• New Developments for Living & Working
  • Business Expansion, Retention & Growth Projects Abound
  • Tourism Zones Bring More Great Things to Do
  • Collaboration is at the Heart of the Year's Success
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About

Mission

The core mission of the Economic Development Authority of the City of Newport News, Virginia (EDA) and the Industrial Development Authority of the City of Newport News, Virginia (IDA) (collectively “EDA/IDA” and/or “the Authority”) is to grow and diversify the tax and employment base of the City.

Board of Directors

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Arthur P. Henderson, Jr.
2013 Chair – Member of the Board since 2006

Mr. Henderson is a retired business executive, former CFO with Noland Company, a leading wholesale distributor of plumbing, mechanical and electrical supplies. Mr. Henderson is also a Certified Public Accountant.

Thomas P. Herbert, P.E.
2013 Vice-Chair – Member of the Board since 2009

Mr. Herbert is the Vice President and Director of Private Sector Programs for H&A Architects & Engineers, a multidisciplinary firm offering a wide array of engineering and design capabilities for a variety of private, municipal, institutional and federal clients around the world.

Alonzo R. Bell, Jr., CCIM
Member of the Board since 2007

Mr. Bell is the founder and principal broker of Randolph Real Estate Services Company, LLC, and has over 20 years of experience in commercial real estate brokerage.

Wendy C. Drucker
Member of the Board since 2008

Ms. Drucker is Managing Director of Drucker & Falk, LLC, which specializes in multifamily, commercial and senior real estate. Headquartered in Newport News, Drucker & Falk operates in the Mid-Atlantic and Southeast regions of the United States.

Cary B. Epes
Member of the Board since 2010

Mr. Epes is a retired banking executive, formerly of Old Point National Bank, which has offices throughout Hampton Roads.

Cassandra P. Greene
Member of the Board since 2013

Mrs. Greene is a retired senior finance and communications executive, formerly of Sara Lee Corporation and the U.S. Small Business Administration, and serves on several non-profit boards on the Peninsula.

C. Gary Minter
Member of the Board since 2010

Mr. Minter is President of POMOCO Lincoln Mercury and Vice President of POMOCO Auto Group, which has locations on the Peninsula and in Smithfield.

James M. Bourey – City Manager (ex officio)

Neil A. Morgan – City Manager, Retired during 2013

Florence G. Kingston – Secretary/Treasurer (ex officio)

Cherry Lee Croushore – Assistant Secretary

Sharon D. Baker – Recording Secretary

Raymond H. Suttle, Jr., Esquire – Legal Counsel

Conway H. Sheild, III, Esquire – Legal Counsel

Ralph M. Goldstein, Esquire – Legal Counsel

Message from the Chair

about-chairA city’s economic condition and business climate is only as good as the condition of its businesses and taxpayers, and the strength of the City of Newport News lies in the diversity of contributors to the local economy–corporate, military, education and individual. 2013 represents the year that the vision of many projects and endeavors came to life. Announcements were made, plans were implemented, construction activity boomed, expansions were undertaken, transportation improvements progressed, and the decline in the City’s unemployment rate served as evidence of the increase in economic activity.

The sense of renewed confidence and commitment to new investment is clearly demonstrated throughout the pages of the Economic and
Industrial Development Authorities’ (EDA/IDA) 2013 Annual Report. From one end of the City to the other, great things were happening all year long. And those things were happening across a broad and diverse spectrum: science and technology industries, commercial and military applications, research facilities, higher education, advanced manufacturing, distribution, healthcare, hospitality and tourism.

The existing business community serves as the backbone of the City’s economic stability. Business expansion projects at Liebherr Mining Equipment Company, High Liner Foods, and Canon Virginia, Inc. were announced during 2013, with these companies committing to a collective investment of over $75,000,000 in capital improvements and equipment and creation of over 220 new jobs.

The Tech Center at Oyster Point, a new mixed-use development concept including retail, commercial, residential and restaurant space, will begin construction in early 2014. The project, located at the corner of Oyster Point Road and Jefferson Avenue, teams W.M. Jordan Company, S.J. Collins Enterprises, Virginia Tech, and the City of Newport News and the EDA/IDA. Construction commenced
on two new venues that comprise part of the City Center at Oyster Point Entertainment District–Paragon Theaters and Travinia Italian Kitchen and Wine Bar, which will open in late spring 2014.

