VBDA Monthly Cash Flow...Ending Cash held by VBDA $4,806,535 PLUS: EDIP and other Receivables $10,465,358 LESS: Payables and Commitments $11,444,531 Ending Available Funding $3,827,362

City of Virginia Beach Development Authority

VBDA Monthly Cash Flow August 20, 2019

VIRGINIA BEACH DEPARTMENT OF ECONOMIC DEVELOPMENT 1

Beginning Cash $4,704,915• Significant Cash Receipts

$11,094 of fees from Industrial Revenue Bond recipients

$3,244 of monthly interest income

• Significant Cash Disbursements $28,118 to Kimley Horn for industrial park engineering fees

$6,815 to Kimley Horn for Corporate Landing stormwater plan

Ending Cash $4,688,238

Operating Account Summary: July 2019


Beginning Cash $2,525,125• Significant Cash Receipts

$573 of monthly interest income

$2,324,447 transfer of remaining FY2019 Bio Initiative Funding

• Significant Cash Disbursements $21,330 to LifeNet Health for capital investment

$17,508 of Part D expenditures to: Kimley Horn for engineering fees related to City initiatives/projects - $15,308

Soscia & Company for appraisal of Bonney Rd parcel - $2,200

$4,772 to Kimley Horn for Bio Park Phase 1 engineering fees

Ending Cash $4,806,535

Incentive Account Summary: July 2019


Ending Cash held by VBDA $4,806,535

PLUS: EDIP and other Receivables $10,465,358

LESS: Payables and Commitments $11,444,531

Ending Available Funding $3,827,362

Incentive Account Summary: July 2019


Princess Anne Road

Tournament Drive

Winterberry Lane

Space LeaseAugust 20, 2019

1Confidential

DisclosureProperty Owner: Cecil Cutchins, Olympia Development

Chip Cutchins, Olympia DevelopmentAccounting: BDOFinancing: Principal Global InvestorsLegal: Les Watson with Wolcott, Rivers, and Gates

2Confidential

VABeachBio Initiative• Virginia Beach is one of the first cities in the country with a

dedicated biomedical and healthcare business development initiative, known as VABeachBio.

• Started in 2014 after a call was made by the Mayor to diversify the economy and focus on the biosciences.

• Plan of action based on recommendations from a Task Force of local industry leaders including ODU, LifeNet Health, EVMS, Sentara, and many others...

3Confidential

4Confidential

VABeachBio Accelerator• Critical to small companies focused

on R&D• Will house office space, virtual office

options, and contain a wet lab• Graduates of the VABeachBio

Innovation Challenge will be the first tenants - (20 start-ups)

• Will also be available to our other Bio prospects

• Convergence II selected• Synergy and amenities in the area 5Confidential

Accelerator Lease Terms• Location- 277 Bendix Rd. suite 550 (Convergence II)

• 5th Floor• 5,706 Sq. Ft.• 5 - year lease term with (5) five 1-year renewal options• Can be subleased by the operator• $21 per sq. ft. base rental rate (NNN)• Approx.$7.50-$8.00 per sq. ft. Operating Cost

• Taxes, insurance, maintenance and repair costs, electricity, fuel, water, sewer, janitorial, landscaping, etc...

• Approx. annualized rental budget of $164,000• An operator will be selected to assist with the development of the

space6Confidential

Recommendation• Request approval from the VBDA to allow the VBDA

Chair to enter into a lease agreement for the purpose of developing a Bio Accelerator space to support the VaBeachBio industry sector initiative.

• An operator agreement will be requested separately.

7Confidential

Questions?

8Confidential

• Virginia Beach is the most populous City in Virginia.• Population of approximately 450,000.

• Part of the Coastal Virginia/Hampton Roads metro region• Population of 1.8 million.

•Home to 86,000 Active-Duty Military personnel• All branches of the military are represented in our region• Also home to more than 200,000 Veterans

•More than 100,000 college students in the region• Anchored by 8 major Universities

•Strong economy traditionally known for defense and tourism.

