FREDERICKSBURG ECONOMIC DEVELOPMENT AUTHORITY 601 Caroline Street, Suite 303 (540) 372-1216 Fredericksburg, VA 22401 (540) 372-6587 Fax ECONOMIC DEVELOPMENT AUTHORITY (EDA) MINUTES Monday, May 12, 2025 8:30 a.m. e Regular Meeting FXBG City Center, Visitor Center Conference Room 601 Caroline St. Fredericksburg, VA 22401 The Economic Development Authority ofthe City of Fredericksburg, Virginia met for a regular meeting on Monday, May 12, 2025 at 8:30 a.m. at the FXBG City Center, Visitor Center Conference Room, 601 Caroline St., Fredericksburg, VA 22401. EDA MEMBERS PRESENT. Chair Beth Black presiding, Anita Crossfield, Mitzi Brown, Kevin Hughes, and Meredith Schatz. ABSENT. Joel Griffin and Suzy Stone. ALSO PRESENT. Hyperbole: John Sims; Fredericksburg Arts Commission: Kelly Drake; Fredericksburg Main Street: Chris Allen; Bart Goldberg; EDA Assistant: Jordan Seurattan; EDA Counsel: Jackson Key; Department of Economic Development and Tourism: Josh Summits, Director of Economic Development and Tourism; MC Morris, Assistant Director ofTourism; Amy Peregoy, Economic Development Manager; and Victoria Matthews, Tourism Stadium and Sports Sales Manager. DETERMINATION OF QUORUM. Anita Crossfield. APPROVAL OF AGENDA. MOTION by Mitzi Brown, seconded by Anita Crossfield, the agenda was approved: Ayes (5); Nays (0); Absent from Meeting (2- Griffin, Stone). APPROVAL OF MINUTES. MOTION by Meredith Schatz, seconded by Mitzi Brown for the regular meeting minutes from April 14, 2025 were approved: Ayes (5); Nays (0); Absent from Meeting (2- Griffin, Stone). TREASURER'S REPORT. Mr. Hughes provided an update on the EDA's financial status and presented the draft budget for the upcoming fiscal year. As of April 30th, the total cash balance and notes receivable stood at $1,865,015.39. Mr. Hughes flagged that billing for third-party audit services is anticipated soon and is expected to appear as an expense in the next financial report. Mr. Hughes reported the projected income for the next fiscal year is $402,700, representing an estimated 15% decrease from the current fiscal year. This decline is attributed to reduced revenue from bond income, lower interest from certificates of deposit (CDs), and decreased income from the InvestFXBG loan program. Proposed operating expenses are $346,300, with an additional $56,400 in funding expenses. Increases in the draft budget include allocations for professional services- -intended to support new income strategies -and for education, training, and advocacy, in response to ongoing demand. Mr. Hughes noted that while previous strategies to diversify income, such as leveraging CDs, were effective, they are: not sufficient to offset projected shortfalls going forward. He encouraged continued exploration of new revenue opportunities. MOTION by Meredith Schatz, seconded by Mitzi Brown to approve the draft EDA budget for fiscal year 2026: Ayes (5); Nays (0); Absent Meeting (2 - Griffin, Stone). OLD BUSINESS. Draft Sports Tourism RFP. Mr. Summits presented the draft Request for Proposals (RFP) for a sports tourism feasibility study. The draft has been reviewed by select members oft thel EDA and relevant City staff, including staff from the Parks, Recreation and Events Department. Feedback has been incorporated into the current version. The proposed RFP outlines the scope of services to be performed by the selected consultant, including planning, stakeholder and community engagement, local resource assessment, marketing benchmarks, gap analysis ofthe existing sports tourism infrastructure, economic impact analysis, and recommendations for future development. The final deliverable will be a comprehensive report containing findings and actionable recommendations. EDA members will be given 30 days to review and suggest revisions before the RFP is finalized and considered for approval at the next scheduled meeting. National consulting firms have expressed interest in responding once the RFP is released. The study will include analysis of comparable regional, state, and national projects, incorporating best practices and lessons learned from other localities, such as Henrico County. The consultant will be tasked with evaluating similar initiatives to inform the EDA's strategy and investment planning. NEW BUSINESS. a. EDA Grant Programs Applications. Ms. Peregoy presented two applications submitted under the current cycle of the EDA Grant Program. She reminded members that grant disbursements may be issued directly to vendors, and that applicants must be in compliance with City requirements, including permits, applications, and taxes. Given that both proposals are for outdoor events, she noted that the EDA may wish to consider the possibility of weather-related cancellations when awarding funds. The first application was submitted by Fredericksburg Pride, requesting $2,500 for its annual event on Saturday, June 28, 2025, at Riverfront Park. Requested funds would cover park