The year’s capstone event took place on December 6 at the Commissioning Ceremony of the Newport News Shipbuilding Apprentice School and Mixed-Use Development, which has changed the face of Downtown. The project includes the new educational facility for the Newport News Shipbuilding Apprentice School, housing, retail, green space and structured parking.

The EDA/IDA and its staff continue to be actively involved with projects relating to education, community maintenance, business outreach, transportation improvements, marketing and numerous other collaborative efforts, in addition to core efforts focusing on new business attraction and existing business retention and growth. As you read about these endeavors in the following pages, I’m sure you will agree that Newport News is a place Where Great Things are Happening.

Sincerely,

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Thomas P. Herbert, P.E.
2014 Chair, EDA/IDA

Standing Committees

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Design Review

Alonzo R. Bell, Jr.
Chair

Cary B. Epes

Thomas P. Herbert

Mike Carpenter
High Liner Foods

Rob Mann
AES Consulting Engineers

Teresa Nettles
Thalhimer Commercial Real Estate

Beth Willis
Carmines Robbins & Company

Sylvia Weinstein
Oyster Pointer

Mike Dallas
Jefferson Lab (Advisory Member)

Ted Kitchens
Newport News/ Williamsburg International Airport (Advisory Member)

Executive Committee

Thomas P. Herbert
Chair

Alonzo R. Bell, Jr.

Arthur P. Henderson, Jr.

C. Gary Minter

Marketing

Wendy C. Drucker
Chair

Thomas P. Herbert

C. Gary Minter

Mary Aldrich
PBMares

Don Blankenship
Retired

Faye Gargiulo
Riverside Health System

Gary Hunter
Langley Federal Credit Union

Senator John Miller
Virginia General Assembly

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Cary B. Epes
Chair

Cassandra P. Greene

Arthur P. Henderson, Jr.

John Lunsford
Retired

Jim MacDougall
MacPaint, Ltd.

Gene Soud
Retired

Revolving Loan Fund

Cassandra P. Greene
Chair

Wendy C. Drucker

Cary B. Epes

Susan Harris
TowneBank

Howard Manly
Retired (Deceased)

South Newport News

C. Gary Minter
Chair

Alonzo R. Bell, Jr.

Cassandra P. Greene

Effie Ashe
Retired

Carl Burt
Retired

Richard Coleman
Retired

Troy Smith, Jr.
Smith Brothers Enterprises

Special Purpose Committee Appointments

Alonzo R. Bell, Jr.
Workforce Investment Board

C. Gary Minter
Regional Air Service Enhancement Committee

C. Gary Minter
Conference Center Marketing (Chair)

Arthur P. Henderson, Jr.
Sister Cities of Newport News

Cary B. Epes
Community Development Block Grant Committee

Staff Support to EDA/IDA

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James M. Bourey
City Manager

Florence G. Kingston
Director of Development
(Also EDA/IDA Secretary/Treasurer)

Carol U. Meredith
Assistant Director

Sam J. Workman, Jr.
Assistant Director

Cherry Lee Croushore
Manager of Development
(Also EDA/IDA Assistant Secretary)

N. Douglas Winstead
Manager of Special Development Projects

Zoe M. Lumpkin, CPA
Financial Services Administrator

Christopher A. Morello
Administrator of Development Projects

Joy E. Robison
Administrative Services Manager

Marc A. Rodgers
Senior Project Coordinator

Bryan C. Witt
Senior Project Coordinator

Tricia F. Wilson
Business Development Specialist

Matt Johnson
Business Retention Coordinator

George A. Schraudt
Economic Analyst

Robin N. Boyd
Marketing Coordinator

Jared W. Midkiff
Marketing and Development Coordinator

Doreen P. Kopacz
Port Development Administrator

Andrew S. Wilks
Property Manager

Travis C. Fisher
Real Estate Coordinator

Sharon D. Baker
Administrative Coordinator
(Also EDA/IDA Recording Secretary)

Recognition for former City Manager Neil Morgan

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Upon his retirement from City service in May 2013, the EDA recognized former City Manager and ex-officio EDA/IDA board member Neil Morgan’s lengthy list of accomplishments and leadership roles held over 27 years of service to the City, including as a “founding staffer” for the EDA/IDA. A resolution of recognition was read aloud to him by Chairman Henderson at the July 2013 EDA/IDA Board of Directors meeting, highlighting many of his achievements and contributions to City progress while working first in the Department of Development, followed by the City Manager’s Office as an Assistant City Manager, Acting City Manager and, finally, as City Manager. Mr. Morgan’s demonstrated commitment to Newport News’ advancement, both within the municipal government organization that serves the residents of Newport News, and, externally, for the progression of the City’s stature among localities in terms of economic development, quality of life and other important measures of reputation, has earned him numerous local and regional accolades through his career, and his public service will be greatly missed.

