MEETING AGENDA FRIDAY, SEPTEMBER 20, 2024 57SOUTH CENTER DRIVE, DALEVILLE, VA: 24083 ROOM: 229; 2:00 P.M.  ECONOMIC DEVELOPMENT AUTHORITY OFI BOTETOURT COUNTY, VIRGINIA  1. Call to Order 2. Public Comment  3. Approval of Minutes from. April 19, 2024, and May 17, 2024  4. Financial Report:  a. Bank Statements Ending August 30, 2024 Update: Property Transferred to Altec  6. Financial Statements d. Viasat Update  5. Motion to hold a closed session to discuss the acquisition ofr real property for public uses or the disposition of publicly held real property where discussion in open session would adversely affect thel bargaining position or negotiating strategy of the public body; discussion concerninga prospective business ori industry or the expansion of an existing business or industry where no previous announcement has been made of the business or industry's interest in locating or expanding its facilities ini the County; and discussion of thei investment of public funds where competition or bargaining isi involved, int the Amsterdam (including Greenfield), Blue Ridge, and Valley Districts as per Section 2.2-3711 (A)(3), (5), and (6) oft the Code of Virginia of 1950, as amended.  6. Convene in Closed Session  7. Return to open session and adopt the following resolution by roll call or other recorded vote: BEI IT RESOLVED, it is certified that toi the best of each Authority member's knowledge only public business matters lawfully exempt from open meeting requirements and only such matters as were identified in the motions to go into closed session were heard, discussed, or considered during the  closed session.  8. Action Items / Old & New Business:  a. Greenfield Education & Training Center Ribbon Cutting and Open House VATI Updates - Lumos Extension and Comcast Contract Negotiation  b. Small Business Grants d. Eldor Tax Rebate Applications  9. Adjournment - Next Regular Meeting is scheduled for October 18, 2024    An meeting of the Botetourt County Economic Development Authority was held on Friday, April 19, 2024, at 2:00 p.m.  at the Botetourt County Administration Center at Greenfield in Room 229.  Members Present:  Mr.. John Kilby - Chairman Mr.John Griffin- - Vice Chairman Mr.Jeff Emry Mr. David Bryan Mr. Gary Larrowe Dr. Mac Scothorn Mr. Ken McFadyen Mr. David Moorman  Mr. Lynk Hayth Mr.John. Alderson Mrs. Mary Bess Smith  Members Absent: Others In Attendance:  Mr.. John Hull - Roanoke Regional Partnership  Mr. Mike Lockaby Mr. Luke Campbell Ms. Kim Stewart  Call to Order and Public Comment would needi to leave early. Closed Session  Mr. Kilby called the meeting to order and asked if anyone would like to make public comment. Hearing none, he announced that the agenda would move out of order to Closed Session next to accommodate members who  Mr. Kilby then called for a motion to goi into Closed Session:  Motion to goi into closed session to discuss the acquisition and disposition of real property for purposes of economic development, int the Amsterdam (including Greenfield) and' Valley districts where discussion ina an open meeting would adversely affect the Authority's bargaining position or negotiating strategy, pursuant to Section2.2- Motion to go into closed session to discuss prospective businesses or industries or the expansion of existing businesses or industries, ini the Amsterdam (including Greenfield) and' Valley districts where no previous announcement has been made oft the businesses' ori industries' interest in locating or expanding facilities in the community, pursuant to Section 2.2-3711 (A)(5) of the Code of Virginia of 1950, as amended. Motion to go into closed session to discuss the investment of public funds where competition or bargaining is involved, in the Amsterdam (including Greenfield) and Valley districts, where discussion in an open meeting would adversely affect the Authority's financial interest, pursuant to! Section: 2.2-3711 (A)( (6) of the Code of Virginia of 1950, Mr. Hayth made the motion and Mr. Emry seconded. And with alli in favor and none opposed, the motion carried.  3711 (A) (3) oft the Code of Virginia of 1950, as amended.  as amended.  AYES: NAYES: ABSENT:  Mr. Kilby, Mr. Hayth, Mr. Emry, Mr. Alderson, Mr. Griffin, Mrs. Smith  None Mr. Bryan  ABSTAINING: None  Return to Open Session Mr. Kilby read thei following resolution:  1    BEI IT RESOLVED, iti is certified that to the best of each Authority member's knowledge, only public business matters lawfully exempt from open meeting requirements and only such matters as were identified in the motions to gointo  Closed Session were heard, discussed, or considered during the Closed Session.  