rental fees, including a $1,000 fee and a $1,000 refundable deposit. Parks and Recreation staff confirmed the event will also require a certificate ofi insurance. As ofthe meeting date, it was unclear whether the event would include alcohol sales, which would involve an additional $500 fee and $500 refundable deposit. The applicant reported that the event is free to the public, will run from 11:00 a.m. to 4:00 p.m. (following a march at 7:30 a.m.), and includes an after-party at Market Square from 6:00 to 11:00 p.m. Four event sponsors had been secured, with a stated goal oftwelve. MOTION by Meredith Schatz, seconded by Anita Crossfield to fund the $1,500 worth of deposit monies required for the event paid directly to Parks and Rec with the understanding that whatever is refunded will come back to us: Ayes (5); Nays (0); Absent Meeting (2 - Griffin, Stone). The second application was for the FSU Pickle and Grilled Cheese Festival, requesting $2,500 in support of the November 8-9, 2025, event at the Fredericksburg Fairgrounds. The event includes planned partnerships with downtown restaurants and promotional hotel accommodations at the Marriott. The applicant indicated that a Friday night dinner and restaurant specials will take place in the week leading up to the event. The fairgrounds rental had already been paid; the requested grant funds would be applied to other budgeted items. The submitted budget projected a profit of approximately $50,000. Estimated attendance was listed at up to 5,000, although current expectations were 1,000 to 2,000. At the time of the meeting, vendor lists and ticket sales had not been finalized. EDA members discussed the application and noted the need for additional detail and clarity before making a funding decision. The applicant will be invited to return in August to provide a presentation. b.Nomination Discussion for Slate of Officers. A new term for Economic Development Authority board members will begin in July. Chair Black appointed Ms. Brown and Ms. Crossfield to serve on the nomination subcommittee. Both members accepted the responsibility and will present their proposed slate of officers at the next scheduled EDA meeting. C. Grant Application Opportunities. Mr. Summits provided an update on several current and prospective grant opportunities relevant to the EDA's strategic initiatives. Following an initial presentation in April, Mr. Summits and EDT staff conducted a deeper review of available programs in coordination with internal and external stakeholders. Three primary grant programs were discussed: i. Community Business Launch Program - The application period for this program closed at the end of April. Although the EDA did not submit an application this cycle, staff will continue monitoring the program and explore alignment with future initiatives for next year's cycle. ii. T-Mobile Hometown Grant Program (via Main Street America) - This grant offers up to $50,000 for physical placemaking projects such as revitalizing historic structures, improving community gathering spaces, and enhancing streetscapes. The next application deadline is June 30. Staffi is evaluating potential projects in partnership with the Parks and Recreation Department and noted that the application process is relatively accessible. Main Street previously submitted an application for the "Art Alley" project at Market Square during the last quarter; a decision is expected by mid-June. If not awarded, the application may be resubmitted in a future cycle. ini. VEDP Brownfields Assessment Grant EDT staff are exploring the possibility of partnering with the RIVERE group on a grant application for environmental assessment or remediation. Ifj pursued, the grant would be administered by the EDA as a pass- through entity. RIVERE has a grant writer in place and would lead the application drafting process, with staff support to verify project details. Mr. Summits requested and received informal board support to continue discussions with the RIVERE group and develop a draft application for future board consideration and approval. The Board expressed general support for continued exploration and development of these grant opportunities. COMMITTEE & LIAISON REPORTS. a. City Relations Committee Ms. Brown noted the next committee meeting is scheduled for August. b. InvestFXBG Loan Committee Chair Black noted that no new business items required action at this time, aside from one loan recipient who is currently late on payment but has indicated that payment is forthcoming. The committee will convene in closed session for further discussion. Ms. Peregoy highlighted that the EDA' 's loan program was used as an example of supporting a local family entertainment center were highlighted at ai recent national conference in Indianapolis. The former General Manager of Funland shared that the EDA was prominently recognized as a key partner in facilitating funding for proposed projects. This