MINUTES VIRGINIA BEACH DEVELOPMENT AUTHORITY April 15, 2014

Transcription

1 MINUTES VIRGINIA BEACH DEVELOPMENT AUTHORITY April 15, 2014 The Virginia Beach Development Authority held its regular meeting on Tuesday, April 15, 2014, at 8:30 a.m. in the large conference room at 222 Central Park Avenue, Suite 1000, Virginia Beach, VA, pursuant to notice given by the Chair. MEMBERS PRESENT: ADVISORS PRESENT: REPORTED BY: RECORDED BY: John W. Richardson, Chair Elizabeth A. Twohy, Vice Chair Shewling Moy, Secretary Bryan D. Cuffee, Treasurer C. Maxwell Bartholomew, Jr., Commissioner Peter K. Mueller, Commissioner Charles M. Salle, Commissioner Joseph E. Strange, Commissioner Dorothy L. Wood, Commissioner Michelle Chapleau, Business Development Manager Curtis Cobert, Jr., Business Development Manager David Couch, Strategy Coordinator Scott Hall, Business Development Coordinator Mary Hancock, Media & Communications Warren Harris, Director Steve Harrison, Business Development and Research Manager Ashley Hashampour, GrowSmart Assistant Robert L. Hudome, Senior Project Development Manager Louis Jones, Vice Mayor Robert Bob R. Matthias, Assistant to the City Manager for Intergovernmental Relations Randy Royal, Kimley-Horn Jeff Smith, SWaM Business Manager Jerry Stewart, Workforce Development Coordinator Alex Stiles, City Attorney s Office Svetla Tomanova, Marketing Assistant Mark Wawner, Project Development Coordinator Rosemary Wilson, Councilmember Mark Wawner Linda Assaid The Authority convened into session and discussed the following:

2 REGULAR MEETING 1. Approved minutes of regular meeting held on March 18, MOTION: Shewling Moy SECOND: Charles M. Salle REVIEW OF FINANCIAL POSITION 2. Mark Wawner reviewed the Authority s financial statements for the month of March. Monthly Cash Flows Operating Account The beginning operating cash on hand for the month was $5,133,495 cash receipts for the month were $61,661, and cash disbursements for the month were $62,735 for a net decrease in cash of $1,074. The end of month cash balance in the operating account was $5,132,421. Received $16,905 in IRB fees from seven bondholders. Schedule of bond recipients is incorporated into the minutes; Received two month s rent from Priority in the amount of $42,436; Received $1,541 interest income on bank account and CDs; Disbursed $8,318 to Kimley-Horn for January Engineering Fees for various economic development initiatives (Princess Anne Innovation Park, TCC Hotel, Oceana West Industrial Park, Street closure at Princess Anne & Kempsville Roads, Kempes Village plat); Disbursed $4,616 to Columbus Tower LLC for 1-month of ODU Transportation Research Center lease; Restricted cash set aside for Charity Golf Tournament in the amount of $6,500 which was approved in FY-14 budget. Disbursed $2,815 for accounting software annual renewal and additional ipads. Monthly Cash Flows EDIP Account Mr. Wawner reviewed the Reconciliation of Cash to EDIP Status Report for March. Received GOF appropriation from state for IMS Gear in the amount of $200,000; Received $447 interest income; Disbursed $19,444 in EDIP awards to Advanced Engineering Consultants for workforce expansion; Disbursed GOF award in the amount of $200,000 to IMS Gear; Disbursed $13,266 for Town Center Phase V consultant fees. These funds will be reimbursed from PFRB proceeds. This report is hereby incorporated into these minutes.

3 BRIEFINGS 3. Bob Matthias, Assistant to the City Manager for Intergovernmental Relations, briefed the Authority on the 2014 General Assembly session. Veto session. The session closed without an approved budget primarily because the Medicaid expansion issue was an impediment. He noted City Council and statewide Chambers of Commerce support the expansion. However, reimbursement changes cause problems to the hospitals as noted by Sentara Riverside and Bon Secours. There is approximately $10 million difference between profitable and non-profitable providers, which is decreased to $2 million with the expansion. Meetings continue and there is the possibility Medicaid expansion will be considered separate from budget adoption although the political reality dooms it for the near term. An Act [H 2]* to amend the Code of Virginia relating to prioritization of projects funded by the Commonwealth Transportation Board was introduced by Delegate Chris Stolle. The Powers of Domain and no project shall be undertaken primarily for economic development purposes are addressed in this amendment. This will influence how transportation projects are prioritized. Adopted under the leadership of Mayor Will Sessoms, a map* of major projects prepared by the Hampton Roads Transportation Planning Organization dated October 2013 indicates 12 HRTF Candidate Projects. I-64 Peninsula Widening (Interim 6-Lane Option) HR Third Crossing I-64 Southside Widening I-64/I-264 Interchange Improvements US Route 460/58/13 Connector An Act [S 513]* to amend and reenact the Code of Virginia relating to establishment of the Hampton Roads Transportation Accountability Commission (HRTAC) and funding was introduced by Senator Frank Wagner. Delegate Chris Jones introduced an identical bill [HB 1253], and both bills were signed by the Governor. HB 2313, which established a local increase in sales and gas tax, is the funding bill vehicle and has generated $2 million. No new revenues can be used for transit, and projects must relieve congestion to impact the greatest number of citizens. HRTAC may or may not be a subset of HRTPO. The HRTAC will consist of 19 voting members, include 5 General Assembly members (3 Delegates and 2 Senators) and four nonvoting members. Every vote must have the support of 2/3 of the population. Mr. Matthias provided the Authority a copy of a memorandum* to City Manager James Spore dated March 13, 2014 which explains additional important aspects of this amendment. An Act to amend and reenact the Code of Virginia relating to Virginia Beach arena [H 1267]*. Mr. Matthias noted this legislation was originally introduced by Delegate Israel O,Quinn, and reintroduced this session by Delegate Barry Knight and Senator Frank Wagner. This bill allows private entrepreneurs to collect taxes and use as debt service. A Bill [HB 1258]* to amend and reenact the Code of Virginia relating to the Virginia Small Business Authority was sponsored by Delegate Ron Villanueva. This bill will give back to the localities what belongs to them regarding the issuance of bonds and collection of fees. The

