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Home My WebLink About2/19/2020 - Minutes The Economic Development Authority of Roanoke County Roanoke County Administration Center 4TH Floor Training Room, 5204 Bernard Drive Roanoke, Virginia 24018 Minutes Wednesday, February 19, 2020, the Economic Development Authority of Roanoke County, Virginia met this day at the Roanoke County Administration Center Members Present Steve Musselwhite, Chair Woody Windley,'Vice-Chair Greg Apostolou Michael Cagle Kirtesh Patel Max Beyer Peter Lubeck, Counsel Jill Loope, Secretary-Treasurer Glenna Ratcliffe, Recording Clerk Members Absent Ssunny Shah Steve Anderson Kyle Richardson Guest Laurie Gearheart, Director of Finance; Evan Malone, Financial Analyst; Jessica Lovell, Financial Analyst; Christina Winkle, Financial Analyst and Erin Burcham, Director of Talent Solutions with the Roanoke Regional Partnership CALL TO ORDER Chairman Steve Musselwhite called the meeting to order at 9:02 a.m. REQUEST TO POSTPONE, ADD TO, OR CHANGE THE ORDER OF THE AGENDA ITEMS None APPROVAL OF JANUARY 17, 2020 MINUTES On motion by Mike Cagle to approve the minutes of January 17, 2020 as presented, seconded by Greg Apostolou, the motion carried by unanimous voice vote. Page 2of5 February 19, 2020 Economic Development Authority Minutes FINANCE REPORT Jessica Lovell, Financial Analyst for the Department of Finance, reviewed the information provided on the financial report for the month ending January 31, 2020. On motion by Woody Windley to accept and approve the financial report as presented, seconded by Mike Cagle, the motion carried by unanimous voice vote. OLD BUSINESS VINYARD STATION PERFORMANCE AGREEMENT PURCHASE DATE EXTENSION Ms. Loope reviewed a letter from Barry Thompson, Vinton Town Manager, granting Vinyard Station, LLC a 90 day extension on the Vinyard property acquisition date. This extension was necessary due to the unexpected death of Mr. Billy Vinyard in September 2019, the transfer of the property to Mr. Vinyard's estate and delays with concluding the required environmental due diligence. The original purchase date on the Performance Agreement was December 31. One extension was granted extending the date to January 31, 2020. The extended date will now be March 31, 2020. All other Performance dates are to remain unchanged at this time. NEW BUSINESS PERFORMANCE AGREEMENT — MACK TRUCKS, INC. Mack Trucks is investing $13 million to establish a new manufacturing operation in Roanoke County. The site will be dedicated to producing medium-duty trucks. Previously, Mack only produced Class 8 ("heavy duty")vehicles at its Lehigh Valley Operations located in Macungie, Pennsylvania. The $13 million investment will result in the creation of 250 new jobs in Roanoke County. To assist with the project, a three-party performance agreement has been negotiated between Roanoke County, the Roanoke County Economic Development Authority and Mack Trucks, Inc. The incentive provided will assist Mack with their start-up costs resulting in increased employment and capital investment in Roanoke County. The total amount of the grant is $700,000, and is provided as a dollar for dollar match for the Commonwealth Opportunity Fund grant awarded for the project. The agreement allows for a performance based economic development grant in an amount up to seven years of new local tax revenue to be reimbursed to the company. New local tax revenue is defined as net new real estate, business personal property and machinery and tools taxes generated annually by the project. The total amount of the grant shall not Page 3 of 5 February 19, 2020 Economic Development Authority Minutes exceed $700,000, and is consistent with the County's Public Private Partnership Policy. If the company generates less than the estimated new local tax revenue, then the actual grant for that year shall be less. The performance goal may be met prior to the seven- year period, which commenced January 1, 2019, making today's adoption of the agreement retroactive to January of 2019. This was to allow the company to capture investments made in the building during the past year. A motion was made by Greg Apostolou and seconded by Kirtesh Patel to approve the Mack Trucks, Inc. Performance Agreement as presented, and to authorize the Chairman, Steve Musselwhite, to sign the agreement on behalf of the EDA. BRIEFING Erin