Economic Development Authority of the City of Richmond
Board Meeting
January 27, 2011
Members present:
Richard Johnson, Chair
Anne Gordon Greever
William Hardy
Dennis Ryan
Zarina Falzadin
Others present:
Betty-Ann Teter, Department of Economic and Community Development
Alan Reese, Reese and Associates
Bonnie Ashley, Esq., City Attorneys Office
Sharon Kerrick, Economic Development Authority
I. Call to Order
Mr. Johnson called the meeting to order at 4:12 pm in the boardroom on the 3rd floor of the Main Street Station at 1500 E. Main Street.
II. Public Comment
No members of the public attended the meeting.
III. Approval of Minutes of the Previous Meeting
Upon motion of Ms. Greever, seconded by Mr. Ryan, the minutes of the prior meeting were approved unanimously.
IV. Unfinished Business
There was no Unfinished Business
V. 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. Capital expenditures for improvements were in accordance with the budget, and all building improvements are now complete. It was also noted that the new lower telephone rates are in place and the lower cost will be reflected in future months. The agreement between the City and the EDA for the loan programs is still in process and should be finalized in the near future. Regarding the audit, Mr. Reese reported it is still in quality review and once completed will be issued to the EDA.
VI. Report of the Officers
A.Report of the Chairman: Mr. Richard Johnson reported he attended two meetings with DECD and Mr. Ron Johnson, primarily regarding the establishment of the new loan program and the loan committee. One of the focal points will be getting the receivables caught up on loan service accounts.
The Cooperation Agreement has been signed by Mr. Richard Johnson on behalf of the EDA, as authorized in the prior Board meeting, and conveyed to Ms. Ashley for signature. The bank documents have not been executed as there is still concern of depositing funds over the FDIC limit into a small financial institution with minimal capital. There will be a meeting scheduled with Mr. Ron Johnson to discuss these issues.
Jane Ferrara attended the first Loan Committee meeting and told Mr. Richard Johnson that the meeting went extremely well. She reported the members asked good questions and exhibited an overall interest in and enthusiasm about the loan program.
Mr. Richard Johnson met with Sharon Kerrick on several occasions and also with Ms. Kerrick and DECD. Sharon Kerrick has worked to address accounts receivable/delinquencies and will be working with tenants on collections. She is also addressing maintenance issues for the overall aesthetics of the building.
B. Report of the Secretary: Jane Ferrara was not able to attend the meeting due to an unexpected conflict, but reported to Mr. Richard Johnson that she is working with two other agencies within DECD to coordinate new business contacts and referrals to Sharon Kerrick and the incubator building to help meet our mission as an incubator program.
Betty-Ann Teter, attending the meeting as a representative of Ms. Ferrara, extended an invitation to attend the legislative reception at City Hall given for the legislators who represent the City in the General Assembly. The Mayor, City Council and representatives from various city agencies will attend.
VII. Report of the Committees
A.Executive Committee: Mr. Richard Johnson stated the minutes from the committees meeting sufficed for a report.
B.Development Committee: Ms. Greever stated that the Executive and Development Committees had their combined meeting but in the future, with the new additional committee members, they may have to consider a separate meeting in order to accommodate the larger group.
C.Finance Committee: Mr. Hardy reported the Finance Committee had its meeting as shown in the minutes. The finances reflected a $13,650 bond fee from VCU. The telephone cost is higher than expected due to the cost absorbed in the set up of new tenants. It is noted that codes for long distance calls have been implemented in order to track tenant calls and recoup the costs.
D.Incubator Committee: Mr. Ryan reported the Incubator Committee met as shown in the minutes. There are two prospective tenants for the 8th floor. The first prospective tenant has had an interest since November and has not been able to move forward. Mr. Ryan moved to rescind, in writing, the offer to lease the 8th floor to the first prospective tenant and remarket the space. Mr. Hardy seconded the motion, which carried unanimously.
Mr. Ryan also reported a second prospective tenant presented a Letter of Intent to rent the 8th floor as an incubator company. Mr. Ryan recommended not making an offer to rent as this would present a conflict with our incubator program.
Ms. Greever asked for a clarification or review of the authorities delegated to each committee and/or operations manager. Mr. Rich Johnson asked Ms. Kerrick to review the minutes of previous meetings for such delegations. A resolution for each committee for delegation of responsibilities and/or limits thereof should be drafted and given to Ms. Ashley for review and approval, possibly by the March meeting.
VIII. Old Business
A.Audit for fiscal year end 2010. EDA received the Management and Representation letter for signature from Robinson, Farmer, Cox and Associates for the June 2010 audit. Mr. William Hardy moved that Mr. Richard Johnson have the authority to sign the Management and Representation letter. Ms. Greever seconded the motion, which carried unanimously.
B.The accounting firm of Robinson, Farmer, Cox and Associates has performed the annual audit of the EDA for four years. As recommended by Ms. Bonnie Ashley and pursuant to the Virginia Public Procurement Act, the Finance Committee will prepare and send out an RFP letter to companies for the June 2011 Audit of the EDA and present recommendations to the Board.
IX. New Business
A. Election of Officers 2011 and Committee Appointments
The Report from the Nominating Committee for officers for 2011 was included in the meeting packet. Ms. Falzadin moved to elect the slate of Officers for 2011 as proposed. Mr. Hardy seconded the motion, which carried unanimously. The list of committee appointments was included in the meeting packet, most of which are consistent with the previous years, with the exception the Loan Committee, which was appointed by the City. The EDA does not have a member on the committee; however, Kelvin Hanson will be attending the Loan Committee meetings as the EDA representative. DECD and the City are modifying paperwork to officially appoint Mr. Hansen to the Committee.
2nd and Marshall Street. The company previously selected to develop the property has not been able to move forward. Therefore, the Executive and Development Committees are of the view that it is now time to move forward to market this property, as there are other sites in the area currently being marketed. The city has confirmed its desire to use the property as a mixed use/hotel site. Ms. Greever moved that the Board issue a RFP for mixed use/hotel development of the property. Mr. Hardy seconded the motion, which carried unanimously. Ms. Greever further moved that the Development Committee be authorized to publish the RFP in appropriate journals as long as the cost is less than $5000.00. Mr. Ryan seconded the motion, which carried unanimously.
B.Recognition of Retiring Director Ryan. Dennis Ryan was recognized by the Board for 4 years of dedicated service to the EDA. A Resolution of Appreciation plaque was presented to Mr. Ryan, which was approved by the Board of Directors, Economic Development Authority of the City of Richmond as follows:
The Board of Directors hereby resolves to recognize the four years of faithful and dedicated service of Dennis M. Ryan as a member of this Board and for the generous contribution of his time and wisdom which have had substantial impact on the ability of the Board to fulfill the mission, vision and values of the Authority.
Mr. Johnson called for adoption of the Resolution by acclamation, which passed unanimously.
X. Executive Session. There was no Executive Session.
XI. Announcements. Reminder of the legislative reception as announced by Ms. Teter.
XII. Adjournment.
The meeting was adjourned at 5:15 pm.