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Monthly meeting. August 1126. The first item on our agenda is the public comment period. And I understand from Natasha we have one person signed up. Yes. Mr.. Homemaker.

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Good morning to the board staff, Mike. Councilman Michael Baluchi, and my name is Matthew Hamburger. And I'm a resident here in Virginia Beach. I'm here to share some information I would like to see added to the VBA annual report that's going to be given out later today, or might even have a copy of it. Before that, I'd like to explain why I'm here first. I do have a word of caution for Director Archer, who I have met in the past. You're awesome. Your job may be cursed. Two of the last four directors. Two of the last four directors here lost their jobs because they embezzled city funds. Three of the four known cases of embezzlement by city employees in the last decade have been in the Economic development Department. The corruption deprived this department of stable leadership with large gaps between directors. The most recent gap was an entire year. This department has been rudderless, which means the citizens of Virginia Beach have not had competent representation for years. Moreover, the Process Improvement Steering Committee, of which Brad Martin was the chair, recommended a massive 25% reduction in the budget of economic development and asked as well, that this department demonstrates the return on investment for the public private partnerships that oversees. They don't make that recommendation unless this department needs serious overhaul and oversight. My first request to add to the annual report is a year by year tracker of the ROI of the projects the EDA oversees, like Atlantic Park and the dome, show the citizens how much money we have spent and how much money we will give up and but for tax revenues and then show us the return on the investment. And speaking of citizens, I've reviewed over the last two years of these meetings, which I've watched, how often the public comment period is silent. In the last two years, there have only been two instances of anyone utilizing the public comment and both of them. Both of those instances were businesses who had business before the VDA. I'm the first citizen to speak on his own here since April of 2024. The problem with that is that nobody here seems to have a problem with that. And to that end, I've come today seeking answers. I have some papers I'd like to give to the board for review. I want to ask questions about historical revisions in the Economic Development Department's performance metrics that were recently released in the FY 27 budget. You should have the tables in question in front of you shortly, but the data in question is the value of new capital investments in millions of dollars. You can see in the FY 27 budget, historical revisions were made to the FY 23, FY 24, and FY 25 budgets. The percentage increase in revisions is significant, with FY 25 claiming to have had $1 billion more in investment than two years previously reported. FY 23 and 24 show massive revisions upward as well. In light of this department's documented history of malfeasance and lack of any explanation for these changes in the budget, I wanted to give you a chance to publicly address the reasons for these revisions and add them to your annual report. Director, you have a mountain to climb when it comes to stabilizing this department and providing it with vision. It needs the integrity and the transparency the citizens demand. I'll help however I can, and I thank you for your time, and I'll see you all the next month's meeting. Thank you.

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All right. The next item on the agenda is our approval of the meeting minutes for our July meeting.

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Everybody had a chance to review those.

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Seconds.

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Got a motion for Mr. Brock and a second for Mr. Weiner. All in favor, say aye. Aye. All the same sign that motion carries. Uh, the item number two is an aphid grant program. We are going to have to defer that because we're waiting for the Commonwealth to make an announcement on that item. So we're going to defer that until next month. Um, after that we've got financials review and approval of our financial statements. Sly. Howie. That's you.

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All right.

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Good morning, Madam Chair. Members of the council member. Lucy, I will be going over to the monthly financial activity and cash flows for July.

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For the operating account. The beginning. Cash balance on July 1st was $9,621,312.

10
00:05:05,230 --> 00:05:42,589
During the month we received. The operating portion of the ticket share from Live Nation. This covered the period of. This was for the Dome by Rutter Mills, and this covered the period of April through June 2026. We also received the July interest income. And then finally we received the payment for one of the international incubator sub leases. Months 19 through 24. That was from KSC, USA. The total receipts during July was $230,240.

11
00:05:42,589 --> 00:06:55,170
Cash disbursements during the month. Just do the just due to the timing of payments. We we had two to see Breezy Enterprises. This was for the first one was for corporate landing offsite infrastructure draw number 16. That was for work through June 30th. And then we also paid the in July the draw number 15 for work through May 31st. Um the Veba paid Dominion Energy Virginia for to replace the aerator for pond D that's in Corporate Landing Business park also for corporate lighting business park, we again had two payments for the monthly conduit management agreement. Um, one was for the period of May 15th to June 15th, and then also June 15th to July 15th, paid to Global Links. And then finally we had the progress billing number one for the fiscal year 2026 audit. And that was paid to Cherry Becker. Uh, total cash disbursements during July was just under 325,000. And that leaves us with an ending cash balance on July 31st of $9,066,183.

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The final slide for the operating account is the amounts that were paid by the Veba at the beginning of July, and then reimbursed by the city. The first payment was to city of U2 or Developer Incentive Payment. Number eight this incremental tax, incremental real estate taxes for the first half of fiscal year or the first half of calendar year 2026 that was paid to the Constitution. We also had the Atlantic Park draw number 39 for offsite infrastructure construction through June 30th. That was originally paid to Venture Waves, and finally for Innovation Park. We had construction phase services through May 30th, first paid to Kinley Horn. All three of those reimbursements were paid back to the Veba by the city on July 31st, and the total amount of that reimbursement was $530,214.

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00:07:55,779 --> 00:08:14,060
So these transactions had a net effect of zero on the cash balance for the capital maintenance accounts. The human Services building, the only activity we received the monthly lease payment for August of $47,910.

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That increased the balance in that account to 2,204,360.

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And then we had an encumbered amount rollover from last month of 819,467,

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which leaves funds available for future human services building expenses of $1,384,893.

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We also received the, uh, the quarterly ticket share. Um, revenue from this is related to the capital maintenance account of $1 per ticket sold that was received from Live Nation for $42,948,

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bringing the cash balance in that account to 163,978.

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I think this might have died.

20
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All right. There you go. Sorry. Uh, and then the final capital maintenance account is the Abbey National Golf Course. We received the June monthly revenue share of 29 just over 29,000. And then we have one expense for furniture rental. Two. That's a monthly charge for two Corp Furniture of 1822. That brings our ending cash balance on July 31st to 9998224. And then the encumbered amount on July 30th is 151 for 62. So that leaves funds available for future VB National Golf Course expenses. Capital maintenance expenses of $846,762.

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There's no activity in the Incentive and Initiative account. Any of them this month? Uh, so the final slide is for the EDP grants. Uh, during the month of July, we had, uh, we had two payments. Uh, the first one was to was a reimbursement to worn primitive, uh, for them spending 3.71 million in capital improvements. Uh, based on that 3.71 million, they received a reimbursement of 111,422.

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Uh, Samuel Virginia Beach received a reimbursement based on 1.71 million in capital invested in capital improvements. Um, and that the reimbursement they received was 68,530.

23
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Uh, based with those two transactions. Um, the ending EDP appropriations for part A on or just ending EDP appropriations was $11,857,209.

24
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Uh, we had two other transactions that in fact affected the encumbered amount. And, um, one was awarded at last month's PTA meeting, and that was, um, the amount awarded was 16,000. And that's that would be based on 400,000 in capital investment to enterprises and then decreasing the encumbered amount. We had to close the award to Hermes Abrasives. Uh, they only, um, were reimbursed 4000, just over 4000 of a 100 K Award. So the remaining $95,810 is going to go back into the Or it's going to decrease the encumbered amount. Um, So Eddie IP part a encumbered amount on July 31st is 5,000,040 $14,838.

25
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Um, there was no activity for Eddie IP part B um, so the Eddie IP encumbered balance theta 812,269. And that leaves a total Eddie IP grant funds that are available for future award of $6,030,012.

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Uh, any questions?

27
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Any questions for Howie? All right. Thank you.

28
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Next, we have a request for approval of a resolution authorizing the issuance in the sale of VA public facility revenue bonds. And Dana meyers here. Good morning.

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Chair. Commissioners. Uh, this is the 13th time the city and the VBA of, I guess, presented a plan of finance where we issue public facility revenue bonds through the PBA. These are fully supported by the city. And these are all reimbursements. So we've spent the money in our capital program. Now we need to go to the market. And so we need approval and we'll do city council next. Um, the listed projects are in exhibit B of the 12 Supplemental Support Agreement. If you're interested in those they include the road by Amazon 17th Street improvements. Um, pretty long list, actually. I'm here for any questions. This is actually sort of a normal course of business, if you will, for the city. Um, and the resolution was prepared by bond counsel from Kentucky.

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Thank you. Any questions for Dana?

31
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All right.

32
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Hearing none. We do. We have to take action, though, right?

33
00:13:23,450 --> 00:13:25,009
Yes. There's a resolution for your approval.

34
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That's all right.

35
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Then. Uh. Any questions? Hearing none. We'll go ahead and take action on the request for approval of the resolution authorizing the issuance and sale of public facility revenue bonds. So moved a motion for Mr. Jan second from Penny Morgan. All in favor say aye.

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Aye aye.

37
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Opposed? Same sign. Thank you. Motion carries. Thank you. Next item will be a discussion by Emily Archer of the review and approval of our annual report. And I will say congratulations to Emily to being, uh, she is now gone from our interim economic development director to our permanent economic development director.

