Economic Development Authority Meeting   9/20/2022

Vice Chair, President, Director Bates Green, President Harvin, my understanding is that I have been taught in the absence today.

Director John Mottola compared us in part to me.

Director Matt Lawless is here in person.

Director Jeff Moore is here in person.

Yeah, the forum, Director Long, and for this day remotely, the subject being for this day remotely, is Vice Chair Ray, Professor of Design and Policy Director, that's you, the item number two.

We have a forum, so you can see physical traveling,

Vice Chair Ray and Newport's item number two is adoption of remote participation and all works of meeting policy.

That resolution was in the board's packet.

This has been in formulation for several months.

It has been delayed, allowed for the supervisors to adopt some of their policy and also model policy.

The work we present today, for actually three policies, and they're required by the Virginia General Assembly

who are at this time will allow other members to participate remotely for personal reasons and also for medical reasons.

The second policy, again it's separate, it allows this body under limited circumstances to agree to meet all virtue.

So this body can adopt a few policies as a whole.

They can adopt one policy and not the other, but certainly it's my recommendation as a resolution drafted to adopt these policies.

Once adopted, it's my understanding, Director Tom Long,

has communicated with the vice chair that he wishes to participate remotely for medical reasons.

So once we adopt that policy, then Director Gray would have to flip.

but Director Long served up the presentation of what was.

So I guess at this point in time where I would do, I'd be prepared to answer the questions that directors might have as to the resolution and the policy to address there.

And there are some highlighted, those are some highlighted sections of it, and that's just to highlight some of the questions.

Cosumization in terms of the policies, to make them flexible.

And those could be accepted or not accepted.

Okay.

If you'd like some productions, anybody got any comments or information on the policy?

I've got to apologize.

I've not had a cataract surgery in one eye, but not the other eye.

We're in reading left, we don't need it on time.

My only comment is, I think the more flexible, the more the chairs, the more blank the side, in some special circumstances, the better it is worked out in the elements that you have in order to do that.

What happened to the chair of the House?

No, excuse me, we'll call the roll.

Yeah, so the motion would be, I move that we need to adopt a resolution that's in written policy, authorising and remote lifetime participation in all of our meetings.

So I'll make that motion, if I like to second.

Second.

If I could call the roll.

You can go ahead and let him know.

I vote yes.

Director Brady?

Yes.

Director McNaughton?

Absolutely.

Director Mottola?

Oh, yes.

Director Waller?

Yes.

Director Moore?

Yes.

So Director Ray, the next matter would be for this body to consider Director Long's remote participation for medical reasons.

Okay, and does that require a vote?

It requires a vote, it does not require an explanation,

Beyond him and during that he had no reasonable reaction and the minutes did not reflect the reasonable reaction.

I'll open that up for discussion with an environmental discussion.

Motions to allow practical long-term

I have a motion and a second.

All in favor say aye.

Aye.

All done.

That should be good.

Moving on.

All in favor signify by saying aye.

Aye.

Those for approval.

Financial Report for the period ending June 30, 2022.

Dr. Shreve, are you there?

A report that for the period ending 6-30-22, year-to-date operating net revenues, and we read for the first time that that reflects large contributions to other entities for which we received pass-through funding as well.

Operating revenues to date this year, $155,316.47.

Operating expenditures, $624,134.32.

Leading net revenues, operating net revenues of negative 468,875.

Offset, buy and pass through funding,

in excess of $600,000, 616 approved, $3,722.

Smaller pass-through expenditures of $23,650, leading to a net pass-through of $592,722.

Revenues, therefore, with a year less far, $123,569.37, leaving us with a cash and cash equivalent balance

of 976-469-94, as of June 30th.

Any questions about that?

the source of the funds that are available, excluding grants and things from other institutions.

What's the path that the board has to coordinate?

Well, excluding grants, most of which come through the passive funding category, we earn interest on our balance.

We receive fees for authorizing bond issues.

And that's pretty much it.

The board has had million funds left over, and then allocated in response to what's known as the Meganon Development Investment Fund.

So it's one-time funding, it's not a recurring amount.

That money

is what the registry was talking through those past few months.

That means we're using economic development funding to pay the EDA and the EDA that handles the transaction with that private sector.

So there's also, in addition to the bonds, there's also that funding that the board has allocated and that's within three years of the bond.

We have a goal of having $5 million available for that amount of funds.

We don't currently have that at all.

We know off the top here, we'll look that up.

We've got a spreadsheet we'll try to give you the exact amount of

One of the things I'll say is that the number sounds much greater than it is because a lot of that money is part of the E-Mart projects.

Just to give you one example of that $5 million that was originally included in Ingrid Line, $1.6 million of that is going to the Barnes-Lunar project in downtown Crozet, which is building a public plaza, building in some road infrastructure, and it's part of that particular public private project.

We'll get an exact number of people

The current balance is $3.6 to $4 million.

Above that, all of that money is earmarked for projects, so we don't have funding available necessarily for new projects unless we make decisions to push off of the later projects.

These are the meetings in advance.

Yes, Mr.

Mr. Newberry provides a motion, I might provide a little context.

There is data that shows the minority

I'm happy to share that later on.

But it was a recognition in our community that what was true generally for the public is also true in our community.

So we have been working, and I'm sorry, we didn't get found about Sam,

have been working in concert with the City of Charlottesville and United Way on methodologies and we can address that funding gap for those small target businesses.

We have reached a general understanding of how the Economic Development Office, which we are funding to pass this through the U.N., could help overcome that particular need in our community.

Today you will hear from the President and CEO of the United Way,

of Greater Charlottesville, Robby, who's going to talk to you a little bit about what that particular project looks like.

It is our hope today that you will receive this information, and if you agree with it in principle, we'll come back with a more finalized product of a revolution to move this from a conceptual idea, including an actual grant program, which we can then enact in Congress with the United Way and the City of Charlottesville.

Thank you so much, Roger.

Wonderful.

Okay.

So I should have a PowerPoint and I'm not sure if you can see it there in the room, but I'm not seeing it quite yet on my screen.

Wonderful.

Great.

So what I wanted to start with is just kind of walking through a little bit about how United Way arrived at being involved in the grant process to small minority owned businesses in the community by way of our initiative called Envision, which

as you see is a new narrative for our community.