4 Authority noted this will require a lot of support and action must be taken now to have a chance at succeeding. Mr. Matthias noted he would pursue whatever the City Council and Development Authority would like to accomplish. Mr. Matthias noted every item in the city s Legislative Package had a bill introduced. Some items were taken care of by a Governor s Executive Order. Hiring practices. Overall, the city did very well this General Assembly session. The asterisked (*) items are hereby incorporated into these minutes. CORPORATE LANDING 4. a. Approved resolution authorizing a land sale of 3.5 acres at a sales price of $647,500 to Liberty Tax. David Couch noted this project has been discussed previously in Closed Session. The project is on an extra fast track in that the company plans to begin construction in June with a target move in date of December 1, This is the company s international headquarters location, this is the second expansion in Corporate Landing and the building will entail a unique architectural design at staff s request. The company has incurred $35,000 in extra expenses due to this request and should be reimbursed if possible. The site plans are being expedited and will come before the Authority at its May meeting. MOTION: Dorothy L. Wood SECOND: Joseph E. Strange b. Approved of resolution granting $140, in Economic Development Investment Program, Part A, funds to Liberty Tax. This company is within one of the department s target markets and the award is based on both capital investment and workforce development (employment). MOTION: Dorothy L. Wood SECOND: Shewling Moy Mr. Couch s PowerPoint presentation is hereby incorporated into these minutes. ECONOMIC DEVELOPMENT INVESTMENT PROGRAM 5. Approved resolution granting $75, in Economic Development Investment Program, Part A, funds to JES/KBH, Inc. The software development company, KBH Business Management Systems, was established in KBH s on-line management operating system for the construction industry (BizWiz) has flourished. BizWiz is a strong revenue and employment generator for the company. Staff has been working with the company for a few years to locate space that will allow the two branches of the company to co-locate and also provide room for growth. This project further enhances

5 the viability and sustainability of Corporate Landing in addition to locating an existing company in an existing under-occupied building. MOTION: Bryan D. Cuffee SECOND: Elizabeth A. Twohy APPROVED: John Richardson abstained because JES/KBH, Inc. is a client of his firm. Mr. Hall s PowerPoint presentation is hereby incorporated into these minutes. 6. Approved resolution granting $80, in Economic Development Investment Program, Part C, funds to Air Station General, LC. Kevin Lefcoe, President of Davenport Group Real Estate, Inc. and Lefcoe Development Company, has purchased 1.2 acres within APZ- 1 to construct a 71,400 sq. ft., three-story self-storage building at 1889 Virginia Beach Boulevard with a $4 million capital investment. This award meets capital investment and return on investment criteria. Warren Harris noted APZ funds are being utilized for the EDIP award; however, the Development Authority must authorize and the Oceana Land Use Conformity Committee must endorse the award. The OLUCC endorsement letter, signed by Mayor Sessoms who is the Chair, was noted and provided to the Authority. MOTION: C. Maxwell Bartholomew, Jr. SECOND: Shewling Moy Mrs. Chapleau s PowerPoint presentation is hereby incorporated into these minutes. TOWN CENTER 7. Mark Wawner noted the Moore & Associates Town Center Phase V Monthly Progress Report for the month of April is available on the ipad for review. Monthly work on the exterior and interior continue at feverish pace for both structures, parking garage, streetscapes, etc. Office tower is scheduled to get a Certificate of Occupancy June 1 st. The department is scheduled to move June 6 th and 7 th. Clark Nexsen is scheduled to move in June 21 st. The street closure remains in place until the sewer line is completed. Anticipate street will be reopened by the end of the week. However, Mr. Wawner noted the safety of the public is critical and it will be opened once all work is done. 8. Mark Wawner noted the following regarding Town Center. The Authority was provided a copy of the April entertainment schedule. 9. Approved resolution to extend the Town Center Option Loan with Wells Fargo to April 30, It was noted this should be the final extension of the loan and it is anticipated that Armada Hoffler will close by this time next year.