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Great. So in front of you today is a summary, uh, page of our annual report to City Council. I am going to give you just real quick brief overview of the highlights of that report. We do this because we are required to, um, every board of commission is required to give their report to council every year by August 31st. I should note the time period where the fiscal year. Right. So July of last year to end of June this year is the time period reporting for the report. Um, and it does include some objectives for next fiscal year for council. Um, just a few of the highlights. Um, our EDP program is our main incentive to retain and grow jobs here. Um, we issued just over $2.2 million in Economic Development Incentive Partnership grants, which, um, brought in a capital investment of over $107 million to the city, including an 807 job retained and 363 jobs created. Um, three of those highlights was the equivalent substitute location facility last year stipends and corporate lending, expansion and groundworks, expansion and corporate lending as well. Um, you're very much aware of our small business grant programs, but these are highlights from our Facade Improvement Grant program. Small matching grants for $10,000 or less for small businesses, or in our new this year with the Atlantic Avenue Grant, you can see the totals there of $112,000 for the Fig, which in turn in had the private sector investing for over $453,000 in their facades in the city. And then the Atlantic Avenue grant, specifically along Atlantic Avenue from second 40th Street, totaled 100 and almost $103,000 in total grants and yielded over $216,000 in private investment.

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We had our annual celebration at the dome last year for the first time, and then we had the inaugural taste of the vibe event this year, with over 100 participants gathered throughout the day to learn about our small business community at The Vibe, and then also have that block party at the interior contributed $5,000 to Virginia Beach CDC and the Virginia Beach? Oh. I'm sorry. The Creative Well Arts Foundation as well. Another $5,000.

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Um, our international incubator has been, as you're aware, doing very well. Um, attracting international investment in the city. We had four notable landings there this year. The soft landing spot for subsea craft from the UK. Uh, Luna Light International Hockey Corporation and compression PA from Germany. Our our our assets. Um, two of them highlighted. This was the inaugural year of the dome. We expect this to be higher last year with 52 live shows and over $123,000 in tax revenue. Uh, the amphitheater was in its 29th year last year. It's now in its 30th year that had 26 live shows and brought in an investment of over $2.4 million in taxes to the city. Thank you.

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Any questions for.

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Me?

43
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All right. Thank you. Emily. The next item on the agenda is the VIP part of 2026.

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Hi, everyone. Good morning. Good morning. Good morning to Council member Baluchi, madam chair, and also members of the VBA. I'm kind of tall here. Okay. My name is Gerry Mathis. I'm the senior business development representative here in Economic development, working with beehive and also managing the VIP part of our small business grant.

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Okay, so this grant launched in 2024. On June 18th, 2024, the authority approved additions to part F for the policy to provide for grants in the amount of up to $10,000 in reimbursable funds to small, women owned, minority owned, veteran owned or service disabled veteran owned businesses. Part of seeks to provide grants to qualifying businesses in a reimbursement basis by subject to available funding, to promote the continued operation and expansion of these businesses within the city. During the first round in 2024, we awarded 17 grants in which all funds have been disbursed to awardees since then. And so here's a few of the businesses of the type of businesses that we've supported in the past. And so I have a more detailed view of those as well, if you would like it. So just let me know.

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This is the intent of the program. It seeks to increase access to funding for historically underserved and marginalized small businesses in Virginia Beach, focusing on women, minority owned, veteran and service disabled veteran owned businesses. Here are the qualifications. Must be a micro business veteran owned or service is able veteran business with fewer than 25 employees. They have to hold a valid Virginia Beach business license operated in the city for at least one year. Current on the payment of all local taxes and fees has not received any other grant from the authority or the city within the past year, and does not employ an officer, official or employee of the City of Virginia Beach State Authority or the NBC.

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These are the permanent uses. What they can use the grant funding for. As you can see, working capital with the purchase of inventory or renewables, marketing and advertising expenses. Development of online and mobile presence, equipment, supplies, purchases, business expansion, real estate acquisition and other business development purposes identified by the business and approved by the authority. These are the things that are not permitted for them to be able to use the funds on payroll, salaries, insurance, these payments and personal expenses.

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This is the selection process. And just to add here is the caveat. These are all in the policy which I have copies of. I will get to a section that um, is not in the policy, which is the selection process which will show here in a second. But all the information I'm giving to you now is what's in the current policy. Uh, the business meets the qualification criteria and provides documentation, provide a current business plan or strategic plan, identify the proposed use of the grant funds documentation to confirm it is a Swam or service, disabled veteran owned business and commitment to attending at least six business counseling sessions at The Hive. Uh, if awarded the grant. Uh, a note here that business must attend one of the pre-application workshops in order to apply. Uh, we will have eight of these in September. So this is a requirement for them to even apply and receive the application for the grant.

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Okay. This is the scoring and methodology. So this is the current process of how we score uh, the grant awardees women own. They could appoint minority owned, veteran owned, disabled, veteran owned the number of years in business they get appoint up to five points for that credit report submitted business plan strategic plan that was scored by a third party company to be brought in and the use of funds scoring. Scoring by staff up to five points based on information provided. Details, itemized budget timeline, years of business and impact. These are some of the recommended changes that we're proposing. One is to decrease the point value for the number of years in business, or remove it from the scoring altogether. And also this is based on previous. We went back and looked at some of the minutes from previous VBA meetings, and this is what members of the board suggested. And then also the credit report should be optional. And the business plan for strategic scoring should be done by the hive. Again these recommended changes are based on previous feedback given from the board members to decrease barriers to the selection process.

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The proposed application and program schedule. There's a press release that to go out and kick off August 31st. We also provide you a copy of our brochures that we plan to distribute. They're really nice. So just take a look at those when you get a chance. And then interested businesses must attend a mandatory pre-application workshop. Again, these will be held in September. We already have the dates for those. There are eight sessions total. We're going to a day and they will be hybrid. So you can join virtual or in-person, whichever is convenient for the business. Applications will open up October 1st. The window is for 30 days and then after that we will begin to review.

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Okay. This is the selection committee. It's comprised of four members. A member of the board, the Minority Business Council, the Department of Economic Development and the City Manager's Office. The selection committee will review applications and score based on a point system of eligibility criteria stated in the application. Um, this was the funding that we had initially 576,000. The first round of funds that was reimbursed between 2024 and 25 was 146,000. Our current balances for 30 and the second round funds, which we are allocating is 150 K for this year.

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A quick glance at our marketing plan. We do plan to get this out to everyone, all the businesses, residents in the area. Um, the way we're going to do this is through our Virginia Beach website and social media, our hive web page, and social media. Local press releases inside the hive. So when people come to visit us, they'll be able to access and get physical copies as well. Our newsletter, which goes out monthly. The Slam web page on the Finance Department website. Hive resource partners. We have over 100 resource partners at the hive that will be able to distribute this information as well, and the physical handouts printed for distribution. We do a lot of tabling events and outreach, so we definitely want to make sure the word gets out.

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Okay. Any questions for me. And then also why are you thinking about questions. This is a QR code that actually goes to the website that we put together as well. So if you had any feedback on the website, the brochure information that we presented. I'm happy to answer any questions.

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Thank you Jerry. Any questions or comments? Gerry.

55
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Yeah, that's a great question. I'm still three months in, so I haven't got all the information just yet. However, I think it's more so the barrier for people applying if they do have a low credit score. Um, so just being able to open it up to more people.

56
00:25:43,180 --> 00:26:32,109
I add a little bit of color to that. Have you participated in the last round? I think some of the applications, there were questions about whether or not we were just providing some form of subsidy to a business that was struggling. It was one in particular that I won't identify, but it seemed like after X number of years they should have been able to replace the equipment. That was key part of their production, but they seemed to need $10,000 from the development authority to replace their main piece of equipment. So it became a question that became questions about the financial viability of the business itself and their history. Thus, the discussion may be about credit reports. I don't recall credit reports specifically, but there was discussion about the financial viability of the business. And that's what was part of not wanting to throw good money after bad money.

57
00:26:32,109 --> 00:26:33,390
Well, now I'm confused.

58
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I have to share that.

59
00:26:35,630 --> 00:26:37,349
Why are we making it.

60
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For six months? I remember that.

61
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I.

62
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Was.

63
00:26:38,990 --> 00:26:39,470
Going to ask.

64
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That.

65
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Question. All right. I wanted to add some background that I recall. That's helpful because that was really the reason for my question is, I would be concerned if we're taking that away, that we don't have a good judge on the viability of the business. Yeah, exactly. No, I was going to be. My question is, why is it going to be optional? Not too crazy about it being optional. Then there's no value in having it at all. Right. So, right. Because one of the main objections to look at the financial statements through that credit application. If so, if you don't have one or the other, or both. We're not engaged. We're not truly identifying the, um, the company's, um, balance or profitability.

66
00:27:28,519 --> 00:27:39,240
You would need both. I mean, financial statements. What I can tell you, I give you what do you want the financial statement to look like? I can make it look like that.

67
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You know, but the credit report is going to help back that up. And although the credit report is not going to necessarily lay out all the data or anything else. So I'm with Bill it. You got to have financial sustainability. Um, I said I called 20 years ago and gave the nonprofits. But part of that criteria was this is going to help them grow. Not be a annual pipeline except for the annual ones.

68
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Right? Yeah.

69
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I do remember talking about that, but I don't remember what the outcome was. What I don't remember is talking about how would you increase the point values of of business being in business in the city. Why would why would we decrease the point values for that? I don't remember talking about that.

70
00:28:21,640 --> 00:28:22,640
Do you want to have any?

71
00:28:22,640 --> 00:28:57,319
Well, I will say there was an area and it may have been years in business that seemed to be double counted. Um, in the point system, there was a separate years in business, and I believe one of it may have been the review of the business plan or something. Also added points for years in business, I don't recall exactly. I have to look back at notes, but there was some there was some area where points were being double counted for a single factor, and the idea was to remove that double counting. Um, that was my recollection on that.

72
00:28:57,319 --> 00:28:57,799
One more.

73
00:28:57,799 --> 00:29:01,319
Thought. In terms of increasing eligibility, I see that we're assigning.