So really focusing on how we resource our community differently than we've done historically by understanding kind of what are the challenges faced for minorities in particular black and brown owned businesses.

And a little bit about the history of what families have faced here in our community.

So if you wanna go to the next slide.

I'm going to talk a little bit about the greater context and then we'll kind of get into what we're thinking in terms of what a partnership might look like with the county and also with the city.

So about three years ago, the United Way started working on a strategic plan to have some very specific priorities where we could make a significant difference in our community.

And so we came up with three really distinct goals.

The first one is to help lift 1,800 families out of poverty in our city, in our county, in our planning districts, specifically 630 Black families, being very conscious of the fact that Black families suffer from disparities around income, access to capital, housing, things of those nature relative to their white counterparts.

and also looking at education as a huge component of shifting generational poverty.

So we also have a goal of increasing by 10% kindergartners who come from economically disadvantaged households and passing what we call developmental benchmarks.

And lastly, creating a connected community through education and outreach around sort of the systems and the histories that created systemic poverty here in our community.

If you wanna go to the next slide.

We've looked at a lot of the data and really one of the challenges that we face in our community is that our very low income families struggle to get ahead.

You can see from the graphic that we have families making about 35,000 a year, about 12,000 individuals are in that situation.

And if you look at kind of the percentage breakdown, who's most impacted, you can see 35% of those are represented by black families.

One of the things United Way always sees on a regular basis is the cost of housing combined with childcare and just basics like transportation leave families in a position where they have very little income leftover for any other kind of living expenses.

And so a lot of our efforts have been really focused on how do we create interventions that support families and being able to overcome those types of challenges economically, which will lead us to this discussion today around a possible grant partnership.

Next slide.

So we realized United Way alone can't tackle a problem as big as sort of poverty that's been intractable in our community for many years.

And so we have been working with nine different partner organizations, nonprofits that are also doing this type of work to come up with a coordinated service delivery model where that we could approach the issues and interventions collectively and together.

This is called the Financial Resiliency Task Force.

We started meeting three years ago.

And if you'll go to the next slide, I'll show you some of the organizations that are involved in this effort.

So many of them are names that you'll be familiar with, but particularly CIC, which I know the county has done a lot of work with already around loans for entrepreneurs and small businesses, Habitat for Humanity in terms of housing and housing opportunities, Piedmont Housing Alliance,

Newhill Development, Network to Work for Jobs and Job Skill and Training, MACA in terms of early education opportunities.

So many of the organizations that you see here have been doing great work for many years in our community that we understood together we would be able to make a much bigger impact and we'd be able to be much more efficient in our practices.

So our goal is to launch a data referral network system that includes the organizations you see there that will help a family essentially get ahead based on what their individual needs are.

And small minority-owned businesses are one of the target populations that we intend to support and to help get ahead.

Can you go to the next slide?

So we currently have a partnership on the Minority Business Alliance through the Chamber of Commerce.

So it's an affinity group at the Chamber of Commerce, and we've been working with them for three years.

And we've given out over $85,000 worth of small grants.

It's been a tremendously successful program.

And so out of our thinking of the work that we're doing with that particular organization came the idea that we could expand that effort to include the city and the county economic development departments.

and maybe restructure that grant to be sort of mid-size minority-owned businesses that perhaps we're looking to scale by being able to hire more employees with a goal of being able to provide more resources back to the tax basis here in our community.

So as it stands now, there's a proposal to consider a fifty thousand dollar commitment from both the county, the city of Charlottesville and the United Way, where we'd offer up to ten thousand dollar grants for black owned small and mid-sized businesses.

We ideally would launch that program this year and we would also want to try the program again next year.

So sort of pilot it to see how it would go with this sort of expanded scope.

Next slide.

So one of the things that we've looked at is with the businesses we've been helping through the Minority Business Alliance.

We've been giving grants of up to 5,000.

We just did a grant round with over 50 people that applied, and that has worked well.

That's really to sustain these small businesses, but we really see this as an opportunity for growth for larger, like I said, mid and larger sized businesses.

So that will be the particular focus of the proposed partnership with the city and the county.

So we wanted to kind of share a little bit about the types of industries that we're seeing in terms of the grant process with the Minority Business Alliance.

So we've just finalized and actually gave out some awards out there at their annual gala.

So it was everything from home care for seniors, fashion apparel, mental health counseling, food service, catering, sports medicine, really a wide variety of companies that were interested in this grant.

and we've heard from folks that have been able to utilize the resources that had made a significant impact even at the $5,000 level for their companies.

Next slide.

We also just wanted to bring up a little bit about the historical context.

I'm sure many of you have heard of Vinegar Hill and the deconstruction of Vinegar Hill and what that meant for minority owned black owned businesses.

A lot of the companies and businesses we talked today actually had relatives that had businesses back at Vinegar Hill in the 1960s.

And so, you know, they talk about the challenge that has existed to rebuild companies and to rebuild that wealth.

and one of the things United Way is very focused on is sort of understanding what the history was and how we can rebuild economic strength in these minority and Black communities through various granting sources.

Next slide.

We're also looking at sort of the key poverty indicators that exist in our community.

So around housing, we only see 24% of black families having home ownership relative to 50% white families.

Access to capital is one of the biggest challenges a lot of the families face that we serve.

So you can see that 12.4% folks applying for a grant were able to deny the denial rate and 4.5% for white applicants.

We see the same trend contend in early education and also in health disparities.

So this is data that we gathered here in our local community and again, kind of builds the case for the fact that we need more additional sources of funding for small entrepreneur businesses.

Next slide.

Another sort of fact we wanted to present is research through Harvard as the operative insights nonprofit and they find that it's very important for cross class connections to boost economic mobility.

In fact, they found it was one of the most important factors.

Albemarle County has higher than average economic connectedness, but upward income mobility is still lagging.

So if you are low income making under 35,000 a year, your ability to get ahead is that much more challenging.

But being able to connect to individuals in higher income levels certainly makes a significant difference in growing your organization.

So another part of what InVision is really set up to do is to help create those networks and opportunities for people to connect.

