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EDAMinutes2022March10 MINUTES ECONOMIC DEVELOPMENT AUTHORITY | THURSDAY, MARCH 10, 2022 | A meeting of the Frederick County Economic Development Authority was held on Thursday, March 10, 2022, at 8:00 A.M. in the County Administration Building, Board of Supervisors Room, 107 North Kent Street, Winchester, Virginia. PRESENT: Judy McCann-Slaughter, Doug Rinker, Susan Brooks, Heather McKay, and Bryan Fairbanks. Rick Till participated remotely due to medical reasons and his participation by this method was approved by the Board members present. STAFF: Patrick Barker, Shayla Rickard, Wendy May, and Donna McIlwee, Frederick County Economic Development Authority; Jay Tibbs, Deputy County Administrator; and Michael Bryan, Attorney MEETING CALLED TO ORDER: Chairman Rinker called the meeting to order at 8:00 a.m. APPROVAL OF MINUTES The minutes from the February 3, 2022, meeting were presented. On motion of Ms. McCann-Slaughter, seconded by Mr. Fairbanks, the minutes were approved by the following recorded vote: J. Stanley Crockett Absent Susan Brooks Aye Bryan Fairbanks Aye Heather McKay Aye Doug Rinker Aye Judy McCann-Slaughter Aye Rick Till Abstain (due to absence at meeting) TREASURER'S REPORTS Mr. Barker submitted the following reports: Checking Account - Bank of Clarke County as of January 31, 2022 - $26,804.56 Savings Account - Scott & Stringfellow as of January 31, 2022 - $1,440,782.46 Page 2 of 8 Frederick County EDA Meeting Minutes | March 10, 2022 Checking Account - Bank of Clarke County as of February 28, 2022 - $4612.06 Savings Account - Scott & Stringfellow as of February 28, 2022 - $1,440,793.50 On motion of Ms. Brooks, seconded by Ms. McKay, the Treasurer’s Reports were approved by the following recorded vote: J. Stanley Crockett Absent Susan Brooks Aye Bryan Fairbanks Aye Heather McKay Aye Doug Rinker Aye Judy McCann-Slaughter Aye Rick Till Aye TARGET BUSINESS STUDY Mr. Barker reported this month proceeds with steps 7, 8 and 9 in the Target Industry Analysis update and staff is providing the results from these steps for review and comment. Step 7: Gather comparative data and benchmark with competing locations At the February meeting, generalized competitors benchmark locations to Frederick County were provided and reviewed to assist in constructing a strong value proposition. Discussion with key site consultants and individuals at the Virginia Economic Development Partnership produced these generalized benchmark locations for Frederick County: • NY 81 Corridor • PA 81 Corridor • Hagerstown/Martinsburg • North VA 81 Corridor • Middle VA 81 Corridor • South VA 81 Corridor • Northern Virginia Region • Richmond Region • Columbus, OH • Cincinnati, OH • Greensboro I-74 • NC I-95 • NC I-73/74 • SC I-95 When deciding on site location, companies need to gauge regional/community advantages and disadvantages to determine the most competitive regions/communities for their operations. Page 3 of 8 Frederick County EDA Meeting Minutes | March 10, 2022 Frederick County needs to understand its competitors to construct a strong value proposition. Using readily available data on the MSA level (31 MSAs) and State (7) level from VEDP, key variables were evaluated between Frederick County and the benchmark locations and between Virginia and the benchmark states: Workforce • 7th largest change in population (MSA) • 8th highest concentration of manufacturing employment as a percentage of total (MSA) • 17th highest concentration of professional and service employment (MSA) • 19th lowest percentage of private workers with union membership (MSA) Education • 25th in population with at least a high school degree (MSA) • 20th in population with a bachelor’s degree or higher (MSA) Occupations • 26th lowest hourly rate for software engineers (MSA) • 14th in hourly rate for network administrators (MSA) • 9th highest hourly rate for customer service representatives (MSA) Cost of Business • 6th lowest Average Annual Cost Paid by Employers for Health Premiums for Family Coverage (State) • 3rd highest Average Annual Cost of Employment-Based Health Premiums for Family coverage (State) • 7th lowest Unemployment Insurance Tax per Employee (State) • 6th lowest Workers’ Compensation Employer Insurance Costs per $100 of Payroll (State) • 3rd highest State and Local Taxes per Capita (State) • Highest Average Industrial Electric Rate (State) • 6th lowest Average Price of Natural Gas Delivered to Industrial Consumers (State) Ms. McCann-Slaughter asked if having the highest average industrial electric rate was a hurdle for Frederick County. Mr. Barker explained this is a statewide statistic, not a local one. He will provide Board members with the average rate for Frederick County, as well as the State. Ms. Brooks stated she has seen data that states Frederick County is tied with other larger areas in education. Mr. Barker explained the data in that section is just a small portion of the overall information and he will check to see if what is provided is just for Virginia. On motion of Ms. McCann-Slaughter, seconded by Mr. Fairbanks, Board members voted to proceed to the next step in the analysis. Page 4 of 8 Frederick County EDA Meeting Minutes | March 10, 2022 Step 8 and 9: Identify key strengths and improvement points A community, like Frederick County, must clearly identify and understand its positive attributes for that sector and, conversely, areas for improvement. These factors will weigh heavily in the realistic potential for locations of an identified sector. These steps will use the previously identified industry drivers and location criteria in step 4 to guide the discussion. Mr. Barker explained that workforce development, talent, and sites and buildings appear in each of the following tables. Ms. McCann-Slaughter asked how sites and buildings were identified and Mr. Barker stated by property being actively marketed. Corporate Services Selling Point Improvement Needed Workforce development Talent