Title
Resolution to Approve the Governor's Agriculture & Forestry Industries Development Fund Grant and Performance Agreement Among the Virginia Department of Agriculture and Consumer Services; the City of Hampton, Virginia; the Economic Development Authority of the City of Hampton, Virginia; and L.D. Amory and Company Incorporated and any Related Documents and to Amend the City Council Approved Fiscal Year 2025 Budget to Appropriate the Governor’s Agriculture & Forestry Industries Development Fund - Blue Catfish Processing, Flash Freezing, and Infrastructure Grant Program Award for the L.D. Amory and Company Incorporated’s Project to Increase Processing Capacity at its Facility in the City of Hampton
Purpose
PURPOSE/BACKGROUND:
See Discussion.
Discussion:
Economic Development staff has worked very closely with L.D. Amory and Company Incorporated (the “Company”) to apply for and receive a grant from the state under the from the Governor’s Agriculture & Forestry Industries Development Fund (AFID) - Blue Catfish Processing, Flash Freezing, and Infrastructure Grant Program (the “Blue Catfish Grant”). The grant funds will support the Company’s implementation of a modern quick freezer and essential packing equipment that will allow the Company to increase processing capacity at its facility located in the City of Hampton. The award from the state AFID grant Fund to the City is $247,038.00, and the Economic Development Authority of the City of Hampton, Virginia (the “Hampton EDA”) will serve as a pass-through to the Company. The Hampton EDA will be responsible for administering the grant and monitoring the Company’s performance as defined under the Grant and Performance Agreement.
The project will entail a capital expenditure of approximately $244,038.00 to be invested in machinery and equipment and approximately $3,000.00 to be invested in training and operations. In addition, the project is anticipated to create a minimum of 8 new full-time jobs and the doubling of the Company’s Blue Catfish processing capacity.
The Economic Development Authority will consider this item at its January 21, 2025 meeting.
Impact:
The action requested of Council will lead to the creation of additional tax revenue and economic activity resulting from Amory Seafood’s increased blue catfish processing capacity.
Recommendation:
Approve the Resolution.
Body
WHEREAS, the City of Hampton’s Economic Development Department staff worked closely with L.D. Amory and Company Incorporated (“Amory Seafood”), a Hampton-based company operated by the same family for four generations, to apply for a grant from the Governor’s Agriculture & Forestry Industries Development Fund - Blue Catfish Processing, Flash Freezing, and Infrastructure Grant Program;
WHEREAS, the Governor of Virginia announced on October 20, 2024 that Amory Seafood, through the City of Hampton (the “City”), had been awarded a Governor’s Agriculture & Forestry Industries Development Fund grant in the amount of $247,038.00 through the Blue Catfish Processing, Flash Freezing, and Infrastructure Grant Program to allow Amory Seafood to increase its processing capacity and purchase more blue catfish from local watermen, supporting economic growth (the “AFID Award”);
WHEREAS, the AFID Award does not require local match;
WHEREAS, the AFID Award is for the period of November 1, 2024 to October 31, 2026;
WHEREAS, the Economic Development Authority of the City of Hampton, Virginia (the “EDA”) shall serve as the pass-through entity to provide the AFID Award to Amory Seafood and monitor Amory Seafood’s performance with respect to the AFID Award;
WHEREAS, further details regarding the AFID Award and its management are to be memorialized through a Governor’s Agriculture & Forestry Industries Development Fund Grant and Performance Agreement among the Virginia Department of Agriculture and Consumer Services; the City; the EDA; and Amory Seafood (the “AFID Grant Agreement”);
WHEREAS, Amory Seafood shall utilize approximately $244,038.00 of the award to invest in machinery and equipment and approximately $3,000.00 of the award for training and operations; and anticipates the creation of 8 new full-time jobs; and
WHEREAS, the stimulation of the new tax revenue and economic activity to be generated by the activities of Amory Seafood under the AFID Grant Agreement constitutes a valid public purpose for the expenditure of public funds.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Hampton, Virginia that it hereby amends its Fiscal Year 2025 Council Approved Budget to accept and appropriate the Governor’s Agriculture & Forestry Industries Development Fund - Blue Catfish Processing, Flash Freezing, and Infrastructure Grant Program award in the amount of $247,038.00 (the “AFID Award”), and any related supplemental funding by the Virginia Department of Agriculture and Consumer Services to the Economic Development Fund;
BE IT FURTHER RESOLVED that the City Council authorizes the City Manager, or her authorized designee, to take any and all actions necessary to implement this AFID Award and to carry out the purposes of this Resolution, including, but not limited to, the execution of the AFID Grant Agreement, subject to approval of the City Attorney.