And so we have several different platforms that we're currently

offering to do that, but that would also be a part of what we envision with this partnership is that once these grantees were able to get access to the funds, we'd have opportunities for them to meet and network in addition to the Minority Business Alliance offerings.

Next slide.

And just wanted to talk a little bit about like goal three which is connected community.

We do a community table so we bring individuals together from different economic backgrounds different racial backgrounds and provide an opportunity for dialogue and conversation we found that to be extremely helpful in growing some of that social connectedness.

We also do a weekly Envision radio program where we have Black community leaders come on and talk about everything from education, business, and health, and essentially build sort of a different type of narrative about the types of individuals that are leading in our community.

And we've also done some fun projects like a Color Seaville project that talks about different

So significant spaces in our community sharing some of the complex history that has kind of, you know, marked the Charlottesville community.

So these are different opportunities we've created to create some of this connection and understanding about our culture and our history here in Charlottesville.

Next slide.

So we just wanted to end with we're actually going to be doing a big collaboration and a mural on the downtown mall with the Friends of Seville.

And this will actually be something we're launching on Saturday.

We're excited about it.

The Minority Business Alliance grantees, past recipients will be attending as well as Envision Radio guests.

And again, it's an opportunity to

really promote entrepreneurism and certainly black business owners and we'll have the Harmony Wines winemaker who's a black wine vignette will be there to serve as wine so again another opportunity to network and create some some social opportunity here in the community and last slide

So that's all I wanted to share, just basically an opportunity to create some new economic revenue for minority-owned businesses and an opportunity to create access to capital here in our community.

Bobby, could you speak to the chief already?

Can you tell us how the EDA and the City of Charlottesville reacted to your presentation?

Yeah, absolutely.

So we did a similar presentation and got very strong support of the concept.

It's been a program that the City of Charlottesville has been looking to develop and to grow.

They've been looking for partners.

They do a lot of work in the month of September with permitting the Black Business Expo, which is

I think in its fourth year, they actually sold out a boost this year.

From what I understand, they have a wait list.

So they've been doing work in this category, but they haven't had a program quite like this, where there's a significant commitment in terms of resources and in partnership with other organizations.

Good afternoon.

This is Diantha McKeel.

I'm the Board of Supervisors' liaison to the EDA.

Great to see you this afternoon.

I have a couple of questions.

What is the breakdown with Alamo and Charlottesville, the applications and the awards between the two localities?

Right, that's a good question.

Yeah, I'd really like to see that information.

The second question I have is, do you all know who you're establishing your data

So we are a member of the Virginia Alice Project with the other United Ways, and the data has gotten much better over the past three or four years, but it's still not necessarily being gathered at the community level.

And so we'll use it as a general reference point, but we're doing our own data collection through the financial resiliency task force that I mentioned in terms of collecting data from the families that we'll be serving.

The answer is yes and no.

And that makes sense.

I know Hampton Roads is using it for some of their outreach into the community.

They're using ALIS data.

And for Alomarle County, not so much for the city, but for Alomarle County, it was 726 square miles and six managed exterior districts.

The ALIS data, unlike census data, lets us get into the magisterial specifics, which is really crooked.

And we can just leave it at that.

But I'm very interested in what you all are, how you're using it, what, you know, what it's like at another time.

No worries.

Just for folks that might not know, ALIS is

and I'm trying to remember now.

I think I did that right at the moment.

and I'm interested in it selfishly because it impacts my specific chapter of the district.

It's a lot of stories.

Yeah, all good stories.

Thank you.

Yes.

Hi, this is David Shreve, director on the media.

Did you,

The key phrase here in your presentation I think is access to capital.

Did you consider a slight twist to this program by which the money would be used instead of

Yeah, so we work with Stephen, the director at the CIC, and he provides very low interest loans, and he does that well.

So we were trying to come up with sort of a complimentary product.

One of the things that he has expressed to us over the time that he and I have worked together is that a lot of his

Folks that go through his program, the 16 week entrepreneurial program, they're not in a position to be sort of banked in a traditional way.

They maybe don't have the credit or they don't have the income to suitably repay a loan product.

And so we saw this as an opportunity to be sort of that scaffolding effect of providing a grant to a family to help get them ahead in terms of building credit

Yeah.

So I guess it's like a chicken and egg kind of a thing in some ways.

One of the first grants we did was to the tax ladies.

It's a local women-owned tax accounting firm, Black-owned, and she bought a new server.

And the report that we've gotten from her is that it just was significant.

It really changed our ability to be able to provide accounting services.

The old server was crashing and they were having a lot of challenges around that.

That was one of the first examples.

The other one was Voo Noodles, which was a small restaurant that was in the Jefferson School.

And the grant allowed them to move over to Water Street to the small space that they now have and expand their business significantly by the purchase of equipment and things she needed for the kitchen.

So in a sense, the five or the ten thousand dollar grant is

It has been, and that's something we'll continue to think about in terms of formulating what we want specifically the grants to go to through this partnership.

But capital improvements have certainly been one of the big ticket items that people need support on.

So whether it's equipment or computer hardware, point of sale software tools, things of that nature.

Mr.

Chair, it was embedded in what Mr. Spivak said, but generally the concept is this will be a two-year pilot.

We'll be measuring the efficacy of it and then determining if it's achieving the outcomes that communities so desire before we continue on.

So what I'd ask is for you to be asking for this particular authority

Okay.

Any authority moving capital?

I think we can take a spell of hope for the city.

Yeah, I think it's a great idea and I issued the questions I did because my only concern was that you make the dollar really count when you offer it to these inflation businesses and they might be worth doing a little more analysis to see

Generally, in a community where there's lack of access to capital, because they consider they have a zero chance with that access, they don't think hard enough about what they would do if they had access.

And so some of the grant money

Yeah, I'll just jump in and say we've gotten some pretty specific sort of authorized use of grant funds that we've developed sort of based on best practices from what we've done with the Minority Business Alliance.

So we have identified that and our staff actually ends up working with these grant recipients to make sure that

when they are using the funds and have all of the tools they need to use those funds appropriately.

It might also be useful as the program gets a track record and we'll get into this in a couple of years, sharing the success stories with potential recipients so that they know, you know,

Yeah, that's definitely part of what we plan to do.