About Virginia Beach, VA

Connecting Europe to the USA

Virginia Beach Innovation Park

Bio Corridor

Princess Anne Commons Bio Corridor

Sentara Princess Anne

Hospital

LifeNet Health HQ & Regenerative

Medicine Institute

Innovation Park

TCC Health Professions Center /VABeachBio

Accelerator

Operation Smile

CHKD Sports

MedicineMedical Facilities

of America

CHKD Surgery Center

ODU | NSU Higher

Education Center

Landstown High School

STEM Academy

Tidewater Community College & Advanced Technology Center

12

Bio Corridor Assets

Operation Smile World Headquarters

TCC Regional Health Professions Center

LifeNet Health HQ & Regenerative Medicine Institute

Sentara Princess Anne Hospital13

https://www.youtube.com/watch?v=WsEgqOJWLtw

Areas of FocusBased on the market assessment, Virginia Beach is ideally positioned for companies specializing in the following fields:

14Metabolic Syndrome

VABeachBio Innovation Challenge

15

What is it? A business plan and start-up challenge featuring inventions focused on veteran related illnesses.

Challenge Goal: Boost the Virginia Beach ecosystem by launching new startups with knowledge-based jobs.

Challenge Outcome: 20+ Veteran health-focused companies planted in Virginia Beach.

Innovation Challenge: Winners

16

Company Category Location of Origin2E1B Air/Energy Norfolk, VABreathe Better Air/Energy Juarez, MexicoEcogreen Toxicology Solutions Air/Energy New York, NYAirBritt Two Devices Virginia Beach, VACurie CT Devices Virginia Beach, VAGlucose Revival Devices Spokane, WAMacroDetect Devices New York, NYTrue Bearing Diagnostics Devices Washington, D.C.AAYU High Tech Venice, FLAteios High Tech San Diego, CAMushin Solutions High Tech Richmond, VASancura Biotechnologies High Tech Washington, D.C.SCIX High Tech Tampa, FLSmartBridge Health High Tech Washington, D.C.East Coast Neuro Neuro Blacksburg, VAHome ProTherapy Neuro Virginia Beach, VAJ&J Healthcare Services Neuro Virginia Beach, VALight Switch Bio Therapeutics Richmond, VANovelus Biotechnology Therapeutics Silicon Valley, CARVALA BioMed Therapeutics Los Angeles, CA

Virginia Beach Development Authority

August 20, 2019

Confidential

Pat Larabee, President, Facility Logix

Lynn Cooper, Project Management Services Director, Facility Logix

Disclosure

Confidential

Planning Consultation AgreementA & E, Construction, and Equipment Purchase/Lease

AgreementOperator Agreement

3 Agreements

Confidential

Flat fee of $76,300 for 7 months of service ($10,900/month)

Planning

Programming

Leasing and fit up of the Bio Accelerator lab space

Space design

We would execute this agreement concurrently with the execution of the leased space agreement (5,706 sq. ft. in Convergence II). Should be within the next few months

Straight pass through on expenses (travel) of approx. $12,000

They estimate that the space would be ready in approx. 10 months… we are pushing for a more aggressive schedule of 5 months

Consulting Service Agreement Terms

Confidential

They would act as general contractor and manage the construction and associated costs of the space building-out and coordinate those efforts with the building owner

They would also procure and manage the lab equipment within the space

A & E, Construction, and Equipment Purchase/Lease Agreement

Confidential

They would manage the ongoing operation of the accelerator space on our behalf

They could also operate a virtual accelerator model (a connection portal) West coast and international companies interested

There will be a person on site, in a part time capacity on the front end until it is fully operational and scaled up from there

This cost has not yet been identified

Operator Agreement

Confidential

Questions?

Confidential

LANDSCAPE RESERVATION

75' - 0"

CO

RP

OR

ATE

LA

ND

ING

PK

WY

.

PHASE I

DATA CENTER

PHASE II

CABLE LANDING

STATION

SECURED SCREEN-ENCLOSED / COVERED HVAC SERVICE YARD

SECURED SCREEN-ENCLOSED / COVERED HVAC SERVICE YARD

SERVICE PARKING

LOADING

PROPERTY LINE

PR

OP

ER

TY L

INE

PR

OP

ER

TY L

INE

FENCE

FENCE

FENCE

FEN

CE

GENERATORS

GENERATORS

TRANSFORMER

SERVICE DRIVE

P.O.E.

