Economic Development Authority of the City of Richmond, VirginiaBoard MeetingNovember 17, 2011Members present:Richard Johnson, ChairAnne Greever, Vice ChairGreta HarrisKelvin HansonMeda LaneJulious SmithZarina FazaldinJane Ferrara, Executive DirectorOthers present:Bonnie Ashley, Esq., City Attorneys OfficeLisa Jones, Reese and AssociatesHugh Jones, Department of Economic and Community DevelopmentRon Johnson, Department of Economic and Community DevelopmentJamison Manion, Director, Workforce Development Department of Economic and Community DevelopmentSharon Kerrick, Economic Development AuthorityBen Wright, CEO Atlas AdvertisingKeeley Sullivan, Atlas AdvertisingJenny Roennau, Atlas AdvertisingCall to OrderMr. Richard Johnson called the meeting to order at 3:05 pm in the 3rd floor conference room at Main Street Station located at 1500 E Main Street, Richmond, Virginia.Public CommentNo members of the public were present.Approval of Minutes of the Previous MeetingUpon motion of Ms. Greever, seconded by Ms. Lane, the minutes of the prior meeting were deferred until Decembers Board meeting. The motion was approved unanimously.Unfinished BusinessNoneNew BusinessThe EDA received a request to release the Restrictive Covenants on $3,220,000 Industrial Development Authority of City of Richmond, Virginia Elderly Residential Facility Mortgage Revenue Refunding Bonds (Beaufont Towers II FHA Insured Project) Series 1995 (the Bonds). Ms. Greever moved to authorize an EDA Board official to sign the Release of Declaration of Restrictive Covenants as advised by counsel. Ms. Lane seconded the motion, which carried unanimously.Mr. Jamison Manion, Director of Workforce Development with the ECD, presented an overview of the Manchester Bidwell proposal and shared some history of the Manchester-Bidwell Corporation. A division of the corporation, the National Center for Arts and Technology, provides skills training through vocational and arts-based education and works to increase employment and decrease drop-out rates. The Grant is for $150,000.00, to be paid in three phases of $50,000.00 each. The grant allows the National Center for Arts and Technology to come to Richmond to conduct and complete a feasibility study to determine if they can create and sustain a Center for Arts and Technology. The funds have been approved by City Council and are available through the Citys non-departmental funds. Ms. Harris shared her knowledge about the center and its founder, Mr. Strickland, and thought this would be a fantastic opportunity to evaluate this type of employment training opportunity for the City. Ms. Harris moved to authorize the EDA Board to sign the Grant Agreement as presented. Ms. Fazaldin seconded the motion, which carried unanimously. Ms. Harris agreed to review the required interim reports and, if her schedule allows, will attend presentations.Philip Morris USA requested the third annual installment of $1.25 million for the $12.5 million economic development grant. Supporting documents have been received from the City and funds have been approved. Ms. Harris moved to approve payment of the third annual installment upon receipt of funds from the City. Mr. Smith seconded the motion, which was approved unanimously.After discussing the Holiday Party and the EDAs sponsorship, it was decided to contribute to the cost of the beverages. Ms. Lane moved to authorize the EDA to spend up to $1,008.00 for the EDAs sponsorship of the Holiday Party. Mr. Smith seconded the motion, which carried unanimously. Presentation by Atlas AdvertisingAfter introductions of the Board and guests, Mr. Wright, CEO of Atlas Advertising, summarized the work on the Citys website. Atlas advertising specializes in websites for economic development. They interviewed people within and outside of the City to find out what people know and do not know about Richmond. Mr. Wright also talked about the timelines for the completion of the website. The content development should be completed in mid December, with an anticipated marketing launch in January in time for the Mayors State of the City Address. A full presentation of their interviews and discovery (A View of Richmond: Inside and Out) will be presented this evening at 5:30-7:30 PM at Plant Zero.Committee ReportsLoan Committee- Loan Approval: An increase in Revolving Line of Credit for Commercial One Contractors, Inc. was presented to the Board by Mr. Jones and he confirmed that the EDA Loan Committee had approved this increase of LOC and recommends it to the Board for approval. The proposal is for an increase from $25,000 to $75,000 Line of Credit structured as $50,000 being a revolving line of credit and $25,000 as a permanent loan for working capital and fixed assets. The contractor has entered into subcontractor agreements with Urban Grid Solar, Inc. for a total of $342,231.and the increase on the LOC will facilitate the contractors mobilization and ongoing working capital requirements. All of the original terms and conditions will remain the same with the following additions: execution of the joint checks agreement with Urban Grid Solar, Inc.; Line of Credit Deed of Trust increased to $75,000; Life Insurance Assignment increased to $75,000; and, term loan will be secured by assets purchased. Mr. Smith moved to approve the loan as recommended by the EDA Loan Committee. Ms. Greever seconded the motion, which carried unanimously.Mr. Jones presented the ECD Financial Strategies Groups Quarterly Loan Report for period ending September 30, 2011. The group closed two new loans for the quarter for a total of $200,000.00. Mr. Jones summarized the loan activity for all accounts, which