(IDA) September 1, 2017
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OPEN SESSION AGENDA ECONOMIC DEVELOPMENT AUTHORITY (EDA) AND INDUSTRIAL DEVELOPMENT AUTHORITY (IDA) September 1, 2017 - 8:00 A.M. Two City Center 11820 Fountain Way, Suite 301 Newport News, Virginia 1. Call to Order – Chair Minter 2. Seafood Industrial Park West Bulkhead Project Presentation – Mrs. Kingston and Ms. Kopacz, Port Development Administrator 3. Secretary/Treasurer’s Report – Mrs. Kingston 4. Assistant Secretary’s Report – Ms. Croushore 5. Madison Government Affairs’ Consultant Report 6. Closed Session (Section 2.2-3711.A): Real Estate (3) Prospective Business (5) EDA/IDA Board Meeting September 1, 2017 Page 1 7. Reconvene Open Session (Section 2.2 – 3712 (D)) 8. Action(s) Coming Out of Closed Session 9. Committee Reports Design Review Committee A. Committee Report – Ms. Aldrich B. Board Ratification Executive Committee A. Committee Report – Ms. Greene B. Board Ratification Marketing Committee A. Committee Report – Ms. Aldrich B. Board Ratification Revolving Loan Fund Committee A. Committee Report – Ms. Smith-Brown B. Board Ratification 10. Approval of Minutes of the Regular Meeting of August 4, 2017 11. Unfinished Business 12. New Business 13. Adjournment EDA/IDA Board Meeting September 1, 2017 Page 2 Documents Provided: A. Agenda Documents 1. Monthly Financial Report 2. Committee Meeting Schedule 3. Motion to Go Into Closed Session 4. August 4, 2017 Regular Meeting Minutes P:\IDA\IDA17-18\Board Meetings\September 2017\OPEN SESSION AGENDA - September 2017.docx EDA/IDA Board Meeting September 1, 2017 Page 3 ECONOMIC/INDUSTRIAL DEVELOPMENT MANAGED FUNDS AND PROPERTIES STATEMENT OF NET POSITION AUGUST 23, 2017 (Unaudited) 8/23/2017 7/24/2017 DIFFERENCE ASSETS Cash and Investments: Cash $ 4,983,092 $ 5,661,387 $ (678,295) Restricted Cash - ARC 515,888 518,173 (2,284) Restricted Cash-Air Service 1,235,702 1,234,936 766 Restricted Cash-LTD Oyster Point 1,252,932 1,420,020 (167,087) Restricted Cash - Apprentice School Garage Maintenance Reserve 20,000 20,000 - Restricted Cash-Newport News Capital, Micro Loan 458,461 445,429 13,032 Restricted Cash - CCOP & City Operations Center 4,107,284 4,107,284 - Restricted Cash - Parking Fund 3,232,895 3,206,867 26,028 Restricted Cash - Rouse Tower 2,728,188 2,728,188 - Restricted Cash - Tourism Zones Guaranty Account 1,517,610 1,517,610 - Restricted Cash - Tourism Zones Performance Guaranty Grant Account 499,696 499,696 - Restricted Cash - Coats & Clark Escrow 94,041 94,041 - Restricted Cash - Brooks Crossing 25,282 25,282 - Restricted Cash - FIG Grant 643,780 671,353 (27,573) CCOP Garage Property Management Escrow 90,000 90,000 - Total Cash 21,404,851 22,240,265 $ (835,414) Receivables: Accounts, Notes & Grants 26,506 26,722 (215) Note Receivable - Hotel Loan 4,105,115 4,105,115 - Note Receivable - Land Loan 399,999 399,999 - Notes Receivable - Newport News Capital Fund 1,112,330 1,120,143 (7,813) Notes Receivable - New Market Tax Credit 4,619,345 4,619,345 - Other Receivables 652,208 340,915 311,293 Total Receivables $ 10,915,503 $ 10,612,239 $ 303,265 Construction in Progress: $ 13,385,278 $ 12,617,942 $ 767,335 Land Held For Lease or Resale: Oakland Industrial Park $ 4,043,163 $ 4,043,163 - Patrick Henry CommerCenter 1,897,080 1,897,080 - Oyster Point 2,516,903 2,516,903 - Chase - 1300 Marshall Avenue 1,105,938 995,938 110,000 Sears 399,943 399,943 - Virginia Specialty Store Property 530,000 530,000 - T E Williams 60,000 60,000 - Brenner's Bakery 114,300 114,300 - Downtown Engineering Ctr 753,600 753,600 - Coats & Clark 676,882 676,882 - Greek Church 75,000 75,000 - Jefferson Center - Research & Tech 4,486,797 4,486,797 - Diligence Drive 276,725 276,725 - Clements - 75 Yorktown Road 492,068 492,068 - Jefferson/Habersham 2,246,599 2,246,599 - Port Warwick - Light Rail 1,036,640 1,036,640 - Southeast Corridor 1,674,200 $ 1,674,200 - Parking Fund Land 874,323 874,323 - 606 Morris Drive 74,900 74,900 - Oriana Road 1,066,900 1,066,900 - 515 Ivy Road 21,112 21,112 - Rouse Tower 1,164,800 1,164,800 - 2914 West Avenue 101,665 - 101,665 Upper Warwick Corridor 1,350,809 1,350,809 - South Police Precinct 357,200 357,200 - Sherwood 2,529,606 2,529,606 - Apprentice School Garage 641,700 641,700 - Total Land Held For Lease or Resale $ 30,568,852 $ 30,357,187 $ 211,665 Property and Equipment: Shipyard/Sears Facility 13,484,037 13,484,037 - Coats & Clark 1,884,237 1,884,237 - Downtown Engineering Ctr Building 30,668,716 30,668,716 - 5th Oakland Shell (CITI) Building 5,436,903 5,436,903 - Shipyard/VSS Facility 12,653,210 12,653,210 - ARC Building 16,368,065 16,368,065 - Greek Church Building 276,680 276,680 - Merchant's Walk Garage 12,465,741 12,465,741 - Conference Center 29,115,656 29,115,656 - Fountain Way Garage 15,703,399 15,703,399 - 809 Omni Blvd 2,628,946 2,628,946 - Mariner's Row Garage 16,787,034 16,787,034 - Rouse Tower 20,383,665 20,383,665 - Apprentice School Garage 12,174,759 12,174,759 - South Police Precinct 6,257,667 6,257,667 - Sherwood 5,305,259 5,305,259 - Improvements Other than Buildings 14,496,355 15,113,266 (616,911) Equipment 84,674 84,674 - Accumulated Depreciation (63,108,373) (63,106,684) (1,689) Total Property and Equipment $ 153,066,631 $ 153,685,231 $ (618,600) Infrastructure Merchant's Walk Garage Infrastructure $ 1,521,049 $ 1,521,049 - Fountain Way Garage $ 1,022,450 $ 1,022,450 - Other Assets: Deferred Charge - Debt Refunding 5,577,422 $ 5,577,422 - Total Other Assets $ 5,577,422 $ 5,577,422 $ - TOTAL ASSETS $ 237,462,038 $ 237,633,786 $ (171,748) DEEFERRED OUTFLOWS OF RESOURCES - - - TOTAL ASSSETS AND DEFERRALS $ 237,462,038 $ 237,633,786 $ (171,748) LIABILITIES AND NET POSITION Liabilities: Trade Accounts Payable $ 148,828 $ - $ 148,828 Accrued Liabilities 103,949 $ 103,936 12 Deferred Revenue - $ - - Notes Payable and Due to City (ARC) 19,389,474 $ 19,389,473.68 - IDA/EDA Leased Project Bonds - All Projects 85,573,407 $ 87,278,997 (1,705,590) Total Liabilities $ 105,215,658 $ 106,772,407 $ (1,556,749) Net Position: Invested in capital assets, net of related debt $ 75,512,977 $ 73,949,953 $ 1,563,023 Restricted for: Debt Service $ - $ - $ - Capital Projects 8,184,650 $ 8,353,255 (168,605) Capital Loans 1,570,791 $ 1,565,572 5,219 Unrestricted 46,977,963 $ 46,992,598 (14,635) Total Net Assets $ 132,246,380 $ 130,861,379 $ 1,385,001 TOTAL LIABILITIES AND NET POSITION $ 237,462,038 $ 