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HomeMy WebLinkAbout4/18/2023 - Economic Development (EDA) - Minutes - Regular MINUTES OF THE OF THE ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF SALEM, VIRGINIA A meeting of the Economic Development Authority of the City of Salem, Virginia was held April 18, 2023, at 3:00 p.m. in Council Chambers of City Hall, 114 North Broad Street, Salem, Virginia 24153. The following members of the Authority were present: Dave Robbins, Sean Kosmann, Cindy Shelor, and Quinn Mongan. Macel Janoschka, Paul Kuhnel, and Rob Robinson were absent. There, also present was James E. Taliaferro, II, City Manager, Rob Light, Assistant City Manager, Rosie Jordan, Treasurer, Mike Lockaby, Guynn, Waddell, Carroll & Lockaby, P.C., Wayne Adkins, Business Outreach Coordinator, Tommy Miller, Director of Economic Development, and Crystal Williams, Secretary. The Chair called the meeting to order at 3:00 p.m. The minutes from the March 21, 2023 meeting were presented and approved as written. Ms. Jordan reviewed the financial report as of March 31, 2023 and the report was received as presented. The Chair stated in the interest of time, unless Mr. Miller had something pressing regarding the Strategic Plan, we would forego the update and move into the Closed Session. Mr. Miller confirmed the update could wait. A motion was made to hold a closed session in accordance with Section 2.2-3711A(5) & Section 2.2-3711A(29) of the 1950 Code of Virginia, pertaining to prospective businesses or industry’s or the expansion of existing business’s or industry’s where no previous announcement has been made of the business’s or industry’s interest in locating or expanding its facilities in the community, relating to manufacturers constrained on available production space and/or talent; relating to retail interests in commercial corridors of the city; and relating to a technology company’s constrained fiber connectivity; also, pertaining to the award for a public contract involving the expenditure of public funds, and discussion of the terms of such contract, where discussion in an open session would adversely affect the bargaining position of the negotiating strategy of the City regarding a possible loan to STS Group North America Inc. Motion: Mongan; Second: Shelor; All aye Upon reconvening a motion was made in accordance with Section 2.2-3712D of the Code of Virginia, 1950 as amended to date, and the EDA certified that in closed session only items lawfully exempted from open meeting requirements under the Virginia Freedom of Information Act and only such items identified in the motion by which the closed session was convened were heard, discussed, or considered by the EDA. Motion: Mongan; Second: Shelor; All Aye A motion was made to adopt resolution to accept the offer from Ridgeview Bank, subject to STS Group, North America accepting the terms and conditions of the loan and security agreement as adopted in this meeting. Motion: Mongan: Second: Shelor, All Aye A motion was made to accept and adopt a resolution authorizing the entry of a loan and security agreement in the form presented at the meeting on April 18, 2023, subject to the following amendments or additions: • There shall be at the time of entry of the loan and security agreement, a parent guarantee from STS Group, AG. • The agreement shall provide that a second parent guarantee shall be given by Adler Pelzer Holdings, on or before September 1, 2023, and STS Group North America may not draw more than 8.16M prior to the giving of the second guarantee. • The rate of the loan to STS Group, North America shall be 7.5% until the second parent guarantee is given and 7.25% thereafter. • If the authority undertakes a refunding of the bond for savings, 50% of such savings shall be passed to the borrower though the loan and security agreement. • The Borrower shall cover all closing costs of a refunding. • The $25,000 bank fee provided for in the loan and security agreement shall be deleted. Motion: Mongan: Second: Kossman; All Aye Mr. Adkins shared a proposal to the EDA related to an option in our façade grant program for building owners that have invested up to a minimum of $30,000 over the last three years, into property improvements and repairs. In this instance, the EDA would put forth $5,000 towards façade repairs on the building. The $5,000 would be made payable after the work is completed. The new option to this program would follow the same process as the current façade grant program. A discussion was held, and a motion was made to approve this option in the façade grant program. Motion: Shelor; Second: Mongan; All Aye The Chair stated that this will help Joe’s Deli have some painting done to the front and back of the building as well as an awning. That building has had over $30,000 in HVAC repairs. It would also help the Sports Haven building as well. The Chair stated there are some marketing brochures at the Civic Center of the Downtown Historic District and the Walking Tour. The brochure is dated, and he has paid to have the file downloaded and is asking the EDA to absorb the $500.00 fee to update and print 2,000 brochures with the correct contact information. These brochures will be made available at the Civic Center, Preston Place, and the Downtown Roanoke Visitors Center. A motion was made to fund the printing of the brochures. Motion: Shelor; Second: Mongan; All Aye Mr. Miller gave a brief update on existing business. There being no further business the meeting adjourned at 5:18 p.m.