HomeMy WebLinkAbout11/6/2019 - Minutes I
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The Economic Development Authority of Roanoke County
Roanoke County Administration Center
4TH Floor Training Room„5204 Bernard Drive•
Roanoke,Virginia 24018
Minutes
Wednesday,November 6,2019,the Economic Development Authority of Roanoke County,
Virginia met this day at the Roanoke County Administration Center
Members Present
Steve Musselwhite,Chairman
Greg Apostolou
Michael Cagle
Steve Anderson
Woody Windley
Kirteh Patel
Ssunny Shah
Kyle Richardson
Peter Lubeck, Interim Counsel
Jill Loope, Secretary-Treasurer
Glenna Ratcliffe, Recording Clerk
Members Absent
Max Beyer
Guest
Rebecca Owens, Assistant County Administrator; Laurie Gearheart, Director of Finance;
Pete Peters,Vinton Assistant Town Manager;Thomas Rowley,Economic Development
Manager;Evan Malone and Jessica Lovell,Financial Analyst with the Department of
Finance
CALL TO ORDER
Chairman Steve Musselwhite called the meeting to order at 9:00 a.m.
INTRODUCTION OF THOMAS (TOM) ROWLEY, ECONOMIC DEVELOPMENT
MANAGER
At this time, Jill Loope introduced Tom Rowley who recently joined the Economic Development
Department as Manager.
Mr.,Rowley stated he moved to Roanoke from Bend, Oregon and is delighted to back in Virginia
as he has family and friends in the area. He stated he has been in and out of Economic Development
throughout his career beginning in Arlington, Va. before locating in Texas and then to Bend,
Oregon.
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Members welcomed Mr.Rowley to Roanoke County.
REQUEST TO POSTPONE,ADD TO,OR CHANGE THE ORDER OF THE AGENDA
ITEMS
None
APPROVAL OF AUGUST 21,2019 MINUTES
On motion by Woody Windley to approve the minutes of August 21,2019 as presented, seconded
by Ssunny Shah,the motion carried by unanimous voice vote.
FINANCE REPORT
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Evan Malone, Financial Analyst for the Department of Finance,reviewed the information
provided on the financial report for the month ending October 31,2019.
On motion by Steve Anderson to accept and approve the financial report as presented, seconded
by Ssunny Shah,the motion carried by unanimous voice vote.
NEW BUSINESS
RESOLUTION TO ADOPT THE MEMBER AGREEMENT TO JOIN THE VIRGINIA
ASSOCIATION OF COUNTIES GROUP SELF INSURANCE RISK POOL AND
AUTHORIZE THE CHAIRMAN TO EXECUTE THE AGREEMENT ON BEHALF OF
THE EDA
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At this time,Rebecca Owens,Assistant County Administrator, stated VACORP provides
coverage and risk management expertise to local government entities throughout Virginia. By
pooling risks,members enjoy the benefits of comprehensive coverage, cost savings and price
stability. Unlike a commercial carrier,VACORP is governed by a Supervisory Board that is
comprised of pool members that have a common interest. As a member governed organization,
VACORP knows and understands its members' needs and has a proven record of quickly
responding to the changes in state laws and mandates.
Mr.Lubeck,Counsel,reviewed the Member Agreement which Members received as part of the
meeting package. He reviewed the coverage in the agreement and the quote options for The
Roanoke County EDA 2019-2020. The quote for$2,000,000 General Liability coverage was
$1,625 annually.
Kirtesh Patel stated he would like to see the coverage increased to$3,000,000. Mr. Patel made a
motion to adopt a resolution to join the Virginia Association of Counties Group Self Insurance
Risk Pool and authorize the chairman to execute the agreement on behalf of the EDA with
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coverage not to exceed$3,000,000. The motion was seconded by Ssunny Shah which carried by
unanimous voice vote.
After adopting the Resolution to join VACORP,Ms. Owens stated she would contact the agency
and follow-up on the amount of coverage and get back to the EDA.
REQUEST APPROVAL TO EXECUTE A PERFORMANCE AGREEMENT BETWEEN
THE ROANOKE COUNTY ECONOMIC DEVELOPMENT AUTHORITY,THE TOWN
OF VINTON AND VINYARD STATION,LLC.AND AUTHORIZE THE CHAIRMAN
TO EXECUTE THE AGREEMENT ON BEHALF OF THE AUTHORITY
Pete Peters,Assistant Manager for the Town of Vinton,gave a PowerPoint presentation on the
Vinyard Station project, and reviewed the Performance Agreement which has been in the works
for more than four years. Vinyard Station is located on 1.4 acres on the corner of Washington
Avenue-the former Vinton Motors which closed in 2009. The property has been sitting vacant
since that time and deteriorating.
Mr.Peters reviewed aspects of the negotiation process including the assessed value of the
property versus the asking price of the property,and he reviewed the many obstacles that had to
be resolved prior to the Town reaching a purchase option for the property in 2017. Once the
option was secured, a Request for Proposals was issued and a proposal accepted by Vinyard
Station LLC.
