Economic Development Authority

Waynesboro

Economic Development Authority

Meeting Agenda

May 14, 2021

8:00 a.m. VIA ZOOM 1. Welcome

2. Presentation by Old Dominion Hemp (Page 2) 3. Approval of Minutes (Page 18)

4. Financial Report (Page 20) a. April Dashboard b. May Dashboard 5. Committee Reports

a. Audit b. Nominating

i. Recommendation for FY 22 officers ii. Update on filling unexpired term 6. Monthly updates:

a. Downtown Redevelopment b. Tourism

c. Industrial Properties 7. Other Business / Discussion

8. Correspondence and Communication of the Chairman a. VMNH Update event: May 19, 2021 2pm b. Next meeting: June 11, 2021

c. Chamber Annual ED breakfast: June 15, 2021 9. Consider holding a closed meeting (as needed)

Public access via internet to this meeting can be obtained by contacting

[email protected] before 12pm Thursday, May 13, 2021. You will receive a return email with instructions to join the Zoom meeting.

Vision

Lead the United States in industrial hemp hurd supply

and hemp-based agricultural product distribution.

$4 billion -> $27 billion

2018 - 2025

Drivers:

•

Demand for sustainable products by consumer &

industry

•

Legalization of hemp cultivation

•

Offers improvements in agriculture applications, e.g.

animal feed and bedding

•

Expanding utilization in building, packaging and

industrial materials manufacturing

•

Financial, social and environmental benefits across

chain: grower→processor→distributor→consumer

Why HEMP?

Why start with HEMP Animal Bedding?

Total Addressable Market - $5.6

Billion

U.S. Horse Bedding: - $4 Billion

9.2 million horses in the U.S

1.5 million horses in Mid-Atl.

U.S. Poultry Bedding: - $1 Billion

Commercial - 400 million

Commercial broilers - 9 billion

Backyard chickens: - 2 million

U.S. Small Animal Bedding: - $576

Million

6.7 million U.S. households w/ small

animals

More healthy, economical and attractive

Low Dust

-

Many wood products are high in dust or break-down into a dust.

Economical & Sustainable

-

Hemp bedding reduces labor, removal costs and is better for the environment.

Biodegrades quickly

-

can be spread in fields without “burning” grass, unlike high acidity wood products.

High Absorbency

-

Holds 4x its weight in water, (75% cellulose vs. 35%). Wood: saturation before absorption.

Reduces Odor/Ammonia

-

Beta tests suggest superior ammonia/odor reduction.

Coverage and Cost

-

Many bags of wood shavings cover 5.5 cu ft. and cost $6.25 per bag. 3 bags of wood

shavings are required ($18.75) versus 1 bale of hemp ($20.00). Hemp has a clumping aspect and removal of

soiled material is required, lasting longer than pine.

HEMP vs. WOOD – Cost Comparison

Ex: 1 month - 12x12 stall

Bedding Cost at equal stall coverage volume:

4-5 bales as base, adding 1 bale every 7 days - 8 bales @ *$20.00=$160.00

8 bales as base – adding 6 bales each week - 26 bags @ $6.50 = $169.00

*Denotes with shipping - Future cost will be $16-$17 landed. Show Graph with future?Savings?

HEMP

33# bales

HEMP

Price/bale

Hemp

PINE

# bales

PINE

Price

PINE

_HEMP

SAVINGS

Bedding

8

$20.00

$160.00

26

$6.50

$169.00

$9.00

Labor (per

stall)

$630

$1260

$630.00

Disposal

$45

$200

$155.00

Total

$835.00

$1655.00

$794.00

Why Old Dominion Hemp?

Exclusive Supply

Industry Leader

5 Years Brand Loyalty

Poised to Scale

●

Negotiating EXCLUSIVE supply agreements with all incoming US

processors.

●

Double sales in 2019 to 2020, from $295K to $678K

●

Largest hemp bedding supplier in the $5.6B US Animal Bedding Market

●

Recognized company & brand

●

Unique anchor customer for industrial hemp hurd processors

●

Large, repeat, and referring customer base

●

Retailers and processors are requesting ODH contracts

●

Freight, warehouse and professional partnerships established

●

Standardized contracts and customer management procedures

“ODH

hemp bedding

is amazing. So absorbent and dust free. Lasts way longer than

shavings and easier to clean. Great product and great company to work with.”

ODH Market Entry

Expanding Retail Partnerships

●

Southern States (1200 total dealers)

●

Retail distribution in 12 states

●

New Country Organics (220 dealers, sells ODH Nationwide)

●

Small animal market- retail and direct

Customers who gain obvious, measurable and irreplaceable value.

Who do we target?

