Economic Development Authority Meeting   4/18/2023

Are we good to go?

Audio is good?

Check, check.

As they say in the biz.

I don't know.

I don't know.

It's just all of those things.

I read an article, author of this book, and I heard it on NBR, and I was like, you know, I don't know anything about style.

Stalin to 1929.

So I'm having to do the audio book, too, as I go along, just so that I can see.

I had a Civic Center Director in my Civic Center in Vermont.

on Death Shadow, it's an improvement video.

I'm sorry about that.

May I say, if this is like the airport authority, it's going to be a tight ship.

That's right.

That's right.

All right.

So we've got two members who are going to participate remotely, but we have to go through our remote.

So I guess I'll call the meeting to order.

We'll take them up individually, but I think there has to be a motion.

Mr. McNaughton has indicated that he would like to participate virtually because of a medical reason, I understand.

Am I correct?

On advice of council, is there a second?

A second.

All right.

All in favor?

Aye.

All right.

OK.

I move that he be allowed to participate virtually as a result of a business commitment.

Is there a second?

Seconded.

All right.

All in favor?

Aye.

All right.

And then, so next is matters from the public.

Does anybody sign up to speak?

The minutes were circulated.

Are there any comments on the minutes?

Aye.

Financial report.

I'll report that for the period ending 2-28-23, before the calendar year, FY for the fiscal year, excuse me, we have net revenues of negative $45,253.05.

That is constituted by operating net revenues, expenditures $1,038,401.43 combined with pass-through revenue of $1,014,405.04

leaving us with a slightly smaller cash and cash equivalent balance from the last time we met of $868,220.99.

So there was an AFID facility grant that was provided, I believe, in the 2017-2018 timeframe.

As a result of not meeting the performance benchmarks, we needed to call back the grant that had been provided.

It wasn't a complete clawback, it was a prorated clawback.

So my question about the financial statements is, and I think I noticed this just this month because of the negative value, but do we have a, I'm assuming that that's

that the Board of Supervisors has passed through money.

And I wonder if there's a way for us to track that a little better so we can see.

The ebb and flow.

and period, we wouldn't necessarily see that.

Yeah, that's all that in there.

It's just sort of that big negative balance.

I assume it was mostly just the timing.

It is.

Any other questions?

All right.

Thank you, Mr.

Chair.

We'll have an abbreviated staff report today.

Thank you.

Yes, so I may have mentioned this at our last meeting, but the City of Charlottesville and our economic development offices

partnering with the Central Virginia Small Business Development Center, our neighboring partner here, to put on this Piedmont Pitch, first ever event.

I believe there was a really successful one in Scottsville last year that had a lot of really great reports and feedback.

But essentially it's an opportunity for startups and entrepreneurs and small businesses to get out there and practice pitching and practice presenting their business ideas

to potential investors and the grant funding for this award, if you will, for this pitch competition is $15,000.

So everyone has an opportunity to pitch for up to $15,000.

And there is going to be a big pitch event at the Wolf Factory on May 11th at Salvage Brewery.

They've been very, very

I'm generous in offering that space to us.

And so at five thirty on May 11th, we'd love for anybody that's listening or eager to to come check it out and see some really exciting

It is a loss.

It's an expansion.

So we'll have a continued enjoyment of that space for special events and things of that nature while salvage has to drop their water to expand and take home up in another county location.

So what is the criteria?

They need to be located.

They have to have a business license.

May 1st, by May 1st, with either the county or the city, depending on where they plan to operate their business, startup general concept.

They could have been in business for a few years, but if they're operating under 25,000 a year or so, it's an opportunity just to take part in an education program, for the most part, and go through the CBS BDC's Business Essentials training

The grant goes to just one recipient.

The grant is a combination of funding that's been provided by our

Organization and the city and the CIC I think has kicked the community investment collaborative, I think has kicked in a little bit to get us up to that.

I think that I think that I think that Missouri is still out on that final decision.

That was my question.

Yeah, I think from my understanding, it wouldn't be it wouldn't be diluted to a point where people were getting

Well I think it is important to have deep business practice because one of the things I've noticed having heard lots and lots of these pitches is people who are better at it raise more money.

Was there a comment?

None.

Thank you.

Great.

Well, the next two bullets are both related to the same event.

The TomTom Festival is happening this week.

