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Home My WebLink About8/11/2015 - Minutes The Economic Development Authority of Roanoke County Roanoke County Administration Center 5204 Bernard Drive Roanoke,Virginia 24018 Minutes Tuesday,August 11,2015, 10:00 A.M. Members Present Chairman-Steve Musselwhite Woody Windley,Vice-Chair Ssunny Shah Steve Anderson. Dan Toti Greg Apostolou Bill Branch Leon McGhee Secretary-Treasurer, Jill Loope Paul Mahoney, Counsel Recording Clerk, Glenna Ratcliffe Members Absent Kirtesh Patel Guest Rebecca Owens, Director of Finance Ann Whitehurst,Financial Analyst The Economic Development Authority of Roanoke County,Virginia met this day at.the Roanoke County Administration Center,a rescheduled meeting of the regular meeting August 19,2015 CALL TO ORDER Chairman, Steve Musselwhite, called the meeting to order at 10:05 a.m. APPROVAL OF JUNE 17,2015 MINUTES After a motion by Greg Apostolou and second by Dan Toti,the minutes of June 17, 2015 were approved by unanimous voice vote. Page 2 August 11,2015 Economic Development Authority Minutes FINANCE REPORT Anne Whitehurst,Financial Analyst,presented the financial reports for the months ending June 30, 2015 and July 31,2015. The cash balance at the end of June was $649,308.45 and the cash balance currently is $649,372.84. (copies attached) A motion was made by Steve Anderson and seconded by Ssunny Shah, to accept the financial reports for June and July, 2015 as presented. The motion carried by unanimous voice vote. NEW BUSINESS Results of Lease Revenue Bond Refunding and Bond Rating Ms. Owens stated she had good news to report regarding the Lease Revenue Bond Refunding as well as the bond rating results. Fitch Ratings and Standard and Poor's Ratings Services affirmed Roanoke County's AA bond rating with stable outlook for the Lease Revenue bonds and AA+ on the County's underlying credit program. The news reflects the County's consistently good economic growth, financial practices, and policies that have helped the County maintain a strong financial performance. In 2008, the EDA of the County of Roanoke issued $58,595,000 in bonds to finance infrastructure in Roanoke County. On May 20, 2015, the EDA approved a resolution authorizing the issuance of lease revenue refunding bonds to refund its lease revenue bonds (public facility projects), series 2008. The ordinance authorized refunding up to $45 million of the 2008 lease revenue bonds as an accelerated savings with an aggregate net present value savings of not less than three percent (3%). On August 6, 2015, the County refunded $40,740,000 of Lease Revenue Bonds that had previously been issued for the financing of the Fleet Service Center, South County Library, Green Ridge Recreational Center,North County Fire Station and the 800 MHZ Radios. Market conditions were very favorable and the annual savings as reported were $2,850,899.17. The all-in true interest cost was three point three nine percent (3.39%) and the net present value savings of refunded bonds was six point eight six percent(6.86%) As a result of the refinance, funds are available to pay the entire outstanding capital lease obligation, literary loans, and the 2011 EDA Lease Revenue Bonds in full, thus reducing outstanding debt approximately$2.6 million. Page 3 August 11, 2015 Economic Development Authority Minutes At this time, Leon McGhee discussed the perception that Roanoke County is not business friendly toward residential development. He felt that homes come first and then businesses will come. Steve Musselwhite stated a healthy economy is a diverse economy, a balance of residential and • commercial development. He felt if there was an issue, it should be addressed. Mr. Musselwhite commended staff for a great job. Request for authorization to execute a performance agreement between the County of Roanoke, the Roanoke County Economic Development Authority, and Old School Partners,LLC,Vinton Magisterial District At this time, Jill Loope gave a PowerPoint presentation regarding the redevelopment of Roland E. Cook School. She stated that Old School Partners, LLC is a four-member Limited Liability Company, formed specifically to develop and renovate the old School: Dale Wilkinson, Developer; David P. Hill, ASLA, President of Hill Studio; Greg Rhodes, an experienced builder and David Spigle,Esq. are the partners in the redevelopment project. She stated that the property is owned by Roanoke County, but located within the Town of Vinton. The property consists of 17,642 sq. ft. on one acre of land and is limited in its reuse potential, but does have historic significance. The County advertised and received development proposals in May of 2014. During the summer and fall of 2014, the development concept was initiated, an environmental study completed, and a Department of Historic Resources application submitted. In the spring of 2015, the zoning category was reviewed and modified by the Town of Vinton. The County initiated a development contract with Old School Partners, following initial approval from the Virginia Department of Historic