04-20-2021 Economic Development Committee Meeting Agenda Packet
CALL TO ORDER
ROLL CALL
AGENDA ITEMS TO BE ADDED
APPROVAL OF AGENDA
NEW BUSINESS
a. Staunton River Plastics, LLC Financing Update (Staff Contact: Matthew D. Rowe)
b. Danville IDA-Pittsylvania IDA Shell Building Update (Staff Contact: Matthew D.
Rowe)
MATTERS FROM COMMITTEE MEMBERS
CLOSED SESSION
a. Discussion concerning a prospective business or 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 in the community.
(Staff Contact: Matthew D. Rowe)
(1) Legal Authority: Virginia Code § 2.2-3711(A)(5)
Subject Matters:
Purpose:
RETURN TO OPEN SESSION AND CLOSED SESSION CERTIFICATION
a. Closed Session Certification
1.
2.
3.
4.
5.
6.
7.
8.
Projects Matterhorn, FX, Solomon, Aurora, Darwin,
Thin Foil, Foam, Installation, and Map
Economic Development Updates on Unannounced
Industries/Prospective Businesses
ECONOMIC DEVELOPMENT COMMITTEE
MEETING
Tuesday, April 20, 2021 –3:00 PM
Elections and Training Center
18 Depot Street,
Chatham, Virginia 24531
AGENDA
Regular Meeting - April 20, 2021
ADJOURNMENT
9.
Economic Development Committee
EXECUTIVE SUMMARY
INFORMATION ITEM
Agenda Title: Staunton River Plastics, LLC Financing Update (Staff Contact: Matthew
D. Rowe)
Staff Contact(s): Matthew D. Rowe
Agenda Date: April 20, 2021 Item Number: 5.a
Attachment(s):
Reviewed By:
SUMMARY:
On April 15, 2021, the Pittsylvania County Industrial Development Authority (“IDA”) approved
a construction contract and package with ARCO Design-Build for the construction of a 150,000
sq. ft. turn-key manufacturing facility for a price of $9,732,406 or $65.77/sq. ft. (County
Economic Development Staff and Staunton River Plastics, LLP (“Company”), vetted and
received estimates from three (3) developers and four (4) builders (note: ARCO’s per square
foot price was more than $5/sq. ft. cheaper than the nearest competitor). The scope not only
includes a move-in ready concrete tilt-up building, but also improvements to the rail sideline,
construction of parking areas, and drainage improvements. Moreover, due to ARCO’s size and
relationship with steel sources, the Project was not impacted by the rise of steel prices.
During its April 15, 2021, Meeting, the IDA approved “Bank Term Sheet Option #2” with
American National Bank for a construction loan up to $8,592,280, amortized on a twenty-five
(25)-year schedule with a seven (7)-year balloon at 3.55% (a formal solicitation process was
conducted by the County’s financial consultant). Also at the Meeting, the IDA approved a
Facility Lease (already signed by the Company) and Facility Lease Amendment (a one (1)-page
amendment document reflecting final bank terms) that results in the Company paying the IDA a
lease rate equal to or more than the monthly mortgage, plus $1,500 per month financing fee, in
addition to the Company making an up-front rental payment of $1,504,012.65.
All stormwater and land disturbance permits are in hand, and once financial closing occurs,
ground will immediately be broken. The construction period is roughly ten (10) to twelve (12)
months. The Board will need to approve a Moral Obligation at its April 2021 Business Meeting
to stay on the current track of financial closing in early May 2021. American National Bank has
ordered an expedited appraisal and is proactively conducting is title due diligence and work. For
the Board’s review, attached are the following: (1) Bank Term Sheet Option #2; (2) Facility
Lease; (3) Facility Lease Amendment; (4) Construction Contract; and (5) Moral Obligation
Agreement.
5.a
Packet Pg. 3
FINANCIAL IMPACT AND FUNDING SOURCE:
In addition to the equity injected into the Project from the Company, the Board has agreed to
provide a Moral Obligation for financial backing of the IDA’s loan.