included recovery of $7,386.84 of charge-off accounts. Details of the reports were submitted to the Financial Committee for their November meeting. Ms. Harris asked if a trend analysis report for collections was available. Mr. Ron Johnson responded that a report is not available at this time and recommended that this should be done beginning the second year of the Financial Strategies Groups handling the loans.Executive/Development Committee The Executive and Development Committees had their joint meeting and the minutes from the meeting are included in the Board package. Mr. Johnson reported that the committees are looking at different scenarios for the planned use of EDA funds. One option is to acquire and/or develop property in a manner consistent with the strategy of DECD. Ms. Ferrara pointed out several areas DECD is focused on and explained their potential role in industrial or commercial development within the City. The concept is still at the preliminary stage, and no decisions were made or actions taken. Ms. Greever and Ms. Ashley will meet to discuss and clarify the statutory restrictions against the EDA participation in joint ventures.Finance Committee Ms. Lane reported that the audit is presently in quality control at Robinson Farmer Cox and should be available for the December Board meeting. Ms. Lane did have an opportunity to review the auditors comments. One comment was not all of the bank accounts are listed as public funds. Public funds are entitled to higher insurance coverage than the regular FDIC coverage of $250,000.00. Ms. Lane is in the process of assuring all bank accounts are listed as public funds. There was a question regarding the health insurance reimbursement paid to an employee and whether it should be included on the employees W2; however it was decided that a policy could be in place to reimburse the employee upon proper documentation. The Finance Committee will develop and propose a policy regarding this matter. Ms. Lane also questioned the footnotes on the Financial Statements regarding the amount of liability on the incubator building and disclosure of other property owned. Clarification has been requested and the footnotes should reflect any adjustments needed. Incubator Committee Ms. Fazaldin reported that the Incubator Committee will meet on November 18, 2011. There will be a guest speaker, Mr. Bill Bean, President of the Virginia Business Incubation Association and Director Technology Business Center of William and Mary. Financial OverviewMs. Jones summarized the monthly financial statements for October 31, 2011 prepared by Reese and Associates. Ms. Jones confirmed that the total property and equipment listed on the Balance Sheet include only the 2nd and Marshall Street property and the Advantech building and building equipment. Report of OfficersReport of the Chairman Mr. Johnson met several times with Atlas Advertising and Justine Roberts, DECD, on the new website and had significant input opportunities for the website. He reported Atlas has been very inclusive of the EDA. Mr. Johnson also attended and represented the EDA at the ground breaking for the renovation project for 214-16 E Grace Street. Mr. Johnson asked Ms. Fazaldin to Chair the Nominating Committee and asked the committee to report the recommended Slate of Officers for 2012 at the December Board meeting. The election of officers will be held in January, 2012.Report of the Secretary: Ms. Ferrara noted that Atlas Advertisings goal is a public launch of the website in January at the State of the City Address.Ms. Ferrara shared updates of recent business activities of the DECD:•A new campus-style project has an interest in 10-20 acres in the city to build Phase I of a 120,000 sq. ft. building, leading to the development of a larger campus. This is a $200 Million project and the client responded favorably to the sites presented to them on their recent visit to the City.•A manufacturing company from the UK is looking in the region and other states as well for a location. They are looking for a 350-450,000 sq. ft. facility. The machinery and tools would be approximately $4 million, and the company could employ 250-500 employees. The meeting was very positive.•Another prospect is an outbound call center facility looking for 30,000 sq. ft. and would employ 600 people on 2 shifts of 300 each.•The German manufacturing company is still in process along with another manufacturing company considering Richmond and other states.Ms. Ferrara announced the DECD holiday party on December 8th from 5:30 PM to 7:30 PM. Also, on November 30th the Urban Land Institute will be hosting their Vision Awards from 5:00 to 7:00 PM at the Hippodrome. The City of Richmond has been selected as a finalist for several projects: The Community Garden Program, Mayors Pedestrian Bicycle and Trails Planning Commission, and the East End Vision Charrette. Under the Most Innovative Project, the Hippodrome Theater and Taylor Mansion and Miller & Roads Mixed Use Project, two projects in which the City was involved, were also named as finalists.Old Business - There was no old business.Executive Session There was no Executive Session.Announcements The December Board meeting is scheduled for December 15, 2011 at 4:00 PM. The Atlas forum A View of Richmond: Inside and Out is at 5:30 at Plant Zero tonight.AdjournmentThe meeting was adjourned at 5:00 pm.
HOMEPAGE
December 15 2011
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TAP REPORT
October 27 2011
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Jane Ferrara
Richard Johnson
Anne Greever
Kelvin Hanson
Dennis Ryan
Greta Harris
William Hardy
Zarina Fazaldin