The EDA then returned to Open Session with Roll Call:  AYES: NAYES: ABSENT:  Mr. Kilby, Mr. Hayth, Mr. Emry, Mr. Alderson, Mr. Griffin, Mrs. Smith  None Mr. Bryan  ABSTAINING: None  Mrs. Smith motioned that the EDA authorize Mr.. John Kilby tos sign the contract fori the purchase oft the Harrington property and Mr. Alderson seconded. With all ini favor and none opposed, the motion was approved.  AYES: NAYES: ABSENT:  Mr. Kilby, Mr. Hayth, Mr. Emry, Mr. Alderson, Mr. Griffin, Mrs. Smith  None Mr. Bryan  ABSTAINING: None  Next, Mr. Kilby called for ar motion that the EDA authorize Mr.. John Kilby, Mr.. John Griffin, and Mr. Ken McFadyent to open an account for Seeburg Real Estate LLC at the Bank of Botetourt. Mr. Alderson motioned and Mr. Emry seconded. Mr. Hayth abstained from voting. With all others in favor and none opposed, the motion passed.  AYES: NAYES: ABSENT:  Mr. Kilby, Mr. Emry, Mr. Alderson, Mr. Griffin, Mrs. Smith  None Mr. Bryan  ABSTAINING: Mr. Hayth  Then Mrs. Smith motioned that the EDA transfer upi to! $2.1 million to thei trust account at the Bank of Botetourt asa capital contribution of the EDA as ar member of Seeburg Real Estate LLC. Mr. Emry seconded and Mr. Hayth  abstained from voting. With all others ini favor and none opposed, the motion carried.  AYES: NAYES: ABSENT:  Mr. Kilby, Mr. Emry, Mr. Alderson, Mr. Griffin, Mrs. Smith  None Mr. Bryan  ABSTAINING: Mr. Hayth  Finally, Mr. Hayth moved to motion that the EDA authorize management of the limited liability company formed by the EDA to make an offer to purchase real property andi to execute, deliver, or countersign a contract or such other documents as may be required on behalf of thel LLC for up to $2.1 million dollars. Mr. Alderson seconded the motion  and with all ini favor and none opposed, the motion passed.  AYES: NAYES: ABSENT:  Mr. Kilby, Mr. Hayth, Mr. Emry, Mr. Alderson, Mr. Griffin, Mrs. Smith  None Mr. Bryan  ABSTAINING: None  Consideration of Financial Statements for March2024  Disbursement of Truist Funds from LARE Escrow Account and Release of Deed ofTrust  2    Mr. McFadyen reminded the Authority that the EDA financed the acquisition of 12 acres for Ann' Whitesell and sold that tol LARE andi that the EDAI had at financing agreement set up with LARE in which! LARE was making monthly payments from 2017-2022. LARE's finance officer is asking about the status oft the escrow account. Given thei issue with the bookkeeping not making the balloon payment ont time, and thei interest the EDA therefore accrued, that did create an issue on the EDA's balance statement ofa an accrued interest receivable in the amount of $3.417.98. LARE was two weeks late making their balloon payment, which caused the EDA tol be late. The bookkeepers did not catch it for two months, which then accrued additional interest and late penalties fromi the EDAI to Ms. W/hiteselL. Thei two weeks that LARE was late accrues toa $700 penalty. Considering the amount of time that has lapsed from when the balloon payment was due, staff recommended the EDA write offt thei interest accrued, and release the escrow balance and deed of trust to LARE, subject tor review and concurrencei from thel EDA attorney. Mr. Lockaby stated before the meeting that staff should verify that payments that should have been made, have been made before the  EDAI releases anything.  JMI Industrial - Late February 2024 Principal and Interest Payment  Mr. McFadyen then explained to the EDA that every February on the gt, JMI Industrial is supposed to make. a principal payment of $135.900. The EDA's bookkeeper prepares thati invoice along with the quarterly interest invoice, whichi is alsoi that particular month on the gth. The amount due in February 2024 for principal and interest was $143.419. Typically, thel bookkeeper emails that invoice to. JMI Industrial who then remits funds toi the EDA. On March: 18th, Mr. McFadyen caught that thei invoice had not! been emailed and that the principal andi interest had not been paid in February. Mr. McFadyen contacted thel bookkeeper and asked them to prepare thei invoice and also toi include the 1% late charge because JMI Industrial does know that they have the note stating that they are to pay a principal payment in