national recognition reflects positively on the EDA' 's proactive approach to economic development. C. Parking Improvements No update. d. Strategic Investments No update. e. Workforce Development - Ms. Schatz reported that the committee is continuing its collaborative efforts with the University ofMary Washington (UMW) and Germanna Community College, with a focus on scheduling a Virginia Talent + Opportunity Partnership (VTOP) training session facilitated by UMW. This training supports local businesses within the 22401 area by enabling them to host interns with 50% ofthe internship costs subsidized by the state. The committee aims to expand the scope oft the VTOP program beyond traditional retail and point-of-sale roles to include internships in areas such as finance and marketing. The objective is to place students in a broader range of business settings, allowing them to apply their academic training through varied experiential learning opportunities. In addition, Ms. Schatz reported the committee is coordinating with the Chair oft the Humanities Program at UMW to explore internship models for students with majors not typically aligned with conventional internships such as religious studies or other liberal arts disciplines. The goal is to develop consulting- style semester-long projects that allow these students to engage with local businesses through the lens of their academic focus. A meeting to discuss this initiative is scheduled for the following week. f. Tourism - Ms. Brown reported that the! Fredericksburg Arts Commission continues to make progress on its murals project and is also developing a new pilot initiative involving an asphalt mural in front ofRiverfront Park. Thej pilot is led by Arts Commission member and muralist Tanya Green and includes representatives from the Economic Development Authority (EDA), Public Works, Planning, and Fredericksburg Main Street. The interdepartmental work group began meeting in April and will convene monthly to research and implement best practices. The project is intended to enhance public art and also serve a "traffic calming" function. Ms. Crossfield announced that Ambassador William Walker will visit Fredericksburg on May 17th at 2:00 p.m. for an event hosted at the City of] Fredericksburg Visitor Center. Ambassador Walker, known for his role in exposing genocide in Kosovo, will be releasing and selling a book about his experiences. g. Main Street - Ms. Brown provided an update on recent activities and trends downtown. She noted that monitoring data from PACER indicates a slight overall dip in foot traffic, primarily on weekdays, coupled with more conservative spending patterns. Despite this, the evening ofMay 1 saw an estimated 11,300 visitors downtown between 4j p.m. and 10 p.m., with positive feedback from restaurants and retailers about extended business hours. Ms. Brown highlighted that the Flower Crawl was a successful community engagement event, with 154 tickets sold-an increase from 100 tickets the previous year- and attendees visiting multiple local businesses. The event attracted some visitors from neighboring localities interested in replicating the concept. This event, along with others such as the Cookie Crawl and First Friday gatherings, are increasingly recognized and gaining attention beyond the region. Discussion included possibilities for expanding crawl-style events seasonally, such as a "Pumpkin Spice Craw!" or a "Gourd Crawl," as well as collaboration opportunities among Fredericksburg Main Street, the Economic Development Authority, and the Arts Commission. Mr. Allen addressed misinformation circulating on social media regarding the future of First Friday and the Sip and Stroll events. He clarified that no decision to end these events has been made, and a sponsorship program is being developed to support event funding. Community members were encouraged to direct questions regarding First Friday to appropriate contacts. h. Marketing and Promotions - Chair Black reported on a recent meeting with staff from Main Street and the Economic Development and Tourism (EDT) department to align efforts around marketing strategy and messaging. The group focused on refining the messaging being shared on social media and improving alignment with current algorithm trends to maximize engagement and reach. Members discussed the potential for small businesses to invest modestly in digital promotion efforts. While acknowledging the importance ofl being mindful of small business budgets, the representative suggested that some businesses may be open to targeted spending to help expand their visibility online. Further consideration of how and when to present such an option to business owners was encouraged. The primary emphasis moving forward will be on strengthening social media messaging and developing platform-specific strategies that support both the community and its businesses. i. Business Relations - No update. STAFF