• Culture & Entertainment Converge in Newport News
  • Business Expansion, Retention & Growth Projects Abound
  • New Opportunities Emerge Everyday
  • New Developments for Living and Working
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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

Board of Derectors

Wendy C. Drucker
2016 Chair – 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.

C. Gary Minter
2016 Vice-Chair – 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.

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.

Arthur P. Henderson, Jr.
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.
Member of the Board since 2009

Mr. Herbert is a professional engineer and business development executive, and has served a variety of private, municipal, institutional and federal clients around the world.

Jennifer Smith-Brown
Member of the Board since 2015

Mrs. Smith-Brown is a Franchise Owner/Operator of three McDonald’s restaurants, and Managing Partner of J. Smith Enterprises, a family-owned firm responsible for the corporate operations of 16 restaurant franchise businesses.

James M. Bourey – City Manager (ex officio)

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

Cherry Lee Croushore – Assistant Secretary

Janice I. Jones – 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

Change is an important part of the evolution of any city, with revitalization and growth playing a critical role. In Newport News, 2016 was a year of continued change, one with noteworthy accomplishments and landmark achievements. Positive growth and substantial business expansion brought a renewed sense of vitality and opportunity throughout the City. During 2016, the Authority continued its proactive work to help secure a brighter future for all citizens of Newport News.

This year, the City and the Authority realized a long-term goal of opening one of the most highly-anticipated and needed developments in the southeast section of the City: Jim’s Local Market. In the heart of the Southeast Community, Jim’s not only provides a full-service grocery store offering high-quality, local and affordable food, but also provides a sense of renewal and opportunity which is evidenced throughout the community. As a lynchpin to the Brooks Crossing development, along with the new South Police Precinct, the opening of Jim’s Local Market was a landmark achievement.

The City experienced renewal at City Center at Oyster Point as well. In July, a new, locally-based ownership group, Pointe Hope, LLC, purchased a 574,466-square-foot, nine-building, office and retail mixed-use portfolio, with the commitment to sustaining City Center as a Class A business and residential community. Looking towards the future, the group plans on placing more emphasis on entertainment-oriented businesses, an important component in the transformation of the area into a more vibrant location that will attract the business community, families and young professionals, to live, work and play.

As always, business retention and expansion have been instrumental in our efforts. The existing business community continues to be the cornerstone of the City’s economy. Innovations and well-planned growth at longstanding businesses such as Newport News Shipbuilding, Printpack Inc., Canon Virginia, Newport News Industrial and our unique federal asset, Jefferson Lab, led the way in 2016. Equally important, new and innovative entrepreneurial businesses have chosen to locate in Newport News.

In order to better support all businesses, the Authority supported the creation of a new Defense Production Zone and the expansion of other innovative programs including Enterprise Zones, Tourism Zones, Technology Zones and Façade Improvement Grants. These programs provided businesses the opportunities and tools needed to expand, succeed and prosper in Newport News.

As we reflect on the changes 2016 brought, we are encouraged by the positive growth that can be observed throughout the City of Newport News. Helping to secure a promising future for our citizens, through economic development efforts, is of the utmost importance, and the Authority continues to build on its reputation as a leader and innovator within Hampton Roads and the Commonwealth. In this way, Newport News will continue to be a City “Where Great Things are Happening!”

Sincerely,

C. Gary Minter Signature
C. Gary Minter
2017 Chair, EDA/IDA

Standing Committees

Ferguson Showroom

Design Review

Thomas P. Herbert, P.E.
Chair

Cary B. Epes

Jennifer Smith-Brown

Alonzo R. Bell, Jr.
Randolph Real Estate Services Co.

Randy Carnell
Continental Automotive Corporation

Alex Delgado
Continental Automotive Corporation

Rob Mann
AES Consulting Engineers

Teresa Nettles
Thalhimer Commercial Real Estate

Bryan Trainum
Rockwell Collins

Sylvia Weinstein
Oyster Pointer

Beth Willis
Carmines Robbins & Company

 

Executive

C. Gary Minter
Chair

Wendy C. Drucker

Cassandra P. Greene

Thomas P. Herbert, P.E.

Marketing

Cassandra P. Greene
Chair

Wendy C. Drucker

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

 

Revolving Loan Fund

Cary B. Epes
Chair

Arthur P. Henderson, Jr.

Jennifer Smith-Brown

Susan Harris
TowneBank

George Knight
Commonwealth Environmental Services

John Lunsford
Retired

South Newport News

Jennifer Smith-Brown
Chair

Cassandra P. Greene

C. Gary Minter

Alonzo R. Bell Jr.
Randolph Real Estate Services Co.