February. Mr. McFadyen contacted John Higginbotham who did point out that thei invoice had not been emailed asi is the usual practice. Mr. McFadyen then contacted the bookkeeper, who said that they didn't email thei invoice but rather that they mailedi it by the post office to a physical address that does not receive mail. Mr. McFadyen had no way to confirm that it was mailed or that ita arrived at an address that does not receive mail. Therei is confusion all around whether the invoice was sent and whether it was received. However, as soon as Mr. McFadyen contacted Mr. Higginbotham, JMI Industrial paid within four days. Mr. McFadyen did address the 1% penalty, which is $1,400 and which Mr. Higginbotham requested to be waived, but Mr. McFadyen could not make that decision andi is bringing that to the EDA for direction and guidance. Mr. Griffin recommended Mr. Kilby called for ar motion that the EDAI release the deed of trust with LARE, that the EDAI release the escrow account to LARE, that the EDA writes off the EDA's accounts receivable interest of $3.417.98, and also that the EDA allows half collection of the late charge to. JMI Industrial. Mr. Hayth made the motion and  the EDA and. JMI Industrial split the penalty amount 50/50.  Mr. Alderson seconded, and with all in favor and none opposed, the motion carried.  AYES: NAYES: ABSENT:  Mr. Kilby, Mr. Hayth, Mr. Emry, Mr. Alderson, Mr. Griffin, Mrs. Smith  None Mr. Bryan  ABSTAINING: None  FY24Audit Engagement Letter  Mr. McFadyen then presented the audit engagement letter from Robinson, Farmer, Cox, Associates for the 2024 fiscal year. Mr. Alderson motioned that the EDA authorize the necessary signatures to be made fort the FY24 audit engagement letter and Mrs. Smith seconded. With alli ini favor and none opposed, the motion  was approved. AYES:  Mr. Kilby. Mr. Hayth, Mr. Emry, Mr. Alderson, Mr. Griffin, Mrs. Smith  3    NAYES: ABSENT:  None Mr. Bryan  ABSTAINING: None  VATIUpdates  Mr. McFadyen reminded the EDA that they have three projects with the Virginia Telecommunications Initiative, one that is currently underway and two that are proposals. The grant term for the current project with Lumos, "VATI #2," ends May 1, 2024, andi is to deliver connectivity to: 1901 addresses. Lumos has completed 58% of the project but has had: significant difficulty getting permits andi make-ready work completed with AEP and therefore need a grant term extension that staff will handle administratively. Then with the two proposal projects, there is one with Lumos and Dominion int the Arcadia area, which recently had a challenge filed against this proposal from Shentel for addresses that were int the town of Buchanan Proper and Lumos has agreed to remove those addresses from the proposal, which will decrease the total number of addresses by possibly 80. The: second proposal is with Comcast ini the southern part of the County, and Comcast is backing out more than 400 addresses that Lumos claims have already been served or will be served by other sources. Comcast wishes to continue with their proposal, however. Luke updated the Authority on the Virginia Business Ready Sites grant project and said that on April gth., Economic Development hosted VEDP at Greenfield and presented the VBRS project grant request. Lunch was provided as well as a sitei tour of Lot: 3. Those present werei impressed withi the work and due diligence that has been done for Lot 31 thus far. The aski fori the project from VEDP is $9,250,000, and the total project cost is $18.500,000. The project ist to grade Lot 3 to yield a pad-ready site for al building size of one million: square feet under roof. He also said that  Action Items / Old & New Business  we: should hear back from VEDP regarding the grant request in May.  Adiournment  Hearing no further questions or comments and having no other business presented, Mr. Kilby called fora a motion to adjourn. Mr. Griffin motioned, which was seconded by Mr. Hayth, and with all ini favor, the meeting was adjourned.  AYES: NAYES: ABSENT:  Mr. Kilby, Mr. Hayth, Mr. Emry, Mr. Alderson, Mr. Griffin, Mrs. Smith  None Mr. Bryan  ABSTAINING: None  4    Ar meeting of the Botetourt County Economic Development Authority was held on Friday, May: 17,2024, at 2:00 p.m.  at the Botetourt County Administration Center at Greenfield in Room 229.  