Burcham. Director of Talent Solutions with the Roanoke Regional Partnership, reviewed a PowerPoint Presentation which outlined efforts by the Roanoke Regional Partnership to attract and retain young professionals with mid to high level talent as well as 20-40-year-old emerging leaders to the Roanoke Region. A study was conducted through a Go Virginia State Grant - Stopping the Brain Drain. This study led to new initiatives such as Experience 2020 and Developing a Destination for talent. Kirtesh Patel questioned the percentage of health care workers in Roanoke. Ms. Burcham stated she did not have that data but did work closely with Morgan Romeo, Executive Director of Virginia Career Works, in an effort to be competitive. Steve Musselwhite asked "what is the one thing hindering Roanoke from being all we can be"? Ms. Burcham stated that Roanoke was behind in wages; however, cost of living was a positive as well as quality of life. Greg Apostolou pointed out that many companies are now offering large signing bonuses. (A copy of the Presentation is attached) CLOSED MEETING At 9:35, Mr. Musselwhite moved to go into closed session pursuant to the Code of Virginia Section 2.2-3711(A)(7): consultation with legal counsel and briefings by staff members or consultants pertaining to actual or probable litigation where such consultation or briefing in open meeting would adversely affect the negotiating or litigating posture of the public body. Page4of5 February 19, 2020 Economic Development Authority Minutes The motion carried by the following recorded vote: AYES: Mr. Patel, Mr. Windley, Mr. Apostolou, Mr. Beyer, Mr. Cagle ABSTAIN: Mr. Musselwhite NAYS: None ABSENT: Mr. Anderson, Mr. Shah and Mr. Richardson The closed session was held from 9:35 a.m. until 9:50 a.m. Certifying the closed meeting was held in conformity with the Code of Virginia WHEREAS, the Economic Development Authority of Roanoke County, Virginia has convened a closed meeting on February 19, 2020 pursuant to an affirmation-recorded vote and in accordance with the provisions of The Virginia Freedom of Information Act. WHEREAS, the public business matters addressed in the closed meeting were exempt from the open meeting requirements, Pursuant to the Code of Virginia Section 2.2- 3711(A) (7): consultation with legal counsel and briefings by staff members or consultants pertaining to actual or probable litigation where such consultation or briefing in open meeting would adversely affect the negotiating or litigating posture of the public body. Section §2.2-3712(D) of the Code of Virginia requires a certification by the Economic Development Authority of Roanoke County, Virginia, that such closed meeting was conducted in conformity with the Virginia Code. NOW THEREFORE, BE IT RESOLVED, that the Economic Development Authority of Roanoke County, Virginia, hereby certifies that, to the best of each members knowledge only such public business matters as were identified in the motion convening the closed meeting were heard, discussed or considered by the Economic Development Authority of Roanoke County, Virginia At 9:50 a.m., Mike Cagle moved to return to open session and adopt the certification. The motion was filed and carried by the following recorded vote: AYES: Mr. Patel, Mr. Windley, Mr. Apostolou, Mr. Cagle, Mr. Beyer ABSTAIN: Mr. Musselwhite NAYS: NONE ABSENT: Mr. Shah, Mr. Anderson, Mr. Richardson A poll was taken to determine if members desired to pursue the purchase of property - Lot 4A located in Valley Tech Park. All members expressed their desire to pursue ownership of the site. On motion by Max Beyer to have Counsel, explore options to acquire Lot 4A in Valley Tech Park, seconded by Mike Cagle, the motion carried by unanimous voice vote. Page 5 of 5 February 19, 2020 Economic Development Authority Minutes ECONOMIC DEVELOPMENT UPDATES The Roanoke region will host VEDA members for the 2020 Spring Conference March 11-13, with Ms. Loope serving as the conference Co-chair. Blue Ridge Beverage ribbon cutting will be coming up in the next few months celebrating their expansion. Ms. Loope stated she will send out a notice as soon as the date and time is established. The next regularly scheduled meeting will be March 18, 2020. ADJOURNMENT On motion by Woody Windley and second by Mike Cagle, the meeting was adjourned at 10:05 a.m. Respectfully submitted, Xysz____ Jill Loope Secretary-Treasurer