Equestrian and poultry bedding buyers with at least $10k monthly volume, such as large

animal facilities, Southern States, Northwinds Thoroughbred, Chic-fil-a, Tyson and Petco.

Why are customers repeatedly buying ODH?

Financial  ROI:

Reduced

purchase cost/unit/week (stall, coup, barn). 

Reduced

labor expense. 

Reduced

disposal expense. 

Health return:

Low dust

(respiratory improvement / veterinarian recommended). 

Reduced odor (believed to be naturally antimicrobial)

.

Social return:

Carbon

credits and sequestration. 

Reduced

waste & toxicity. 

Early adopter

benefits. 

US Agri-business

supporter

.

Growing Revenue Segments

Beta trials, product development and/or early sales underway in the following

segments:

● Paper Product Manufacturing -

$275B by 2025 - Grandview Research

● Bio-Plastics

-

$19B by 2027

-

GlobeNewsWire

●

Building Materials: Hempcrete -

$26B by 2025 - MarketsandMarkets

● Landscaping / Gardening / Composting -

$9.2B by 2025 - Research and

Current Team

H. M. Phipps,

Founder & CEO

Director, VA Hemp Coalition. Experienced service

industry, multi-location manager of over 200+

employees. Annual 100% growth ODH.

Staff:

Warehouse Manager Warehouse Labor

Bookkeeper/Data Management In-state Delivery Team

Event Sales Associate

Corin Phipps, Account Supervisor

Over $1 million annual sales for 10+ years as

sales associate for Robertson Electric.

20+ years of sales and customer service

Preparing to Onboard:

Southwest Account Manager

Midwest Account Manager

ADVISORS

Christopher M. Vigil: Manager, Global Logistics, Distribution Operations - Starbucks Coffee Company

Rebecca

Haydock

:

Director

,

Central VA SBDC, investor with 20+ years growing and advising early-stage companies.

Brian Craddock: Attorney, Hemp Specialty FLORA-PETTIT PC

Eric Bonardi,

Director of Sales - Pet Products

FOODIFY, Director Of Sales & Marketing.

Grew sales greater than 10%+ which was double digit

sales growth year over year for 14 years.

Paula Montegue, Office Manager

15+ years of customer service, AR/AP and

marketing.

Fiber & Hurd (wood)

Grown biomass =

fiber and hurd

Processor separates,

cuts & cleans

Harvested grain

_{Produces oil & seed cake}

Wholesale and retail:

ODH hurd 33# bags

6.6# bag - launched 2020

Launch 2021

1)

Organic seed cake supplements*

2)

Wholesale organic seed cake

Primary Market

= Animal Bedding

Secondary Markets

-Raw Materials

-Plastic/Paper/Hempcrete

-Animal Goods; Feed development

*

Grain (seed)

Fiber HURD

SEED CAKE,

animal

5+ Years Building IH Bedding Business

Processor

BAGGED HURD

SEED CAKE

FIBER

CURRENT: EU hemp hurd IMPORTED pre-packed, to Waynesboro VA warehouse.

2021: Domestic supply direct shipped to large accounts and/or ODH warehouse.

Grower

BIOMASS

ODH’s Retailers

& Commercial

Consumers

Warehouse /

Fulfillment Center

pallet fulfillment

New Market

Users

Plastic/Paper/

Hempcrete

Sponsored

Influencers

Direct to

Consumer

Our nationwide product roll-out

33lb bag - Equine/Poultry/Large animal

6.6lb bag - Reptiles/Birds/Small Animals

1

Waynesboro Economic Development Authority Minutes of the Regular Meeting

Friday, March 12, 2021 Zoom Remote Call Members Present on Zoom: Ms. Angie Bandy

Mr. Mark Snyder Mr. George Reed Mr. Perry Fridley Ms. Mary Sullivan

Members Absent: Ms. Tami Radecke

Ms. Brenda Arkward

Others Present on Zoom: Mr. Greg Hitchin- Director of Economic Development & Tourism Ms. Stephanie Duffy- Administrative Assistant

Ms. Jennifer Callison- Tourism & Marketing Manager Mr. Mike Hamp- City Manager

Ms. Laura Peters- The News Leader

Welcome

Mr. Fridley called the meeting to order at 8:01 AM and thanked everyone for joining the meeting remotely, then gave a reminder that the EDA was authorized to meet electronically by City ordinance 2020-21 and State

legislation passed (an amendment to house bill 29 of 2019). EDA members and staff are attending remotely from home and office and the meeting is being recorded for minute taking purposes.

Approval of Minutes

There being no changes to the minutes from the regular February 12, 2021 meeting, Mr. Reed made a motion to approve the minutes as written. The motion was seconded by Mr. Snyder and passed by unanimous vote.