We've just made the grant allocations to the Minority Business Alliance businesses just about three weeks ago.

So we'll have more information from those.

But the last round of 70,000 was to help businesses that were impacted by COVID.

And as far as I understand it, all of those businesses were able to use the resources to help pivot, and all of them are still in business and doing well.

Thank you, ma'am.

Hey, I think you were asking me if I had any thoughts.

I know it'll come as a shock to you, but I'm on the United Way board, and so I probably shouldn't vote on this.

Okay, thank you so much for the presentation.

Yep, thank you for having me.

Thank you.

I'll go ahead and introduce the topic.

So as you may recall, the Alamo family in the Easton 44 comprehensive plan review was going through this process.

One of the biggest policies in the community was the past analysis, was an understanding about jobs that used to be there.

So as part of the hiring team on the board to do some objective analysis of our community,

We added an additional scope of work to that particular contract that's coming forward.

So look at the detailed specifics associated with job-reducing land.

Our guest speaker today is prepared to tell you a little bit about those findings.

There is no specific action other than we want your feedback on what you think is the appropriate response from the county on this particular item and in the way that shares the right information forward.

and then economic development will be in taste new of the planning process.

So we'll have the opportunity to sit down and provide direct input into the comprehensive planning itself.

So your comments today will also be entered into that process through the other staff.

Oh, sure.

Jessica Rossi is our consultant with Kimberly Horn, who's been leading this project with community development and economic development.

Good afternoon everybody.

Okay, okay.

I just wanted to confirm.

It's nice to be with you today.

Roger, thanks for the the tee up for the discussion today.

We've been working on this for a good bit now.

And just to give you a little bit of a background on this, this effort to do a land capacity analysis is part of a stated

policy objective through the current comprehensive plan, which is the 2015 plan, and that is to think about land development in the development areas

from an efficient standpoint to prevent the premature expansion of the development areas.

And part of the strategies of that objective is to maintain an updated capacity analysis to do it about every two years to make sure that according to the comprehensive plan, residential land exists to meet new housing needs.

I think one thing that's really interesting that we did this time around in support of the AC44 growth management policy update is that we really looked at this from a different perspective.

We not only maintained the residential piece

that we have done in previous years.

But we also looked at this from an economic development lens.

So we really focused in much more intently than we have in the past on non-residential development, what the capacity is, and then ultimately what the short-term development opportunities are from that perspective.

So that's kind of the change year over year that we have made.

And I think we have some really interesting results.

Let's see here.

There we go.

So just really quickly, I know you're all probably very well aware, but this land capacity analysis focused in on the development areas of the county.

And so the development areas are shown in this map in kind of that yellowish color, ranging from

Neighborhood 1 and 2, which are highly urban, just north of the city of Charlottesville, all the way up to Piney Mountain, which is the furthest north, over to Crozet, which is the furthest west, Neighborhoods 4 and 5 are south of the city of Charlottesville, and then Neighborhoods 3, 4, and the village Rivanna are all to the east of the city.

So from a methodology standpoint, this really used a multi-step process to estimate what the land use build out is for those development areas.

We started with a development opportunity analysis, which was the first step.

And what we did as part of this analysis is compared the current value of land to any existing improvements.

So that could include built structures or even parking lots, any money that's been spent to improve the land.

Parcels that were deemed to have development opportunity were really those properties that could receive and support future development in relatively short term.

The next step was to take those parcels and refine them based on a property's primary land use.

We also took into consideration in this refinement step lot sizes, so which properties are actually

of the size and scale to support development ownership.

So if it's publicly owned, if it's a park, if it's a cemetery, we wanted to understand those.

And so we were able to take those off the table.

We took into consideration environmental constraints among a series of other factors.

The next step, step number three, was to identify a known development pipeline.

And this was done a little bit differently this year.

So as I noted before, we previously had focused in primarily on the residential

component of build-out.

And so we had very, very detailed development pipelines for housing developments.

And that would include anything under construction, anything that's approved, and anything that's under review.

What we did this year is we also incorporated non-residential development pipelines

But one caveat with that is that with residential, we had very detailed pipeline information.

With commercial, we were less able to distinguish between the types of non-residentials, whether it's retail or office or industrial.

The entitlement process today does not afford us the ability to be able to differentiate.

So we had to use the two pipelines just slightly different in the analysis.

And finally, our step four was to develop a theoretical maximum build out.

And the way that we did this is we took those opportunity parcels and we built them out based on a standard set of development assumptions.

And these assumptions included a mixture of uses, considerations for environmental constraints, reduction in developable acreage based on infrastructure improvements,

and then reduction based on open space standards.

And so that ultimately brought us to the land use build out analysis that I'll present the results for you here shortly.

So I mentioned the non-residential pipeline.

Again, these are in various stages of review, whether it's a rezoning, a site plan, a building permit, but these are not

where our focus was on non-residential development that is not yet built.

And so what we were able to do is estimate this across each of the separate development areas, which resulted in this remaining approved unbuilt square footage.

So you can see that there's a real variation between the development areas and the development pipeline for non-residential space.

ranges from just under 30,000 square feet in neighborhood 7 to just over 5 million square feet in Holly's Mead.

There is an estimated 8.1 million square feet of non-residential space approved and unbuilt in the pipeline and an additional 668,000 square feet that are currently under review.

About 62% of the remaining approved and unbuilt non-residential space is in Hollymead and that includes North Fork, which is the UVA Discovery Park.

In fact, North Fork is the largest non-residential site in the approved pipeline currently with more than 3 million square feet remaining to be built.

The other component that we prepared as part of this process that was a little different than what we've done previously is we did some high level market demand forecasting.

We wanted to understand the number of residential units, the amount of retail, office, industrial space, and the number of hotel rooms that we might be able to expect to be built from a demand project perspective in the county over the next 20 years.

These are estimates, of course, they consider future population growth in the county and how those new residents will drive demand for different residential and non-residential product types.

It acknowledged the historic pace of growth and we focused more intently on the last 10 years.

And one thing that's really important to note with these demand forecasts is that they are not initially constrained and we'll circle back to that idea here shortly.

We didn't really take into consideration in the demand forecast the availability of land, the cost of development, access to infrastructure or environmental regulations.