P.O.E.

P.O.E.

P.O.E.

TRANSFORMER

; A PROFESSIONAL CORPORATION, NORFOLK VIRGINIA. THE USE OF THIS DOCUMENT AND/OR DESIGN IN WHOLE OR IN PART IS STRICTLY PROHIBITED WITHOUT EXPRESS WRITTEN CONSENT, COPYRIGHT 2018.

G L O B A L I N X

CORPORATE LANDING PARKWAY, VIRGINIA BEACH, VIRGINIA

N.T.S.

CONCEPTUAL SITE PLAN

PARKING:TOTAL SPACES: 4

CLS AND ALL ASSOCIATED STRUCTURES ARE DESIGNED

TO WITHSTAND HURRICANES UP TO CATEGORY IV PHASE I (DATA CENTER): 10,400 SQ.FT.

PHASE II (CABLE LANDING STATION) 22,950 SQ.FT.

BUILDING STATISTICS:

6

HC HC

HC

HC

P H A S E II

08- -2019

- Screen with Landscaping

w/sound enclosures

Masonry Wall 16'h

Concrete Wall 22'h

8'h SecuredEnclosure

14

A2o ARCHITECTS, LLCTHIS DOCUMENT IS THE SOLE PROPERTY OF

ran

Snapshot

7,400 SF

DATA 'A'7,400 SF

DATA 'B'

1,421 SF

BATTERY1,422 SF

BATTERY

528 SF

ELECTRICAL

ROOM

1,080 SF

RECEIVING COVERED

LOADING

GENERATORS

RECEPTION

SERVER W/M

OFFICEOFFICE

CTRL. BCTRL. A

BREAK

MEN'S

JAN.

MECH.

P.O.E. 'A1'P.O.E. 'A2' P.O.E. 'B2'

P.O.E. 'B1'

CLOS.

TRAINING /

CONF.

FIBER

WOMEN'S DD

EE

02

02

03

03

01

01

04

04

05

05

07

07

06

06

08

08

CC

BB

AA

FF

26' -

9"

26' -

9"

26' -

9"

124'

- 0"

30' - 8" 30' - 8" 30' - 8" 33' - 6" 30' - 8" 30' - 8" 30' - 8"

217' - 6"

CRAC CRAC CRAC CRAC CRAC CRAC CRAC CRAC CRAC CRAC

CRAC CRAC CRAC CRAC CRAC CRAC CRAC CRAC CRAC CRAC

CR

AC

CR

AC

CR

AC

CR

AC

80' -

3"

22' -

7"

21' -

1"

CONDENSER

EQUIPMENT YARD

CONDENSER

EQUIPMENT YARD

5'-0" h concrete or reinforced

masonry protection wall @

condenser equipment yard, typ.

5'-0" h concrete or reinforced

masonry protection wall @

condenser equipment yard, typ.


Scale: 3/32" = 1'-0"

G L O B A L I N X


CONCEPTUAL FLOOR PLAN24,440 SQ. FT.

Structure:

- Steel columns & beams

- Structural metal deck / concrete roof construction

Floor:

- 6" reinforced concrete slab on grade, 1'-6" depressed at data

centers for raised floor to provide a flush condition with finished

floor

Roof:

- Rigid insulation (r-30), mechanically attached / fully adhered

- Fully adhered 60 mil single ply membrane roof assembly

Exterior Walls:

- Precast concrete panels w/ thin brick or hardened reinforced

masonry wall with brick veneer

Interior Walls:

- Precast concrete (walls surrounding data center / battery rooms)

w/ furring channels / gwb at office spaces (control rooms,

offices, etc.)

- 3 5/8" / 6" metal studs w/ 5/8" gwb both sides

Exterior Glazing:

- Structural impact-resistant insulated glazing assembly

- Recessed hurricane shutters

Fire Suppression:

- As required by code and other requirements

- Risk category IV

- Hurricane category V

(see attached documentation)

Building Assemblies:

Building Information:

P H A S E II

08- -2019


14

1ST FLOOR+0' - 0" A.F.F.

T.O. HIGH PARAPET+22' - 0" A.F.F.

T.O. LOW PARAPET+14' - 0" A.F.F.










