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HomeMy WebLinkAbout6/12/2019 - Minutes The Economic Development Authority of Roanoke County Roanoke County Administration Center 4TH Floor Training Room,.5204 Bernard Drive Roanoke,Virginia 24018 Minutes Wednesday,June-12,2019,the Economic Development Authority of Roanoke County,Virginia met this day in a joint work session with the Roanoke County Board of Supervisors at the Roanoke County Administration Building EDA Members Present Steve Musselwhite,Chairman Woody Windley, Vice-Chairman Greg Apostolou. Kyle Richardson Max Beyer Michael Cagle Steve Anderson Kirtesh Patel Ssunny Shah Ruth Ellen Kuhnel, Counsel Jill Loope, Secretary-Treasurer Glenna Ratcliffe, Recording Clerk Members,Absent None Board Members Present Phil North,,Chairman George Assaid Martha Hooker Jason Peters David Radford Members Absent None Guest Dan O'Donnell, County Administrator; Rebecca Owens, Assistant County Administrator; Laurie Gearheart,Acting Director of Finance; Debbie Jacks, Board Clerk CALL TO ORDER Chairman Steve Musselwhite called the meeting to order at 9:OOam. .The roll call was taken. Mr. O'Donnell began the•.meeting giving an overview of the reason for the joint meeting by stating he felt there should be more interaction between the Board of Supervisors(BOS) and the Page2of6 June 12,2019 Economic Development Authority Minutes Economic Development Authority(EDA). He stated there was a need to review where we are with economic development and change our approach in the future. He stated we will review some of the history of Roanoke County's demographics, recent trends and changes in budgeting. Mr. Musselwhite stated he has been a member of the EDA for 20+years and this is the first time he has been in a joint meeting with the BOS, and was grateful for this time of discussion. Mr. O'Donnell gave a PowerPoint presentation reviewing demographic and economic development trends. Recent updates indicate that Roanoke County has lost a small percentage of population and he attributes that to an aging population: The County needs to explore ways to encourage young professionals to the area. Looking at the annual population growth comparison, it is apparent there is a need for more multi- family housing. Creation of a Regional Technical Center and enlisting corporate partners would be an asset to the county as we work to retain young people. Mr. O'Donnell stated a study by Erin Burcham, Director of Talent Solutions for the Roanoke Regional Partnership,revealed that only 5% of young people stay in the valley after graduation. It was pointed.out that the issue is not only related to jobs but also lifestyle. What can the County do to increase population and also how can young professionals be encouraged to locate here or stay here after graduation? Roanoke County and the State of Virginia median household income 2008 through 2017 was reviewed and did not reveal a large gap. Assessment growth and inflation 2009 through 2019 was presented. The average annual assessment revealed an increase of 1.22 percent with an average annual inflation increase of 1.64 percent. Real Estate Revenue for FY2009 through FY2019 revealed that in the FY2019 budget the rate of inflation was 2.44%with an annual revenue growth of 1.83%. The revenue growth and property growth are behind, as indicated and are all reasons to focus on Economic Development. Current County Economic and Community Development initiatives include the completion of a 20-year plan for the 419 Town Center, Oak Grove Center and Hollins Center. The Route 419/Route 220 Diverging Diamond Interchange (Regional Surface Transportation Program and SMARTSCALE)has received preliminary funding of$17.5 million. The purpose of the County's reimagine efforts are to: • Encourage development of higher density, mixed-use town centers in commercial corridors • Attract young professionals • Provide a regulatory framework and roadmap for future capital projects • Provide an opportunity to target incentives • Leverage State and Federal funds for infrastructure improvements Another Economic Development initiative underway is the Wood Haven Technology Park. The Western Virginia Regional Industrial Facility Authority (WVRIFA)was formed in 2016 and members include Roanoke County, Roanoke City and the City of Salem who together acquired 109 acres in 2016-2017. The Master Planning process was completed in FY18 and rezoning and adoption of the Master Plan to guide the site development was completed in FY19. Natural gas Page 3 of 6 June 12,2019 Economic Development.Authority Minutes improvements and demolition of a housing structure was completed in FY18. A GO Virginia grant of$200,000 was secured for utility improvements in FY18 and Utility (water& sewer extensions) and entrance road design was underway in FY19. The Authority is planning to construct the entrance road in FY20 and is considering the acquisition of additional