City Manager Jim Bourey Feature

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On June 25, 2013, City Council announced its selection for the new City Manager of Newport News, James M. “Jim” Bourey.  Mr. Bourey was selected after a nationwide search that yielded over 40 applicants, and he began his new position in July.

Mr. Bourey is originally from Hanover, New Hampshire. Prior to coming to Newport News, he worked as the Director of Corporate Development with Elliot Davis, an accounting/financial services firm in Greenville, South Carolina, and was involved in economic development and business recruitment activities throughout that region. Previously, he served in a variety of local government management positions, most recently as City Manager of Greenville, South Carolina, from 2004 to 2010. Prior to that, he held senior management positions in El Dorado County, California; Hennepin County, Minnesota; and Hillsborough County, Florida. He holds a bachelor’s degree in Environmental Design from North Carolina State University, and two master’s degrees from Washington University in St. Louis, in Urban Design and in Architecture.

We welcome Mr. Bourey’s leadership as we continue to make Newport News a place Where Great Things Are Happening.

Florence Kingston Selected as Business Woman of the Year

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Florence Kingston, Secretary/Treasurer of the EDA/IDA selected as 2013’s Outstanding Business Woman of the Year by the Virginia Peninsula Chamber of Commerce for its annual Women in Motion Awards. Mrs. Kingston was recognized for her unstoppable energy and enthusiasm applied to local economic development for over 30 years, which has helped shaped Newport News into a vibrant, viable, business-friendly City.

The following nomination entry was read at the awards luncheon on October 10, 2013: “Florence is an inspiration to her staff and all who are fortunate to work with her–setting an example with her tenacious positive attitude. When others might become discouraged by a project’s sheer economics, political complexity or the possibility of criticism, Florence finds the balanced approach to turn ideas into realities. Though she is fearless when taking on immense challenges, she is also respectful of all citizens, from those in positions of elected leadership to those who offer insight at public meetings. She constantly instills into her staff that the citizens of Newport News are our highest priority. Not knowing the meaning of an 8–5 workday, she has redefined the image of a public sector employee; and in her 33-year career, Florence has become a highly regarded member of the Hampton Roads business community.”

Around the City

City Center at Oyster Point

City Center at Oyster Point

The Cove Tavern The opening of the tropical seafood-themed restaurant, The Cove Tavern, ensured that City Center continued to offer diverse dining and entertainment options. Toby Keith Visit After much anticipation, on June 13, Toby Keith arrived in Newport News to give the Toby Keith’s I Love This Bar & Grill his official blessing. Fans from around the region gathered to see Toby Keith up close and personal while he signed one of his guitars to be displayed in the restaurant. Entertainment District During the summer, construction commenced on two additional components of the City Center at Oyster Point Entertainment […]

Read More »

Business News

Financials

EDA/IDA Financial Highlights for Fiscal Year July 1, 2012 to June 30, 2013

The Authorities’ total net assets increased $7.9 million during fiscal year 2013 compared to the $8.6 million increase in the prior year. Total operating expenses of the Authorities in FY 2013 increased by $5.3 million due to an increase in cost of land sold of $1.9 million, an increase in contractual services of $1.9 million and an increase in rental expenses of $1.5 million. The increase in rental expenses is due to the lease of the Apprentice School Garage, which commenced in FY 2013. Net non-operating expenses decreased in FY 2013 by $3.5 million as compared to the prior year due to a reduction of interest expense due to refunding of several bonds and payoff of notes of the Economic Development Authority (“EDA”) in December 2012 and June 2013, along with a write-down of the loan due to the City of Newport News, Virginia (the “City”), for the construction of the Applied Research Center.

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During the year, the Industrial Development Authority (“IDA”) received the first of five grant payments from the Commonwealth of Virginia for the Advanced Shipbuilding Training Facility Grant Program. This grant payment was paid to Armada Hoffler, the developer, in accordance with the Amended and Restated Memorandum of Understanding between the Industrial Development Authority, Huntington Ingalls Incorporated, Armada Hoffler, and the Commonwealth of Virginia. The project is a significant mixed-use redevelopment in the City’s traditional Downtown. It includes a state-of-the-art 86,000 square-foot Apprentice School with approximately 197 apprentice and workforce housing units, 30,416 square feet of retail and a 382-space parking garage in a 6-acre campus-like setting. During 2013, the EDA’s Parking Structure Lease agreement for the lease of the 382-space parking garage and 91 spaces of surface parking commenced and the first annual lease payment was made in the amount of $1.5 million. The EDA continues to implement a voluntary acquisition strategy along the Upper Warwick Corridor in the northwest area of the City. As of June 30, 2013, the EDA had purchased eight parcels in the amount of $645,000, as compared to FY 2012 of one parcel in the amount of $43,817.

