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HomeMy WebLinkAbout02/29/24 EDA MinutesEconomic Development Authority Meeting Minutes February 29, 2024 Town Attorney Opens Meeting The Town Attorney opened the meeting at 5:00 p.m. Explains Purpose of Authority- Spencer Rygas, Town Attorney, explained the need for the Economic Development Authority as a separate entity from the Pulaski Redevelopment and Housing Authority. Mr. Rygas stated there was a commercial interest of work that was investing money in the Town and the Town was considering authorizing the loan regarding the project but could not execute it because of the Public Purpose Clause. The Town also looked closely that it was commercial property and allowing the Pulaski Redevelopment and Housing Authority to authorize the loan would be a violation as it does not involve housing or blighted property interest. Introduction of Authority Members- Ms. Burcham introduced Todd Day, Town Manager, Olivia Hale, Clerk of Council, and Jackie Morris, Finance Director. Mr. Ron Hall introduced himself and stated he was a member of the IDA in 2009, which their goals at the time were redeveloping the ‘West-end Loop’ section of downtown and the Jefferson School. Mr. Hall also gave a brief history of the previous IDA and a brief background of his professional background. Peter Huber joined the meeting at 5:18 p.m. Ms. Collette Hash introduced herself, she gave a little background on her family, professional background, and current endeavors. Ms. Hash stated she wants to see Pulaski grow and believes there’s opportunity in the Town. Mr. Roger Bell introduced himself and stated his professional background and current projects he’s involved in. Mr. Peter Huber introduced himself and gave a brief summary of his professional background within the County. The Town Attorney asked for a roll call. Roger Bell- Aye Peter Huber- Aye Collette Hash- Aye Mike Waller- Absent Ron Hall- Aye The Town Attorney declared a quorum. Election of Chair & Vice-Chair and Adoption of Bylaws The motion was made by Mr. Hall and seconded by Mr. Huber to skip the election of the Chair and Vice-Chair and the adoption of the bylaws. Roger Bell- Aye Peter Huber- Aye Collette Hash- Aye Mike Waller- Absent Ron Hall- Aye Briefing on Bimmerworld Loan & Documents/ Approval of Documents for Execution Mr. Rygas stated this loan request is from Bimmerworld as part of their development at 1000 Memorial Drive. He stated they are doing an expansion to move their current offices from Dublin to Pulaski. Mr. Rygas stated this loan would be going to only the build out of Bimmerworld and not the other businesses located in the plaza and the County EDA and the Town EDA would be equal lenders of $250,000. Mr. Day stated Town Council is supportive of the project and is aware of the transactions. Ms. Burcham stated this expansion for Bimmerworld would allow additional jobs with their additional space. Mr. Hall asked if any staff had looked at Bimmerworld’s books. Ms. Burcham stated Bimmerworld had provided their books over a year ago and they were satisfactory at the time they submitted them. Mr. Huber attested to Mr. Clay’s character. Mr. Bell asked about the capital and collateral and how to protect our assets. Mr. Rygas stated it would need to be reviewed with the County. Mr. Bell asked how many positions were above us. Mr. Rygas stated there are three positions. Mr. Bell asked what the disbursement schedule was on the loan. Ms. Burcham stated it hasn’t been specified. Mr. Bell asked how many years were looked at relative to their performance, debt ratios, and who examined the statements. Ms. Burcham stated we had three years’ worth and they were submitted to the Town and County when the request was for half a million dollars each in purchasing the building and they were looked at primarily by Town staff. Mr. Bell asked if a written statement was available from the Economic Development staff person who reviewed the documents. Ms. Burcham stated that employee is no longer employed at the Town and she cannot answer that question. Ms. Hash asked how the expansion Bimmerworld would affect the businesses that are currently in the plaza. Ms. Burcham stated the expansion would not affect the existing and future businesses. Ms. Hash asked if there had been any concern from the residential area neighboring the plaza. Ms. Burcham stated a Public Hearing was held at both the Planning Commission and Town Council and there were no oppositions. Mr. Hall suggested a schedule of drawdowns. Mr. Bell suggested some form of financial accountability should be established. Mr. Day asked if there was a timeline for Bimmerworld expecting funds. Ms. Burcham stated they are ready to go, they have done some preliminary work but need the commitment so they can execute the construction contract. Ms. Hash asked if anyone is aware if the County has done their financial background. Mr. Day stated he will speak with Mr. Sweet and work together with the County. Mr. Huber asked if the County EDA has approved the documents. Ms. Burcham stated the County has approved the documents with the exception of the Personal Guaranty. The motion was made by Mr. Huber and seconded by Mr. Hall that the concept of the loan be approved as presented pending any red flags Mr. Rygas might see in the Personal Guaranty and working out some form of financial reporting back to the Authority following the loan and then any details that can be provided as to how the cash infusion would be used in the construction of the building. Roger Bell- Aye Peter Huber- Aye Collette Hash- Aye Mike Waller- Absent Ron Hall- Aye Discussion of MUMS Grant/Loan Ms. Burcham stated 67 & 69 West Main Street were in the ownership of the Pulaski Redevelopment and Housing Authority and executed a Performance Agreement with Peek Creek LLC, which required a certain amount of money for the renovation of retail and housing developments. The firm purchased an additional building, 73 West Main Street and the three buildings will be become a single building with a single address. The Developers asked if the Town would be the applicant for an Industrial Revitalization Fund (IRF) loan, but the Town does not have the resources to prepare the grant. Ms. Burcham stated the grant was drafted by Jeff Sadler, who suggested we apply for a MUMS Grant instead of an IRF. She stated the Governor of Virginia awarded three communities, Pulaski being one, half a million dollars, which stays with the community and is paid at an interest rate determined by the state. The grant supports the activation of vacant or underutilized downtown spaces to create opportunities for commercial and residential areas in Main Street areas. Mr. Day stated the grant is heavily scrutinized by DCHD and it is a drawdown so it’ll be on a drawdown cycle that the Town will pay as the requests come in and the Town will be reimbursed by DHCD. Mr. Bell asked who had the first deed of trust and the amount and who is the first position the second lean and the amount. Mr. Rygas stated the Town has not coordinated with them regarding their lender, from the beginning, the Town was involved in the provision of two dilapidated buildings. Ms. Burcham stated the application that went to the State, may not have listed who the lender was but the amount they had borrowed and what other equity they had. Mr. Hall questioned what would be adopted by voting. Ms. Burcham suggested voting on the loaning of $500,000 to the organization, subject to the terms that have been outlined by DHCD in the draft document. The motion was made by Mr. Huber and seconded by Mr. Bell to take all acts necessary to proceed with the loan as found in the draft agreement by DHCD subject to the terms available to us. Roger Bell- Aye Peter Huber- Aye Collette Hash- Aye Mike Waller- Absent Ron Hall- Aye Election of Chair & Vice- Chair/ Adoption of Bylaws Mr. Rygas stated a temporary chair could be voted on until the board is complete with seven members. The motion was made by Mr. Huber and seconded by Ms. Hash to adopt the bylaws as written with the accommodation made for a temporary Chairman until the board is fully staffed. Roger Bell- Aye Peter Huber- Aye Collette Hash- Aye Mike Waller- Absent Ron Hall- Aye The motion was made by Mr. Hall and seconded by Ms. Hash to elect Mr. Huber as the temporary Chairman. Roger Bell- Aye Peter Huber- Abstained Collette Hash- Aye Mike Waller- Absent Ron Hall- Aye Next Meeting Date The next meeting will be determined and will be communicated to each member. With no further business, Mr. Day adjourned the meeting at 7:03 p.m.