Economic Development Authority of the City of Richmond, VirginiaBoard MeetingOctober 27, 2011Members present:Richard Johnson, ChairAnne Greever, Vice ChairGreta HarrisKelvin HansonMeda LaneJulious SmithJane Ferrara, Executive DirectorOthers present:Bonnie Ashley, Esq., City Attorneys OfficeAlan Reese, Reese and AssociatesHugh Jones, Department of Economic and Community DevelopmentRon Johnson, Department of Economic and Community DevelopmentJustine Roberts, Department of Economic and Community DevelopmentSharon Kerrick, Economic Development AuthorityCall to OrderMr. Johnson called the meeting to order at 4:05 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 approved unanimously.Unfinished BusinessNoneNew BusinessMr. Richard Johnson appointed Ms Fazaldin (Chair) and Mr. Smith to serve as the Nominating Committee for the Slate of Officers for 2012. The Chair, Vice Chair and Treasurer positions are open for the January election of officers.In their October joint meeting, the Executive and Development Committees discussed the need to locate and define properties that the EDA could consider for purchase and development to produce local jobs and revenue. Mr. Johnson requested the assistance of the DECD to advise and help identify properties that the EDA might consider that would be consistent with the strategy of DECD. Ms. Ferrara agreed that the EDA consider purchasing one or more properties that would be keys to help position the City to compete for prospects. The DECD has identified several such properties that would be strategic to the City and will be glad to work with the EDA in identifying these possible acquisition candidates. Mr. Johnson asked Ms. Ferrara to present this information to the Development Committee at their November meeting.Ms. Roberts summarized the progress of the website site by Atlas and provided an Overview of Final Deliverables. The Overview outlined each project for the website and the recommended costs for the EDAs participation. The website is scheduled to be completed in January 2012 to coincide with the Mayors State of the City Address. A presentation of the website to the community will be held at Plant Zero Art Space on November 17, 2011 at 5:30 PM. Ms. Greever asked the Executive Committee to review the costs and make a recommendation to the EDA Board at the November meeting.Committee ReportsLoan Committee- Loan Approval: Loan for Art 180, Inc., a non-profit organization, 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 proposal is for a loan from the Citywide Revolving Loan Fund for up to $275,000.00 of purchase money for real estate, secured with a 1st Deed of Trust. The real estate is 112-116 W. Marshall Street, located in the proposed Culture and Arts District. The second proposal is a loan for $30,000 from the CARE program as a 2nd Deed of Trust to assist in renovation and build-out costs.The organization currently has 2 grants pending for up to $100,000 each for acquisition of property. The grant amounts received will be used to pay down the loans principal. The 1st Deed of Trust would be a 7 year loan with a 20 year amortization and a fixed interest rate of 3%. The 2nd Deed of Trust would be 7 year loan with a 20 year amortization and a fixed interest rate of 4%. The loans will be cross-collateralized with each other with assignment of leases, rents and profits on the commercial real estate. A Credit Risk Reserve Account of $20,184 will be required for the first two years. Based on good credit history, one-half of the reserve would be released every 12 months.Mr. Hanson moved to approve the loan as recommended by the EDA Loan Committee. Ms. Harris seconded the motion, which carried 5-0-1, with Mr. Smith abstaining.Mr. Ron Johnson announced that the loan closed for 214 E Grace Street and a ground breaking is scheduled for Wednesday, November 2, 2011 at 2:30 PM at 214 E Grace Street and invited the EDA Board to attend the event.Executive/Development Committee Minutes from the meeting served as the report.Finance Committee Ms. Lane recommended an accounting policy that any expenditure under an amount of $2000.00 be expensed and not capitalized. Mr. Smith seconded the motion, which carried unanimously. A draft of the audit was reviewed and the final audit will be presented at the November Board meeting.Incubator Committee Ms. Kerrick presented the Incubator Committee report and discussed several items including marketing strategy and the development of new programs to offer current and prospective tenants. Repairs to the front and rear of building were discussed. The Incubator Committee recommended not pursuing repairs to the front of the building at this time, but the brick repair to the rear of the building was recommended. This is a maintenance issue and no action was taken by the Board.Financial OverviewMr. Reese summarized the monthly financial statements for September 30, 2011 prepared by Reese and Associates. Report of OfficersReport of the Chairman Mr. Johnson commented that his report has been covered in the meeting under new and old business,Report of the Secretary: Ms. Ferrara shared updates of recent activities of the DECD:The DECD collaborates with both the Virginia Economic Department Partnership and the Greater Richmond Partnership on new business leads in the region. Since July 2011 there have been 23 inquiries from outside the area that have expressed interest in the Richmond region resulting overall in 12 prospect visits to the area. Since October 2011 there have been 10 inquires specifically to the City; these inquiries could bring up to 2500 new jobs to the area and use up to 770,000 sq. ft. building space and up to 300 acres. The new website will enable direct inquiries from these businesses to the DECD. Another program the DECD participates in is the Business First Program; this program consist of volunteers from the City of Richmond Department of Economic and Community Development, the Greater Richmond Partnership, and other surrounding counties, that reach out to existing businesses for their present and future business plans. The data collected (Executive Pulse) is useful in business retainage and monitoring responses to the businesses needs and concerns.Recently, several new and existing businesses have moved into the City from other areas resulting in approximately 180 existing and new jobs. These businesses consist of a tobacco shop, restaurants, cinema, and retail stores.The Enterprise Zone Program assisted 15 companies by providing $40,000 in assistance, reportedly generating approximately $66 million in private investments, retaining 102 jobs and creating 48 new jobs.The CARE program assisted 20 companies by providing $121,000 in assistance, reportedly generating approximately $45 million in private investments, retaining 121 jobs and creating 32 new jobs.Ms. Ferrara announced the annual meeting for the Greater Richmond Partnership being held at the Virginia Museum of Fine Arts on October 27th and 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.Ms. Ferrara shared an article written about Richmond that was published in The Atlantic. The writers visited the City and met with several businesses. They were impressed with the City as a place for new IT start-up businesses, impressed with the real estate, beauty of the City, and the quality of life.Old BusinessThe Board discussed possible remedies to resolve the Federal EDA loan if no progress has been made by the end of November. Mr. Johnson will likely be in Philadelphia on business and volunteered to meet with the Federal EDA Loan contact. The Board discussed contacting congressional delegation to help resolve this issue. Ms. Ashley will endeavor to press this matter to conclusion without having to go to these extremes.Ms. Greever reported that the Executive and Development Committees met and would like to issue an RFP for the 2nd and Marshall Streets property and offer the property for sale consistent with the UL Institute highest and best use study. Ms. Harris suggested that a RFP and/or development agreement contain language encouraging the enhancement and respect of the adjacent historical neighborhood. The Executive and Development Committees requested the EDA Board to authorize up to $15,000 for expenses associated with marketing and advertising a RFP for the 2nd and Marshall Streets property. The Board approved unanimously.Executive Session There was no Executive Session.Announcements The November Board meeting is scheduled for November 17, 2011. The Atlas forum is also scheduled for November 17th and the DECD holiday party is December 8, 2011.AdjournmentThe meeting was adjourned at 6:10 pm.
HOMEPAGE
December 15 2011
RFP
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TAP REPORT
November 18 2011
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June 30th 2011
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Julious P Smith Jr
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Page 24
Jane Ferrara
Richard Johnson
Anne Greever
Kelvin Hanson
Dennis Ryan
Greta Harris
William Hardy
Zarina Fazaldin