6 MOTION: Dorothy L. Wood SECOND: Bryan D. Cuffee ADMINISTRATIVE INFORMATION 10. VBDA Priorities a. VBDA Members Activity Update. Dot Wood noted Ron Ripley is the new Planning Commission liaison, and mentioned several of the many hats Mr. Ripley wears on various board and committees. Charlie Salle noted he and Dot Wood attended the most recent OLUCC meeting and they both supported the Air Station General project. Land purchases from willing sellers is still ongoing but winding down, and the program is funded at least through next year. Warren Harris noted Chesapeake is establishing a similar program in support of Fentress Airfield. OLUCC agreed to relinquish $2.5 million of its $7.5 million to Chesapeake in support of that worthwhile endeavor. 11. Director s Report Regarding the Dome Site RFQ issued by the Authority, Warren Harris noted staff and the Authority Liaisons (Linwood Branch and Rob Nicholson) will be working with The Peterson Companies to craft a multi-use project that will weigh heavy on the entertainment component. Mr. Harris noted National Harbor in Maryland is one of many of the company s prime projects. Regarding the Arena, Warren Harris noted the following: Both proposal were presented at a very successful citizens communications committee; Over 71 questions were collected and have been posted on the web site; City Council authorized retaining additional consultants support. CSL will assist in the evaluation; Preliminary assessment is due by April 25 th ; Formal assessment will be brought before City Council on May 13 th ; PRAG is serving as financial advisers; Kimley Horn will assess and evaluate the structure, traffic, and stormwater (one of the first elements); Other components will be phased in for assessment as needed; Wilcox Savage will be assisting in the legal aspects; City Council Liaisons are Jim Wood and Bob Dyer. A meeting with them is scheduled for next Tuesday; Possibility of engaging in two additional citizens communications committees. Warren Harris noted the letter received from the YMCA regarding its upcoming $10,000,000 bond expressing its request for support of the locality procured by its bond counsel since the Development Authority is unable to issue a bond of this amount.

7 Regarding the Princess Anne Road/TCC Hotel, Warren Harris noted the following: TCC may offer to be part of the hotel development due to the hospitality curriculum it will be developing; A follow-up meeting is scheduled this Friday to discuss the particulars of the hotel design; The hotel has grown in size from 100 to 125 room; The hotel is envisioned full service versus limited service to accommodate TCC s curriculum; Aiming for a seamless opportunity between TCC and the hotel; Benchmarking this project to Cornell University. City Council was briefed by ODU and TCC on Master Plan that entails substantial plans for investment on the TCC campus. This would be a substantial addition to that area and on the city as a whole. Warren Harris noted that at the request of Mayor Sessoms a Bio Task Force is being created. Tom Frantz is serving as Chair and Romy Thomas is serving as Co-Chair. The range may expand beyond the Hampton Roads area with Virginia Commonwealth University s involvement. This new endeavor is off to good start to set a strong agenda for health care and bio sciences in Virginia Beach. Kimley Horn has been asked to evaluate the possibility of establishing a bio park within the Princess Anne Commons corridor and Mr. Harris requested the Development Authority s approval for Kimley Horn to do this additional work. Warren Harris noted City Council is currently reviewing the light rail offer presented to the city by the state. Continues recognition that town center be in that conversation. There is acknowledgement that Town Center should still be part of the conversation, but may entail some undesirable impacts. The budget has been presented to City Council. The creation of an Innovation Center to incubate/support entrepreneurship and start-up businesses was included. Regarding the City of Norfolk s Outlet Mall slated to be located near Burton Station, baby steps have been taken. A traffic study has been completed. Recognition by Norfolk: that there has to be some distribution; the Miller store must be in play; they understand and recognize that Lake Wright represents a tremendous opportunity for Virginia Beach; and agreed to a 100 ft. minimum buffer to our proposed Burton Station development. Rezoning application still on the May 14 th Planning Commission docket. a. Prospect and Project Activity Report. Scott Hall provided the monthly broad overview of the current Economic Development Prospect Activity Report. Total Active Projects o New 61 o Existing - 42

8 New Projects Opened This Period o New - 12 o Existing - 13 Projects Closed This Period o New - 9 o Existing 3 Projects by Geography o Local - 43 o National 25 o International 35 Projects by Target Industry o Manufacturing; Maritime/Logistics; Technology; Defense; Office; Bio/Life Science; Retail; Other o Some projects are reflected in more than one industry sector Items of Note o ipad app launch very well received; o Nicaragua Marketing & Sister City mission trip brought forth some interesting investment opportunities; o CeBIT, the world s largest trade fair, was attended by Scott Hall and Michelle Chapleau; o US Navy League Sea, Air, Space and Trade Show was attended by Ray White who noted there are conflicting messages regarding staffing and manning levels; o Prufrex USA requirements in the US are growing. The company is moving forward with build-to-suit construction instead of leasing, and will begin formal hiring processes in May. Mr. Hall noted there has been a fairly significant increase in activity recently. There is a tremendous amount of interest from overseas which is attributed to our cost competitiveness. Mr. Hall s PowerPoint presentation is hereby incorporated into these minutes. There being no further business, the meeting was adjourned. John W. Richardson, Chair