Infrastructure & connectivity Sites and buildings Cost of doing business Quality of life Stability & risk Regulatory environment Environmental and social sustainability Information Technology Selling Point Improvement Needed Workforce development Market & cluster presence Cost of doing business Talent Quality of life Infrastructure & connectivity Stability & risk Sites and buildings Regulatory environment Environmental and social sustainability Finance & insurance Selling Point Improvement Needed Workforce development Talent Infrastructure & connectivity Sites and buildings Cost of doing business Market & cluster presence Quality of life Stability & risk Regulatory environment Environmental and social sustainability Page 5 of 8 Frederick County EDA Meeting Minutes | March 10, 2022 BioScience Selling Point Improvement Needed Workforce development Market & cluster presence Infrastructure & connectivity Talent Cost of doing business Sites and buildings Quality of life Stability & risk Regulatory environment Environmental and social sustainability Advanced Manufacturing Selling Point Improvement Needed Workforce development Talent Market & cluster presence Sites and buildings Infrastructure & connectivity Cost of doing business Quality of life Stability & risk Regulatory environment Food and Beverage Selling Point Improvement Needed Workforce development Talent Market & cluster presence Sites and buildings Infrastructure & connectivity Cost of doing business Quality of life Stability & risk Regulatory environment After review and discussion, Mr. Fairbanks made a motion to approve staff actions in steps 8 and 9. This was seconded by Ms. Brooks and approved by vote of the Board. JOINT MEETING WITH BOARD OF SUPERVISORS PREPARATION Mr. Barker stated that, while we await a date for the joint meeting, some deeper discussion on the agenda would be prudent. Staff recommends structuring an agenda to provide an overview of core EDA functions and recent projects, then an update to planned activities from last year. The proposed agenda is: Page 6 of 8 Frederick County EDA Meeting Minutes | March 10, 2022 • General overview of EDA’s mission • Talent strategy implementation • Targeted Business Analysis status update • FredCo Eats – Inaugural Restaurant Week • Grocery store attraction status update • Update of planned activities from last year Board members were given a copy of the most recent Area Development Managers’ Annual Survey of corporate decision makers and site consultants, as it may spark some additional thoughts for the agenda. Staff is seeking feedback regarding the proposed agenda and recommendations concerning possible planned activities for the next year. Mr. Fairbanks stated an educational structure is important to people moving to the area and inquired if the EDA should weigh in on where Frederick County should be educationally. He also inquired if the EDA Board should compose a letter of support for our local educational system to be sent to the BOS. Mr. Barker was directed to draft a letter for Board members to review. Ms. McCann-Slaughter suggested we should include an agribusiness section on our website. FREDCO EATS: RESTAURANT WEEK Due to time constraints, this agenda item was postponed until the next meeting. CLOSED SESSION Upon Motion duly made by Ms. Brooks, seconded by Mr. Fairbanks, the Authority unanimously RESOLVED to go into a closed meeting pursuant to Section 2.2-3711(A)(5) for the discussion concerning a prospective 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. RETURN TO OPEN MEETING At the conclusion of the closed meeting concerning the discussion concerning a prospective business or industry where no previous announcement has been made of the business or industry’s interest in locating its facilities in the community, the following Resolution was unanimously adopted upon roll call vote as set forth below: WHEREAS, the Economic Development Authority of the County of Frederick, Virginia has concluded its “closed meeting” at a meeting held on March 10, 2022, and desires return to an “open meeting”; and Page 7 of 8 Frederick County EDA Meeting Minutes | March 10, 2022 WHEREAS, the adoption of this Resolution is intended to serve as the “Certificate” described in Section 2.2-3712(D) of the Code of Virginia (1950, as amended). NOW THEREFORE, BE IT RESOLVED that the Economic Development Authority of the County of Frederick, Virginia does hereby reconvene in an “open meeting” at its meeting held on March 10, 2022; and BE IT FURTHER RESOLVED that each and every Member of said Authority who votes in the affirmative for this Resolution does thereby certify to the best of each Member’s knowledge that only public business matters lawfully exempted from open meeting requirements of the Virginia Freedom of Information Act were heard, discussed or considered during the closed meeting, and that only such public business matters as were identified in the Motion which convened the closed meeting were heard, discussed or considered during the course of said closed meeting by the Authority: Roll Call Vote J. Stanley Crockett Absent Susan Brooks Aye Bryan Fairbanks Aye Heather McKay Aye Doug Rinker Aye Judy McCann-Slaughter Aye Rick Till Aye SUCH OTHER BUSINESS AS MAY COME BEFORE THIS AUTHORITY Following the close of the closed session, Ms. McCann-Slaughter made a motion that the Chairman of the EDA be authorized to retain the services of outside professionals to assist the EDA with the matter discussed in the closed meeting. Motion was seconded by Mr. Fairbanks and approved by the following recorded vote. J. Stanley Crockett Absent Susan Brooks Aye Bryan Fairbanks Aye Heather McKay Aye Doug Rinker Aye Judy McCann-Slaughter Aye Rick Till Aye Page 8 of 8 Frederick County EDA Meeting Minutes | March 10, 2022 ADJOURN There being no further business to come before this Authority, the meeting was adjourned at 9:02 a.m. ________________________________ ____________________________ Doug Rinker Jay Tibbs Chairman Secretary