So from a non-residential theoretical maximum build out, where we ended up in the development areas was that there was capacity for about 1.9 million square feet of retail, 2.7 million square feet of office, 5.5 million square feet of industrial, and over 2,500 hotel rooms.

So this is the true build out of the development areas.

And we found

that for all non-residential categories, the theoretical maximum build-out generally exceeded the 20-year market demand forecast.

We provided non-residential build-out by development area, and so you can see that there is a lot of variation here, just like the pipeline.

There are development areas that have very little.

In fact, the village of Rivanna has almost no future build out for non-residential.

And again, this is based on future land use classifications.

Some neighborhoods, neighborhoods six and seven, have very low, but have some.

And then some neighborhoods have considerably more than others.

Another way to look at it is spatially via map.

So we were able to parcel by parcel build out the development areas.

And these dots on the map kind of help to tell a story of the size and scale for retail, office, and industrial square footage from a build out perspective.

Again, theoretical maximum build out perspective in the future.

However, like I had mentioned previously, both the market demand forecast and the build-out really needed to take into consideration some additional constraining factors for build-out.

It is as designed and as duplicated from previous efforts, it really is a maximum theoretical effort.

And so we wanted to bring a little bit of a reality check to the process.

Some of the factors that are up on the screen are things that we took into consideration and they may be accounted a little bit in terms of the build-out methodology.

Some things like reductions for infrastructure or some environmental constraints.

However, other factors were more challenging to build into the actual model.

So we brought in some additional analysis on the backside.

So what you'll see up here, these are constraining factors that both influence the residential and the non-residential build out as we move forward.

So for non-residential, there was a lot of ways that we were able to kind of look at this under a different lens.

We prepared a secondary analysis in partnership with Roger and J.T.

to really think strategically about the amount of land that's truly developed

Truly available for short-term development for non-residential uses.

Our build-out analysis resulted in just over 1600 buildable acres that were identified as remaining in the development areas.

What we did is we took those remaining acreages for buildable opportunities and we took them through a process to identify tiers to provide just a little bit of additional context from a feasibility standpoint.

The tiers represent a different level of readiness for site development and they also are really handy in communicating risk and uncertainty.

And so as you can see from the screen, Tier 5 are going to be those sites that are ready to go.

They have permits in place.

They are shovel or pad ready.

There's 90% success that development is going to happen on these sites in a relatively short time frame.

Tier one, on the other hand, you know, maybe designated from a future land use perspective for development, but they're not zoned that way.

The seller might be willing or not.

There may be minimal to no infrastructure.

There's probably no due diligence performed.

And these sites will probably be more ready to come to market in a period of three to seven years.

When we look at the secondary analysis, we took the development area parcels.

We had already scaled them through to identify those that were buildable from a receiving standpoint for future growth.

We went through another exercise to refilter the properties to understand which ones are at least three acres in size.

We wanted to further identify those parcels that are currently vacant, didn't have any additional buildings or value on them, and we wanted to find properties that were appropriately zoned to receive the growth, not just a future land use designation, but has a clear zoning designation attached.

Of the 22,900 total parcels in the development areas, we found a total of 39 properties that total about 890 acres in the development areas that were deemed buildable through the analysis and were tier qualified.

So made it to at least tier one in the flow chart on the previous slide.

We went through with the economic development staff parcel by parcel reviewing those 39 properties.

And we found just one property that met the description of tier four.

We found no tier five properties.

So that very top, you know, ready to go to market today, we were unable to identify any parcels that really met that.

Tier four still could go to market between 12 to 18 months.

So when we think about the future for economic development opportunity and non-residential development, the goal

for your community should be to create a successful portfolio of sites.

And these sites should vary in a lot of different attributes to kind of meet a lot of different priorities.

Sites should be ready and available in each of the county's development areas.

We want a portfolio with sites that range in size that can attract a wider variety of end users.

We want sites that range in price points, sites that have existing infrastructure, which could include power, water, sewer, roads, broadband, and then sites with a variety of locational attributes, whether that's proximity to UVA, proximity to the airport, accessibility to major highway corridors, or accessibility to rail.

From a conclusion standpoint, we found that there's a lot of information that we prepared as part of this analysis, and I've really just given you the most high-level highlights that I was able to squeeze into about 10 minutes of time.

And some of the conclusions that we found from this analysis is that, you know, although the land use build out for non-residential uses suggests that there's sufficient capacity to meet future demand, there are a lot of constraining factors that result in less than maximum build out and negatively impact the amount of developable land, particularly for non-residential uses.

I think this is particularly important when you think about it in the lens of short term.

The tier analysis found only 39 parcels that can support significant non-residential development in the short term and that would be attractive to job creating land uses.

We suggest additional coordination with the county's Economic Development Office and the EDA that would allow for identification and preparation of critical properties to support future job creation.

and, you know, through this process, aligning efforts of the land capacity analysis with the goals of project enables ability to strengthen existing businesses and accommodate a diverse inventory of new businesses will kind of bring both project enables goals and priorities together with AC44s and the growth management plan.

I have one question about the various parcels that you examined that could meet the tier one

That's a good question.

I might also ask Roger to weigh in on what his thoughts are.

My sense is when we were really diving down into, you know, finding properties that were at least three acres.

So that was certainly a constraint there.

And then finding those properties that had access to, you know, highway infrastructure could be kind of targeted properties that were in the development areas with

appropriate infrastructure and because we would want them to be brought to market relatively quickly and adding on top of that, that they were appropriately zoned, not just a future land use designation, but to have the correct zoning.

You also seem to indicate that the one constraint, which you called site constraints, might have been the squishiest and the hardest to define.

So there was a question, is it lack of contiguity or is it more of an environmental constrained landscape?

Yeah, I mean, I don't think it's a secret that there are environmental and site constraints that are present in your community, whether that be steep slopes, floodplains, wetlands, protected open space.

They're prevalent.

You know, the easy to develop sites are

you know, have been developed or in the process of being developed.

And so, you know, it's getting trickier and trickier.

I think that's unusual.

This part has been a long, long time.

Mr. Rossi, Matt Lawless here, Scottsville District.

Thank you for the report.

