Economic Development Authority of the City of Richmond, Virginia
Board Meeting
April 28, 2011
Members present:
Ms. Jane Ferrara, Executive Director
Richard Johnson, Chair
Zarina Fazaldin
Kelvin Hanson
William Hardy
Others present:
Bonnie Ashley, Esq., City Attorneys Office
Alan Reese, Reese and Associates
Ron Johnson, Department of Economic and Community Development
Hugh Jones, Department of Economic and Community Development
Sharon Kerrick, Economic Development Authority
Call to Order
Mr. Richard Johnson called the meeting to order at 4:05 pm in the 3rd floor conference room of the offices of the Department of Economic & Community Development-Main Street Station at 1500 E. Main Street.
Public Comment
No members of the public were present.
Approval of Minutes of the Previous Meeting
Upon motion of Mr. Hardy, seconded by Mr. Hanson, the minutes of the prior meeting were approved unanimously.
Unfinished Business
None
Mr. Ron Johnson introduced Mr. Hugh Jones to the EDA Board. Mr. Jones will be working with Mr. Ron Johnson on the new loan programs.
New Business
A.Loan Approval: Loan for Commercial One Electric Contractors, Inc. was presented to the Board by Mr. Ron Johnson and he confirmed that the EDA Loan Committee had approved this loan and recommends it to the Board for approval. The loan is for $25,000.00 as a line of credit for short term working capital. This line of credit requires the assignment of contracts and issuance of joint checks. Loan funding will be forty-five percent (45%) of the assigned contract amount.
Mr. Hanson moved to approve the loan under the same terms and conditions that the Loan Committed has approved as presented. Ms. Falzadin seconded the motion, which carried unanimously.
Mr. Ron Johnson announced that the loan for MB Mechanical has closed.
Mr. Ron Johnson stated the City is now beginning to pay the administration fees to the EDA on a monthly basis. Mr. Ron Johnson presented a letter from Mr. Peter Chapman requesting the payment of $21,100.00 of the $25,453.00 due to the City by the EDA which will offset in full the Revolving Loan Fund Administrative fee due to the EDA by the City for the period July 1, 2010 through December 31, 2010. Mr. Richard Johnson asked that the Finance Committee to review this proposed settlement and make a recommendation to the Board.
After discussion on the procedure and protocol of check signing on the loan accounts, Mr. Ron Johnson asked the Board to reconsider the process to allow two DECD employees to sign checks. Mr. Richard Johnson asked the Finance Committee to address the liability issues and accounting control issues for this request.
B.Committee Reports
Executive Committee Mr. Richard Johnson stated the minutes from the committees meeting sufficed for a report.
Development Committee - Mr. Richard Johnson stated the minutes from the committees meeting sufficed for a report
Finance Committee Mr. Richard Johnson stated the minutes from the committees meeting sufficed for a report
Incubator Committee Ms. Fazaldin reported that Mr. Kyle Brackett, Department of Economic and Community Development, and Ms. Pat Foster, Office of Minority Business Development, met with the Incubator Committee and will make recommended changes to the plan and will present the updated plans for Advantech at the May 18, 2011 meeting of the Incubator Committee.
Wealthforge has some maintenance/renovation questions they would like to discuss and therefore has not committed to a lease on the 8th floor. It was recommended by Mr. Richard Johnson to give Wealthforge two weeks to discuss any questions and changes they would like to make to the premises. If they are not willing to move forward after that time, the Incubator Committee will place the leasing of the 8th floor with an agent.
Loan Advisory Committee Minutes sufficed as a report.
Financial Overview
Mr. Reese summarized the monthly financial statements prepared by his office. He noted that the variance on the budget to date is in line with amounts reported for previous periods, with exceptions as noted.
Suggestions were made for new headings on the Financial Statements to better reflect the financial status of the EDA. Mr. Reese agreed to implement these changes.
Report of Officers
Report of the Chairman
Mr. Richard Johnson reported that one of the first loans under the Citywide Program was announced at a press conference by Mayor Jones on location of the property to be renovated. Ms. Fazaldin attended on behalf of the EDA. This announcement was alsoon the front page of the newspaper and on the TV news.
The second loan program will require a separate account. The bank account for the loan fund is in the process of being opened with M & T Bank, as approved by the Board. This will be a non-interest bearing account as previously agreed and preferred by the City.
Mr. Richard Johnson presented information on the Libbie/Grove/Patterson Planning Study. The first phase of the study for the re-development and highest and best use of the area is being conducted by an independent firm. The civic association and merchants in this area contributed $2500 toward the $5000 cost of this study. The funds of $2,500 have been made available to the EDA by Councilman Bruce Tylers office.
Mr. Hanson moved that $2,500 be given for the study as a grant for the furtherance of the economic development purposes of the Libbie/Grove/Patterson Avenues area. Mr. Hardy seconded the motion, which carried unanimously.
Report of the Secretary Ms. Jane Ferrara gave a report on the bi-annual DECD budget proposal. There are seven focus areas; 1) Unique, Healthy and Inclusive Communities and Neighborhoods 2) Economic Growth 3) Community Safety and Well Being 4) Transportation 5) Education & Workforce Development 6) Sustainability and 7) Well Managed Government.
Ms. Ferrara distributed copies of the electronic newsletter published by the Department of Economic & Community Development.
Ms. Ferrara announced that the New Director, Lee Downey will be starting on Monday with the DECD.
Ms. Ferrara announced that April 28, 2011, the DECD held a press conference announcing of a new small company from Germany coming to Richmond.
Ms. Ferrara shared that Foreign Direct Investment magazine named the City of Richmond Best Small City of the Future. Richmond was also named one of the top ten movie cities.
Ms. Ferrara will forward to the EDA Board members information on a seminar being held May 17-18, 2011 in Stanton, VA by the Virginia Industrial Development Institute.
Other Business
Executive Session There was no Executive Session.
Announcements
Mr. Johnson announced that Julius Smith has been confirmed by City Council and has been appointed as the newest member of the EDA.
Mr. Richard Johnson announced that Mr. Hardy has filed for his reappointment, however, due to time commitments, Mr. Hardy will be leaving the EDA Board. Mr. Hardy agreed to remain on the Board until July to complete the 2011-2012 EDA Budget and review the RFPs for the selection of the CPA firm to conduct the audit for 2011.
Mr. Richard Johnson confirmed that Greta Harris is resigning from the EDA Board and that he will be meeting with City Council members Bruce Tyler and Kathy Graziano to discuss replacements for both Ms. Harris and Mr. Hardy.
Adjournment
The meeting was adjourned at 5:45 pm.