INDUSTRIAL DEVELOPMENT AUTHORITY
OF THE
COUNTY OF PRINCE WILLIAM
January 24, 2019
Approved Minutes
A Special Meeting of the Industrial Development Authority of the County of Prince William was called to order by the Vice Chairman at 6:30 pm in Conference Room 204 of the Prince William County Development Services Building located at 5 County Complex Court, Prince William, Virginia 22192.
Present were: Lorna Wallen, Vice Chairman
Laurie Wieder, Secretary/Treasurer
Steve Dawson, Assistant Secretary/Treasurer
Paul O’Meara
Andrew Taylor
Doug Taggart
Absent was: Patrick O’Leary, Chairman
Scarlett Barbee attended to provide administrative support.
Tom Flynn, Business Development and Investment Director with the Prince William County Department of Economic Development (DED), attended to present Amendment 1 to the Performance Agreement between the Industrial Development Authority of the County of Prince William and Neabsco Creek, LLC.
PLEDGE OF ALLEGIANCE
CITIZEN’S TIME: There were no citizens present.
AMENDMENT TO THE NEABSCO CREEK LLC PERFORMANCE AGREEMENT:
The Industrial Development Authority’s Vice Chairman, Lorna Wallen, called the meeting to order at 6:30pm. She confirmed that IDA members received a copy of Amendment 1 to the Performance Agreement between the Prince William County Industrial Development Authority and Neabsco Creek, LLC, prior to tonight’s meeting. Ms. Wallen recognized Tom Flynn, Business Development and Investment Director with the Prince William County Department of Economic Development (DED), and Terry Hill, President of Hampton’s Landing Marina and principal with Neabsco Creek, LLC, and thanked them for coming.
Mr. Flynn stated that he was at the meeting to ask for the IDA’s approval of Amendment 1 to the Neabsco Creek, LLC, Performance Agreement with the IDA. He appreciated the IDA calling a special meeting to consider the issue. Next Tuesday, January 29, 2019, the County expects to receive a grant from the Virginia Port Authority of as much as $250,000 as a 3-to-1 match for the Neabsco Creek Dredging Project. Amendment 1 to the Performance Agreement needs to be signed so that documentation can be completed by January 29, 2019.
He furthermore noted that the Neabsco project is on a very tight timeframe. The Virginia Marine Resource Commission requires that all dredging cease at midnight on February 14. By meeting and approving Amendment 1 to the Performance Agreement, the IDA makes it possible for DED to transfer funds to the IDA and the IDA to transfer funds to Neabsco Creek, LLC, to reimburse expenses as additional dredging is completed to allow the Neabsco work to continue.
Mr. Flynn called attention to the Staff Report that was presented to the Board of County Supervisors on January 22, 2019. He summarized the report as follows: Prince William County expects to receive $250,000 from the state, which will allow the channel to be dredged an additional depth, from 5 to 6 feet. The state grant will be matched 3-to-1 with County funds. It is unclear, however, if dredging of the fairways will be allowed with state money. Mr. Flynn noted that the Staff Report listed four potential alternatives. The Board of County Supervisors selected alternative C, authorizing the use of grant funds to dredge the channel an additional foot and dredge the three public fairways or portions thereof along Neabsco Creek, provided that the County’s share of the total cost of the dredging project, including the fairways, does not exceed $750,000. Therefore, Alternative C is embodied in Amendment 1 to the Performance Agreement between the IDA and Neabsco Creek, LLC. Mr. Flynn noted that the alternatives presented to the Board of County Supervisors estimated the total project cost for Alternative C to be $1,062,000. This estimate was provided to the BOCS at its meeting on January 15, although Terry Hill had provided revised numbers which totaled less than $1,000,000 before the meeting. DED did not want to cause confusion for the BOCS by changing the numbers. Neabsco Creek, LLC is aware that the County will not spend more than $750,000 and the Virginia Port Authority will not grant more than $250,000. This understanding that the total reimbursement cannot exceed $1,000,000 is memorialized in Amendment 1. Mr. Flynn is asking the IDA to approve Amendment 1 to the Performance Agreement.
Responding to a question regarding the amount of funds expended to date, Mr. Flynn stated that for work completed through December 12, 2018, the IDA has transferred $437,385 to Neabsco Creek, LLC. With additional anticipated advances, it is projected – out of the original $750,000 -- that roughly $700,903 will be spent, based on estimates from the County’s Department of Public Works, which in turn are based on estimates from Stantec. Ms. Wieder asked if the $700,903 includes Stantec’s fee and Mr. Flynn responded that it does include Stantec’s $34,036 fee. Ms. Wieder clarified that the 3-to-1 match ratio does not require a new budget and/or new authorization because the County previously approved $750,000 and that those funds leverage the grant from the state. Mr. Flynn responded affirmatively.