It was really helpful for me to digest it.

I saw some of this back at the planning commission level, but it's helpful to look at it again with fresh eyes.

I don't want to

and various other things that are currently on the process.

I remember we spoke on the phone at the beginning of your work to include the town of Scottsville land use categories.

I talked about how the town was zoned and what the theoretical goal that was.

I won't ask you why.

That's not here.

That's not important.

But I want to volunteer what the Scottsville information would be because I think it's

relevant for kind of the perspective of including the town because it is property that could be improved.

And if it weren't approved, it would mean community economic development needs and all of the real estate value on that improvement would go down to the amount of budget and benefit everyone.

So whether or not it's like tagged officially as development area, it's an additional square mile.

I did some napkin math on

kind of a type of land use, and I think we're generally similar to the neighborhood mixed use or the downtown Crozet type of category, how it's divided between residential, retail, office, maybe hotel, a very little bit of industrial space.

We have a little bit of a development pipeline, which is not as much as Solomonee, but more than Rivanna, and a little bit of a non-residential pipeline,

which again is not as much as how I'm doing, but more than my panel and more than a couple of the other development areas.

So there is activity and some movement going on.

The development area policy has clearly been very effective in pushing revenue and promotion and investment into development areas where utilities and infrastructure exist.

I'd be happy to volunteer the sums into the total if it's of interest, but the pipeline and build out that we are one square mile past that's theoretically added is 6% of the total, which is proportionate to our ratio within the development area that were included and relevant to these kinds of calculations.

We have some new retail and office time online and some acreage that could be improved which meets those readiness criteria of flatland zone commercial utilities in place.

It's on the market and available in much the same way as other zones have.

I see the map of non-residential results and a couple of development areas looking off the charts in a way that the town of Scottsdale is not.

So I think we are participating in more of a couple.

and coming down to that bottom line with the filter and the concerning very small number of 39 development area parcels, I can add plus two in town, which as small as we are, feels like a significant contribution bigger than that number from 39 to 41.

So I'm really impressed with the methodology and I think that the attempt for what it's worth with the parts of them has something to do with it.

Thank you.

Any other comments from the board?

I appreciate that presentation and I think it's very thorough and I look forward to your final analysis.

I think it's a critical forward thinking that any progressive county in the state of New York needs to go through and I'm pretty excited about having some of this now.

I think most of us know that the development of the land is very scarce now.

This verifies that and I think once we have an idea of what we don't have, we can take a look at the business of getting something that we do need.

Any other comments?

Yeah, I'm going to introduce our distinguished guest.

We have him in with us today.

He's the co-founder of Avis Graff Siders.

For those of you who are new to the board, I'll provide a little historical context.

He and his co-founder came to the county

some three years ago, through an agricultural and forest development grant.

Maybe you can hear that a lot.

And that process was immensely successful and resulted in redevelopment of the property down south.

The good news is it was extremely successful.

The challenge with that came, Tim and his team were so successful, they were all like, how are we going to keep up the production?

What are we going to do?

to move forward in this community.

So, you know, Ken, doing his new diligence had opportunities to locate Riverton and all around this part of Virginia, also outside of Iowa and Long County.

So we have been working in concert to find a home for Ken and his so-called unique traditional production into a series of working together.

We've located a spot down in Broadway

Part of helping him and his cohorts locate here included providing some financial incentive to stay in the county, as you may be aware, it's a lot less expensive sometimes if you really move further out of the way from midtown and outside of the town.

So, Bob Spratt decided they wanted to be part of our community.

We wanted to stay here and try to find a way to help them do that.

It led to what you all knew as Project Home at the time, which I guess is a foreign word rival,

What language is that?

Italian?

No, I forgot the genesis of that.

I'm only very interested in that great product and naming it.

Nonetheless, we've got a place for them to work down on the Broadway quarter, which is part of the Broadway study.

That's why we really would like to see that future lifeline, a place with other people, places, and dogs that all folks would like to be there.

Tim and his team have decided to locate down there with the production there.

I hope I get this right.

It's a $9,000 investment.

It's eight new jobs.

It's really tripling production of 1.5 million pounds of additional apples being purchased from Virginia.

It also includes accounting goals of sort of activating all the way.

So they plan to get a certificate box into there and eventually go to the case run.

And all those things will be part of a performance agreement, which if they meet those criteria, they will be eligible for $50,000 from the VDACS grant, which will be the pass-through for you all.

Hey Tim, can we welcome you up to this seat right here?

Yes.

Great.

First of all, thank you guys for having me and for doing the work you all do.

I've seen first hand work with body and

I'm immensely grateful at how organized you all are and the type of work you've done that I've seen and having been through this process, as Roger mentioned, in 2019 for the last leg of a major growth and development step for Potters.

For the board members who haven't met yet, I'm Tim, founded Potters 11 years ago with my partner Dan in Albemarle County.

on a horse farm in Green Union, where we both bought houses out in that area of the county and have existed for the past 11 years.

Recently, we ran out of space in the facility we were in.

Couldn't keep going, just got to spend two, three hours a day, kind of like playing Tetris, forklift, moving things around.

And eventually push came through, we had to go.

and really a couple of key things happened.

One case here was really successful.

Grants were very helpful.

Both the EDA and the county and the state providing COVID relief assistance made some really key changes at our retail establishment to get through the pandemic.

So just by way of quick introduction, the building on the left there is our tasting room, renovated Stone Church.

That was our last evening grant.

Beautiful facility with a labor of love.

On the right was the pandemic kind of adaptation.

We were hosting live music outside in squares.

Thank goodness that that chapter has started to come to a close.

But it's enabled us to really build a brand.

It's amazing how much of a marketing arm the Taysnearm has become for us in terms of facilitating some regional growth opportunities.

The pandemic, in addition to really forcing us to become creative in terms of how to continue doing retail, also really focused on how are we going to do wholesale.

And a big part of that is production.

And so that really brought us to where are we going to go

We were going to move our operation.

Really wanted to stay in Omaha County, but as you all know, industrial space severely limited.

Really not a lot of options.

There was exactly one roughly on the market that would have fit our needs here.

There are a few more in Waynesboro.

We were kind of at the point where we needed to make moves.