74
00:29:01,319 --> 00:29:05,279
A point each for women owned, minority owned and veteran owned.

75
00:29:05,279 --> 00:29:07,410
So if you have all three, you've.

76
00:29:07,410 --> 00:29:36,569
Got a bigger advantage. Um, you know, is there a reason that we're assigning a point to each of those as opposed to any one of those being, you know, eligibility? Good point.

77
00:29:36,569 --> 00:29:45,369
Just along the, along the thought process of opening up eligibility. I think that would open up if that's our goal in making these changes.

78
00:29:45,369 --> 00:29:46,690
Yeah.

79
00:29:46,690 --> 00:29:47,049
No.

80
00:29:47,049 --> 00:29:54,250
Confused. Can a business that is not women owned, that is not minority owned, that is not veteran owned or disabled vet owned? Apply for this grant.

81
00:29:54,250 --> 00:29:57,890
Yeah, they can still apply. Okay. The points just way heavier if they can.

82
00:29:57,890 --> 00:30:00,369
All right. So all right.

83
00:30:00,369 --> 00:30:34,859
One of the things that I asked Alex look at was to make sure this wasn't sort of reverse discriminatory given the new, um, case, case law, etc.. So we're good. Sounds like we're good. Um, on the issue of the decrease in points for the number of years in business, could we just have a note to, um, to Bill's point that you can't that can't count twice. So if you're getting credit for that in one category, then you shouldn't be getting it another category. If it's a if it's a spreadsheet, do you think that would address.

84
00:30:34,859 --> 00:30:36,380
I think I think.

85
00:30:36,380 --> 00:30:39,579
This is boring. We could take it out of that part.

86
00:30:39,579 --> 00:31:12,900
Well, it was the I if I recall, I again, I'm trying to go from memory from a year and a half ago. Um, it could have been buried in view of the strategic plan, business plan, that there were points being assigned there, and that was what it was. So I think the clarification would be that the business plan would be forward looking and not looking backwards in terms of the number of years of providing some type of score there. I think there is something to be said for years in business. I mean, there's absolutely something. Just don't want to count it twice.

87
00:31:12,900 --> 00:31:17,220
Sure.

88
00:31:17,220 --> 00:31:28,059
Why is qualification better known or service disabled veteran and none of the others?

89
00:31:28,059 --> 00:31:29,779
Oh, what was the question again?

90
00:31:29,779 --> 00:31:30,940
Under qualification.

91
00:31:30,940 --> 00:31:31,700
Huh?

92
00:31:31,700 --> 00:31:39,779
Micro business. Veteran. Owned or service. Disabled. Veteran business. So what's the difference?

93
00:31:39,779 --> 00:31:41,900
Between a veteran owned and service level veteran?

94
00:31:41,900 --> 00:31:43,259
No, I know the difference between that.

95
00:31:43,259 --> 00:31:48,740
But so I think the micro business is supposed to pick up the smaller.

96
00:31:48,740 --> 00:31:50,859
Than the 25 classes.

97
00:31:50,859 --> 00:31:52,859
Is that is that right?

98
00:31:52,859 --> 00:31:56,779
Why not? Woman owned. Minority owned.

99
00:31:56,779 --> 00:31:58,980
In terms of the point?

100
00:31:58,980 --> 00:32:09,509
Yeah. This one was taken directly from the policy. Okay. So it's word for word from the policy. Okay. So the verbiage that they used.

101
00:32:09,509 --> 00:32:13,910
If you're a veteran owned business with more than 25 employees, can you apply it?

102
00:32:13,910 --> 00:32:15,990
Uh, no. You have to have fewer than 25.

103
00:32:15,990 --> 00:32:18,589
So why don't we just say micro business?

104
00:32:18,589 --> 00:32:22,829
Well, we'd have to go through council to change the this part policy.

105
00:32:22,829 --> 00:32:31,430
Okay, so this is all in the active policy. Okay. And it may be that that's what we need to do.

106
00:32:31,430 --> 00:32:43,910
Which that would you know of course. Take us, slow us down. We probably wouldn't be able to get this out this year because it would take time for us to do this part and then to get council to approve it. So just that fast.

107
00:32:43,910 --> 00:32:49,829
So what is your your timing is you want to go ahead and announce this. And then to be able to have people start applying.

108
00:32:49,829 --> 00:33:08,720
Correct. Exactly. We like to distribute the funds this this fall. And then if we want to take it to council, maybe next year in the spring and redo this and revise it. Um, that would be our recommendation because it's been since 2024 that we've announced it. So we definitely want to get out there. Um, because it's been a while.

109
00:33:08,720 --> 00:33:16,519
Well, I think that that's the important thing is getting the funds to the businesses that we do see, an opportunity to help them grow.

110
00:33:16,519 --> 00:33:17,079
Opportunity.

111
00:33:17,079 --> 00:34:11,719
To grow, and especially small businesses because, you know, people think that we're only awarding funds through our EDP program to big businesses, but this is really the one grant that we have that's specifically focused on our small and micro businesses below 25. So, um, I think the feedback we've heard so far as we do want a credit report, we don't want to double count number of years in business, although that's important. We do want to make sure that the businesses that we are, um, providing this grant to do have a long, you know, the opportunity to grow and to have a long, um, uh, fiscally secure timeline. So I think that gets us. I think that addresses some of your recommended changes.

112
00:34:11,719 --> 00:34:36,440
And then we'll, uh, the committee, whoever, uh, is going to be assisting, you probably need to appoint somebody. But we do need to look at. Okay, let's take all of the information we've gotten from the last round in this round and then tweak that. Um, the process going forward, going through the policy to get it, uh, have it approved by council.

113
00:34:36,440 --> 00:34:37,519
Okay.

114
00:34:37,519 --> 00:34:39,360
Any other questions?

115
00:34:39,360 --> 00:34:40,960
Do you need a volunteer?

116
00:34:40,960 --> 00:34:41,559
Yes.

117
00:34:41,559 --> 00:34:44,679
These are volunteers. It's a heavy committee.

118
00:34:44,679 --> 00:34:45,760
I thought I already volunteered.

119
00:34:45,760 --> 00:34:48,159
Okay.

120
00:34:48,159 --> 00:34:50,039
Thank you for volunteering.

121
00:34:50,039 --> 00:34:51,039
All right. Thank you.

122
00:34:51,039 --> 00:34:58,409
That Shuler will be your representative and do come back with any comments on how to make the process better?

123
00:34:58,409 --> 00:35:00,809
Absolutely.

124
00:35:00,809 --> 00:35:01,449
Thank you.

125
00:35:01,449 --> 00:35:04,889
Thank you.

126
00:35:04,889 --> 00:35:06,409
Yeah.

127
00:35:06,409 --> 00:35:07,929
All the time in the world on my hands.

128
00:35:07,929 --> 00:35:10,369
I keep mentioning that he's recently retired.

129
00:35:10,369 --> 00:35:13,849
Oh, come on, let him know that I'm busy.

130
00:35:13,849 --> 00:35:29,730
All right. The next item on the agenda is another EDP grant. It's a request for approval of a resolution. EDP part A, in the amount of 64,000 to Onyx Realty Professionals.

131
00:35:29,730 --> 00:35:34,329
Good morning.

132
00:35:34,329 --> 00:35:45,170
Commissioners and gentlemen, we're here to discuss the EDP request for Annex Realty Professional.

133
00:35:45,170 --> 00:35:52,619
Disclosures.

134
00:35:52,619 --> 00:36:11,900
Okay, a little bit about the company. It's a real estate, uh, real estate firm specializing in residential that was established in 20 2019. 175 people.

135
00:36:11,900 --> 00:36:44,900
Also, the building was purchased in December 2022. Unfortunately sustained a fire damage in June 2024. Uh, the building was demolished on November 2025, and we are looking at starting construction in November of this year with the completion on August 2027, and they're having an additional 2000ft² on the new building.

136
00:36:44,900 --> 00:36:51,230
This is the location of the the building.

137
00:36:51,230 --> 00:36:58,510
I don't think that unfortunately, this was when it was demolished.

138
00:36:58,510 --> 00:37:05,750
This is the rendering and we're looking at building one here.

139
00:37:05,750 --> 00:37:08,949
Other renderings.

140
00:37:08,949 --> 00:37:40,789
So this is the economic impact. So the building is going to take 1,000,006 to 4 construction, $150,000 for FFM. He's getting $1 million reimbursement from the insurance after the fire with the total investment of 2,000,750. But we're only taking into account a million and 750 for the EDP.

141
00:37:40,789 --> 00:38:08,869
And applied for jobs. The total. He's going to have 50 new jobs And 125, for a total of 125. But we're not alone in that towards the EDP. So the request is for $64,000 pursuant to part A of the EDP policy based on capital investments.

142
00:38:08,869 --> 00:38:10,989
Do you have any questions?

143
00:38:10,989 --> 00:38:13,789
Any questions for Issa?

144
00:38:13,789 --> 00:38:15,469
Further request to the board. We have written.

145
00:38:15,469 --> 00:38:16,070
The resolution.

146
00:38:16,070 --> 00:38:16,230
So.

147
00:38:16,230 --> 00:38:17,469
That.

148
00:38:17,469 --> 00:38:17,789
The.

149
00:38:17,789 --> 00:38:27,789
Recipient has to show the insurance proceeds have been exhausted before the EIB funds will be spent. I'm not going to talk anymore.

150
00:38:27,789 --> 00:38:34,670
Okay. That was the resolution. Copy that. We have. I didn't see a reference to it.

151
00:38:34,670 --> 00:38:36,469
It's in paragraph five.

