RIFA Meeting (12/8/2014)

Let’s do a recap of what happened at the Regional Industrial Facility Authority meeting on Monday. We’ve got more in-depth coverage that any other news source and we’ve got photos too.

We’re at the Danville Regional Airport. The meeting started at 12:00 (well, after lunch).

Fred Shanks wasn’t here and Sherman Saunders arrived right as the meeting was over from a previous appointment. Lee Vogler moved in as a voting member from his Alternate position. Coy Harville is at the head of the table. James Snead & Jerry Hagerman are beside Vogler. Sue DeMasi and attorney Michael Guanzon finish out this end of the table.

We started off with Economic Development Director Telly Tucker taking about the update of existing industries. He mentioned that IKEA’s expansion plans were on schedule. After the meeting, I asked him if the plans for Zeyuan Flooring were still on for the start of production in January. He said “I haven’t been told otherwise.”

Next, the board moved to cut Yorktowne Cabinetry a break because they were very close on the 260 job requirement. The full $208,363.26 would have been due by default, however the RIFA board wisely chose to prorate the penalty based on the 242 jobs created. Here’s the official language on that…

WHEREAS, pursuant to that certain Performance Agreement dated April 19, 2005, as amended (the “Original Performance Agreement”), the Authority provided an incentive package, as more fully described therein (the “Funds”), to Yorktowne Cabinetry, Inc. (a/k/a Elkay Wood Products Company), a Virginia corporation (“Yorktowne”), in exchange for certain performance obligations of Yorktowne, including the creation and maintenance by Yorktowne of a certain amount of full-time jobs; and
WHEREAS, pursuant to that certain Amendment to Performance Agreement dated September 28, 2009, amending the Original Performance Agreement (the “Amendment”), Yorktowne agreed that the cumulative number of full-time jobs that Yorktowne must have
created and maintained as of September 30, 2014 (the “2014 Target Date”) was 260 (the “2014 Job Target”); and
WHEREAS, according to the Virginia Withholding Summary of Deposits and Filings for the period July 1 through September 30, 2014 for Yorktowne, Yorktowne had created and maintained only 242 jobs as of the 2014 Target Date, missing the 2014 Job Target by 18 jobs
(the “2014 Job Deficit”); and
WHEREAS, pursuant to the Amendment, the repayment amount to the Authority of the Funds if the 2014 Job Target is not met as of the 2014 Target Date is $208,363.26 (the “2014 Repayment Amount”), which was due and payable by October 31, 2014 (the “2014
Repayment Deadline”); and
WHEREAS, if the 2014 Repayment Amount is prorated based on the 2014 Job Target, each job would represent $801.40 ($208,363.26/260) of the total 2014 Repayment Amount; and WHEREAS, in consideration of Yorktowne’s payment to the Authority by December 31, 2014, of $14,425.20 (the “2014 Prorated Repayment”), calculated by multiplying $801.40 by the 2014 Job Deficit, the Authority has agreed to waive and forbear any rights it has under the Original Performance Agreement, as amended by the Amendment (the “Performance Agreement”), (i) to declare a breach of the Performance Agreement for Yorktowne’s failure to meet the 2014 Job Target and for Yorktowne’s failure to pay to the Authority the 2014 Repayment Amount by the 2014 Repayment Deadline, and (ii) to demand immediate payment in full to the Authority of the 2014 Repayment Amount.

Whew. Gotta love all that legal language, eh? Next, Authority Treasurer Michael Adkins went over the financial reports.

Here’s the financial statements for you to look over.

They canceled the closed session, so we’re done. We’ll leave you with one last photo of James Snead’s awesome Christmas tie.

There you go… the most detailed coverage in the Southside region! We’ve got more coming up on SouthsideCentral!