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HomeMy WebLinkAbout4/16/2014 - Minutes The Economic Development Authority of Roanoke County Roanoke County Administration Center 5204 Bernard Drive Roanoke,Virginia 24018 Minutes Wednesday,April 16,2014,9:00 A.M. Members Present Steve Musselwhite, Chairman Woody Windley, Vice Chairman Billy Branch Greg Apostolou Paul Henkel Steve Anderson Kirtesh Patel Daniel Toti Leon McGhee Jill Loope, Secretary Treasurer Paul Mahoney, Legal Counsel Members Absent Ssunny Shah Guest Brian Carter, Finance Manager The Economic Development Authority of Roanoke County, Virginia met this day at the Roanoke County Administration Center,this being their regular monthly meeting. CALL TO ORDER Mr. Musselwhite called the meeting to order at 9:00 a.m. REQUEST TO POSTPONE ADD TO, OR CHANGE THE ORDER OF THE AGENDA ITEMS A motion was made by Paul Henkel, seconded by Dan Toti to add Item 3 to New Business, Consideration of transfer of ownership from Salem vent to Tim Kelly as sole shareholder. The motion carried by unanimous voice vote. APPROVAL OF FEBRUARY 19,2013 MINUTES A motion was made by Greg Apostolou, seconded by Woody Windley to approve the minutes as written. The motion carried by unanimous voice vote. EDA Minutes Page 2 April 16, 2014 FINANCIAL REPORT Brian Carter presented the financial report for the period ending March 31,2014. He reported there was not a lot of activity during this period. He noted one item of interest was miscellaneous revenue of$20,815.83. In March of 2012,the Virginia Small Business Financing Authority(VSBFA) agreed to share a portion of its annual administrative bond fees for qualified 501 C.(3)bonds with certain local economic development authorities. For such qualified bonds issued after March of 2012, the VSBFA agreed to share 40% of the annual administrative bond fee collected according to the percentage of the bond proceeds spent in each host locality. A motion accepting the financial report was made by Bill Branch, and seconded by Paul Henkel. The motion carried by unanimous voice vote. A copy of the financial report is attached. EDA BUDGET 2014-15 Brian Carter, Finance Manager, presented and reviewed the 2014-15 Proposed Budget. The proposed budget is $9,460 and will cover the stipend for EDA Members as well as the EDA portion of the annual audit. Greg Apostolou made a motion to accept the proposed budget. Kirtesh Patel seconded the motion which carried by a unanimous voice vote. A copy of the proposed budget is attached. NEW BUSINESS EDWARD ROSE MODIFICATION AGREEMENT Ms. Loope stated that due to the national economic recession, Edward Rose has requested to extend the timeline of performance for this economic development incentive grant. Roanoke County entered into a Performance Agreement with Edward Rose Properties, Inc. on May 5, 2011, which provided for an economic development grant and certain other considerations to the Company based upon measurable performance goals. The proposed mixed use commercial development includes the construction of a 252 unit luxury apartment building with an investment of $20 million in improvements and personal property. In addition, the company plans to develop two commercial pad sites at the entrance to the development with possible uses including a hotel, restaurant, office or medical facility. The Modification Agreement will grant a 2-year extension to Edward Rose Development Company, L.L.C., successor to Edward Rose Properties, Inc., to complete construction of the commercial buildings on the property to December 31 2019. The County incentive for the project includes a $100,000 contribution for a water line extension EDA Minutes Page 3 April 16, 2014 and an economic development grant in an amount equal to two years of new local tax revenue generated solely from the commercial development. The revenues will be reimbursed to the company after the new facilities are built. Should the pad sites not develop within the stated timeframe, then no reimbursements will be provided The revised project timeline includes delivering units to market the first quarter of 2015. She also stated the apartment complex will be called"The Retreat". After discussion of the request, Woody Windley made a motion to approve the request of Edward Rose Development Company, L.L.C. allowing 'a two-year extension of the Performance Agreement. Paul Henkel seconded the motion which carried by unanimous voice vote. RCCCC & ROLAND E. COOK RFP ADVERTISEMENT Ms. Loope stated the Economic Development Depai talent has been actively marketing the Roland E. Cook School and the former William Byrd High School/RCCCC properties for sale, both located in downtown Vinton. She stated a legal ad was placed in the Roanoke Times and brochures were sent to developers and real estate agents throughout the state. It was pointed out this would be a difficult sale as Roanoke County does not totally control the