Economic Development Authority of the City of Richmond, Virginia
Special Board Meeting
March 7, 2011
Members present:
Richard Johnson, Chair
Anne Gordon Greever, Vice-chair
Zarina Falzadin
Kelvin Hanson
Others present:
Alan Reese, Reese and Associates
Ron Johnson, Department of Economic and Community Development
Sharon Kerrick, Economic Development Authority
Call to Order
Mr. Richard Johnson called the meeting to order at 2:40 pm in the boardroom on the 8th floor of the Advantech Building, 501 E Franklin Street.
Public Comment
No members of the public were present.
Approval of Minutes of the Previous Meeting
Upon motion of Ms. Greever, seconded by Ms. Falzadin, the minutes of the prior meeting were approved unanimously.
Unfinished Business
None
New Business
A.Loan Approval: Loan for MB Mechanical Corp was presented to the Board by Mr. Ron Johnson and recommended for approval. Kelvin Hanson spoke regarding the purpose of the loan program for small business by providing loans to those who may not be able to obtain credit through banks or other conventional means. Discussions were held regarding whether companies using mostly sub-contractors were qualified to participate in this program. Mr. Ron Johnson confirmed that they were qualified.
Mr. Hanson moved to approve loan as recommended by the EDA Loan Committee. Ms. Zarina Falzadin seconded the motion, which carried unanimously.
B.Cooperation Agreements: Three agreements between the City of Richmond and the Economic Development Authority were presented to the Board for approval. Mr. Ron Johnson gave a recap of each loan as presented.
I. Amended and Restated Contractor Assistance Loan Program Cooperation Agreement-As Amended. There are two major changes, one being the addition of the EDA member of the Loan Advisory Committee. The second, to include contractors, whose headquarters may not be in the City but have a city business license and holds contract(s) with the city, which contract must be the primary source of repayment of the loan. The maximum loan amount available is $100,000.
II.Citywide Revolving Loan Fund Program Agreement Between The City of Richmond and The Economic Development Authority As Amended . Loans are available for land and property acquisition, rehabilitation, construction, etc. to contractors located in the city, which projects are within the city. Must meet the National HUD eligibility. The maximum loan amount available will be $250,000.
III.Economic Development Revolving Loan Fund Cooperation Agreement As Amended. Loans available for developers and small businesses pursing Section 108 eligible projects in the city, which provide low to moderate income opportunities through job creation.
The budgets for the loans include payment to the EDA for administrative and audit fees that may be incurred by the EDA for loan servicing.
Mr. Richard Johnson confirmed that the documents were reviewed and approved by Ms. Bonnie Ashley, City Attorneys Office and meet all requirements for the City of Richmond and the Economic Development Authority.
Ms. Falzadin moved for approval of all three Agreements collectively subject to City Councils approval on March 14, 2011. Mr. Hanson seconded the motion, which carried unanimously.
Committee Reports
A. Executive Committee Mr. Richard Johnson reported that he was advised by Councilman Bruce Tyler that Julious Smith, retired Chairman of Williams Mullen has been nominated and is interested in the appointment to the EDA.
The Economic Development Authority received formal notice from the city on the closure of the EXIL program and the city will be withdrawing the money held in escrow for the City by the EDA.
B.Development Committee Ms. Greever reported the RFP for 2nd and Marshall Street is still in process.
C.Financial Committee Minutes sufficed as a report
D.Incubator Committee Ms. Falzadin reported that Mr. Kyle Brackett, Department of Economic and Community Development and Ms. Pat Foster, Office of Minority Business Development attended the meeting. Plans for marketing the building include working with the Economic and Community Development, Office of Minority Business Development, reaching out to the various Chambers, and through email to commercial real estate agents.
E.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. Capital expenditures for improvements were in accordance with the budget, and all building improvements are now complete and paid in full.
2011 Audit - Letter of Proposal for Audit will be sent to Bonnie Ashley, City Attorneys Office for approval. Once approved the letter will be sent to 3-5 CPA firms for proposals.
Report of Officers
A. Report of the Chairman Mr. Richard Johnson stated that the items he had to report were discussed earlier in the meeting and there was nothing further to add.
B.Report of the Secretary In Ms. Jane Ferraras absence, Mr. Richard Johnson reported that he had talked with Ms. Ferrara and that her focus has been on the loan programs and helping with the RFP for 2nd and Marshall Street.
Old Business There was no old business
Executive Session There was no Executive Session
Announcements No Announcements
Adjournment
The meeting was adjourned at 3:39 pm.