Resources. In the summer of 2015, the design was initiated compliant with Vinton's new M.U.D. Zoning and the National-Register of Historic Places Standards. The Town of Vinton has been very involved in the process and has held a joint community meeting along with the County to discuss the property with neighbors. The development plans include transforming each classroom into approximately 21 apartments, with some commercial uses currently being evaluated. The schoolhouse character will be intact, some chalkboards, arches, etc. will remain. Ms. Loope reviewed the terms of the Performance Agreement, stating the project is contingent upon obtaining historic tax credits. Roanoke County will sell the building for$10 and offer tax reimbursements in an amount not to exceed $150,000 over a ten year period. The incentives are being offered due to the complexity of rehabilitating the structure,the environmental remediation required, and the extensive window replacement cost for the project. The historic designation will severely limit the renovation work, but could provide approximately $950,000 in state and federal tax credits to assist with the rehabilitation. Conditions are built in the performance agreement for protection, as the property must be transferred to the developer prior to the designation to obtain historic tax credits. - f Page 4 August 11, 2015 Economic Development Authority Minutes The agreement will go before the Board of Supervisors today (8-11-2015). Following Board approval, funds will be transferred to the EDA and the EDA will, in turn, over the next 10 years provide a reimbursement of taxes (not to exceed $150,000). In answer to a query by Leon McGhee Ms. Loope stated the hook-up fees had been discussed and Vinton is agreeable to waiving those fees. After discussion of the project, a motion was made by Dan Toti and seconded by Ssunny Shah to authorize the Chairman of the EDA to execute a performance agreement between the County of Roanoke, the Roanoke County Economic.Development Authority, and Old School Partners, LLC,Vinton Magisterial District. The motion carried by unanimous voice vote. CLOSED MEETING At 10:45 a.m.,Board Member Steve Anderson moved to go into closed meeting, pursuant to the Code of Virginia Section 2.2-3711. A.3 discussion regarding the acquisition of real property for' economic development purposes where the discussion in an open meeting would adversely affect the bargaining position or negotiating strategy of the County. Woody Windley seconded the motion which carried by unanimous voice vote. The closed meeting was held from 10:45 a.m.until 11:20 a.m. RESOLUTION CERTIFYING CLOSED MEETING WAS HELD IN CONFORMITY WITH THE CODE OF VIRGINIA 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 the date pursuant to an affirmation-recorded vote and in accordance with the provisions of The Virginia Freedom of Information Act. WHEREAS, Section 2.2-3712 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 Virginia law. NOW THEREFORE, BE IT RESOLVED, that the Economic Development Authority of Roanoke County, Virginia,hereby certifies that,to the best of each member's knowledge: 1. Only public business matters lawfully exempted from open meeting requirements by Virginia law were discussed in the closed meeting which this certification resolution applies; and 2. 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. Page 5 August 11, 2015 Economic Development Authority Minutes Steve Anderson made a motion to adopt the resolution. The motion was seconded by Dan Toti, and carried by the following roll call and recorded vote: • AYES: Steve Musselwhite, Chairman; Greg Apostolou, Woody Windley,Vice-Chairman; Steve Anderson, Ssunny Shah,Bill Branch, Leon Mcghee,Dan Toti,Bill Branch, NAYS: None ABSENT: Kirtesh Patel BRIEFINGS EDA Appointments Ms. Loope stated that Board Member Bedrosian appointed Max Beyer to replace Paul Henkel representing the Hollins Magisterial District. Mr. Henkel's term expired in September 26,2014. She stated two members have terms due to expire in September 2015, that being Kirtesh Patel of the Catawba District and Greg Apostolou of the Hollins District. ECONOMIC DEVLEOPMENT UPDATES Ms. Loope stated work continues on the William Byrd property and the contents have been removed. Several people have expressed interested and she will continue to keep everyone informed on any progress. Vinton Business Center has had no recent activity, but the HSN Building is being actively marketed for a new tenant. The sale of the 419 Library will not go forward as previously anticipated. The County will re- advertise the building in the near future to attract a new tenant. She stated there will be a ribbon cutting for "THE HIVE", an incubator for business entrepreneurs, in downtown Vinton tomorrow at 11:00 a.m. and invited members to attend. REPORTS AND INQUIRIES OF BOARD MEMBERS None ADJOURNMENT Steve Musselwhite, Chairman, adjourned the meeting at 11:30 a.m. Page 6 August 11, 2015 Economic Development Authority Minutes NEXT SCHEDULED MEETING September 16,2015 Respectfully submitted, oope, Secretary-Treasurer