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HomeMy WebLinkAbout9/15/2020 - Economic Development (EDA) - Minutes - RegularMINUTES OF A REGULAR MEETING 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 in the Community Room at the Salem Civic Center on September 15, 2020 at 3:00 p.m. The following members of the Authority were present: David Thornhill, Cindy Shelor, C. Wayne Adkins, Macel Janoschka, Dave Robbins, William Q. Mongan and Rob Robinson. There, also present was James Taliaferro, City Manager, Melinda Payne, Director of Economic Development, Rosie Jordan, Director of Finance, Amy Morris, Special Projects Accountant, Sidney Kuzmich, Deputy Commissioner , Justin Kuzmich, Director of Real Estate and Crystal L. Williams, Assistant to the City Manager and Secretary to the EDA. The Chair called the meeting to order at 3:03 p.m. A motion was made to approve the minutes from August 18, 2020 meeting. Motion: Thornhill Second: Adkins All aye Ms. Jordan presented the August financial report. The report was received and filed. Ed Walker and Brent Cochran were present today. They gave an update on the Motor Lofts building. Marshall Hotels is the new management team. Currently, marketing is being done to generate more interest. The Valleydale property is expected to be put on the market again within the next few months. They would like to see what kinds of interest is out there. This project has been exciting and challenging at the same time. The Department of Historical Resources has limits on things like adding windows. That affects what kind of project it can be. Peacock Salem will require a couple of million to rehab that building. Ms. Payne presented information to the EDA regarding Kirtesh Patel’s request for the payment for the retaining wall grant. According to the performance agreement the EDA with funding from the City shall provide the developer a site work grant in the amount of $30,000 upon completion of the site work, determined by the City’s Community Development Department. Mr. Taliaferro received a memo from Mr. Van Allman stating they are satisfied with the work. Mr. Robbins stated he was satisfied. Mr. Thornhill and Adkins agreed. A motion was made to authorize the payment for the wall grant. Motion: Robbins Second: Mongan All aye Ms. Payne presented a request from Glenn Angelle for Blue Ridge Best Foods. Angelle’s Diner has struggled with the pandemic and has requested that the EDA consider. The performance agreement states that on or about December 31 , 2020, Developer shall submit its third Request for a sum of up to Twenty-Five Thousand and 00/100 Dollars ($25,000.00) from EDA at which time the Developer shall make the certifications and provide the statements and documentation as provided in subsection (a) above. Such grant from the EDA, however, shall be expressly subject to and contingent upon the generation, by the Developer, of gross receipts for the sale of food and beverages on the Property in the amount of at least $1 million for the previous 12 months prior to the Request. Mr. Angelle has asked that the year three grant installment that is due be based on sales for 2021. This will give him some time to recover financially. A motion was made to defer the performance agreement term for sales for year. Mr. Taliaferro stated it would be a good idea to extend the deadline from 2021 to 2022. A motion was made to amend the previous motion to defer the performance agreement term from December 31, 2020 to December 31, 2022 and defer the final year to January 1, 2022 with and end date of December 31, 2022. Motion: Mongan Second: Adkins All aye A discussion was held regarding the Salem Body Shop, LLC performance agreement and the EDA decided to revisit if needed. A discussion was held on the façade grant program and process. We have two businesses that are interested. It was further discussed that we look at the criteria. A motion was made to use $50,000 of the EDA’s loan funds to reestablish the façade grant program in our downtown area. There is a maximum of two sides per building with a focus from College to Union Street. Motion: Robbins Second: Thornhill All aye Ms. Payne presented a draft of the TAP/City of Salem Loan fund program. A discussion was held. A few changes were noted. A motion was held to authorize the Chair to execute the agreement after the changes were made. Motion: Mongan Second: Adkins All aye Mr. Adkins presented information on Workforce Initiatives. Mr. Adkins proposed that the EDA provide some funds for career opportunity brochures for the families of 8th and 9th graders as Salem High School. A motion was made to set aside $3,500 to cover the brochures and postage. Motion: Robbins Second: Robinson Aye: Janoschka, Mongan, Robbins Robinson Shelor, and Thornhill Abstain: Adkins The Chair stated Council approved a second round of funds for an EDA grant assistance program. There will be a separate meeting in the future to streamline the agreement. Non-profits will need a separate application. There being no further business the meeting adjourned at 4:35 p.m.