152
00:38:36,469 --> 00:38:38,150
Paragraph five. I'm sorry.

153
00:38:38,150 --> 00:38:38,510
That.

154
00:38:38,510 --> 00:38:41,269
The two clauses.

155
00:38:41,269 --> 00:38:54,639
Like that, James.

156
00:38:54,639 --> 00:38:58,840
Those looking at that. Any other questions?

157
00:38:58,840 --> 00:39:18,559
Could we go to the elevations of building one and two? I just want to be clear. And and if we can go one slide prior, one more at the other side. So I just want to understand what's shown here. Is building two correct. And they're going to be renovating building two.

158
00:39:18,559 --> 00:39:24,519
But they're keeping for now. And we're just they're just going to build one for now.

159
00:39:24,519 --> 00:39:28,599
And so if you go to the next slide

160
00:39:28,599 --> 00:39:45,570
building two that's referenced. So they're building building one. Building two is not a part of this project. No I see okay.

161
00:39:45,570 --> 00:39:46,210
I say thank.

162
00:39:46,210 --> 00:39:48,010
You.

163
00:39:48,010 --> 00:39:50,130
Bill, did you see what you were looking for?

164
00:39:50,130 --> 00:40:10,210
I did, I was I had thought from one of our previous discussions, we were going to find out exactly what the amount was and enumerate that. I mean, I see it now by reference. Um, so by reference, I would imagine that's okay. But did we find out for sure what the insurance reimbursement was, $1 million.

165
00:40:10,210 --> 00:40:10,929
Yeah.

166
00:40:10,929 --> 00:40:15,570
And the million dollar.

167
00:40:15,570 --> 00:40:28,010
So by requiring the director to you'll have to get a satisfactory to her fund. So they're gonna have to show her how much we spend. Is that information available?

168
00:40:28,010 --> 00:40:51,090
So they're coming out of pocket to continue this process. 1.75 million, including for the reference to jobs. But we're not involved in the jobs at all. It's just the footnote for whatever purpose. Correct. So the original square footage of 7200ft²

169
00:40:51,090 --> 00:41:08,210
and the new square footage of 9200ft a little bit. Following up on your question. Which buildings make up or which building makes up? The 74 building one was 7200. It's now going to be built at 9200.

170
00:41:08,210 --> 00:41:08,690
Correct.

171
00:41:08,690 --> 00:42:14,699
So the true expansion in space here is 2000ft². Correct. Now, I'm not a construction guy, but I'm just trying to do some of this basic math that maybe one of the construction guys gives me whatever the number is. 2.75 million total for a moment. Total cost to build some of that's insurance proceeds at 9200ft² is $298 a foot. That's good or not, I don't know. I really don't have any point of reference on that. But if you take $290 per square foot, and you multiply that times what the space is that's being expanded, which is 2000ft². That's the expansion space or the additional space. You multiply that times 298. We're getting numbers closer to 600,000. So it's I've struggled with this the whole every time we've talked about I continue to it seems that they're making an upgrade in their building quality.

172
00:42:14,699 --> 00:43:07,190
Sod whatever it may be. And we're paying for part of that, because if you take the cost to build time, additional space, it's only five 596, $597,000 at 298 foot. And I certainly 100% can understand why we do that, but maybe somebody can help fill in the gaps. For me, I've struggled with this every time we've spoken about it. It's just so unique with this catastrophe. Tragedy. Insurance reimbursement rebuild and asking us to participate in the rebuild. And I can get my head around participating in the expansion part, but number seems to be larger per square foot than just the expansion. Am I somebody? Does anybody else have any thoughts on that?

173
00:43:07,190 --> 00:43:42,550
Yeah I don't. So I have pretty consistently abstained from the discussion on this, not because I represent the applicant, but because they're a invested in a joint venture for a matter that I am representing. It's behind this property. Um, it's the subject of a conditional rezoning, a conditional use permit. So I haven't really been involved, so somebody else probably has to. But, I mean, I think it's a fair question.

174
00:43:42,550 --> 00:43:44,230
Michael, were you going to say something?

175
00:43:44,230 --> 00:43:44,389
Yeah.

176
00:43:44,389 --> 00:43:45,989
I'm just curious. What what was the.

177
00:43:45,989 --> 00:43:52,869
Assessed value of the previous building that was destroyed by fire? We have that.

178
00:43:52,869 --> 00:43:55,590
Image.

179
00:43:55,590 --> 00:44:03,070
Just from looking at it, I would guess that they would probably go for the 70s or 80s.

180
00:44:03,070 --> 00:44:13,030
And is is the insurance reimbursement truly an investment from the individual that received it, or is it a replacement?

181
00:44:13,030 --> 00:44:15,670
I think that's why they're backing it out, right?

182
00:44:15,670 --> 00:44:21,869
They didn't, but it were not backing up from total investment. Is that correct? Qualified EDP.

183
00:44:21,869 --> 00:44:43,440
The purpose of the capital investment under the policy is whether it is associated with taxes. And so here this this money, even though it's coming from third party, it would add value to the property and increase the assessment. The element we back out is the land because the land was already on the tax rolls, so you can't count that.

184
00:44:43,440 --> 00:44:50,599
Although it does say that the total investment is the 2.75 million and then the qualified is 1.75.

185
00:44:50,599 --> 00:44:58,559
So we calculated the VIP amount based on the qualified VIP investment.

186
00:44:58,559 --> 00:45:00,159
Michael.

187
00:45:00,159 --> 00:45:00,599
I want to.

188
00:45:00,599 --> 00:45:04,320
Thank you for your work on this project. And I want to ask you.

189
00:45:04,320 --> 00:45:04,440
In.

190
00:45:04,440 --> 00:45:04,679
Very.

191
00:45:04,679 --> 00:45:05,920
Simple terms.

192
00:45:05,920 --> 00:45:08,280
Does the application.

193
00:45:08,280 --> 00:45:10,880
Before you.

194
00:45:10,880 --> 00:45:14,480
For the EDP support meet the qualifications.

195
00:45:14,480 --> 00:45:14,599
That.

196
00:45:14,599 --> 00:45:14,760
Have.

197
00:45:14,760 --> 00:45:15,440
Been established.

198
00:45:15,440 --> 00:45:19,039
By this board?

199
00:45:19,039 --> 00:45:20,000
And does it.

200
00:45:20,000 --> 00:45:21,039
Meet the qualifications.

201
00:45:21,039 --> 00:45:25,800
Established by the board and does it meet legal sufficiency?

202
00:45:25,800 --> 00:45:28,159
I don't say yes.

203
00:45:28,159 --> 00:46:39,889
Yes, sir. It does. And so I think we have our answer. I didn't want to have to do this, but I feel compelled to do this I haven't seen the same level of scrutiny applied to other projects that have that have come through this board, and I'm talking about multi-million dollar construction companies. I'm talking about heating and cooling companies that have rebuilt their headquarters here. And here you have a minority owned, um, business which which supports a number of emerging, um, professionals within the within the areas that we're seeking to support in Virginia Beach. And we're applying a level of scrutiny that is in, um, that is not in balance with the other projects that I've seen come through here in the years that I've served as liaison. And that's my frustration with this, with this conversation and with this in the, in the I'm a I'm a little uneasy to have to have that conversation and bring that honesty to this conversation, but I feel compelled to do so not only on behalf of this business, but on behalf of the business community in our city.

204
00:46:39,889 --> 00:46:44,010
All right. I guess Pat. And then David.

205
00:46:44,010 --> 00:46:46,050
I can't speak to that because I'm new.

206
00:46:46,050 --> 00:46:46,889
I can.

207
00:46:46,889 --> 00:47:07,010
I can. That's why you spoke. I understand that. Um, I do have a question, though. We are investing into the construction of a building. Right. And Onyx Realty Professionals is the applicant for this. But Onyx Realty Professionals does not own the building.

208
00:47:07,010 --> 00:47:13,650
So why is the owner of the building not applying for this?

209
00:47:13,650 --> 00:47:34,460
There seem to be a confusion in the disclosure statement between we have back and forth in DNI, the paralegal with the with Cavell, about the the applicant, about Onyx, and then the other one, I was the.

210
00:47:34,460 --> 00:47:43,340
Vicinity Holdings and Vicinity Holdings. So we had a lot of back and forth about that. And I thought we clarified.

211
00:47:43,340 --> 00:47:52,460
May I understand, but I was looking at the application. It says the applicant, the owner of the southern property says no.

212
00:47:52,460 --> 00:47:53,179
That's not.

213
00:47:53,179 --> 00:48:12,579
My understanding. That is the holdings is a is part of or the, um, an affiliate of Onyx Realty. I think they do business as Onyx Realty. But the Vicinity Holdings actually owns the property.

214
00:48:12,579 --> 00:48:17,179
See?

215
00:48:17,179 --> 00:48:23,860
So vicinity is the owner and Onyx.

216
00:48:23,860 --> 00:48:27,139
Would you be here? Yeah.

217
00:48:27,139 --> 00:48:27,579
I'm not.

218
00:48:27,579 --> 00:48:28,420
Sure.

219
00:48:28,420 --> 00:48:30,469
The answer.

220
00:48:30,469 --> 00:48:37,550
You must complete section two or section two.

221
00:48:37,550 --> 00:48:47,989
Yeah, I mean, that's what it says in the disclosures. It's Onyx Realty Professionals and then Vicinity Holdings.

222
00:48:47,989 --> 00:49:03,150
Which is the company that's involved in the venture.

223
00:49:03,150 --> 00:49:15,550
That's my understanding. Yeah, it's just the realty company is in the name of Onyx Realty.