property. A large parcel that is shovel read is needed to attract new businesses to the County. Another initiative underway is the 1,100 acre Explore Park. The Explore Park Adventure plan was adopted by the Board in 2016 with a$5.7 million public investment. The County Department of Economic Development and the Department of Parks, Recreation and Tourism is working with Virginia's Blue Ridge and the Roanoke Regional Partnership,along with private businesses,to attract new businesses to the Park. To date, private start-up businesses that have located in Explore Park include a Disc Golf Course, Blue Mountain Adventures Campground, Tree Top Quest, Twin Creeks Brewery,;Blue Ridge Bike Skills Park Construction and new special event called Illumi Nights. Illumi Nights is a visual light display that will be held during Christmas in conjunction with Center in the Square.. In an effort to transition to Entrepreneurial/Innovation Economy,the County is engaging with the Fralin Biomedical Research Institute and regional technology leaders to promote greater alignment with innovation resources and-partner organizations including: • The Valley's Innovation Council • Roanoke Blacksburg Technology Council (RBTC) • The Advancement Foundation and HIVE Business Incubator • RAMP (Regional Accelerator) • Regional Entrepreneurial Coalition(REC) We should ask how we fit in this environment and evaluate mixed use development and housing. We should then broaden our economic development effort- instead of finding a single manufacturing plant,we should search for creative people and find ways to encourage them to come here. - A plan is now in place to restructure the Economic and Community Development Departments. Economic Development,Planning and Engineering Development services will be consolidated into one department of Economic and Community Development to focus on working with businesses and improving the local economy. The County needs to be more development friendly and this will allow for a seamless approach to the.County's economic development process. As part of the restructuring,the County is currently recruiting for a new Director of Economic and Community Development in order to provide unified leadership, align functions, encourage the new innovation economy, promote teamwork and collaboration and develop an.Economic and Community Development Strategic Plan. Mr. O'Donnell stated the County should look at types of incentives including residential and would like input from the,EDA. Page 4 of 6 June 12,2019 Economic Development Authority Minutes At this time, Ms. Loope gave a presentation outlining the powers and duties of the Roanoke County EDA as granted by the Code of Virginia as well as a history of projects. The EDA was formed in 1971 by the Roanoke County Board of Supervisors. Broad powers are granted to EDA's by the Code of Virginia include: • Establish and administer loan programs to facilitate economic development projects • Provide incentives for economic development projects • Administrative grant programs • Acquire, construct, equip, manage and maintain facilities • Issue bonds to finance public and private projects • Acquire, own, lease and dispose of properties The County has a Public Private Partnership Policy(PPP)that was established by the Board in the 1990's that is used as a guideline for evaluating incentives for projects. The PPP provides a framework for public participation in projects and is administered by staff through a three-party performance agreement between the company,the Board and the EDA. Typical areas of assistance include public infrastructure improvements; utility extensions and connections, land acquisition, site preparation, employment and training grants. The PPP supports industrial and commercial/retail/office projects. The guidelines allow for a payback within one year for commercial/retail/office projects and a three-year payback for manufacturing/industrial projects. The County could look at other tools and incentive programs such as tax increment financing and innovation-economy driven initiatives, among others. Since 2003,Roanoke County has leveraged$9.2 million in Public investment with$402 million in Private investment that has yielded$60 million in new revenue for the County during this timeframe. There are three remaining active incentive performance agreements including: • Old School Partners (Roland E. Cook), • Edward Rose Development Company (The Retreat Apartments), • Waukeshaw Development, Inc. (Billy Byrd Apartments) The EDA also supported and provided funding assistance for the County broadband expansion and the Wood Haven Technology Park acquisition& improvements through the proceeds of a land sale ($1.05 million, December 2018)to AEP in the Center for Research and Technology. Approximately 65 Revenue Bonds has been issued since 1972 with more than$80 million issued. Some of the companies utilizing Revenue Bonds include: • Friendship Manor(2) • The Glebe,Virginia Baptist homes • Richfield Retirement Community(3) • Hollins University(2) Ms. Loope stated the EDA recently adopted a fee schedule for bond financing which will provide new revenue to the Authority and County on future bond issues. Page 5 of 6 June 12,2019 Economic Development Authority Minutes The EDA has awarded 30 Vinton Façade Grants to businesses since inception in 2004, with total public investments of$94,300. The funding is split 50/50 between the County and Town of Vinton. Ms. Loope stated plans are to revisit all grant programs in the near future. The Change of Use Incentive Grant was initiated in an effort to offset building code costs when converting residential property to commercial use. There is currently $25,000 is in the EDA fund with no grant applications/awards to date. Mr. Musselwhite asked if perhaps this was because people do not know about the grant. Supervisor Peters stated he feels it is because there has been little growth in Vinton until recently, and now as things are happening in Vinton it may become more popular. Thirty-one Commercial Corridors grants have been awarded to businesses since inception with a total public investment of$143,907, leveraging private investment of$243,774. There are only two commercial corridor areas eligible for grants, Hollins/Williamson Road and Route 460 West. More resources would be required to continue this countywide. Mr. Musselwhite stated Brambleton Avenue is the "downtown" of Roanoke County and should be included in the commercial corridor grant program. Mr. O'Donnell asked if this is the best use of resources today,maybe this should be revisited and updated. The EDA currently owns 9.21 acres in Valley TechPark, 387.48 acres in CRT, 71.69 acres in Vinton Business Center and 109 acres in Wood Haven Technology Park. Ms. Loope pointed out that the land in the CRT presents a challenge as only 167 acres is developable. The rest is unimproved with limited access. There is currently only one pad ready site consisting of 11 acres. Mr. O'Donnell stated the County BOS used to own the land in CRT but because two readings were necessary in order to sell property,the BOS transferred the property to the EDA to expedite the process. This proved to be helpful during the recent sale of property in the CRT to Appalachian Power Company for a new transmission operation center (TOC). There are currently three tenants in the CRT;Novozymes, Tecton Products and AEP. The Vinton Business Center is jointly owned by Roanoke County and the Town of Vinton, and requires additional investment and site work. There is one 18-acre pre-graded pad site available. Valley TechPark has two properties; a 2.45-acre site with limited development capability and a 6.29-acre site in front of the Camrett Logistics building that could be used in the future. Max Beyer stated there is the EDA and the Economic Development Department and feels the EDA should be kept informed regarding changes. He stated he would like to see a recognized mission, codified. Supervisor North stated a Strategic Plan could help define the roles and future direction. Mr. O'Donnell stated the process of hiring a new Director of Economic and Community Development will include a selection committee consisting of 7 people made up from the Page 6 of 6 June 12,2019 Economic Development.Authority Minutes Economic Development Community, and ultimately the development of a strategic plan, which will further define the EDA role and a review of the tools already in place. Supervisor Radford stated the EDA should interact with the BOS like the Planning Commission and the Board. Steve Musselwhite questioned the process in putting a plan together. He stated the EDA is currently a reactive Board and asked"What do you see as the role of the Authority moving forward,where are we going, and what can the EDA do to support economic development in the County? Supervisor Hooker stated she views the EDA members as ambassadors to help sell the County. Mr. Musselwhite felt we could do a better job of telling our story; fall in love with the valley and start telling our story! Chairman North stated Virginia's Blue Ridge is doing a great job as well as the Roanoke Regional Partnership in marketing our County. Mr. Shah stated the beauty of the area and the school system are both selling points for the County. Mr. Musselwhite stated a plan is needed to move forward or we have only wasted time. Mr. Apostolou stated the Planning Commission should be included in the conversation. Chairman North stated he planned to visit businesses in the Hollins and Route 460 areas. Members of the EDA expressed a desire to continue the dialog with the Board of Supervisors. Mr. Musselwhite invited the Board to visit the Town of Vinton. ADJOURNMENT On motion by Mr. Windley and second by Mr. Beyer,the meeting was adjourned at 7:30 p.m. Res ectfully submitted, Jil Loope Secretary-Treasurer