Members Present:  Mr.John Kilby Chairman Mrs. Mary Bess Smith Mr.Jeff Emry Mr. David Bryan Mr. Gary Larrowe Dr. Mac Scothorn Mr. Ken McFadyen Mr. David Moorman Mr. Mike Lockaby  Mr. Lyn Hayth Mr.John Alderson  Members Absent: Others In Attendance:  Mr.John Griffin  Mr.James Bandy - Roanoke Valley Broadband Authority  Mr. David Bandy Mr. Luke Campbell Ms. Kim Stewart  Call to Order and Public Comment  Mr. Kilby called the meeting to order and asked if anyone would like toi make public comment. Hearing none, he announced that the agenda would move out of order to allow Mr. Jim Bandy with the Roanoke Valley Broadband Roanoke Valley Broadband Authority = Greenfield Co-Location Data Center Project Report and FY25 Budget - Mr. Mr. Bandy began byi informing the EDA they could expect to receive a check from the RVBA of around $21,000, after expenses, at the close of fiscal year 2024. Then Mr. Bandy reviewed the proposed budget for FY25. Mr. McFadyen pointed out that the $36,000 annual fee includes 24/7/365 onsite management of the data center and there are occasions where Mr. Bandy isi ini the building at 2:00 a.m. fixing aj problem. Mr. Bandy also explained that RVBA pays the County (through the EDA) a monthly electrical feet for the power that is used in the room. Hel has not had a way to accurately measure how much electricity is being used and estimated $1,147.41 monthly throughout this past fiscal year. Mr. Bandy has identified: a device that can be attached tot the circuit breaker boxi to measure the actual amount ofe electricity used. Itr needs tol bei installed by an electrician. Theyl have already had an electrician come in and put a separate device on that measures the current and estimates what the electricity use should have been, andi it was around $625 monthly. Sot the proposed amount of monthly electrical fee is going down to $700 per  Authority to make his presentation priori to the discussion of regular EDAI business.  James Bandy  month for FY25. Mr. Bandy reviewed the remainder of the budget and took his leave.  Financial Report  Mr. McFadyen then reviewed the financials and reminded the. Authority that staff has been working with Bank of Botetourt and Campbell & Lineberry through the transition process of changing banks and bookkeepers. He also let them know that PBS will be sending the backup to Campbell & Lineberry to stand upt the accounting there. Furthermore, Mr. McFadyen: said that al balance of $5,000 has been retained at FirstBank to catch any checks that may be still out there but once everythingi is accounted fori the FirstBank account will be closed with the remaining  balance being moved toi the Bank of Botetourt.  VATI2 Disbursement  Mr. McFadyen reviewed the terms of the VATI2 project and let thel EDAI know that Mr. Zerillo, Lumos, and the Department of Housing and Community Development have been working on the details oft the first three invoices fort the project and that a considerable amount oft time has been: spent with cost accounting and providing documentation that DHCD requires of Lumos for the project. The State has now approved and released their  1    portion oft the VATI2 grant fori the first three invoices and the County has transferred its share of the amount due on thet first three invoices tot the EDA. Thel EDA is nowi in possession of $2.968.194.07and: staffi isi recommending the Mr. Emry made the motion and Mr. Hayth seconded. And with alli in favor and none opposed, the motion carried.  EDA approve to disburse these funds to Lumos.  AYES: NAYES: ABSENT:  Mr. Kilby, Mr. Hayth, Mr. Emry, Mr. Alderson, Mrs. Smith  None Mr. Bryan, Mr. Griffin  ABSTAINING: None  Mr. Kilby moved the order oft the agenda next to allow a guest, Mr. David Bandy, tol learn of updates regarding the  Six Forty Group.  Old Colonial Update on Incentive Agreement with Six Forty Group - Luke Campbell  Mr. Campbell reminded the EDA that they initiated ani incentive agreement with the Six Forty Group fori insurance funds in the amount of $21.733.53 to ber released to the Six Forty Group with the stipulation that the Six Forty Group make all the necessary repairs to the Old Colonial school building and provide proof of the repairs toi the EDA. Mr. Campbell said that Mrs. Wilson: signed the agreement. about a month ago. Mr. Campbell reached out tol Mrs. Wilson prior to this meeting and is waiting tol hear back. As oft this meeting, he has not received any proof of damages being repaired. Mr. McFadyen added, as ar reminder, that this wast the result of ani insurance claim that wasi