Economic Development Authority of the City of Richmond
Board Meeting Minutes
August 26, 2010
Members present:
Mr. Richard Johnson, Chair
Ms. Anne Greever, Vice-chair
Mr. Bill Hardy
Mr. Kelvin Hanson
Ms. Zarina Fazaldin
Others present:
Ms. Jane Ferrara, Executive Director
Mr. Alan Reese, A.G. Reese and Associates
Ms. Bonnie Ashley, City Attorney’s Office
Mr. Ron Johnson, Department of Economic and Community Development
Mr. Jon Roberts, TIP Strategies
Mr. Alex Cooke, TIP Strategies
Mr. Mark Ellison, Economic Development Authority
I. Call to Order
Mr. Rich Johnson called the meeting to order at 4:08 p.m. in the Board Room on the eighth floor of the AdvanTech building at 501 E. Franklin Street.
II. Public Comment (Maximum of Three Minutes Per Person)
There was no public comment.
III. CEDS Report Status
Ms. Ferrara introduced Mr. Roberts, of TIP Strategies, who gave an overview and status report of the CEDS Study. Mr. Roberts reported to the Board that they started the report last year doing both qualitative and quantitative research. TIPS Strategies is working on identifying projects that would involve federal funds from the Economic Development Administration which would coincide with private sector projects. It was reported that the Economic Development Administration is very interested in job creation. A draft of the study will be delivered to the EDA Board by the end of September. Ms. Ferrara said that Mr. Roberts and Mr. Cooke are open to feedback from the Board.
IV. Minutes of the Previous Meeting
Ms. Greever moved that the Board approve the Minutes from the July Board Meeting. Mr. Hanson seconded the motion which carried unanimously.
V. Unfinished Business
A. Update on EDA Revolving Loan Fund Closeout
The open loan status of the Southside Child Development Center is the only issue left before settling the EDA Revolving Loan Fund Closeout.
In order to move forward, Mr. Hanson moved that the EDA approve the charge-off of the account of Southside Childhood Development Center and authorize any and all legal action necessary in relation thereto.
Mr. Hardy seconded the motion which was carried unanimously.
B. Status of CARE and Extra CARE loan program
Mr. Rich Johnson asked Mr. Reese to re-submit a cost summary for the 7th and the 17th loan programs. Mr. Rich Johnson, Mr. Ron Johnson and Ms. Ferrara are going to meet to review a draft of Mr. Ron Johnson’s combined EDA and DEDC roles moving forward.
VI. Financial Overview
Mr. Reese’s review of accounts assured the Board that all accounts were running smoothly. Reese and Associates has continued entering loan payments.
It was noted that a salary agreement between the Department of Economic and Community Development and the EDA needs to be worked out for the new loan administration services.
VII. Report of the Officers
A. Report of the Chairman
Mr. Rich Johnson told the Board that a request for the second payment to Altria had been received. Mr. Ellison is working with Ms. Betty-Anne Teeter of the DECD concerning delivery of payment.
Mr. Rich Johnson also said that a draft of the Purchase and Development Agreement for the 2nd and Marshall project has been forwarded to the City’s Attorney office for review. A draft will be sent to the Development Committee as well.
B. Report of the Secretary
Ms. Ferrara reported the following:
The CEDS report would be concluded by the end of September and would be submitted to the Federal EDA for approval.
The notice of financially ability for the Choice Neighborhood Program from the HUD report will be the basis of a Choice Neighborhood planning grant in the amount of $250,000. This planning will be used for implementation grants to fund future planned projects.
Several members of the DECD met with the Virginia Beach Economic Development Department to view an example of a TIF project that was very successful. The City hopes to secure TIF monies for various projects.
The Shockoe Bottom study has been launched and will take up to 6 months to complete. Any suggestions or ideas are always welcomed from Board Members.
The Riverfront Master Plan is still in progress.
Phase 1 of the Coliseum study is almost done.
The Mayor’s Board Appreciation event invitations were sent out to members of the Board.
During this time, Ms. Ferrara turned the floor over to Mr. Ron Johnson, who explained the new Contractor Assistance Loan Program. It is currently in the pre-launch phase and has already received interest. Mr. Johnson asked the Board for introductions to qualified applicants.
VIII. Committee Reports
A. Executive Committee- No Committee Report was presented.
B. Development Committee
Ms. Greever told the Board that the Development Committee is working with our bond counsel to develop guidelines for board approval of bond inducement resolutions. One goal is to avoid the EDA board duplicating the efforts of professionals in city functions such as planning, zoning, building inspection, economic and community development, and traffic pertaining to the appropriateness of a proposed facility. Another goal is to avoid the EDA acquiring a reputation as a body that tries to extract pledges of money or jobs as a last-minute condition of securing board approval of a bond financing. Ms. Greever made clear that the Board is not appropriating public funds for any project, but rather is exercising statutory authority for tax-exempt status for certain transactions that meet strict legal criteria. The Development Committee and its counsel will work with Ms. Ferrara’s department on the guidelines.
C. Finance Committee- Mr. Hardy reviewed the Minutes of the Finance Committee Meeting.
D. Incubator Committee
Ms. Fazaldin reported that the Incubator Committee was interested in having a broker lease the space on the 8th floor of the AdvanTech Building. She also discussed a letter being written by Ms. Ashley to a customer of the AdvanTech Building requesting payment for services rendered.
IX. New Business
A. Motion to Approve Signature Authority
Ms. Ashley presented a draft copy of a Motion approving the Chair to sign documents previously approved by the Board. This item will be discussed in greater length when all Board Members are present.
B. Window Caulking
The Board asked Mr. Ellison to secure bids from contractors to complete necessary window caulking to the AdvanTech building. Mr. Hardy moved the approval of getting the window caulking done, making sure to get a cost comparison bid. Mr. Hanson seconded the motion and it was carried unanimously.
X. Adjournment
The meeting was adjourned at 6:26 p.m.