REPORT. Mr. Summits reported that he attended a tour with Fredericksburg City Schools at the Culpepper CTE facility and he is interested in exploring ways in which Fredericksburg can replicate this initiative. CHAIR'S REPORT. None. BOARD MEMBER COMMENTS. None. CLOSED SESSION. Ms. Crossfield moved for adoption of Resolution 25-04, the Economic Development Authority ofthe City of] Fredericksburg, Virginia convene a closed meeting pursuant to Virginia Code 2.2- 3711(A)(3) for the purpose of consultation with legal counsel and' briefings by staff members or consultants pertaining to actual or probable litigation, where such consultation or briefing in open meeting would adversely affect the negotiating or litigating posture oft the public body, specifically to discuss litigation for InvestFXBG loan default. MOTIONby Anita Crossfield, seconded by Mitzi Brown: Ayes (5); Nays (0); Absent Meeting (2- Griffin, Stone). Where upon the members went into closed session. Upon coming out of closed session. MOTIONby Anita Crossfield, to adopt Resolution 25-05, certifying the proper conduct of the closed session. Seconded by Kevin Hughes: Ayes (5); Nays (0); Absent from Meeting: (2 - Griffin, Stone). ADJOURNMENT: There being no further business to come before the Economie-Development Authority at this time, Chair Beth Black declared the meeting officially adjourneds at 929a.m. Anita Crossfield, Secretary FREDERICKSBURG ECONOMIC DEVELOPMIENT AUTHORITY 601 Caroline Street, Suite 303 (540) 372-1216 Fredericksburg, VA 22401 540) 372-6587 Fax RESOLUTION 25-04 ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF FREDERICKSBURG, VIRGINIA Proposed by: Crossfield Seconded by: Brown RE: RESOLUTION FOR ECONOMIC DEVELOPMENT AUTHORITY TO HOLD CLOSED MEETING UNDER THE VIRGINIA FREEDOM OF INFORMATION ACT TO CONSULT WITH LEGAL COUNSEL PERTAINING TO LITIGATION FOR INVESTFXBG LOAN DEFAULT. WHEREAS, the Virginia Freedom of Information Act authorizes public bodies to hold closed meetings for certain limited purposes. NOW THEREFORE, BE IT RESOLVED that the Fredericksburg Economic Development Authority convene a closed meeting pursuant to Virginia Code 2.2- 3711(A)(7) for the purpose of consultation with legal counsel and briefings by staff members or consultants pertaining to actual or probable litigation, where such consultation or briefing in open meeting would adversely affect the negotiating or litigating posture of the public body, specifically to discuss litigation for InvestFXBG loan default. DATE OF ADOPTION: MAY 12, 2025 VOTE: AYES: 5NAYS: 0 CERTIFICATION: ******** *** Secretary's Certificate 1, the undersigned, certify that I am the Secretary ofthe Economic Development Authority City ofFredericksburg: Virginia, and that the foregoing is a true copy ofResolution No. 25-04 duly adopted at a meeting ofthe Economic Development Authority meeting held. May12, 2025, at which a quorum waspresent and voted. Given under my hand and the official seal ofthe Economic Development Authority of the City of Fredericksburg, Virginia. Date: 6-9-25 Secretary, Economic Development Authority ofthe City of Fredericksburg, Virginia FREDERICKSBURG ECONOMIC DEVELOPMIENT AUTHORITY 601 Caroline Street (540) 372-1216 Fredericksburg, VA 22401 (540) 372-6587 Fax RESOLUTION 25-05 CERTIFICATION OF CLOSED ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF FREDERICKSBURG: VIRGINIA MEETING Proposed by: Crossfield Seconded by: Hughes IT IS HEREBY RESOLVED by the Economic Development Authority oft the City of Fredericksburg, Virginia, as follows: WHEREAS, the Authority has this date convened a closed meeting under Virginia Code 2.2-3711(A)(7), pursuant to an affirmative recorded vote adopting Resolution 25-05 and in accordance with the provisions oft the Virginia Freedom ofl Information Act; and WHEREAS, $2.2-3712.D of the Code of Virginia requires a certification by this Authority that such closed meeting was conducted in conformity with Virginia law; NOW, THEREFORE, BE IT RESOLVED that the Authority hereby certifies that, to the best of each member's knowledge, (i) only public business matters lawfully exempted from open meeting requirements by Virginia law (Chapter 37 of Title 2.2) were heard, discussed or considered in such closed meeting, 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 closed meeting by the Authority. Date of Adoption: May 12, 2025 VOTE: AYES: 5 NAYS: 0 CERTIFICATION: Secretary's Certificate 1, the undersigned, certify that I am the Secretary for the Economic Development Authority ofthe City of Fredericksburg, Virginia, and that the foregoing is a true copy of Resolution 25-05 duly adopted at a meeting ofthe Economic Development Authority held on May 12, 2025, at which a quorum was present and voted. Given under my hand and the official seal ofthe Economic Development Authority of the City of Fredericksburg, Virginia. Date: 6-4-25 Secretary, Economic Development Authority ofthe City of Fredericksburg, Virginia