237,633,786 $ (171,748) P:\Audtshar\monthlyIDAfs2018\Financials.FY2018Aug 1 8/23/2017 ECONOMIC/INDUSTRIAL DEVELOPMENT FUND STATEMENT OF REVENUE AND EXPENSES FOR THE TWO MONTHS ENDED AUGUST 23, 2017 (Unaudited) 8/23/2017 8/23/2017 BUDGET CURRENT MONTH YEAR TO DATE YEAR TO DATE FY 2018 BUDGET Operating Revenues: Sale of Property - $ - $ 113,325 $ 679,951 Miscellaneous Property Rental - Operating Leases 586,684 848,200 807,140 4,842,837 ARC Revenue 33,508 48,385 291,800 1,750,801 Regional Air Service Enhancement - Contributions from localities - - 28,223 169,337 Rent Income Rouse Towers 13,208 52,125 413,502 2,481,011 Parking Income 48,696 107,327 131,139 786,831 CCOP Revenue - Land Sales, Parking Contributions, Interest 16,890 16,890 37,399 224,391 E-Commerce Program Interfund Transfer - - - - Total Operating Revenues $ 698,986 $ 1,072,927 $ 1,822,527 $ 10,935,159 Operating Expenses: NNIDA Operating Expenses: Board and Committee Compensation 1,100 $ 2,400 $ 3,333 $20,000 City Development Department Reimbursement 9,583 9,583 15,833 95,000 Direct Salary Charges 30,956 46,742 73,151 438,906 Fringe Benefits 16,761 21,449 37,242 223,452 Contractual Services 34,473 34,570 190,371 1,142,225 Materials, Supplies, Meetings 2,978 2,983 10,113 60,675 Marketing and Promotion 555 745 26,667 160,000 Reserve for Contingency - - - - Total NNIDA Operating Expenses $ 96,407 $ 118,473 $ 356,710 $ 2,140,258 CCOP Facilities Operation and Maintenance 104,359 104,359 204,890 1,229,342 Rouse Towers Operating and Maintenance Expenses 18,496 18,501 236,176 1,417,055 Hospitality Marketing - - 50,000 300,000 Regional Air Service - - 18,072 108,431 Sherwood Operating and Maintenance 5,615 5,615 - - Contributed Land & 10% Commission on Sales - NN Green Foundation - - - - Real Estate Commissions - - - - Business Initiatives 8,000 26,072 8,333 50,000 Façade Improvement Grants 37,352 60,186 25,000 150,000 Enterprise Zone Grant - - 292,772 1,756,629 Tourism Grants - - 140,514 843,082 Property Rental 85,164 160,998 174,453 1,046,720 ARC Expenses 39,658 39,745 165,194 991,161 DT Engineering Retail/City - - 22,719 136,311 Depreciation Expense - - 808,419 4,850,513 Bond Amortization Expense - - - - Other, including financing fees - - - - Total Operating Expenses $ 395,051 $ 533,949 $ 2,503,250 $ 15,019,502 Operating Income $ 303,936 $ 538,978 $ (680,724) $ (4,084,343) Non - Operating Revenues (Expenses): Interest Earned 228 $ 228 $ 23,000 $ 138,000 Interest Earned - Mortgages 5,641 6,071 14,259 85,552 IRB Fees 400 400 12,500 75,000 Property Administrative Fees 6,157 12,314 40,350 242,099 Bond Interest Expense (111,418) (1,100,969) (501,289) (3,007,734) Bond Issue Expense, Letter of Credit and Trustee Fees (500) (500) (1,188) (7,125) Cost of Land Sold - - - - Commonwealth Opportunity Fund - - - - Land Option Revenue - - 1,667 10,000 Gain (Loss) on Fixed Assets - - - - Miscellaneous Revenue (includes GOF's) 26,543 26,788 40,654 243,921 Non - Operating Expenses $ (72,950) $ (1,055,668) $ (370,048) $ (2,220,287) Net Income (Loss) Before Operating Transfers $ 230,986 $ (516,690) $ (1,050,772) $ (6,304,630) Transfers From Economic/Industrial Fund - - - - Transfers To Economic/Industrial Fund - - - - Transfers - In From