A

B D

C


Scale: As indicated

G L O B A L I N X


A - FRONT ELEVATION

C - REAR ELEVATION

B - LEFT SIDE ELEVATION

D - RIGHT SIDE ELEVATION KEY PLAN

Structure:

- Steel columns & beams

- Structural metal deck / concrete roof construction

Floor:

- 6" reinforced concrete slab on grade, 1'-6" depressed at data

centers for raised floor to provide a flush condition with finished

floor

Roof:

- Rigid insulation (r-30), mechanically attached / fully adhered

- Fully adhered 60 mil single ply membrane roof assembly

Exterior Walls:

- Precast concrete panels w/ thin brick or hardened reinforced

masonry wall with brick veneer

Interior Walls:

- Precast concrete (walls surrounding data center / battery rooms)

w/ furring channels / gwb at office spaces (control rooms,

offices, etc.)

- 3 5/8" / 6" metal studs w/ 5/8" gwb both sides

Exterior Glazing:

- Structural impact-resistant insulated glazing assembly

- Recessed hurricane shutters

Fire Suppression:

- As required by code and other requirements

- Risk category IV

- Hurricane category V

Building Assemblies:

Building Information:

Precast Concrete Panel with thin brick or with brick veneerBrick to match existing building - Typ.

Structural impact resistant glazing assembly - Typical

Precast Concrete Panel System - Typical







08- -2019

P H A S E II

Structural impact resistant glazing assembly - Typical

Structural impact resistant glazingassembly - Typical

Any rooftop equipment will be screened, or positioned, from view ofthe Corporate Landing Parkway right of way

Glazing will have a tint or reflectance to obscure visibility from the outside

- clear anodized

14


London Bridge Commerce CenterLand Development

Virginia Beach Development Authority

Open Session

August 20, 2019

London Bridge Commerce Center

• Location: London Bridge Rd. at Interstate 264

• 18.24 +/- acres

• Owned by the City of Virginia Beach

• Zoned I-1

• Navy restrictive easements in place

• Requires compatible uses within the NAS Oceana accident potential zone 1 (APZ-1)

APZ-1

APZ-2

Developer Selected

• London Bridge Development LLC✓Proposed use: building between 180,000 and 260,000 sq, ft, of new

commercial space ( 5 to 10 buildings) with tenants that meet Navy restrictions

✓Offer for Land: $1.824 million

✓Purchaser agrees to prohibition on outdoor storage

✓Purchaser agrees to improved facade facing Interstate 264

Activities Completed and Planned

✓City Council voted property conveyance to VBDA: February 2015

✓Presented to VBDA closed session in July 2019

✓OLLUC meeting recommended approval on August 5, 2019

✓Request for VBDA approval to complete negotiation of Development

Agreement at August 20, 2019 meeting and continue to move forward on the

sale and development of the property

PROJECT SUMMARYVirginia Beach Development

AuthorityAugust 20, 2019

Disclosures

Real Estate Broker - Colliers

Legal Services: Wilcox & Savage, PC

Accounting – KPMG

Property Owner – Olympia Development

Project Summary

Convergence:

Subsidiary of MAP Communications – 29 locations

Virtual receptionists

Total square feet: 5,000 sq.ft.

FFE – $150,000

Hiring 60 FTE

Starting Salary - $36,400

Hampton Roads Workforce Council Regional Workforce Support:

OJT Program – Up to $5,000 wage reimbursement for eligible new hires up to max of 5 per employer – additional can be authorized

IWT Program – 50% reimbursement of cost for 3rd party training of eligible employees. Training must result in industry recognized credential.

Customized Training – 50% reimbursement of cost for 3rd party training of eligible new hires. Training must result in industry recognized credential. Employer commits to hiring those who successfully complete training.

Recruiting Assistance – With VAWC registration, HRWC can assist with identifying candidates, pre-screening, and customized hiring events.

Recommendation $25,000 - EDIP Part “A”

Based on hiring 60 FTE’s

Average salary of $36,400

QUESTIONS?

Documents

VBDA Monthly Cash Flow...Ending Cash held by VBDA $4,806,535 PLUS: EDIP and other Receivables $10,465,358 LESS: Payables and Commitments $11,444,531 Ending Available Funding $3,827,362