A restaurant tenant(not named at this time)has been secured for the building that will occupy
5,000 square feet of the property and will have an industrial feel interior. The parking area will be
maintained with approximately 84 parking spaces and will be improved with landscaped medians,
providing access for multiple tenants and adjoining properties. There will be an additional 7,000
square feet available for lease. He reviewed the proposed landscaping,lighting and pedestrian
improvements that will be implemented with the redevelopment project.
The Town of Vinton is requesting County incentives for the redevelopment project to support the
public infrastructure improvements. He informed the Authority that the Board of Supervisors has
been briefed on the project and has approved a Memorandum of Understanding between the
Town of Vinton and County of Roanoke,which is subject to the approval of the Performance
Agreement.
Mr.Peters reviewed the proposed Public Private Partnership,which includes 1/3 of the incentives
shared by Roanoke County and 2/3 by the Town of Vinton,with the Town bearing the
responsibility for the Performance Agreement accountability and verification of the developer and
tenant compliance.
The Public Private Partnership includes a$750,000 total incentive as follows: Vinton will
contribute$550,000 ($250,000 upfront for parking and pedestrian access improvement and
$50,000 annual reimbursement of taxes for the next six years). Roanoke County will contribute
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up to$200,000 ($40,000 annual reimbursement of taxes generated by the project for five years)to
offset building and infrastructure improvements.
Vinyard Station is expected to open in fall 2020,with Roanoke County's first reimbursement
being made in January 2022,following the property's first year of operations.The project is
anticipated to generate over$130,000 of tax revenue annually.
The Economic Development Authority will act on behalf of the Town of Vinton and the County
of Roanoke with the Performance Agreement. -
After discussion, a motion was made by Greg Apostolou, seconded by Kirtesh Patel approving
the decision to enter into a Performance Agreement between the Town of Vinton,the Economic
Development Authority of Roanoke County,Vinyard Station LLC and authorize-the Chairman to
execute the Agreement. The motion carried by a unanimous voice vote.
BRIEFING
Ms. Loope shared with the EDA a PowerPoint presentation prepared by the Roanoke Regional
Partnership using data from the Bureau of Labor and Statistics,which hijhlighted employment
growth,unemployment rate declines,home price appreciation and taxable sales growth.
Roanoke has performed reasonably well in growing employment over the last year. Employment
growth from August 2018 to August 2019 in Roanoke exceeds the state's rate of growth. i
Roanoke's rate of employment growth exceeds the rate of growth in NOVA,Richmond,Hampton
Roads,Lynchburg,and Blacksburg.
Employment growth portends to positive motion going forward. .Strong employment growth
should support higher growth in the overall economy going forward.
Roanoke has a low rate of unemployment within the context of the Commonwealth.
Home price appreciation is up in the Roanoke market when compared to most Virginia Markets
and to the nation overall. This is a sign of a lagging market catching up and perhaps a reflection
of ever tightening inventory.
Taxable sales growth is strong. Roanoke is catching up after a slower set of years.
ECONOMIC DEVELOPMENT UPDATES
Ms. Loope briefed the Board on the State of the Corridor meeting which was held on Friday,
November 1. Dr. Michael Friedlander, Executive Director of Fralin Biomedical Research
Institute at VTC,and Dr. Kimberly Dunsmore, Chair of Pediatrics with Carilion Clinic were
speakers. Philip Thompson presented an update on the 419 Corridor. The program was well
attended by businesses and community leaders.
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The Board was urged to attend the State of the County 2019 on November 20 at 7;30 am at the
Holiday Inn Tanglewood.
The Economic Development Department recently prepared a brochure on"6 Steps to Start a
Business"in Roanoke County in an effort to assist and encourage new stat-up businesses. (copy
attached)
Paul Mahoney was elected to the Board of Supervisors representing the Cave Spring District.
Ms. Loope stated no regular meeting will be held on November 20; however,it may be necessary
to have another called meeting in December.
Big News—A new project is scheduled to be announced January 30 at the R.R. Donnelly
Building in Valley Tech Park. The Governor is scheduled to attend. Stay tuned for more
information and event details.
Synchrony,located in Valley Tech Park,has been sold to Johnson Controls. No impact on local
operations is anticipated.
Harris Corporation was recently acquired by Elbit Systems. Hopefully,this will mean future
growth in Roanoke County. The Governor is visiting with Elbit Systems in Israel and has set up
meetings with businesses to grow the employee base in Roanoke County.
In response to a query by Greg Apostolou,Ms. Loope stated there are currently-over 500
employees at the Elbit facility in Hollins.
In response to a query by Mike Cagle,Ms. Loope stated the low unemployment rate is being
addressed through Workforce Development programs,including talent attraction and development
strategies implemented with our regional partners.Mr. Rowley will be working in this area and
developing strategies in the future.
ADJOURNMENT
Upon motion by Steve Anderson,the meeting was adjourned at 12:00 noon
Respectfully submitted,
Ji I oope
Secretary-Treasurer