RECOMMENDATION:
None currently. For informational purposes only.
MOTION:
None currently. For informational purposes only.
5.a
Packet Pg. 4
Economic Development Committee
EXECUTIVE SUMMARY
INFORMATION ITEM
Agenda Title: Danville IDA-Pittsylvania IDA Shell Building Update (Staff Contact:
Matthew D. Rowe)
Staff Contact(s): Matthew D. Rowe
Agenda Date: April 20, 2021 Item Number: 5.b
Attachment(s):
Reviewed By:
SUMMARY:
At its April 15, 2021, Meeting, the Pittsylvania County Industrial Development Authority
(“IDA”) tabled their consideration of the Blairs Construction (“Contractor”) Contract for a
30,000 square foot shell building in the Cyber Park. In doing so, the IDA directed County Staff
to do the following:
(1) Work with the City IDA and Contractor to develop an itemized budget, more clear
scope of construction, and design-build specifics;
(2) Establish/finalize financing terms/specifics;
(3) Create a Memorandum of Understanding between the County IDA and City IDA
regarding financing and revenue details; and
(4) Finalize the final approved location of the Facility (dependent on RIFA’s final
approval); and
(5) Transmit a letter to City IDA Staff outlining all the above.
Once the information is received, the IDA is willing to have a Special Called Meeting to
expedite the Project.
For reference, the County and City IDAs agreed earlier this year to jointly develop and finance
the 30,000 sq. ft. shell building on a lot in the Cyber Park. County Staff is working with several
potential end tenants and there is a high likelihood that the project will morph into a build-to-suit
facility.
FINANCIAL IMPACT AND FUNDING SOURCE:
At this time, the County’s Finance Director has not identified a source of IDA funds for this
Project. Also, this project is not reflected in the County or County’s IDA Budget. Finally, it is
likely that the County Board will be required to issue a Moral Obligation (in conjunction with
City Council) towards backing any IDA Project related financing.
5.b
Packet Pg. 5
RECOMMENDATION:
None currently. For informational purposes only.
MOTION:
None currently. For informational purposes only.
5.b
Packet Pg. 6
Economic Development Committee
EXECUTIVE SUMMARY
INFORMATION ITEM
Agenda Title:
Discussion concerning a prospective business or 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 in the community. (Staff Contact: Matthew D. Rowe)
Staff Contact(s): Matthew D. Rowe
Agenda Date: April 20, 2021 Item Number: 7.a
Attachment(s):
Reviewed By:
(1) Legal Authority: Virginia Code § 2.2-3711(A)(5)
Subject Matters: Projects Matterhorn, FX, Solomon, Aurora, Darwin,
Thin Foil, Foam, Installation, and Map
Purpose: Economic Development Updates on Unannounced
Industries/Prospective Businesses
7.a
Packet Pg. 7
Economic Development Committee
EXECUTIVE SUMMARY
INFORMATION ITEM
Agenda Title: Closed Session Certification
Staff Contact(s): J. Vaden Hunt, Esq.
Agenda Date: April 20, 2021 Item Number: 8.a
Attachment(s):
Reviewed By:
PITTSYLVANIA COUNTY BOARD OF SUPERVISORS’
CLOSED MEETING CERTIFICATION
BE IT RESOLVED that at the Pittsylvania County Board of Supervisors’ Economic
Development Committee (“Committee”) Meeting on April 20, 2021, the Committee hereby
certifies by a recorded vote that to the best of each Committee Member’s knowledge only public
business matters lawfully exempted from the Open Meeting requirements of the Virginia
Freedom of Information Act (“Act”) and identified in the Motion authorizing the Closed Meeting
were heard, discussed, or considered in the Closed Meeting. If any Committee Member believes
that there was a departure from the requirements of the Act, he shall so state prior to the vote
indicating the substance of the departure. The Statement shall be recorded in the Committee’s
Minutes.
Vote
Ronald S. Scearce Yes/No
Tim W. Dudley Yes/No
Robert (“Bob”) W. Warren Yes/No
8.a
Packet Pg. 8