224
00:49:15,550 --> 00:49:19,550
Would you like us to defer this item until next month?

225
00:49:19,550 --> 00:49:31,320
Just one second. I'm sorry. This is the fifth month in a row. It's five months in a row. We've had qualification. We set qualifications for businesses to come in with the with this. And staff has done their due.

226
00:49:31,320 --> 00:49:32,000
Diligence.

227
00:49:32,000 --> 00:49:58,159
And done and they covered themselves and gone through it. And if we're going to if we're not going to be consistent and we need to change it somehow or another, we need to change it to where we can be more consistent. But with this business, they've done their due diligence and they they're there. They met the recommendation of the qualifications we set forth. And I just it's kind of hard for me not to be inconsistent.

228
00:49:58,159 --> 00:50:00,519
Sorry. Eric hasn't had an opportunity to speak out.

229
00:50:00,519 --> 00:50:20,880
Eric. Well, I would concur with what both Michael and David just said. I mean, we we brought up the fact that Michael did Councilman Baluchi, that we approved a grant a few months ago for a construction company moving from one leased space to another leased space. They certainly didn't.

230
00:50:20,880 --> 00:50:21,519
Own any.

231
00:50:21,519 --> 00:50:31,960
Of that. And there was none of this conversation. And I just think it consistency is is kind of key.

232
00:50:31,960 --> 00:50:56,840
And I concur. Because correct me if I'm wrong before this, when this was presented to this body we asked for revisions and staff has come back. Now that I recall. Right. And at that point we said we may want to change the process if we feel appropriate, but we should not do that with a, um, a grant that's before us now.

233
00:50:56,840 --> 00:50:59,519
So that's where I'm at.

234
00:50:59,519 --> 00:51:39,210
And again, I wasn't involved in any of those conversations, so I don't help there. All right. I think is everybody around the table comfortable moving forward then? Uh, and I assume they're timing concerns and issues about. Yeah. That's done. This one. All right then. Um, if there are any other questions. Harrison. I will entertain a motion and again, I will be abstaining from this vote in an abundance of caution motion. Second, Mr. Harris. Second from either Penny, Morgan or Esmail. All in favor, say aye.

235
00:51:39,210 --> 00:51:40,130
Aye, aye.

236
00:51:40,130 --> 00:51:49,849
Opposed? Same sign. And we'll note the abstention. Thank you. Is on. That motion carries.

237
00:51:49,849 --> 00:51:59,250
Next item will be from our director. Request for approval of a resolution authorizing signage easements on the Atlantic Park garages.

238
00:51:59,250 --> 00:52:06,250
Good morning again, Councilmember Baluchi. Madam chair, members of the board.

239
00:52:06,250 --> 00:52:32,780
We have a request for you today for the Atlantic Park garages for signage on them. Are you receiving this request? Because VPD actually owns the two garages at Atlantic Park? There are two, the Baltic Garage on the left of the screen with about 1000 spaces, and the 20th Street garage on the right with about 400 spaces. They are owned by VBA but solely operated, managed and insured by Parking Management with the City of Virginia Beach.

240
00:52:32,780 --> 00:53:06,659
As the new businesses have come in. A lot of that is internal, the development and they'd like more external signage on the building. As a condo owner of the development with the garage. They'd like to place those signs on the garage facade so that there is a certain amount for zoning. There are a lot of the signage we understand that is within that, but they will, um, it's the developer's obligation to meet the existing zoning requirements for the VBA consideration. We'd like to request approval to modify the condo documents to allow the developer a signage easement for the signage on the garage facades.

241
00:53:06,659 --> 00:53:08,380
Any questions?

242
00:53:08,380 --> 00:53:10,380
Any questions for Emily?

243
00:53:10,380 --> 00:53:11,380
I do abstain.

244
00:53:11,380 --> 00:53:14,059
Okay.

245
00:53:14,059 --> 00:53:16,579
I'm standing for this one.

246
00:53:16,579 --> 00:53:18,699
I just want to make sure.

247
00:53:18,699 --> 00:53:19,500
Michael.

248
00:53:19,500 --> 00:53:23,659
Any reimbursement.

249
00:53:23,659 --> 00:53:28,820
It has not been addressed.

250
00:53:28,820 --> 00:53:34,500
It's not in any of the agreements. Is it in the condo docs, or.

251
00:53:34,500 --> 00:53:35,380
The only.

252
00:53:35,380 --> 00:53:35,780
Signage.

253
00:53:35,780 --> 00:53:36,340
In the condo.

254
00:53:36,340 --> 00:53:36,860
Docs?

255
00:53:36,860 --> 00:53:41,460
Or the neurological signs on your own unit? Isn't it just.

256
00:53:41,460 --> 00:53:44,059
The newer parts?

257
00:53:44,059 --> 00:53:49,780
We're certainly under no financial obligation to fund these signs. This would be on the top.

258
00:53:49,780 --> 00:54:02,619
I think to Michael's point. Typically when you own a building, you are the owner of the building is going to charge the tenants for signage. So I think that's probably what he was thinking.

259
00:54:02,619 --> 00:54:03,699
Yes.

260
00:54:03,699 --> 00:54:10,539
If you if you want your name on in lights on the top of the building, you got to pay for it.

261
00:54:10,539 --> 00:54:17,219
We're happy to come up with a valuation of that and propose something back to the developer.

262
00:54:17,219 --> 00:54:23,349
Is that something that the body wants staff to do?

263
00:54:23,349 --> 00:54:30,550
I'm seeing head shakes.

264
00:54:30,550 --> 00:54:36,710
So we've got three abstentions. Does everybody else want to see evaluation of the.

265
00:54:36,710 --> 00:54:37,429
Yes.

266
00:54:37,429 --> 00:54:38,349
Okay.

267
00:54:38,349 --> 00:54:41,789
I'm sorry. Who's the third touch that Mr..

268
00:54:41,789 --> 00:54:44,829
Oh.

269
00:54:44,829 --> 00:54:45,590
Okay. All right.

270
00:54:45,590 --> 00:54:46,190
We'll come back.

271
00:54:46,190 --> 00:54:46,909
When you come back.

272
00:54:46,909 --> 00:54:52,429
Thank you. Thank you.

273
00:54:52,429 --> 00:54:52,909
All right.

274
00:54:52,909 --> 00:54:57,150
Next item is, uh, Pam, a request for.

275
00:54:57,150 --> 00:54:58,230
Approval.

276
00:54:58,230 --> 00:55:08,110
Of the dome call maintenance contract.

277
00:55:08,110 --> 00:55:21,559
Good morning. Council member Gleason, chair. Members of the board. Uh, today I'm going to talk to you about an on call maintenance contract award for the building by heard her notes. I looked up the disclosures.

278
00:55:21,559 --> 00:56:25,719
The little background about the dome. The Veba does own this asset. The VBA and Live Nation entered into an agreement in 2023, and the CEO was issued in 2025. Per the lease agreement, the VBA is responsible for capital maintenance items over $5,000. We did finalize an SOP with Live Nation in June of this year to establish processes for how we're going to fix capital repairs as they come up, and the VBA receives a $1 ticketing fee to cover these capital maintenance costs. Why are we here? So a majority of the building's warranties expired this year, so we wanted to establish an on call contractor in order to take care of any capital maintenance items that may arise. Timely and efficiently, the services are going to be capped at $300,000, and they're going to follow a work order process request. The items included are going to be such items like HVAC, lighting, plumbing, electrical, elevator systems.

279
00:56:25,719 --> 00:57:05,960
A little bit about our processes. We did issue two solicitations for this. The first one was issued in March and it was open for 30 days and closed in April with no results. Then we reopened a second solicitation in June, closed it in July, and we received one solicitation, one response. Sorry. And the review panel reviewed the, uh, response on July 12th of this year. So we're asking for the VBA to approve for us to enter into contract with CW Brinkley for on call maintenance services for the dome by renewals. Any questions?

280
00:57:05,960 --> 00:57:09,440
Pam is the cap. How many years does that cap cover?

281
00:57:09,440 --> 00:57:20,409
It'll. So it we're going to enter into a contract either for one year or, or it'll or it will end at $300,000.

282
00:57:20,409 --> 00:57:21,929
Okay, so that'll be the max.

283
00:57:21,929 --> 00:57:22,969
That'll be the max.

284
00:57:22,969 --> 00:57:34,090
Of the timing and the SOP standard operating procedures. Does that address what maintenance is considered routine and should be done by the operator?

285
00:57:34,090 --> 00:57:38,250
Yes, ma'am. It does.

286
00:57:38,250 --> 00:57:40,650
Any other questions for Pam?

287
00:57:40,650 --> 00:57:42,409
We're paying for this with.

288
00:57:42,409 --> 00:57:45,610
$1 per ticket. Is that correct?

289
00:57:45,610 --> 00:57:54,449
That said, we do have a capital account that we've set aside. We do under the documents. We do that. It's the $1 per ticket.

290
00:57:54,449 --> 00:57:55,489
Yes we do.

291
00:57:55,489 --> 00:57:56,250
So we got to have.

292
00:57:56,250 --> 00:57:57,329
300,000.

293
00:57:57,329 --> 00:58:04,650
Tickets.

294
00:58:04,650 --> 00:58:10,369
That was 163 in the capital. Okay. I think that was operating.

295
00:58:10,369 --> 00:58:10,530
More.

296
00:58:10,530 --> 00:58:17,019
Than 47,000 tickets sold between April and June.

297
00:58:17,019 --> 00:58:35,699
Um, so should we? Yeah. I mean, given our past experience, I wonder if we should time this so that we have to have the sales catch up. I mean, I don't think we're going to. It's a brand new building. I can't imagine that we'd spend 163 and change.

