Doing Business in Nelson County: December 2006

December 2006

Nelson County Economic Development Authority
December 7, 2006

Present:
Barbara Powell
Alphonso Taylor
Greg Kelly
Steve Crandall
Erwin Berry
Stu Armstrong

Absent
Natt Hall

Public Comment – Nelson County Folklore Festival at Pharsalia Bob Ward, representing the Nelson County Chapter of the Rotary Club, presented information on the proposed Nelson County Folklife Festival scheduled for April 21 and 22, 2007 at Pharsalia. He asked that the Authority consider becoming a sponsor. The Festival will feature re-enactors in period dress participating in a variety of roles such as tradesmen, storytellers, and historic figures such as Rev. Rose, Patrick Henry and Thomas Jefferson. The focus will be educational. County Fourth and Fifth grade students will be admitted free, as the Festival is working with Dr. Collins to incorporate Festival activities into the school curriculum. Mr. Ward stated that the Festival is seeking sponsorship of about $15,000 as seed money for the first year and that it was hoped that the
Festival would be self-sustaining in future years. Members agreed to take the request under consideration.

Chairperson Barbara Powell called the meeting to order.

Motion: To approve the minutes of the November 2, 2006 meeting. Armstrong-Crandall (6-0)

Treasurer Stu Armstrong reported that the EDA currently has $172,216 available. Motion: to allow the Treasurer and Chair to review options for the money currently in a CD at BB&T and the recently received money from the Kappa Sigma bond issuance. (5-0-1, Taylor abstaining)

Staff informed members that Nora Gillespie of the Central Virginia Small Business Development Center (CVSBDC) had requested increased funding from the current level of $5,000 to $7,000. Members agreed that the statistics presented supported the impression that the CVSBDC was of benefit to the County, but had questions regarding some of the figures. It was agreed that staff would invite Ms. Gillespie to present her request in person to the Authority. Stu Armstrong stated that his understanding of the original funding request was that it would be for one year's seed money and not on-going operating expenses; that he did not feel it was the EDA's function to fund non-profits; and that if Ms. Gillespie first asked the Board of Supervisors to fund her request, that the EDA might reconsider her request. Barbara Powell stated that she thought it was in the purview of the EDA to assure the success of the CVSBDC, since it was so valuable to the Authority's mission. Greg Kelly said that the EDA should consult with the CVSBDC to see if there were other areas, such as getting the word out, which would help the program to succeed.

Staff informed members that she was writing a planning grant for the Virginia Rural Broadband Planning Initiative. The goal of the project was to create a comprehensive broadband strategy and not to compete with the private sector. Members agreed that the existence of Broadband throughout the county would be a boon for business and citizens alike.

Staff explained that the planning process was two-tiered, the first tier set to develop a master telecomm plan including financial planning. The second tier would be a detailed implementation plan. She explained that in order for the grant application to be viewed in the most favorable light, that members should consider offering to pledge funds for the implementation portion.

Barbara Powell stated that it was time for both the Authority and the Board to consider how committed they were to getting Broadband for Nelson. After discussion, members decided by consensus to have staff ask the Board of Supervisors to consider matching the EDA's contribution ($5,000) and to consider being prepared to share in commitments to the second phase of the project should the first phase be successful.

Stu Armstrong gave a presentation on the Thomas Jefferson Community Workforce Housing Program (TJCWHP). He noted that housing is an economic development issue, as people tend to want to live near where they work. There are many trends, however, which make it difficult for workers earning less than $50,000 a year to accomplish this.

Mr. Armstrong noted that Baby Boomers are earning high incomes and are beginning to inherit their parent's money ($7 trillion). Consequently, they are buying second homes, which increases demand on labor and materials. The 500% increase in people living alone, the increased size of houses, low interest rates and increase in cost of materials and foreign competition all combine to drive up the cost of housing to the middle class, which is shrinking.

The TJCWHP is addressing this need by combining public and private funding in creative ways in order to place workers in housing, which they can afford to buy. Home ownership encourages them to stay in the community longer. Mr. Armstrong used the example of a newly hired employee (for example a teacher or firefighter) who could consult the 'one-stop shop' and obtain the services of a Housing Counselor and loan officer who would customize a loan. Sample scenario - locating a $200,000 home and assuming the employee made $35,000/year he or she could qualify for a $165,000 mortgage in a first deed of trust. The remainder would be packaged in a second deed. The package would be a combination of funds from other sources. In this example, Mr. Armstrong said that the Charlottesville Area Association of Realtors (CAAR) might contribute $15,000, the County or City could assist with $10,000 with another $10,000 coming from the Piedmont Housing Alliance. Other sources of funding from other organizations are also available. When the house is sold, the loan is repaid in full and a share of the capital gains realized is used to increase the fund for the next round of buyers.

A general discussion followed with members noting that Wintergreen has recently completed workforce housing allowing them to provide housing for 170 workers; the lack of qualified workforce is an ongoing challenge for businesses locating here; and that it might be time to ask the county to consider spending money to help with the construction of housing to attract more workers.

Members agreed to meet for a Strategic Planning session January 11, 2007 from 10 AM-2 PM.

Staff informed members that the 2006 Annual Report for the EDA had been published on the website.

Closed Session
Motion: To end regular session and move into closed session to discuss legal matters and a business not yet announced under the Virginia Freedom of Information Act 2.2-3700, Armstrong-Crandall (6-0)
Roll Call Vote: Barbara Powell, aye; Alphonso Taylor, aye; Greg Kelly, aye; Steve Crandall, aye; Erwin Berry, aye; Stu Armstrong, aye.

Motion: To end closed session. Armstrong-Crandall (6-0)
Roll Call Vote: Barbara Powell, aye; Alphonso Taylor, aye; Greg Kelly, aye; Steve Crandall, aye; Erwin Berry, aye; Stu Armstrong, aye.

Motion: To return to regular session. Armstrong-Crandall (6-0)
Roll Call Vote: Barbara Powell, aye; Alphonso Taylor, aye; Greg Kelly, aye; Steve Crandall, aye; Erwin Berry, aye; Stu Armstrong, aye.

Motion: To adopt the following resolution: Be it hereby resolved, the Economic Development Authority of Nelson County does hereby return to regular session having only discussed legal matters and a business not yet announced. Armstrong-Crandall
(6-0)
Roll Call Vote: Barbara Powell, aye; Alphonso Taylor, aye; Greg Kelly, aye; Steve Crandall, aye; Erwin Berry, aye; Stu Armstrong, aye.

There being no further business, the meeting was adjourned.