Carl Burt
Abbitt Realty Company

Richard Coleman
Retired

Troy Smith, Jr.
Smith Brothers Enterprises

 

Special Purpose Appointments

Cassandra P. Greene
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

 

* Deceased

Staff Support to EDA/IDA

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)

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

Macon M. Whitson
Senior Project Coordinator

Matt Johnson
Senior Project Coordinator

Kalila P. Walker
Senior Project Coordinator

Derek E. Perry
Senior Economic Analyst

Tricia F. Wilson
Business Development Specialist

Shakir D. Johnson
Business Retention Coordinator

S. Saejin Connor
Accountant II

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

Janice I. Jones
EDA/IDA Recording Secretary

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Around the City

Choice Neighborhoods Initiative

Choice Neighborhoods Initiative

The City, in conjunction with the Newport News Redevelopment and Housing Authority (NNRHA), was awarded a 2016 Choice Neighborhoods Initiative (CNI) Planning Grant through the U.S. Department of Housing and Urban Development.

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Seafood Industrial Park

Seafood Industrial Park

A survey of the East Bulkhead within the Inner Harbor was recently completed, as part of a phased approach to maintain and modify the infrastructure to remain viable well into the future.

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Ironclad Distillery

Ironclad Distillery

Following a year of great anticipation, Ironclad Distillery, located on 23rd Street in Downtown Newport News, celebrated the release of its first batch of handcrafted bourbon.

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Downtown Reimagined

Downtown Reimagined

Building on the success of last year’s design charrette for the Downtown Newport News Superblock area, at this year’s State of the City event, Mayor Price unveiled the new urban design vision for Downtown Newport News.

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Downtown Maritime Community Center

Downtown Maritime Community Center

With a goal of generating additional pedestrian traffic Downtown and increasing activity and synergy among the existing and future office/retail tenants adjacent to the Authority-leased community center space, the Parks, Recreation and Tourism Department has hosted a number of events, including workforce development and job fairs, office meeting spaces and a variety of popular yoga and Zumba classes.

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United Parcel Service

United Parcel Service

If you have ever called to track a UPS package, chances are you have talked to one of the people who works at the UPS regional call center facility on Warwick Boulevard.

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LTD Hospitality Group

LTD Hospitality Group

In December, LTD Hospitality Group purchased the former Magnuson hotel property in Oyster Point and will spend over $14 million to renovate the 182-room hotel.

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Applied Research Center

Applied Research Center

To support entrepreneurial innovation and technology companies in the City, the EDA instituted an Entrepreneurial Lease and Assistance Program in the Applied Research Center.

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Lidl Groundbreaking

Lidl Groundbreaking

Lidl, a Germany-based international supermarket chain, announced plans in 2014 for an aggressive, new-to-market, United States expansion and is planning to invest over $200 million in Virginia.

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City Center at Oyster Point Parking Garage Improvements

City Center at Oyster Point Parking Garage Improvements

The EDA has ongoing maintenance and repair responsibilities for the three garage structures it owns in City Center at Oyster Point: Merchants Walk Parking Garage (built in 2002), Mariners Row Parking Garage (built in 2006) and Fountain Way Parking Garage (built in 2006).

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Patrick Henry Place

Patrick Henry Place

In 2016, EDA staff continued its close collaboration with the master developer of the Patrick Henry Place mixed-use development, Gibraltar Capital and Asset Management, as it began construction on the vital Freedom Way bridge and gained approvals on site plans for apartment buildings to be constructed in 2017 and 2018.

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Transportation Improvements & Infrastructure

Transportation Improvements & Infrastructure

Greater Oyster Point’s transportation network continued to benefit through 2016 from both completed and ongoing streetscape and traffic management projects funded by the $5 million Transportation Partnership Opportunity Funds (TPOF) grant program associated with the Canon Virginia, Inc., expansion in 2009. Design, right-of-way acquisition and bid award on the final phase of improvements to be funded by the grant, Phase III, were all accomplished in 2016. Upon installation in 2017, Phase III will provide a much-needed 8-foot sidewalk/bikeway connection along Canon Boulevard, tying sidewalk improvements completed in 2014 at City Center Boulevard to existing improvements at Lakefront Commons at City […]

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Sherwood Properties Acquisition

Sherwood Properties Acquisition

The City and the Authority have focused on revitalization efforts along upper Warwick Boulevard for many years, with the Authority acquiring blighted properties along the Upper Warwick Boulevard Corridor. In addition, a number of parcels of commercial real estate have been improved through the Authority’s Façade Improvement Grant Program and multiple infrastructure and beautification improvements have been made as a function of the City’s Community Maintenance strategic priority. In 2016, a transformative opportunity arose having the potential to positively impact the Upper Warwick Boulevard Corridor for years to come. The Authority leased property (the former MCI building – 75,708 square […]

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Atkinson Way Extension

Atkinson Way Extension

The City-administered project proposes a new four-lane divided highway beginning at the intersection of Warwick Boulevard and Atkinson Boulevard, extending eastward over the CSX railroad, I-64 and intersecting with Jefferson Avenue.

