Economic Development Authority : 9.2.10 : Minutes

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Present: Ms. Emily Pelton; Mr. Natt Hall, Mr. Bennett Saunders, Mr. Alphonso Taylor;

Mr. Greg Kelly (Staff: Ms. Maureen Kelley)

Absent: Mr. Erwin Berry

BOND ISSUE/TURMAN TYE RIVER, LLC: Ms. Kelley reported that company representatives have paid the application fee and are still working with attorneys to finalize the issuance of $1.3 million in revenue bonds to allow the company to secure interest-free financing to purchase equipment and the former Taylor-Ramsey building in Arrington.

WELCOME SIGNS/RT. 29: Ms. Kelley reported that the Master Gardeners have scheduled a work day for September and an October date for planting native plants at the two signs on Rt. 29.

LOVINGSTON FARM MARKET: Ms. Kelley reported that the Lovingston Farm Market has submitted an invoice for the $2,000 allocated by the EDA for advertising and promotional efforts for the market. She noted that the invoice will be paid as per the Authority’s April decision.

MOUNTAIN VIEW BREWERY: Ms. Kelley reported that the owners are in the process of purchasing 15 acres and investing $5 million in a facility at Colleen Business Park to expand the Devils Backbone Brewing Company to produce and market craft beer throughout Virginia and the U.S. The owners have applied for a tax abatement of real estate and machinery and tools for years 2010-2013, estimated at $30,000 per year to minimize expenses during the startup phase of the business. The company plans to employ 10 in 2010 plus 120 construction employees. Ms. Kelley noted that the Board of Supervisors has asked the Authority for a recommendation on the abatement of taxes as requested by the applicant.

Additionally, the land at Colleen Business Park is valued at $20,000/acre with a sale price of $3,000/acre for an incentive of $255,000. Central VA Electric Cooperative has agreed to waive their hookup fee if Mountain View Brewery commits to 3-phase service with a guaranteed load for 3 years. The Nelson County Service Authority has waived hookup and permits with just time and materials to be paid for service installation and the Department of Business Assistance job training funding is estimated at $5,000-$10,000 for the project.

Mr. Kelly said that the EDA should develop a structure for evaluating future requests. Mr. Saunders expressed concern about approving the abatement without criteria. Mr. Taylor pointed out that this request comes from an existing business owner but that a policy should be developed for future requests. Mr. Kelly agreed, noting that the guidelines to attract jobs and create economic development should include type of industry; where that business plans to locate and whether it is appropriate to that location; the growth potential; whether the request is for startup or existing business growth; the financial investment; whether the plan fits the county’s Comprehensive Plan and new job creation. Ms. Saunders expressed concern about setting a precedent. Mr. Taylor said that besides looking at business in the county, the county is getting nothing on that property now.

Members voted unanimously to recommend approval of the applicant’s request. They also voted unanimously to establish a structure to evaluate and respond to requests for incentives.

CLOSED SESSION: Members met in closed session to discuss a new business not yet announced.

Meeting adjourned.

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