298
00:58:35,699 --> 00:58:50,860
It was. That was it was I think it was 40,000 for this quarter, like someone just said. And it's hot. But after, you know, from last year, it's 100 and like 163 okay. That's in there now. So I guess after 2 or 3 more or.

299
00:58:50,860 --> 00:58:55,980
So, the expenditure should be subject to what's available in the capital amount.

300
00:58:55,980 --> 00:58:57,219
Sure.

301
00:58:57,219 --> 00:59:02,420
So while it could be capped at 300, we're not going to get past what we have in the account.

302
00:59:02,420 --> 00:59:04,179
Yes, ma'am.

303
00:59:04,179 --> 00:59:10,469
So is it based on a time and material for service calls rendered, or is this okay?

304
00:59:10,469 --> 00:59:58,989
Yeah. So it's if, for instance, if the electrical system goes down on the entire first floor, we can get the contractor in there, they could do the repairs and then we can pay them for those repairs.

305
00:59:58,989 --> 01:00:03,710
Any other questions? Service contract.

306
01:00:03,710 --> 01:00:05,150
Right.

307
01:00:05,150 --> 01:00:21,349
With those changes, I will entertain a motion to approve the request of the award of the dome by Rudder Mills on call maintenance contract to C.W.

308
01:00:21,349 --> 01:00:40,590
Uh, David will be abstaining again. So move motion from Mr. Horsley. Second from Mr. Schuler. All in favor, say aye. Aye, aye. All opposed? Same sign. And we'll note the exception for Mr. Weiner. Uh, next item is corporate landing. Business park zoning discussion board director.

309
01:00:40,590 --> 01:00:49,750
Emily.

310
01:00:49,750 --> 01:01:40,920
Uh, I'm kind of excited about this one for corporate landing. So corporate landing is a Veba owned business park. Um, it was established in 1990 on 325 acres. Um, it's been home to some of our a variety of regional corporations, including Geico, Geico, Lockheed Martin, and Groundworks. Um, there's a current, um, map of what we have available. So everything that's just an aerial, you see, is already sold. That's under private ownership. Anything in red, you see, has some kind of encumbrance and option or purchase agreement in place. So we still own it, but it's under contract, essentially. Um, anything in the lighter yellow color you see is what's available. Um, looking at what we had available, it's about, um, six parcels between 3.5 and 12 acres. So nothing too big. But if you see this yellow area at the bottom, we started to notice.

311
01:01:40,920 --> 01:04:59,309
We were able to combine all of these parcels. You could come up with a 29 acre parcel, which would give us the largest parcel we have available, public land in the city for development, except the one little area in red along general Booth, which is a 12 acre. I'm sorry, 11 acre parcel right here. I see the red line is zoned B2 commercial. The rest of the park is zoned I-1. So what we'd like to proceed with, um is potentially a rezoning for that one front parcel. So we achieve this larger parcel. And this is important because if you've been to, uh, the Alliance mid-year report, um, in July, they were looking at the region as a whole, and they found that, um, in their CRM, customer relationship manager, Salesforce, that they analyzed, kind of the last projects that came through the state are request for information, and that we were the ones that were lost, found that it was 80% of those losses were tied directly to real estate readiness and availability and infrastructure, not necessarily our workforce or our cost and setups. And as a region in the state, we had more state ready. We had more available sites than most, but not the very least amount were site ready. That means utilities and roadway infrastructure, shovel ready projects that were zoned appropriately if it was not for the zoning. And this, um, the 29 acres I just mentioned, we would be site ready and we could be number 12 of the 113 sites that we have available over 25 acres. So we asked VRB with some concepts of what could actually go there. Should we have this 29 acre parcel available? Um, they did two concepts, a big building and a small building. Um, we found about 260,000ft². Could probably go here, given our current zoning regulations and our design criteria and stormwater ENP capacity that we have in place. This is a larger building at 225,000ft², with a smaller one in the back, and this is for 65, zero zero zero square foot buildings. Potentially that could be subdivided as well. I'm going back and forth here intentionally, because what you will notice is that front parcel that's zoned B-2 is not changing, right. And that was what we would conditionally rezone to stay the same no matter what happens in the back in the industrial area. You can see the existing trees along general Booth are maintained. The setbacks enhanced landscape buffers are maintained. Essentially just the parking goes in the front. So what we would propose to do is, um, do a conditional rezoning for that front parcel with a healthy 150 foot setback. That's double what it is right now. There's a 75 foot setback per the existing design criteria for the park. We could double that and feel comfortable. We could still achieve this result at 150 foot. Building setback off of general booth, enhance landscape buffers and existing tree preservation would all be conditionally re zoned for this parcel. Um, we still have the design criteria that would still be in place and what is proposed here by the market. So would still come back to BDA for construction design approval. And then we would market this for our target markets of defense contracting, advanced manufacturing or corporate headquarters.

312
01:04:59,309 --> 01:05:16,909
So we want to make sure you are aware that we are doing this because we would like to submit this rezoning request on behalf potentially by September, which would put us at Planning Commission and about November and City Council in about December. Um any questions?

313
01:05:16,909 --> 01:05:39,909
Any questions for Emily? Emily, it looks like you're you're basically going to while we are rezoning this to I-1 so we can incorporate it in the other 26 or 29 acres. It's essentially going to be the open space or contribute to the open space for the development. It's a little bit of parking, but.

314
01:05:39,909 --> 01:05:48,989
Okay, so the the essentially the existing trees, the existing preservation and enhanced landscape offer will contribute to the open space requirements for the site, preserving.

315
01:05:48,989 --> 01:05:57,510
It really well. We're not anticipating anticipating that it'll be developed since you're going to keep that as part of the buffer.

316
01:05:57,510 --> 01:06:11,150
BHP will do some renderings for. There's a rezoning application from general Booth that shows what that would look like with whatever's happening in the background, to be able to ensure that that corridor remains the same.

317
01:06:11,150 --> 01:06:32,670
Yeah, I think it makes all the sense in the world and is actually a great idea. Um, that corridor, that land isn't really appropriate for commercial. What we've got needs, um, and ways to address potentially future businesses coming here. So I think it's a great idea.

318
01:06:32,670 --> 01:06:34,869
Any other comments?

319
01:06:34,869 --> 01:06:35,510
Okay.

320
01:06:35,510 --> 01:06:35,750
Great.

321
01:06:35,750 --> 01:06:40,110
Thank you. Thank you.

322
01:06:40,110 --> 01:07:06,559
All right. Uh, next, we've got a request for approval of a resolution authorizing the extension of a closing date for a contract.

323
01:07:06,559 --> 01:07:25,519
Madam chair. Commissioner. Gentlemen, we are here to request a closing date extension for golf solution and proposed land in Business Park. These are the disclosures.

324
01:07:25,519 --> 01:08:03,969
So, late last year, Golf Solution purchased approximately four acres in corporate land in Business Park to construct a 300 zero square foot warehouse and a light industrial manufacturing facility, which will eventually expand to 150,000 square foot of production growth. And this facility is going to serve as the foundation for manufacturing for a signature product or brand for Gulf solution, but they currently produce in Colombia.

325
01:08:03,969 --> 01:08:42,010
So again, on November 18th, you approved the sale of the four acres. The purchase agreement was executed on April 8th, 2026. The outside closing date is set for July. It was set for July 31st, and we're requesting a six month extension to the closing date so that they could complete their due diligence studies. They're almost there. I'm sure they cannot be completed less than six months. But just to be safe, we're requesting six months extension.

326
01:08:42,010 --> 01:08:46,329
Any questions for Ihsan?

327
01:08:46,329 --> 01:08:51,380
Alex? What is our normal due diligence period is?

328
01:08:51,380 --> 01:08:53,180
Three months.

329
01:08:53,180 --> 01:08:55,380
90 days.

330
01:08:55,380 --> 01:09:15,699
Some of them are up to 18 months. This one was very, very quick. They have not been dawdling. Just just ran out of time. And I think it's important. The agreements don't automatically get the option to terminate. And they wanted to just cover the bases. And so they're asking to defer that for months.

331
01:09:15,699 --> 01:09:28,300
The other thing we've just completed and submitted our plant subdivision plan, which they needed to basically have the exact measurements within their site for the studies.

332
01:09:28,300 --> 01:09:33,260
And also we can't sell the property if it's not subdivided.

333
01:09:33,260 --> 01:09:34,979
Yeah.

334
01:09:34,979 --> 01:10:03,220
All right. Well, I think that makes sense. Any questions commissioners. All right. Hearing none, I will entertain a motion on the request for approval of a resolution authorizing the extension of the closing date by six months for to January 31st, 2027 for gov solutions for Mr. Kiplinger Mr.. Second for Mr.. Jan. All in favor say aye. Aye all opposed. Same sign. That motion carries.

335
01:10:03,220 --> 01:10:09,779
That looks like you've got the next one.

336
01:10:09,779 --> 01:10:12,300
The disposition of the global.

337
01:10:12,300 --> 01:10:13,100
Links.

338
01:10:13,100 --> 01:10:23,340
In corporate lending business back. Those are the disclosures.

339
01:10:23,340 --> 01:10:40,619
We will be discussing the sale of approximately nine acres in corporate lending with 180 day due diligence period and construction to commence three months, three years, within three years of closing.

340
01:10:40,619 --> 01:11:10,869
So to date, global links had delivered phase one, which is the actual cable lending station. A 1632 Corporate landing. They are currently underway for the 7400 zero square foot expansion within their footprint to support additional international cable systems, and it would be ready for the last quarter of 2027.

