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HomeMy WebLinkAbout6/3/2020 - Economic Development (EDA) - Minutes - RegularMINUTES OF 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 at the Salem Civic Center in the Community Room, on June 3, 2020 at 10:00 a.m. The following members of the Authority were present: Cindy Shelor, Wayne Adkins, Dave Robbins, David Thornhill, Macel Janoschka, Rob Robinson and Quinn Mongan. There, also present was James E. Taliaferro, II, City Manager, Melinda Payne, Director of Economic Development, Rosie Jordan, Finance Director, Amy Morris, Special Projects Accountant, Sidney Kuzmich, Deputy Commissioner and Crystal L. Williams, Assistant to the City Manager and Secretary to the EDA. The Chair called the meeting to order at 10:00 a.m. The first item was to approve the minutes from the May 19, 2020 meeting. A motion was made to approve. Motion: Janoschka Second: Robbins All aye Mr. Yost presented a red-lined draft of the EDA’s current Bylaws. He reviewed the changes that he, Ms. Janoschka and Mr. Adkins worked on. A discussion was held followed by a motion to approve the red-lined changes. Motion: Mongan Second: Adkins All aye A discussion was held on the loan program that the EDA is working on with Total Action for Progress. A motion was made to reaffirm the arrangement conditioned on TAP providing 1/3 of the loan funds. It is further conditioned on the recommendations related to the loan criteria made to the EDA by Salem City Council and the loan agreement being satisfied by City staff, the EDA and the City attorney. Motion: Mongan Second: Adkins All aye The next item on the agenda was to revisit the request from Faisal Khan. He is asking the EDA to amend the performance agreement loan amount from 1.6 to 1.8 million and for a 25-year term for the Sharp Flat’s building under 2 West Main, LLC. The Chair stated that most of the EDA members have met with Mr. Khan to hear his request. She asked Ms. Payne if she had any additional comments outside what she provided in the staff report? Ms. Payne presented the background of how the project came about between the City and Mr. Khan. Mr. Khan had approached her last summer with his request for the additional $200,000. She further stated that this was an agreement made prior to the EDA becoming active again. Mr. Mongan stated he felt the need to change his vote. If the City already had an agreement, the EDA should have been made aware. He further stated that the EDA has guidelines and City staff should put this information together and provide it to the EDA prior to decisions being made. Going forward we are in a better position to make decisions to be presented to City Council with items that are being considered. Ms. Payne stated she tried to convey this information, but the EDA did not understand. Mr. Adkins stated there is a moral obligation here. Ongoing, the EDA needs to be aware of agreements and hopes we are clear in what information the EDA needs prior to decision making. Staff should gather the pertinent information and present it to the EDA and the EDA will make the decisions. A motion was made to amend the performance agreement between the City of Salem, the City of Salem EDA and 2 West Main Salem, LLC to reflect a new loan amount of 1.8 million. The 20-year term and all other conditions remain the same. Motion: Adkins Second: Thornhill All aye Ms. Payne presented a request from Joe Babba of Joe’s Deli. Joe has signed a 10-year lease with the property previously occupied by Antiques on the Market which is owned by Snyders. He is seeking a façade grant for the West Main and North Broad Street sides. Joe is not current on his business license but relocating will help him financially. The rent on the new location will be half of what he is currently paying. Mr. Mongan asked if the façade grant agreements are between the City and the property owners? Ms. Payne stated the property owners are required to sign off on the façade agreements if they property is being leased. A discussion was held, and it was determined the EDA needs additional information before a decision could be made. Ms. Payne presented an update on Rocky Mount Realty, LLC. Chipotle approached the developer of the Little Caesars with a desire to use the entire location that is under construction. The Little Caesars has now decided to move to Spartan Square. Mr. O’Connell of Rocky Mount, LLC is asking if they allow Chipotle to purchase the property if the same incentives would be in place? Mr. Yost asked if the performance agreement has been signed? Ms. Payne stated that according to the Deputy Clerk of Council it has not been signed. A discussion was held, and the EDA determined that the new owner would need to go through the application process for incentives. There being no further business the meeting adjourned at 11:27 a.m.