It's Wednesday through Friday, mainly here on the downtown mall.

And Project Enable talks a lot about the entrepreneurial ecosystem and how important that is.

There's a number of events over the next few days that are in support of that ecosystem.

Some of our most important partners will be having presentations and

events and networking, and we have a few extra passes that we'd like to offer the EDA directors if you're interested in attending any of those.

The schedule is comprehensive, so I think that I would be best served by sending an email to the directors that has a link to everything that's being offered.

I would be happy to fly the flag but the schedule was a little confusing because there was so much going on so I would happily take your advice if you wanted to point me at anything in particular, something that you could, if you can't be in two places at once or whatever's helpful for you.

Yeah, same here.

J.T., if you don't mind, would you include me on that?

Absolutely.

I realize I'm looking at my calendar and I signed up for two things and I think they're within like a half an hour of each other.

That's not going to work.

So let me wrap my head around where I am.

Absolutely.

That'd be great because I agree with you.

There's, I think the intent is to have a

All kinds of stuff going on.

Back in October, Ravi Respedo, the Chief of the United Way of Greater Charlottesville was here to talk about the Ambition Grant.

There will be an announcement formally announcing that program to the community on Friday evening, right outside the code building.

So all of the EDA, the entire community is invited, but because the EDA had heard those details and

provided feedback on that program.

So everyone's welcome to join that.

And that is the end of the staff report.

It's right there.

Alright, so next on the agenda is the Thomas Jefferson Foundation bond amendment.

And Curtis Saunders from McGuire Woods is here to talk about term SOFR.

Yes, thank you.

Good evening, everyone.

And thanks for having me tonight and getting us on

The agenda so quickly, we really appreciate it.

I know the foundation appreciates it and we at Maguire Woods who serve as bond council appreciate it as well.

So I'm probably telling you what you already know, but back in 2011, the EDA issued bonds that assisted the foundation with refinancing the construction of a visitor and education center at Monticello.

And the interest rate on those bonds is based on, or rather calculated based on the LIBOR index, which is going away in June.

So of course we need to make amendments to our original financing documents to replace that index.

So the resolution before you approves making those amendments.

and just so you know the new index it will be based on SOFR which is a pretty standard index that we're seeing replacing LIBOR and all of the amendments will be very targeted and only those necessary to make the rate changes and the bond documents so that's a three-party bond purchase and loan agreement and then the bonds themselves and I know it's important to you so I should point out that all of the

Protections that were in the original documents will remain, so no liability to the EDA and the indemnification for your members and staff.

Ms. Andrews, thank you.

We had a similar, the same kind of action for another client last month.

So we had more discussion and explanation of it then.

I'm good on it now.

All right.

And if there are no further questions, is there a motion on the resolution to approve?

Well, there we go.

I'd like to make the motion.

I will move that the EDA adopt the resolution as presented.

related to the amending of the Series 2011 Refunding Revenue Bond and to authorize the chair, vice chair, and treasurer to endorse all documents and take any actions described in the revolution to effectuate the amendments.

Good.

Second.

Director Gray?

Aye.

Director Shreve?

Aye.

It would not surprise me if we have a bunch of these in the next two months.

And then when there's a SOFR scandal, we'll switch to something else.

A little less easy to manipulate.

So next is closed session.

So I move that the Albemarle County Economic Development Authority go into a closed meeting as authorized by the Virginia Freedom of Information Act

for the expansion of the existing Albemarle County business, Project B-Friend, Project Fox, and Project Wacho, where no previous announcement has been made of their interest in locating or expanding their facilities in Albemarle County and the investment of public funds to support vocational expansion where bargaining is involved and where, if made public initially, would adversely affect the financial interests of the EDA in Albemarle County.

Is there a second?

I'll second that motion.

All right.

All in favor?

Aye.

All right.

Motion carries.

So are we moving?

And John and Director McNaughton will be on Teams.

or Secured.

Yeah, it's great.

Yeah, we feel very lucky to have them there.

It's good.

you

Hey, yeah, I'm taking that.

Nothing came running.

Dr. McNaughton.

He may not have heard the motion.

Director Lawless.

Aye.

OK, I'm in.

Aye.

I'm also here.

OK. All right.

So unfinished business, the unfinished business.

Other matters?

All right, well then I guess we are adjourned.