In October 2012, in order to take advantage of favorable markets and to capture debt service savings, the Authorities refunded Series 2004, Series 2005 and Series 2006 bonds, which were used to finance certain public improvement projects including City Operations Center Infrastructure, construction and equipping of Fountain Way and Mariners Row Parking Garages, acquisition and renovation of Rouse Towers, a 12-story office building, and to acquire the City Center Conference Center. The City was able to realize a net present value savings of $2.23 million, or 6.10%, of refunded par.

In April 2013, the EDA entered into an Enterprise Zone Incentive Agreement with the Commonwealth of Virginia and Liebherr Mining & Construction Equipment, Inc. In exchange for substantial capital investment by Liebherr, the EDA will contribute $1 million, which has been appropriated to the EDA by the City, toward meeting the required matching funds for a related Governor’s Opportunity Fund and for funding of public and private infrastructure improvements for the benefit of Liebherr. In May 2013, the EDA received the related Governor’s Opportunity Fund in the amount of $500,000, which it will expend for the benefit of Liebherr, provided that they meet certain criteria relating to Capital Investment and new jobs.

In June 2013, the City agreed to write down the amount the Authorities owe for the financing of the construction of the Applied Research Center by $2,168,776. In addition, because the bonds related to this financing were refinanced at a lower rate, it was agreed to base the EDA’s repayment upon this new rate, lowering the rate to 2.79%.

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The EDA continues its Façade Improvement Grant Program which restores, sustains and improves commercial properties located within the City by providing matching funds toward eligible façade improvements. This program was originally funded by the EDA with an initial commitment of $300,000 and continues with an additional $300,000 funded by the City. In FY 2013, this program has benefited over 29 properties City-wide with grants in the amount of $396,479.

Overview of the Financial Statements

The Authorities are component units of the City. Component units are other governmental units over which the City (the City Council, acting as a group) can exercise influence and/or may be obligated to provide financial support. Component units of the City are presented as a separate column in the government-widefinancial statements of the City. The Authorities’ operations are accounted for as business-type activities in a proprietary fund. Proprietary funds are used to account for the ongoing activities that are financed and operated similar to those often found in the private sector. The measurement focus is upon determination of net income.

Summary of Financial Statements

The following table reflects the condensed net position of the Authorities:

Total net position of the Authorities increased to $98.23 million as of June 30, 2013 and to $90.34 million as of June 30, 2012. Approximately $16.83 million in fiscal year 2013 and $16.90 million in fiscal year 2012 of net position is restricted as to the purpose for which it may be used.

Capital Assets and Debt Administration

The following table shows the capital assets at year-end:

At the end of FY 2013, the Authorities had $162.93 million invested in capital assets. During the year,
Construction in Progress increased by $465,080 and Improvements increased by $168,259.

The following table summarizes debt outstanding:

As of fiscal year-end, the Authorities had $110.94 million of debt outstanding in bonds and notes payable. During the year ending June 30, 2013, the Authorities paid off the outstanding debt on the Coats and Clark property and paid down the Note Payable for 809 Omni Boulevard by $500,000. In addition, in order to take advantage of favorable market conditions with lowered interest rates, the EDA refunded a portion of their 2004, 2005 and 2006 series bonds which financed various projects such as the City Operations Center improvements, the Fountain Way and Mariner’s Row garages, the Conference Center, the Hotel Promissory Note and the Rouse Towers Project. Premium bonds were issued for the refunding at a premium in the amount of $4.39 million. The total amount of the refunding bonds was $51.34 million, providing a net present value debt service savings of approximately $2.23 million.

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In Summary

This financial report is designed to provide our citizens, taxpayers, bondholders and creditors with a general overview of the Authorities’ finances and to demonstrate the Authorities’ accountability for the money it receives. If you have questions about this report or need additional financial information, contact the Secretary/Treasurer or Financial Services Administrator at (757) 926-8428 of the Authorities, c/o Department of Development, 2400 Washington Avenue, 3rd Floor, Newport News, Virginia 23607.