as making sure they were bonded and licensed, was brought to the table. It was adapted that Mr. Ellison could either choose to bring the services in house, or find a company to replace KleaneKare. Ms. Greever asked Mr. Ellison to please send the old, and the new, contract to Ms. Ashley for review. Mr. Ellison was told to move forward and stick as close to the budget for such services as possible
VIII.Mr. Ellison noted that he is currently in the process of collecting bids to replace the carpet in the common areas of the building. Mr. Ryan questioned the necessity of getting the carpet. Ms. Scott Hickman noted that if nothing else, at least doing floors 1 and 2.
E. Loan Committee
•Nothing to report other than what was discussed earlier in this meeting.
IX.New Business
•No new business to be discussed.
X.Executive Session
•No Executive Session held.
XI.Announcements
•No announcements.
XII.Adjourned
•Meeting Adjourned at 7:05pm.