So in concert with Brian and J.T.

and some others, we were able to locate a facility in the Broadway corridor, which met our needs.

both for production expansion as well as a potential retail outpost downtown to complete that Broadway corridor.

As I'm sure you all know, a lot of cool stuff going on over there.

Starting to connect down to the Woolen Mills from the site for brewing, potentially a couple more brewing operations in that area.

Just a lot of potential pedestrian activity in the future connecting that corridor.

So for us, leg one, let's find somewhere to locate production, and then leg two, how does this continue to fit our needs of really building another foothold in the community?

For us, a big part of what we're doing, why we love Albemarle County, are the people.

We've been really fortunate to attract a team where we're able to build careers instead of jobs.

Our average retention at our company is about six and a half years.

We've only been in business for 10 years.

So we're doing great.

We've got a really high quality team where we're offering benefits.

We're paying way above market, but we're attracting really high quality people.

And we're giving them creative agency to be part of the team where they should really add and showcase what they're doing.

Community is a big part of what we're doing, as I mentioned, and having a retail foothold on that Broadway corridor, very attractive to us.

But thing number one is really production.

So for us, launching two new product lines, for those of you who are unfamiliar with our site or our company, those top three boxes are really our flagships.

Cans are a pretty new addition.

We're getting pretty great grocery uptake.

That was really the silver lining of COVID, when we really had to start focusing on groceries.

Those three products in the top left have really penetrated Whole Foods, Kroger, Harris Teeter, some major grocers regionally.

And as part of this project, we'll be looking to expand to Georgia and Florida, that have in fact just completed distribution agreements

with both states for full state distribution with the largest beer distributor in Georgia and partial state distribution with the second largest distributor in Florida.

So very pleased that that leg of the puzzle is coming through for us.

It's a, obviously we want to build a production machine, I think, to facilitate growth, but the other side is, you know, is there a market?

And there is, thankfully.

So in addition to that, we're going to launch a few new products coming out this fall, the Bigs Path, the new Hopsider, a lot of groups on the horizon for us.

Any questions?

Very impressive, thank you.

What's your view as an insider of the National Monitoring Place?

Cider, of course, is a historic product here in this part of the world, and it isn't elsewhere.

But are we in an age now where that doesn't matter anymore, where it's all just whoever does the best marketing?

I mean, I'm just amazed the way seltzer products took off.

I wouldn't have guessed, but they're everywhere now.

We're in an age of differentiation.

And what happened is there's appropriation in most categories of like, if you're a brewer today and you make an IPA, it's like, guess what?

Like, how are you going to differentiate?

And that's where regionalism at local has really started to become, it's become a more regional, I mean, a more local endeavor than a regional one.

So whereas there used to be large regional craft breweries,

It's a lot harder to do that today.

The best thing one can do in the industry is to specialize and to come up with something that nobody else does.

And so for us, if you look at a cider market, every cider on the market is loaded with sugar.

Tons of residual sugar.

At Potter, we just decided, we kind of swam in the opposite direction.

And we said, none of our ciders will have any sugar.

Neurograms across the board.

and that eliminated the fat part of the market for us.

But by thinking through a differentiated strategy, along comes self there and people are trying to be conscious about what they put in their body, everyone needs their sugar and carbs and alcohol.

And all of a sudden there's a market play for us.

We stay consistent there and we're kind of in this, there's like a Red Sea where all the fish are and all the chum is where all the competition is.

And we're off to this like sparse blue seas swimming around, you know,

where there's not a lot of competition, we can specialize.

And that's really the active piece of adapting a marketplace that's specialized.

So it's kind of, we're kind of agnostic.

The market has swelled and then collapsed.

Congratulate you on your taste of musicians.

That was interesting.

Yeah, so the question was quality-wise would the neighbors be closer?

Do you have any issues with the law?

Yeah.

Yeah, so, you know, working with the neighbors is obviously a key part of keeping things together.

So within the first

Two months of being there, I went around personally and gave everybody my cell phone number and said, hey, if you got an issue, let's talk and let's work it out.

And, you know, we have had a few noise places, one neighbor who is on like the same topography as we are.

And it's weird that like no one else can hear that there's one neighbor who's on the exact same topographic line.

And so,

Saved her.

We're like, we're great.

You know, two thumbs up all the way around.

And then she, she unfortunately can't hear.

It's not very disruptive.

So I've been working with her directly on, all right, what if I, what if I turn the speaker just like this, you know, can you hear it?

It's figuring out creative ways to pollution.

Can we set the band up tomorrow?

Then kind of try to work out, but I did.

It's going really well.

It's not, it's not a hundred percent perfect, but we're definitely adaptive and we're, you know, I think for the most part, people want to be heard and you just kind of have to show up and listen.

You have a question or comment?

We have a resolution in front of us for the matching grant.

Yes, sir.

We're working directly with the state to determine the legal instrument that's best suited for this, but the terms of the agreement are in this.

From the state's perspective, if Potter's Crab

Invest $900,000 to create eight new jobs that uses 1.5 million additional pounds of Virginia-grown apples that they will have satisfied with within the state.

For the county, we are not providing monies in advance like we once did.

We had, as you may be aware, we had issues with fallbacks getting information and so forth, so we have changed our performance of reading the structure to make them performance-based.

The two thresholds of payment to the panels will be once you hit the certificate of occupancy to operate on the facility on Broadway to receive a bird payment.

Once they open up the sort of fancy retail space that you mentioned will be in the future, you'll be eligible for the second payment.

I think it's a great program.

Thank you for that.

We have a resolution before us.

Does everybody have an opportunity to read?

I'll entertain a motion for approval.

I'll second the motion.

We'll do a roll call.

Director Ray?

Aye.

Director Shreve?

Aye.

Director McMillan?

Aye.

Director Lawless?

Aye.

Thank you very much, everybody.

The next additional item is a resolution to provide a grant account to the Stockville Hotel Feasibility Survey.

I'd love to introduce that.

In fact, I'll introduce, if you want to write any news, we just, this presentation, the time that you're going to be here in prison will be here if you stop and try to involve a Black author.

So it will be all obtained by you, Mr.

Chair.

OK, well, directors, we have two things on the staff report we wanted to share and make the authority aware of.