341
01:11:10,869 --> 01:11:38,069
So this is the person in question that they are interested in purchasing nine acres at $200,000 per acre to construct an 85,000 square foot facility to host additional cable landing stations for carrier neutral co-location and interconnection space.

342
01:11:38,069 --> 01:11:55,359
They are planning on investing 65 million and creating 40 full time jobs and 100,000 jobs during construction.

343
01:11:55,359 --> 01:12:07,880
Is going to be the. Once phase three is completed. This is going to be like their campus on in corporate lending.

344
01:12:07,880 --> 01:12:32,800
So we request the approval of the of the nine acres at $200,000 per acre. They are requesting 180 days due diligence. Um, usually it's like a 90 days. And, uh, with the construction to commence within three years of closing.

345
01:12:32,800 --> 01:12:39,720
Its three year standard of up to three years. That's a standard third one.

346
01:12:39,720 --> 01:12:40,960
And it's in all our.

347
01:12:40,960 --> 01:12:41,760
All the elements.

348
01:12:41,760 --> 01:12:43,359
Okay.

349
01:12:43,359 --> 01:12:47,000
Many days due diligence and three years.

350
01:12:47,000 --> 01:12:52,720
Do they have a schedule? They don't have any schedule yet. When are they going to start construction?

351
01:12:52,720 --> 01:12:54,039
He did.

352
01:12:54,039 --> 01:13:03,960
So. They are doing the due. They are doing the due diligence currently. So after. Where are we going?

353
01:13:03,960 --> 01:13:05,439
Sorry. Go ahead.

354
01:13:05,439 --> 01:13:08,600
After the vote and everything. But they're working on it basically.

355
01:13:08,600 --> 01:13:11,239
And where are they on phase two? I know where.

356
01:13:11,239 --> 01:13:11,880
They didn't.

357
01:13:11,880 --> 01:13:12,600
Plan.

358
01:13:12,600 --> 01:13:16,720
Their in site plan review. Do we think they'll be close soon?

359
01:13:16,720 --> 01:13:18,039
Three months.

360
01:13:18,039 --> 01:13:21,800
BHB.

361
01:13:21,800 --> 01:13:28,079
PJ is here. They are in site plan. So they're under their first submittal. They have.

362
01:13:28,079 --> 01:13:30,000
Received assurances.

363
01:13:30,000 --> 01:13:41,279
And to be clear to anybody who's watching, this is not a hyperscalers. This is a facility that's tied to the cable landing that we have coming into shape.

364
01:13:41,279 --> 01:13:47,729
They It also called a qualification campaign.

365
01:13:47,729 --> 01:13:55,449
To require water and pretty much like a capacity of 25MW,

366
01:13:55,449 --> 01:13:57,369
which is available at the park.

367
01:13:57,369 --> 01:14:01,170
That's correct.

368
01:14:01,170 --> 01:14:16,489
I'm not sure if this is the one that we discussed, but we have 200,000 per acre that has been established for quite some time. Did we not say that 200,000 or current assessed value.

369
01:14:16,489 --> 01:14:43,579
So we talked about that for the Dominion Energy option, because they'd be exercising the option at some point in the future. And so when they exercised the option, they would we would be doing a reassessment at that time. This one we talked about potentially doing an option or just having them by the land. And since they're buying the land now, it would be based on current land values.

370
01:14:43,579 --> 01:14:44,899
That's right. Thank you.

371
01:14:44,899 --> 01:15:05,420
But it's probably not a bad idea. It is separate and apart from the the Dominion reassessment. We probably should go ahead and do an appraisal. Yeah, especially because we're down to just a few parcels of land. But I think it makes sense to do appraisal. But that was the difference.

372
01:15:05,420 --> 01:15:05,979
You're right.

373
01:15:05,979 --> 01:15:15,859
Thank you. Can we put a timeline around that? We've mentioned it several times. Just curious, when will we reappraise what? What would the timeline look like?

374
01:15:15,859 --> 01:15:18,180
When was the last appraisal?

375
01:15:18,180 --> 01:15:18,460
It was.

376
01:15:18,460 --> 01:15:19,699
2024.

377
01:15:19,699 --> 01:15:20,060
Okay.

378
01:15:20,060 --> 01:15:23,619
So we just did 1 in 2024.

379
01:15:23,619 --> 01:15:25,260
May 2020.

380
01:15:25,260 --> 01:15:30,500
Yeah. Might as well go ahead and get one.

381
01:15:30,500 --> 01:15:44,140
That one we just did. One we just discussed about rezoning. Definitely get that appraised because that's right off general Booth. That's large. It's the last large piece. It'll be worth very a lot.

382
01:15:44,140 --> 01:15:48,739
That's a great point. But it's got frontage. And that's gonna be different than perhaps what you have in the back.

383
01:15:48,739 --> 01:16:01,659
You can't use it for business, but it's definitely for your employees getting in and out. Right off there. And John Booth, unless they come off at five. They'll be waiting. But anyways, I think it'll be worth more money.

384
01:16:01,659 --> 01:16:03,500
So we definitely want to do that before we start.

385
01:16:03,500 --> 01:16:07,060
Marketing the parcel.

386
01:16:07,060 --> 01:16:29,260
Sounds good. All right. Any other questions? Comments. So I'll entertain a motion on the request for approval of a resolution regarding the sale of nine, the nine acre parcel and corporate landing business park to Global Lakes. We've got a motion for Mister Rocky second from Morgan. All in favor, say aye.

387
01:16:29,260 --> 01:16:30,020
Aye.

388
01:16:30,020 --> 01:16:32,859
All opposed. Sign. Motion carries. Thank you.

389
01:16:32,859 --> 01:16:33,699
Thank you.

390
01:16:33,699 --> 01:16:47,670
Uh, next item is in our international incubator. Approval of a resolution authorizing a sublease. Orca II.

391
01:16:47,670 --> 01:16:48,470
Good morning.

392
01:16:48,470 --> 01:16:49,229
Good morning.

393
01:16:49,229 --> 01:16:50,350
Chairwoman Murphy.

394
01:16:50,350 --> 01:16:51,029
And.

395
01:16:51,029 --> 01:16:52,470
Members of the board.

396
01:16:52,470 --> 01:17:01,510
Um, this is a request for international incubator for orca AI defense. These are the disclosures.

397
01:17:01,510 --> 01:19:52,250
It's a little bit about orca AI defense. They are an Israeli maritime company. They are a US subsidiary of orca AI, which is a defense maritime company. They are currently developing AI powered situational awareness and mission intelligence systems for operational and support and collision avoidance for endpoint detection for ships. Um. They are currently exploring naval and Coast Guard forces, port and border security, as well as autonomous vessels. And we're seeing Virginia Beach really become an emerging hub for autonomous vessels and unmanned systems due to a growing concentration of those companies developed developing those technologies. Their parent company, orca AI, was founded in 2018. They are a commercial company that exists today and they are globally headquartered in London, UK. They have raised approximately $111 million in capital and have installed their technology in over 1000 maritime vessels. Giving them 100 million plus nautical miles of visual data is basically means that their technology is installed on their ships and they're going across the world being able to collect real world data versus situational or synthetic data. They're currently in a partnership with Samsung Heavy Industries or advanced autonomous navigation systems for their vessels. We first engaged AI Defense at Your Satori in Paris this June, which was a CBD led mission. They have since visited Virginia Beach twice now and have engaged with our local businesses and regional resources. They have made some successful connections into our ecosystem with those businesses and partners. Um, and they are currently, um, going to demonstrate on stiletto, which they have before us, but they're working on their partnership. Their their vice president will be in the region every month. He's already committed to returning to the Hampton Roads region to continue these connections that he's made on these visits. Their short term goals are an operational setup, but the storage of their systems, their systems, is that picture right here that is called the seed pod. That is their hardware system that's integrated with cameras and sensors and has the AI software technology inside. So that is what they're manufacturing currently. So the storage systems, so much of the systems here, and they're also looking to hire a local business development position. They have expressed this as a priority and a necessity to hire locally within the region, and their ultimate plan is to manufacture the supplies within the United States. And you can see here this picture below is what a vessel can see on the water, where it actually identifies what is in the water, and also gives you real time information on how to assess it and move forward.

398
01:19:52,250 --> 01:20:19,090
Just a little bit of overview of the international incubator. You can see our timeline. We have since expanded quite a bit. Um, the international incubator is an incentive for a national company seeking expansion to the US, primarily giving them 1 to 2 office spaces as they set up before scaling. Currently, we have 13 total private offices with six vacancies, and if approved, this will bring it down to five.

399
01:20:19,090 --> 01:20:26,010
These are the sublease terms for the private office.

400
01:20:26,010 --> 01:20:32,579
And I am recommending approval of private office sublease to work AI defense.

401
01:20:32,579 --> 01:20:34,060
All right. Any questions.

402
01:20:34,060 --> 01:20:46,220
For Dominique? Sounds exciting. Hopefully this will be a stepping stone to a big manufacturing facility.

403
01:20:46,220 --> 01:20:57,579
All right. Um, no other questions. I'll entertain a motion on the request for approval of a resolution authorizing a sublease in our international incubator to AI.

404
01:20:57,579 --> 01:20:59,500
Oh.

405
01:20:59,500 --> 01:21:02,619
Gosh. All right. So, what were you?

406
01:21:02,619 --> 01:21:03,779
Our first.

407
01:21:03,779 --> 01:21:23,180
Leave.

408
01:21:23,180 --> 01:21:41,750
I think I just have a question. Um, for the future for future grant applications. And so we don't get hung up like we did today, what it looked like for us to adjust the requirements or qualifications for future applications.