Ms. Wieder asked for confirmation that it is currently unclear as to whether the Virginia Port Authority will allow its funds to be used to dredge the three public fairways. Terry Hill responded by calling attention to a drawing of the dredging project showing the three public fairway as red lines. One fairway is used by the fireboat, one goes to the Pilot House Marina, and one goes to the EZ Cruz Marina. Ms. Wieder asked, in the event the Virginia Port Authority does not allow its funds to be used for the public fairways, whether the funds would be reallocated so the County’s funds are used for the fairways and the state’s funds are used for the other portions of the project or whether a portion of the state grant will have to be turned down. Mr. Flynn responded that the state grant will be accepted and used for any allowable purposes. Mr. Flynn stated that it is not clear if the state would reimburse $100,000 in County funds used to dredge the fairways. Ms. Wieder clarified that such a scenario would then result in only $650,000 to match against the state grant. Mr. Flynn responded affirmatively. Mr. Flynn explained the County funds would be used first, then invoices would be provided to the state for reimbursement. Ms. Wieder asked if the payment process would involve County funds being transferred to the IDA and from the IDA to Neabsco Creek, LLC, with County funds being reimbursed by the state without the IDA being involved in the transfer of the reimbursement from the state to the county. Mr. Flynn responded that, based on his understanding, that is an accurate description of the process. Ms. Wieder asked when the transfer process is expected to begin. Mr. Flynn responded it will begin when Neabsco Creek, LLC, produces additional receipts that show it is due reimbursement. Mr. Hill stated that if Neabsco Creek stops at a particular point -- for example, $500,000 -- the state would reimburse a portion. Invoices previously submitted to the County could be submitted to the Virginia Port Authority as proof that Neabsco Creek, LLC, has completed work to that given point.
With regard to timing, the last bucket of dirt must come out of Neabsco Creek by midnight on February 14. Within two weeks, the project will be done and all paperwork completed except possibly the landfill bills that come at the end of the month. Terry Hill stated that if the Virginia Port Authority approves the project on January 29, the County expects to receive at least $102,000, even if the entire $250,000 is not authorized.
There was a discussion of fund transfers from the County to the IDA to Neabsco Creek, LLC. Ms. Wieder noted that fund transfers can take a week because there are several entities that must sign off on the transfer. She noted that it is best to start the transfer process as soon as possible. Mr. Hill stated that he can submit a request for January funding. Mr. Dawson suggested that Mr. Hill submit that request now to get it in process. The process requires Mr. Hill to submit the invoice to Stantec, the IDA’s authorizing agent. Stantec approves the invoice and then it goes to DED. DED asks the IDA to generate an invoice so that the funds may be transferred to Neabsco Creek, LLC. DED processes the invoice and transfers the funds to the IDA and the IDA transfers the funds to Neabsco Creek, LLC.
Discussion continued on the fairways. Mr. Hill noted that it is unclear whether the Virginia Port Authority will provide reimbursement for dredging the fairways. The Authority’s Policy on Grants to Local Governments, Section IIA, Number 10, states “These funds may not be used for any dredging project for a solely privately-owned marina or dock.” Ms. Wieder asked if the fairways are solely privately owned. Mr. Flynn responded that the fairways are waters of the state. Mr. Hill explained there is a nuance. Showing a diagram, he noted that the marinas pay a royalty for the shaded areas of their pilings and dock. No royalty is paid on the fairway between them. Technically, any boat can come into the marina on the fairways, as many bass fishermen do during the summer. The boats go in and out of the slips and Mr. Hill can’t do anything about the boats’ use of the fairways. However, Mr. Hill controls the ramp, although he opens it for people as public access, so the ownership of the fairways is open to interpretation.
Paul O’Meara noted that the Board of County Supervisors had three alternatives for consideration: A, B and C. He asked Mr. Flynn which alternative was recommended by staff. Mr. Flynn responded that DED recommended Alternative B. Mr. O’Meara asked Mr. Flynn to explain the difference between the staff’s recommendation and Alternative C that was selected by the BOCS. Mr. Flynn responded that staff recommended using the Port Authority funds for dredging the channel from five feet to six feet and dredging one of the fairways, specifically the fairway utilized by the fireboat. Mr. O’Meara asked if the BOCS decided to go beyond that recommendation, and Mr. Flynn responded affirmatively that the BOCS selected Alternative C to dredge the three public fairways or portions thereof along Neabsco Creek, in addition to dredging the channel from 5 feet to 6 feet. Ms. Wieder asked if staff recommended Alternative B because the original cost estimate for Alternative C exceeded $1,000,000 and staff needed to stay under $1,000,000. Mr. Flynn responded affirmatively, explaining that staff wanted to be absolutely sure that no more than $1,000,000 was being spent. Ms. Wieder asked if staff could have been supportive of Alternative C if its cost estimate had been less than $1,000,000 and Mr. Flynn responded affirmatively.
Following this discussion, Steve Dawson made a motion authorizing approval of the First Amendment to the Performance Agreement between the Industrial Development Authority of the County of Prince William and Neabsco Creek, LLC. The motion was seconded by Laurie Wieder. The motion passed with Lorna Wallen, Laurie Wieder, Steve Dawson, Andrew Taylor, and Doug Taggart each voting aye. Paul O’Meara voted nay.
Ms. Wallen thanked Mr. Flynn for coming and bringing the IDA up-to-date on the dredging project. Mr. Hill thanked the IDA for holding the special meeting. Ms. Wallen, Ms. Wieder and Terry Hill signed the Amendment documents.
Ms. Wallen noted that Prince William County’s Department of Finance has asked the IDA to hold a special meeting related to the financing of the County’s Adult Detention Center (ADC) Expansion project. The ADC project will be on the BOCS agenda at its February 12 meeting and the IDA would need to meet as soon as practical after that meeting. It was determined that 9:00am on Thursday, February 14, 2019 was acceptable to each of the IDA members.
There being no further business to come before the Authority, the meeting was adjourned at 7:05pm on the motion of Steve Dawson, seconded by Laurie Wieder.
APPROVED March 4, 2019