092606 BiznetPresentation provided to City Council
September 26, 2006
BizNetProject Status
Terry Jenkins, Human Services
Martha McClees, Community Services Board
Sharon Martin, BizNet, Inc.
Greg Dragas, VB Community Development Corporation
Chairs of the Boards
•Community Services Board (CSB)
–Martha McClees
•BizNet
–Sharon Martin
•Virginia Beach Community Development
Corporation (VBCDC)
–Greg Dragas
2
Organizational Responsibility
VBCDC
Ultimate Goal?
City
BizNet
Government
3
The Ultimate Goal?
BizNetVillage!
4
Community Services Board
Martha McClees
•Appointed by City Council
•Review and evaluate programs; advise City
Council and coordinate with City Manager
5
Your CSB Members
•Martha McClees, Pres.•Rev. Irvin Knight
•Mary Almaguer•MelvaMartin
•Dolores Bartel, Secretary•Donna Morris, Vice-Chair
•Michael Clark•M. J. Nero, Treasurer
•Debra Dear-Rutecki•Madelyn Reass
•Dr. T. Roy Jarrett•Rev. Stanley Sawyer
•Dr. Raymond Kirby•Helen Shropshire
6
CSB’sRole
•Concerns regarding medically fragile persons
with mental retardation living with aging parents
•Increased waiting lists while state facilities
continue to decrease
•Partnership with BizNetand VBCDC so that all
community resources are used
7
What this Means…
•Twenty-four individuals will be served in a 24/7
facility designed to meet their unique needs
•Families will be involved in selecting furnishings
•During the day, consumers will participate in off-
site activities including SkillQuest
8
What this Means (cont’d)
•Without the help of other departments, the City
Manager and your approval of the use of the
land, there would be no project
•We will have a facility that we can be proud of
9
BizNet, Inc. –The Organization
Sharon Martin
10
BizNet, Inc. –The Organization
All Volunteer
Private
Non-profit
Established in 1993
11
BizNet, Inc. –The Organization
•Mission
–Promote development of housing
opportunities for Virginia Beach residents with
developmental disabilities.
12
BizNet, Inc. –The Organization
•Major Accomplishments:
–Ownership and management of
•Two townhouses
•a single family dwelling
•a duplex
–Provide a range of services for 17 adults
–Fundraising activities –helped facilitate development
of housing for persons with disabilities
13
BizNetBoard of Directors
•Sharon Martin, President•Richard Murphy
•Dr. Alan Bartel•Dr. Tony Thomas
•Ed Clowes•John Waller, Sr.
•Jerry Lake•Karen Waller
•Jeff Loeb•Rob Weber
•Bob Miller
14
Kentucky Avenue ICF/MR
15
BizNet’sRole
•Sharing expertise on special needs of the
population
•Planning and architectural design of project
•Fund raising for specialized equipment
16
BizNetContributors
Norfolk Marks
FoundationResources
Virginia
Kiwanis
Beach
Foundation
Community
Organizations
KOVAR
Order of
Individual
Alhambara
Citizens
17
Next Fundraising Goals
•Auxiliary Power System
•Appliances
•Furniture
18
How the Community Can Help
•Purchase a brick paver-$200
•Purchase a leaf -$250 orflower -$500
from the giving tree
•Purchase a room -$5,000-$10,000
19
Greg Dragas
20
Virginia Beach Community
Development Corporation
•Created in 1985 by the City of Virginia Beach
City Council
•Board of Directors appointed by the City Council
•501 (c)(3) nonprofit corporation
Purpose:
Provide housing opportunities for low-and
moderate-income families and assist City
in neighborhood revitalization
21
VBCDC Board of Directors
•Greg Dragas, PresidentEngineer
•Barbara Clevenger, Vice-PresidentRetired Bookkeeper
•Carol Hare, Secretary/TreasurerAttorney
•Elsie Barnes, DirectorProfessor
•Brian Camden, DirectorConstruction Manager
•Ann Crenshaw, DirectorAttorney
•Christopher Fanney, DirectorReverse Mortgage Lender
•Denise Howard, DirectorBanker
•Helen Moore, DirectorRetired School Principal
•Emmanuel Voces, DirectorAttorney
•Robert Templeton, DirectorLoan Officer
22
Who Do We Serve?
•Low-moderate income families, elderly and
disabled
•Homeless families and individuals
•2/3 of tenants make < $30,150/year
•Median income of tenants is $19,590 –40% less
than areas median income for family of 3
•75% of tenants are working families
•25% not working –majority are disabled/elderly
23
VBCDC’sRole
•Project Owner
•Project Developer
•Property Manager
•Secured Construction Financing
•Secured Permanent Financing and Project
Grants
24
Development Budget-Uses of Funds
Site work$268,000
Construction$2,773,000
Pre-Development Costs$27,000
Development Costs:
Contingency$195,000
Architect’s Fees$22,000
Construction Interest$44,000
Other Development Costs$175,000
Developer’s Fee$146,000
Total Uses$3,650,000
25
Development Budget-Source of
Funds
Land donated by the City of Virginia Beach
City DHS Grant$1,400,000
City of Virginia Beach DHNP Grant$770,000
State of Virginia DHCD Grant$500,000
Federal Home Loan Bank Grant$155,000
BizNet, Inc. Fundraising$147,000
VBCDC Contribution$20,000
VHDA Grant$10,000
VHDA SPARC Loan (3.7%, 35 years)$648,000
Total Sources$3,650,000
26
VBCDC-Annual Operating Budget
Income:
Rent income pd by DHS ($3,190/bldg/mo)$76,530
?
VBCDC Operating Subsidy$12,000
?
Total Income$88,530
Expenses:
Personnel/Benefits$13,200
?
Indirect Costs$4,700
?
Property Maintenance and Replacements$14,360
?
Trash Removal/Lawn Maintenance$6,600
?
Termite/Pest Control$1,200
?
Property Insurance$9,000
?
Utilities (street lights)$1,200
?
Debt Service$33,200
?
Required Replacement Reserve$4,800
?
27
Total Expenses$88,530
Project Status
July 2006Project construction funding secured
August 2006Construction work began
October 2006Groundbreaking Ceremony
July 2007Expected Completion Date
Fall 2007Residents begin to move in
28
BizNet
Groundbreaking Ceremony
Tuesday, October 31
11:00 a.m.
2756 West Neck Road
29
BizNetProject Status
Questions?