409
01:21:41,750 --> 01:22:33,829
So that's a good question. So we have our EDP policy that once we develop it or tweak it, it has to be approved by city council. So if we if there are areas that we want to look at, I know in the past, with Bill's help, we've adjusted the qualifications for incentivizing new jobs and what kind of tiers and what that looks like. What types of information need to be provided? Um, I don't know that we've adjusted the other qualifications as far as capital improvements lately, so it's probably a good idea to take a look at that. But that's what it would require. Maybe a group of, um, two folks from the development authority develop something with staff, bring it back, and then we would have to take it to City council and have them approve it.

410
01:22:33,829 --> 01:22:38,069
Ultimately, I think that would be beneficial.

411
01:22:38,069 --> 01:22:41,310
Agreed.

412
01:22:41,310 --> 01:22:43,789
All right. Sounds good.

413
01:22:43,789 --> 01:22:51,390
Um.

414
01:22:51,390 --> 01:22:53,310
Since I'm out. I'll jump on that wing.

415
01:22:53,310 --> 01:22:53,750
Okay.

416
01:22:53,750 --> 01:22:55,069
All right, so.

417
01:22:55,069 --> 01:22:55,829
We've got.

418
01:22:55,829 --> 01:23:04,229
Pat Shuler and Esmail Meeks. We'll start taking a look at our EDP policy.

419
01:23:04,229 --> 01:23:11,909
Yeah, I think we are in very good hands. All right. Comments from other commissioners.

420
01:23:11,909 --> 01:25:50,090
All right. I will go ahead. And I have two. Two things to do here. But the first one I will do is, um, address a comment that was made early in our meeting, that staff was rudderless while we were in between, um, develop permanent development economic development directors. Um, you know, while all of our meetings can be watched online, either live streamed, if you're so inclined or, um, through YouTube and the city's media page, you can't the public can't see all of the work that our professional staff does that members of the commission do. Uh, in order to make sure that the development authority is functioning properly, properly and doing its job, which is to expand the city's tax base. And I wanted to especially let folks know that during the period where we didn't have, um, a permanent director, we had our deputy city manager, Amanda Jarrett, who was working tirelessly doing her deputy city manager job and also, um, helping to direct the economic development department and to assist the development authority, because after all, the development authority is assisted by the staff of the Economic Development Department. Um, we don't actually control any staff. I mean, that's that's a function through the city manager's office. Um, and for folks to think that there was nobody in here calling the shots, making sure, uh, Atlantic Park was open and operational and got their certificate of occupancies, um, I think is just such a disservice to our dedicated and hardworking staff, and especially to Amanda and to Emily, who were working every day, notwithstanding the fact that neither of them at the time had the title of director, so I just wanted to make sure that the public heard that because you can't see what's going on and all of the hard work that's being done by staff in between our meetings, which are very open and transparent and anybody can watch and anybody can come and and comment. So I wanted to make sure that that was clear. Um, with that I'm going to recognize Penny Morgan, who unfortunately, this is going to be her.

421
01:25:50,090 --> 01:25:51,289
Last.

422
01:25:51,289 --> 01:27:41,229
Meeting with us. Um, so on behalf of the development authority, uh, this is a resolution of the city of Virginia Beach Development Authority to Penny Morgan, whereas the Virginia Beach Development Authority of the city of Virginia Beach, Virginia, was created to serve a certain purpose, among which are those of promoting industry and developing trade by inducing manufacturing, industrial, governmental, and commercial enterprises to locate or remain in the Commonwealth of Virginia by assisting in the acquisition, construction, equipping, enlargement and improvement of commercial facilities. And Whereas Penny Morgan Penniman, Up was appointed to the authority on September 1st, 2018 and served for seven years and 11 months with distinction until August 31st, 2026. And Whereas, Penny Morgan represented the City of Virginia Beach Development Authority as a member of the Review Committee for the Facade Improvement Grant program. And Whereas, during her tenure, Virginia Beach experienced unprecedented growth, expansion, and prosperity. And Whereas the commercial of this commercial growth has led to the increase in jobs for the citizens of both the City of Virginia Beach, Hampton Roads, and Whereas, this commercial growth has provided revenue to support many services necessary to a young, thriving community. And whereas the support of dedicated citizens such as Penny Morgan has made Virginia Beach a better place to live, work and recreate. And now, therefore, we, the City of Virginia Beach Development Authority, hereby recognize the invaluable service and contributions made by Penny Morgan to the betterment of the City of Virginia Beach. In witness whereof, I have here on to set my hand and caused the seal of the Virginia Beach Development Authority of the City of Virginia Beach, Virginia, to be affixed here to this 11th day of August in the year of our Lord 2026.

423
01:27:41,229 --> 01:27:49,510
And we got a oh that's nice. Ooh, a lovely picture.

424
01:27:49,510 --> 01:28:02,590
Sounds better, I think.

425
01:28:02,590 --> 01:28:22,359
And some may not know that Penny worked tirelessly through an excruciatingly difficult period in her life, and so we appreciate her coming and being involved and showing up prepared to do the important work of this development authority. So thank you very much, Penny.

426
01:28:22,359 --> 01:28:22,920
Thank you Betty.

427
01:28:22,920 --> 01:28:41,520
You will be missed. Yes. Um, one other item I forgot. We do need a nominating committee for next year's officers. Um, David Weiner has agreed to serve. Uh, Bill, would you serve? I was going to ask Gunter, but he is not here today. And I.

428
01:28:41,520 --> 01:28:45,119
Hate to, um.

429
01:28:45,119 --> 01:28:51,000
I hate to to get him to do something that he wasn't.

430
01:28:51,000 --> 01:28:52,600
Yeah, he really does.

431
01:28:52,600 --> 01:28:54,720
Yeah, I'm sure.

432
01:28:54,720 --> 01:28:56,800
Sure. All right. Thank you.

433
01:28:56,800 --> 01:29:01,039
With that.

434
01:29:01,039 --> 01:29:07,159
Emily?

435
01:29:07,159 --> 01:30:34,010
Just three quick items. Something cool. Why don't we give a shout out to our attraction retention teams that just happened this Monday. Um, we collaborated it with a joint webinar to connect our Norwegian defense partners with ten local defense companies to talk about support opportunities in Virginia Beach and new global market here in Virginia Beach. Um, two. Uh, I want to make sure the board was aware one of the main goals for economic development, Department for Council this year is to update our economic development strategic plan. Uh, we're currently going through the procurement process for consultant for that. But they they will be on board this fall and be leading helping us like align. It's been since 2021 since we last had updated a strategic plan for the city coming out of Covid is coming out of that. So this will really help us align our target markets right size, our incentive strategy, potentially come up with ideas for how RFP should be updated and help us lead stakeholder engagement with this board and across the city stakeholders. So they will be here hopefully in October. One thing debrief you all and get a feedback as they embark on this process. Also coming up this fall, the international incubator you've heard about is turning five years old. We're hoping maybe by the October meeting to do a little tour and unveiling over there and some fresh upgrades, and meet some of the partners that will be in town for that. That's great.

436
01:30:34,010 --> 01:30:36,010
Yeah.

437
01:30:36,010 --> 01:31:18,380
Any other comments from commissioners? Hearing none. The chair will entertain a motion to recess into a closed session pursuant to the exemptions from open meetings allowed by section 2.2-3711, a Code of Virginia is amended for the following purposes. Prospective business or industry 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. Pursuant to Virginia Code Section Dash 3711 a five. And that pertains to district five. I'll need a motion a second and then we'll do a roll call.

438
01:31:18,380 --> 01:31:22,340
Motion for Mr. Kiplinger, a second from Andy Morgan. And then.

439
01:31:22,340 --> 01:31:24,180
Roll call. William.

440
01:31:24,180 --> 01:31:44,140
Michael. Harris. Yes. Horsley. Yes. Yes. Eric. Kiplinger. Yes. Yes. Yes. Lisa Murphy. Yes. Shuler.

441
01:31:44,140 --> 01:32:27,220
Provisions of the Virginia Freedom of Information Act. And Whereas section 2.2-3712 of the Code of Virginia requires a certification by this Virginia Beach Development Authority, that such closed meeting was conducted in conformity with Virginia law. Now, therefore, be it resolved, that the Virginia Beach Development Authority of the City of Virginia Beach, Virginia, hereby certifies that to the best of each member's knowledge, one only public business matters lawfully exempted from open meeting requirements by Virginia law were discussed in the closed session to which this certification applies, and to only such public business matters as were identified in the motion convening the closed meeting were heard, discussed, or considered by the Virginia Beach Development Authority. We'll need a first, a second, and then a roll call vote.

442
01:32:27,220 --> 01:32:28,300
Okay.

443
01:32:28,300 --> 01:32:29,060
So moved.

444
01:32:29,060 --> 01:32:30,420
Second.

445
01:32:30,420 --> 01:32:33,939
All right. We've got a motion for Mr. Horsley and a second from Peggy Morgan.

446
01:32:33,939 --> 01:32:37,060
And the roll. Yes. Michael Harris.

447
01:32:37,060 --> 01:32:38,100
Yes.

448
01:32:38,100 --> 01:32:39,140
Yes.

449
01:32:39,140 --> 01:32:46,819
Yes. Eric Kiplinger. Yes. Yes. Penny. Morgan. Yes. Mr. Murphy? Yes.

450
01:32:46,819 --> 01:32:48,979
Now, you can say anything you want to.

451
01:32:48,979 --> 01:32:50,220
There you go.

452
01:32:50,220 --> 01:32:50,220
Lisa. Lisa, thank you for addressing this.