filed for damages incurred from vandalism toi the property when the building was still owned by the EDA. The claim was filed and payment made after the property was transferred toi the Six Forty Group. Sot the EDAI made the agreement with the Six Forty Group that as they made the repairs and provided proof of the repairs, that the EDA would transfer the funds fromi thei insurance claim to the Six Forty Group. The EDA approved the agreement in November 2024 but Mrs. Wilson only recently signed the agreement. The EDAI is awaiting proper documentation from Mrs. Wilson that damages have been repaired. Mr. Bandy thanked the Authority for the update and left before the EDA  went into closed session next. Closed Session  Mr. Kilby then called for a motion to go into Closed Session:  Motion to go into closed session to discuss the acquisition and disposition of real property for purposes of economic development, int the. Amsterdam district (including Greenfield) where discussion in an open meeting would adversely affect the Authority's bargaining position or negotiating strategy, pursuant to Section 2.2-3711 (A)(3) Motion to go into closed session to discuss prospective businesses or industries or the expansion of existing businesses ori industries, in the Amsterdam (including Greenfield): and' Valley districts where no previous announcement has been made of the businesses' or industries' interest in locating or expanding facilities ini the community, pursuant to Section 2.2-3711 (A) (5) of the Code of Virginia of 1950, as amended. Motion to go into closed session to discuss the investment of public funds where competition or bargaining is involved, in the Amsterdam (including Greenfield). and Valley districts, where discussion' in an open meeting would adversely affect the Authority's financial interest, pursuant to! Section 2.2-3711 (A) (6) of the Code of Virginia of1 1950. Mr. Alderson made the motion and Mrs. Smith seconded. And with all in favor and none opposed, the motion  oft the Code of Virginia of: 1950, as amended.  as amended. carried.  2    AYES: NAYES: ABSENT:  Mr. Kilby, Mr. Hayth, Mr. Emry, Mr. Alderson, Mrs. Smith  None Mr. Bryan, Mr. Griffin  ABSTAINING: None  Return to Open Session Mr. Kilby read the following resolution:  BEI IT RESOLVED, iti is certified that tot the best of each. Authority member's knowledge, only public business matters lawfully exempt from open meeting requirements and only such matters as were identified ini the motions to goi into  Closed Session were heard, discussed, or considered during the Closed Session.  The EDA then returned to Open Session with Roll Call:  AYES: NAYES: ABSENT:  Mr. Kilby, Mr. Hayth, Mr. Emry, Mr. Alderson, Mrs. Smith  None Mr. Bryan, Mr. Griffin  ABSTAINING None  Action Items / Old & New Business Small Business Grants  Mr. McFadyen explained that staff has a departmental appropriation for $20,0001 for a Small Business Grants Program and that staff is preparing to release a grant application: soon. Staff desires to bring back in June five $4,000 grant award recommendations. representing each of the magisterial districts as well as several business sectors. Mr. Kilby added that when the Covid Small Business Grants program was going on, the EDA appointeda committee to review the applications and make the award recommendations to the EDA. Mr. McFadyen, Mr. Emry, and Joyce Kessinger were the members of that committee. Mr. Kilby appointed the same individuals to: serve ona committee for the current small business grants program and requested Mr. Campbell to work withi the committee. Mr. McFadyen discussed Eldor's tax rebate application that had beeni turned in on time last summer but that clarifications were needed and that the County met with Eldor several months ago regarding this but did not get the information that was needed. Mr. McFadyen has spoken with Chris Booth about confirming the information thati is correct for the application, and staff will attempt to get a rebate application recommendationto. the EDA at the. June  Eldor Tax Rebate Application  meeting. Adjournment  Hearing not further questions or comments and having no other business presented, Mr. Kilby called for a motioni to adjourn. Mr. Haythmotioned, which was seconded by Mr. Emry, and with all int favor, the meeting was adjourned.  AYES: NAYES: ABSENT:  Mr. Kilby, Mr. Hayth, Mr. Emry. Mr. Alderson, Mrs. Smith  None Mr. Bryan, Mr. Griffin  ABSTAINING: None  3