Minutes 09/03/1998 - Laserfiche WebLink

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TI~URSI}AY~ SEPTEMBER 3, 1998 A special and duly-called meeting of the Council of the City of Martinsville, Virginia, with Mayor Mark A Crabtree presiding, was held Thursday, September 3, 1998, in the Lower Level Conference Room, City Hall, beginning at 11:00 A.M. The purpose of the meeting was a Work Session on one item: (1.) A discussion of development of a shell building for Clearview Business Park, led by Tom Harned, Assistant to the City Manager for Development and Stewart Hubbell ofMattern & Craig Engineering, Roanok% Virginia. The work session began with a conference telephone call with representatives from the Virginia Economic Development Partnership. Those participating by phone included Mr. 6eorge Harbin, Director, Research Division, and Ms. Betty Ann Teeter, Project Manager, Shell Building Program. Council Members asked a number of questions during this discussion concerning the State' s competitive shell building program, and shell buildings in general. These included questions on the basic elements of the program, the most marketable size of building, the merits of an easily expandable structure and sites that would accommodate growth, and what criteria the City would have to meet to be competitive in securing building financing through the State's program. Ms. Teeter explained that the Shell Building Program was essentially a capital financing partnership between the participating jurisdiction and the Virginia Retirement System, which acquires and loans the necessary construction funds for five years at a favorable interest rate, usually equal to that of Five-year Treasury Notes. The Virginia Economic Development Partnership then acquires funds from the 6eneral Assembly to provide for a 4% buy-down of this interest rate, which is passed on to the participating jurisdiction. Ms. Teeter estimated that, if successful in competing for the program, the City would probably get an interest rate of 2% or less. It was also noted that the interest payments on the loan would be paid by the VEDP during the entire five years of the loan, with a balloon payment to be provided by the City at the end of the five-year period. Ms. Teeter stated that the maximum amount of a loan under the program was $1.5 million, but that the City could spend more on the project if it chose to do so, and that there was no penalty in terms of eligibility if more local dollars were spent. Teeter also noted that, in addition to building criteria, the State would also consider the City's marketing plan as a factor in awarding a loan. Mayor Crabtree asked how many such loans might be granted, and was told that as many as three might be