use of the property as it is located in the Town of Vinton, and any proposals would be subject to their approval. Also, both properties are in need of an extensive amount of work. Mr. Mahoney pointed out the County chose to offer the property through an RFP so that there would be opportunity for negotiation as opposed to the"bid"process. Mr. McGhee suggested the county advertise through a small display ad rather than a legal ad due to the uniqueness of the properties. Ms. Loope reported that a legal ad was already placed in the paper on April 13,but perhaps she could coordinate a story in the newspaper and on TV stations, which would generate interest in the buildings. Also, the Board suggested the County contact area colleges for use with their satellite programs. Mr. Musselwhite asked about the cleanup of the old William Byrd building. Ms. Loope stated the county is working on the issue. It was the consensus of the Board that the cleanup should be a priority as this could limit the marketability and sale of the property. The Board expressed concern regarding the amount of surplus items stored at William Byrd and felt it should be disposed of through Goodwill or by contacting a salvage company to dispose of everything. Ms. Loope stated that she would discuss the Boards concern over the disposition of the building contents with the County Administrator. EDA Minutes Page 4 April 16,2014 CONSIDERATION OF TRANSFER OF OWNERSHIP FROM SALEM VENT TO TIM KELLY AS SOLE SHAREHOLER Mr. Mahoney stated he received communication from Lee Osborne(attorney with Woods Rogers)who represents Tim Kelly and Salem Vent. Salem Vent owns Lot 4 in Valley Tech Park and the refinancing lender will not lend to Salem Vent but will lend to Mr.Kelly. Therefore, Salem Vent would like to convey this parcel to Tim Kelly as sole shareholder. Mr. Mahoney stated that Valley Tech Protective Covenants provide a right of first refusal to the EDA. Although this is not a sale, and right of first refusal may not apply, someone(lender) could interpret covenants as requiring some acknowledgment or consent from EDA. Mr. Osborne would like to obtain consent from the EDA regarding this transfer of ownership. Mr. Mahoney pointed out that paragraph 7 of the Protective Covenants will still be in place; this action will not change the EDA's right of first refusal regarding the sale of any lot in Valley Tech Park. Mr. Toti made a motion approving the transfer of ownership from Salem Vent to Tim Kelly. Mr.Branch seconded the motion which carried by unanimous voice vote. Mr. Mahoney will prepare a letter to Mr. Osborne apprising him of Board action. ECONOMIC DEVELOPMENT UPDATES BUSINESS APPRECIATION WEEK Ms. Loope stated Business Appreciation Week is tentatively scheduled for the week of June 2, 2014 (date not yet confirmed through the Governor's Office). A Roanoke County business will be recognized at the Board of Supervisors Meeting during that week with a Proclamation. RE-ACCREDITATION ON-SITE VISIT The Department of Economic Development is seeking re-accreditation through the International Economic Development Council. The AEDO on-site re-accreditation visit is scheduled for April 27-29. 'The AEDO program is a comprehensive peer review process that measures economic development organizations against commonly held standards in the profession. The program consists of two phases: documentation review and an on-site visit. Each phase is designed to evaluate information about the structure, organization, funding,program, and staff of the organization. WESTERN VIRGINIA REGIONAL INDUSTRIAL FACILITY AUTHORITY Ms. Loope stated the Western Virginia Regional Industrial Facility Authority will meet on April 17, 2014. The local economic developers have reviewed proposals from thirteen(13) EDA Minutes Page 5 April 16,2014 engineering firms and have made a recommendation to the Authority of a firm to be retained for a regional site study. BROADBAND AUTHORITY The Broadband Authority will also meet this week. The Authority has hired a consultant to make recommendations for implementing broadband service region-wide. A presentation will be given at the meeting outlining these recommendations. EXPLORE PARK Ms. Loope announced that Explore Park will have an Open House on May 10 from 10:00 a.m. to 5:00 p.m. There will be many activities including guided nature walks, summer camp information, live music, face painting,hay rides, storytelling, sand sculpting,magician, geocaching, food vendors and Into the Wild 5k and 1 mile Run. This event will provide exposure to Explore Park. Mr. Patel stated that the Roanoke Valley Convention and Visitors Bureau is doing an excellent job marketing the Roanoke Valley. REPORTS AND INQUIRIES OF BOARD MEMBERS None ADJOURNMENT The meeting was adjourned at 10:00 a.m. NEXT MEETING The next regularly scheduled meeting is May 21, 2014 at 9:00 a.m. Respectfully submitted, Jill •p e Secretary-Treasurer