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Target Flavors

Target Flavors

Target Flavors previously announced plans to acquire property at 251 Enterprise Drive, in order to expand the company’s overall capacity with a Newport News facility that will include corporate offices, product development and production equipment.

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Swisslog

Swisslog

In 2016, Swisslog expanded its Newport News presence by moving into additional space in Oakland Industrial Park.

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Business News

Financials

EDA/IDA Financial Highlights for Fiscal Year July 1, 2015 to June 30, 2016

At the end of the fiscal year, the Authorities’ assets and deferred outflows of resources exceeded liabilities and deferred inflow of resources by $123.04 million. This amount represents an increase of $17.96 million over the prior year’s ending balance of $105.08 million, which was an increase of $23.39 million over fiscal year 2014 ending balance. Total operating revenues increased by approximately $17.53 million in fiscal year 2016 due to an increase in intergovernmental transfers from the City of Newport News, Virginia (the “City”), and an increase in land/building sales. Total operating expenses in 2016 increased by approximately $4.96 million mostly due to an increase in cost of land sold. Total operating expenses decreased in 2015 from the previous year by approximately $1.45 million due to a decrease in rental expenses caused by the purchase of the previously leased Apprentice School Garage. Net non-operating expenses remained comparatively level in 2016, increasing by $38,444 from the previous year.

During the year, the Industrial Development Authority (the “IDA”) received the fourth 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 88,740-square-foot Apprentice School, with 197 apprentice and workforce housing units, 38,000 square feet of retail space and a 382-space parking garage in a 6-acre, campus-like setting. In July 2014, the IDA exercised its option to purchase the Apprentice School Parking Garage under the lease for $12,759,580, financing the purchase with a $12.7 million taxable revenue bond secured by a Payment Agreement with the City.

In 2016, Printpack, a company with 25 plants in the US, China and Mexico, announced plans to invest $25.7 million to add a 150,000-square-foot building expansion to its existing facility in Oakland Industrial Park adding new equipment and creating 50 new jobs.

In FY 2015, the Economic Development Authority (the “EDA”) disbursed a Governor’s Opportunity Fund grant in the amount of $2 million to Continental Automotive Systems, a manufacturer of automotive components. The company plans to invest a total of $143 million in new machinery and tools, $9 million in new real estate improvements at its facility and 525 new jobs.

In FY 2016, the EDA entered into a New Markets Tax Credit (NMTC) transaction with Brooks Crossing Grocery Store, LLC, whose sole member is the Newport News Redevelopment and Housing Authority. The EDA provided the $4.3 million leveraged loan to facilitate the construction of a 29,290-square-foot grocery store in the Southeast Community, which lacked access to a full-service grocery store and will serve as an anchor to the Brooks Crossing mixed-use development project. This NMTC transaction is expected to stimulate economic and community development and job creation in this low-income community by attracting capital from the private sector. In addition to the grocery store, the South Police Precinct, also located in the Brooks Crossing mixed-use development project along Jefferson Avenue between 33rd and 34th streets, was completed and purchased from the Brooks Crossing developer by the EDA. The EDA leases the facility to the City for $1.00 per year. The lease is for 10 years with two 5-year renewal options. The City also has the option to request transfer of ownership of the property to the City at the expiration of the 10th year, or at the beginning of any of the renewal periods.

The Authorities continued in 2015 to assemble land in the City’s Upper Warwick Boulevard Corridor to support the strategic priority of revitalization in this area of the City. During fiscal year 2015, the EDA purchased properties located at 15401, 15407 & 15411 Warwick Boulevard in the amount of $928,775, demolishing the deteriorating structures, and grading and seeding the property.

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 in FY 2012. Because of its huge success, the City and EDA have continued jointly funding this program in each of the following years, which has benefited over 79 properties City wide with grants distributed of approximately $2.3 million.

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-wide financial statements of the City. The Authorities’ operations are accounted for as business-type activities in a proprietary fund, which is 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:

Capital Assets and Debt Administration

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

As of June 30, 2016, the Authorities had $100.59 million of debt outstanding in bonds and notes payable as compared to debt outstanding in June 2015 and June 2014, of $111.69 million and $109.51 million, respectively. In 2016, the Authorities refunded the Conference Center 2006 tax exempt debt in the amount of $4.88 million to take advantage of lower interest rate opportunities.

The following table summarizes debt outstanding:

Contacting the Authorities’ Financial Management

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.

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