600 N. Main Street
Woodstock, Virginia 22664
Shenandoah County Industrial Development Authority
Meeting Minutes: May 31, 2019
Chairman Poling called the meeting of the IDA to order at 10:02 am. The following members were present: , Mr. Vince Poling, Mr. Jay Winkfield, Mr. Eddie Litten, Mr. Rex Morrison, Mr. Blake Phillips, Mr. Ted Rhea, Mr. James Zirkel.
Others in attendance included: Ms. Jenna French, Director of Tourism and Economic Development, Rich Walker, District 3 Board of Supervisors, Ms. Michelle Bixler, Town of Strasburg, Dennis Dysart, Shenandoah County Chamber Economic Development Council and Melissa Torpey, Northern Virginia Daily. Ms. Carolyn Howard and Ms. Deborah Flippo were also present from Draper Aden & Associates.
Chairman Poling called for the approval of the agenda. Mr. Phillips made the motion, Mr. Morrison seconded the motion and the motion was approved by a unanimous voice vote.
Chairman Poling requested an approval of the March 8, 2019 IDA meeting minutes. Mr. Litten seconded by Mr. Rhea made a motion to approve the minutes as presented. The motion was approved by unanimous voice vote.
Ms. French presented the financial report through April 30, 2019. She noted that expenses reflect professional services carried out by Draper Aden and Associates and Litten & Sipe and annual funds received through a lease agreement with Dove Poultry. Mr. Rhea inquired about moving some of the money from the money market account if we are not using it into a CD to yield a higher rate of return. Mr. Phillips pointed out the 2.1% interest rate on the money market account and Ms. French shared that First Bank worked with the IDA when we previously looked into alternative rates to establish a higher interest rate at this level at which point discussion ended. Mr. Winkfield made a motion seconded by Mr. Litten to accept the financial report. The motion was approved by unanimous vote.
Ms. Howard and Ms. Flippo provided information on the Virginia Brownfields Restoration & Economic Redevelopment Assistance Funds grant available indicating that they have had preliminary conversations with DEQ about the project and recommend the IDA apply for a $50,000 grant to do a phase 2 environmental assessment of lot 1A following the phase 1 completed last year and then reapply in 2020 for funds to carry out any necessary remediation once we have a cost estimate. The grant requires a 1:1 match but Draper Aden indicated that the IDA can leverage the $48,000 already spent on the phase 1 along with staff time without requiring any additional funds. Money will be available July 1, 2019 and Draper Aden recommended moving forward with an application in June so it could be ready to submit July 1st. Mr. Poling asked for clarification on what is involved in the phase 2. Ms. Flippo answered that this would determine what is really there. Mr. Zirkel made a motion to appoint Draper Aden to draft the grant application on behalf of the IDA and Mr. Winkfield seconded. The motion was approved by unanimous voice vote.
Ms. French asked Ms. Flippo to share with the IDA information on another potential Brownfields program available through the Federal Environmental Protection Agency (EPA). Ms. Flippo shared that the IDA can pursue up to $600,000 with the formation of a regional coalition consisting of each of the towns and county. The grant can be used anywhere that there is a perception of contamination such as old gas stations, dry cleaners, and even orchards. Draper Aden recommends pursuing an application in fall 2020 to identify corridors or areas within the county such as the Route 11 corridor. Ms. Flippo indicated that this grant does not require matching funds.
Ms. French shared that she received a cost estimate from Newman Surveying for $1100 to survey lot 1C at which point lot 1A would become the residual and the two could be separated. Mr. Zirkel seconded by Mr. Morrison made a motion to approve the $1100 to hire Newman Surveying to complete the survey. All approved by unanimous voice vote.
Ms. French told the IDA that she has spoken with the owner of the Strasburg Developers LLC property regarding the right of way and that Jason Ham has presented the lawyer for the Town of Strasburg with the papers. A discussion is planned to take place at the June 11 Strasburg Town Council Meeting with a vote anticipated on July 9.
Mr. Rhea stated that he recently drove through the Industrial Park to see the activity and shared that there was significant investment by Columbia Gas and Kickin Asphalt. He inquired as to how we can use those investments to build a case with our VDOT CD. Ms. French indicated that she would circle back with VDOT and the original grant application to get clarity on the required job creation and investment.
Ms. Howard shared information on the state’s Site Readiness Program indicating that Draper Aden is working with staff to assess all contiguous parcels over 25 acres by the beginning of August. They will then provide VEDP with cost estimates to bring the sites to a Tier 4. They will also be providing a matrix to evaluate each site in terms of how easy they will be to develop and attract industry. This will enable VEDP to go to the general assembly to ask for funds for development in the future.
Ms. French provided the members of the IDA with copies of the FY18 Financial Audit. Mr. Poling cited page 13 and stated that the IDA still has one bond issuance outstanding. The IDA agreed to vote on the audit at the next meeting after having time to review it in more depth.
At 11:00 a.m. Mr. Poling read aloud the following: “request to enter into closed session to discuss the relocation of expansion of business or industry where no previous announcement has been made, as authorized by section 2.2-3711 (A)(5) of the state code.” Mr. Walker was invited to attend the closed session as well as members of the IDA. Mr. Litten made the motion to enter into closed session. Mr. Phillips seconded and all approved by a unanimous role call vote. Ayes: Poling, Winkfield, Litten, Morrison, Phillips, Rhea, Zirkel.
At 11:13 a.m. Mr. Litten made a motion seconded by Mr. Zerkel to return to open session. Ms. French read aloud the following: “with respect to the just-concluded closed session, and to the best of each member’s knowledge, (i) only public business matters lawfully exempted from open meeting requirements under The Virginia Freedom of Information Act and (ii) only such public business matters as were identified in the motion by which the closed meeting was convened were heard, discussed or considered in the meeting by the Board. The motion was approved on a role call vote. Ayes: Poling, Winkfield, Litten, Morrison, Phillips, Rhea, and Zirkel.
Ms. French stated that she attended a Bankers Forum at LFCC on May 30 to promote the RBEG loan available through the IDA and hopes to hold a similar session for our local commercial lenders. Mr. Winkfield stated that it would be beneficial to bring everyone together for one meeting despite some lenders not using these types of programs.
At 11:20 a.m. Mr Phillips made a motion to conclude the meeting. Mr. Winkfield seconded and all approved.
Jenna French, IDA Staff Member