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Home My WebLink About092606 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?