We are submitting a Virginia Business Ready Sites program grant application to the state with the University of Virginia Foundation.

This is within their North Fork UVA Discovery Park, which is a site that Jessica mentioned in her land use capacity analysis.

That one tier four site that's available in the county is this 253 acres of the park.

This is just to orient you briefly here.

This is Route 29.

and this would be Airport Road.

And so the park has set aside this northern portion of the site specifically for economic development.

It does not currently have any buildings on it, but we are focusing the application on the largest pad within that area, lot B5, that's about 31 and a half acres.

We've asked for a,

It's sort of a broken down ask.

The state's budget for this year for the VBRSP program is about $85 million.

Last year the program was $7 million.

So this is a huge jump.

That said, it's open to the whole state and a lot of people are very interested.

So the state received a total of 38 applications totaling $312 million in total asks.

So it's very competitive, but we've narrowed and refined our application from last year and we're preparing for a virtual site visit.

The state is working with a consulting team from KPMG that's done a lot of site selection across the southeast.

And so we'll be, Roger, myself, other key folks from the University Foundation will be meeting with that team in late October.

And if we make the cut, they'll come and do an in-person site visit.

And if we make the cut from there, we'll hopefully be talking about a stage of work, a series of work that will occur on lot B5 to prepare it for

A business to locate there.

So it's tier four right now.

The scope of our ask is another $6.4 million.

That's what it would take to get it to a tier five.

and so I can pause here and see if there are any questions.

It would, did you want to, it would buy a clearing and grading of a pad as well as associated infrastructure, an access road, some conduit for certain utilities, water line stub, and

They're currently on Lewis and Clark Drive.

So they're adjacent, but they're not to a pad on the site.

And so from the state's perspective, the marketability of a tier five site is we have a prospect.

We can bring them to the site.

They can look at it and see this is exactly where we're gonna go and how our particular operations could be laid out.

The University of Virginia Foundation.

So one of the differences between last year's application and this year is an agreement to sell in a way that the foundation has had some reluctance to do in the past.

So there historically has needed to be a strong connection to the university.

to be, to locate at the park.

They, the foundation is beginning to examine that.

They're redoing their strategic plan.

This is their master plan.

And so I don't, I'm not sure if it reflects exactly what they're doing, what they're proposing with their current application.

But yeah, the neighborhood model district is 175 acres at the southern portion of the site.

This didn't happen without some support of your chair, Don Law.

Both Don and David found me my boss.

And it required some cultural changes and different ways of thinking.

As J.T.

mentioned in the prior year, they refused to sell anything.

that was part of their plan.

And then they also, the community times portion is important, not as a strong community connection to the university themselves.

They are opening up their thought processes to be better neighbors, the great neighbors now, but even better neighbors in that they're willing to loosen up some of those thought processes to consider things they would not have sort of been done on as part of the great and good program.

particularly as it relates to community kindness.

And J.T.

did mention this, but the request in the actual grant application itself is $300,000 an acre.

The other detail I think that's important for me to mention is that the grant does require a match.

And the way that the county and the foundation are matching this $6.4 million request is through the foundation's investment in the extension of Lewis and Clark Drive.

So previously Lewis and Clark Drive did not connect, if I can get my mouse up on the screen, it did not always connect down to Airport Road.

And so the extension of that road and the associated multi-use path and sewer extension covers the balance of that match.

It's completed.

That connection's been completed.

The Lewis and Clark.

The Lewis and Clark Drive connection, that's been completed.

Or you mean across Airport Road?

Yeah.

Okay, yeah.

That will connect to the roundabout at Shreve.

One other general comment, J.T.

has been leading this together for at least a month or so, which requires just an enormous amount of work and effort and coordination with the University of Virginia.

So I'm fairly pleased about both of the efforts and the results of that particular grant.

So J.T.

hits on the 6.4 million, but understanding that's a big ask for many years of grant.

Strategically, the grant application was designed for

which they have all our choices.

If you just want to do the pre-development work, it would cost a little over $300,000 in engineering and planning and so forth.

If you want to grade, if you want to cut down timbre and cost this amount, if you want to do it all, it would cost this amount.

I will very quickly have an update so that we can get Courtney on the deck here.

You guys are familiar with the Bite Local campaign and I've provided a little handout that I've been using to do some promotions and little window stickers if you'd like to put this on your vehicle or your home or put it on someone's vehicle to promote the campaign.

We have, we're in our second month now and really, really trying to be exposed to the social media and really drop traffic to the Show Local Love website.

And I would just encourage anyone on their travels or their ins and outs, in your districts to show that local love, share this information, and please, I think we'll reach out to the website or me personally, and we'd love to get some collaboration

and I'll be happy to answer any questions that you'll have personally after the meeting endorsed by Dean Arie and the literary team.

All right, well, I'm now pleased to introduce item B.

Dean had it with us in the same space.

We have important occasions to be executive director of the Charlottesville Albemarle Convention and District.

I will say, according to these

The introduction in our community has resulted in a huge success in a number of ways.

Not only have you paid attention to the results of what we call a star report, which demanded the impact of the tourism industry.

The hotel areas in our community have not only rebounded exceptionally well.

At least some of that credit should go to the best and best marketing organization that is expanding this reaction and this strategy for being supposed to come here.

But one of the other things that Courtney has done is she's been sort of a leader in the wheel in many ways, if not the sole leader of the Southern Los Eagle.

I don't know if you saw recently or not the announcement by the United States Travel Association that our community, under Courtney's tutelage, received a national award for that particular campaign.

So, you know, we're very fortunate to have someone who has both the

The strategy, the ability to strategize on what our communities would also have executed, just does a fantastic job.

So that being said, we're very specific.

She showed us the problems about Virginia tourism zones, kind of what's happening in Stonsville.

It's what it says for the next conversation.

And I'm sorry, Courtney, to interrupt.

Unfortunately, we have some unforeseen circumstances where we'll need to end the Zoom call.

So the meeting will continue in person with the quorum of EDA directors we have present.

They are not my unforeseen circumstances.

So to Chair Long and everyone that's participating on Zoom virtually, sorry, we'll have to end this call for another county event, but we welcome you to future in-person Zoom EDA meetings.