Financial Report

Mr. Hitchin gave a report on the financials. There were a total of three charges to the credit card, two charges totaling $417.99 associated with the Shenandoah Beerwerks program postage and one charge of $499.95 for the Quickbooks annual update. In addition, there were three charges totaling $15.80 associated with the RLF bank auto debit program.

Ms. Sullivan made a motion to approve the financial report as presented. The motion was seconded by Ms. Bandy and passed by unanimous vote.

Committee Reports

Audit: Ms. Bandy has received the bank reconciliation reviews and with one correction has signed off on the reports for March as well as February.

Nomination: Mr. Hitchin reminded the board that a nominating committee needed to be established with at least one seat to fill and officers to be appointed.The two-member committee will have two objectives:

1. Nominate a Chairman and Vice Chairman to serve a one-year term beginning July 1, 2021. Nominations should be presented at the June 2021 regular EDA meeting.

2. Present potential candidates to serve on the EDA for a four-year term beginning September 1, 2021. Recommended candidates will be presented to City Council in July for their consideration in

2

August. The EDA has at least two openings: Mr. Fridley will have completed his term and cannot be reappointed; Ms. Arkward is eligible to be reappointed to a full four-year term.

Ms. Sullivan and Mr. Reed volunteered to serve as the committee and Mr. Fridley also said he would be glad to serve if needed. Mr. Hitchin will set up a short zoom meeting to review process and details with the nominating committee in the near future.

Monthly Updates

Downtown Redevelopment: There were no updates given.

Tourism: Ms. Callison gave updates to the group about the Reopening SAW project. This initiative is made possible by a GO Virginia grant received by the Greater Augusta Regional Tourism (GART) group. GART worked with a company called Bandwango to create the SAW (Staunton, Augusta, Waynesboro) Savings Pass. The digital passport can be found at fun.exploreSAW.com and will be part of a microsite showcasing the SAW region. To use the SAW savings pass, you simply go to the website, sign-up with your e-mail and then a link is sent, allowing you to add the icon to your smart phone’s screen. Then you simply open the icon and show the pass to the

participating businesses to redeem discounts in categories like eat, play, sip and shop. No app download is necessary. As of now, there are 36 businesses participating but others can still join. The official marketing campaign has not yet started for the program but 328 people have already signed up.

Other Business/Discussion

The group commended Augusta Health for their COVID-19 vaccination efforts. There was a question about funding for localities in the new American Rescue Plan stimulus package. Mr. Hitchin and Mr. Hamp shared that there would be funds for localities but it was not clear yet how much or for what it could be used for.

Correspondence and Communication of the Chairman

The next regular meeting is scheduled for April 9, 2021.

There being no other business to discuss, Mr. Snyder made a motion to adjourn. The motion was seconded by Mr. Reed and the meeting was adjourned at 8:17 AM.

Respectfully submitted ___/___/_____ Certified as approved ___/___/_____ ___________________________ ___________________________ Stephanie Duffy Gregory E. Hitchin

Bank Accounts Operating RLF

1 Beginning Balance $ 90,864.83 $ 40,139.28 2 Deposits $ 417.99 $ 4,088.56 3 Payments $ 2,505.49 $ 6.50 4 Interest Deposited $ 2.26 $ 1.12 5 Ending Statement Balance $ 88,779.59 $ 44,222.46 6 Outstanding Checks $

-7 Adjusted Statement Balance $ 88,779.59 $ 44,222.46 8 Reserve Accounts Expense $

-9 Checks to Approve $ 6,085.55 $ -10 Invoices Outstanding (AR) $ 7,129.30 $ -11 Actual Cash Balance $ 89,823.34 $ 44,222.46 12 Total Reserve Accounts $ 26,513.03

13 Available Balance $ 63,310.31 $ 44,222.46

Payments Pending Approval Operating RLF

14 _{Forme Properties - FG 143 N Wayne} $ 5,000.00 15 _{Revive Beauty Bar - FG 401 W Main $ 1,085.55}

16 $ -Total $ 6,085.55 $ -17 Operating RLF 18 BW 2 $ 417.99 19 _{Auto Debt $ 6.50} 20 21 22 $ -Total $

-Reserve / Budgeted Projects Budget Expense

23 Industrial Park Development $ 625,051 $ 613,776 24 CARES Renaissance Fund $ 600,000 $ 600,000 25 BeerWerks Postage $ 18,203 $ 18,203 26 Grow Waynesboro $ 20,866 $ 5,628

City Budget Façade Program Budget Expense YTD Pending Above Balance

27 Façade Grant $ 15,000 $ 1,850 $ 6,086 $ 7,064 28 _{Projects --- Completed Paid 2 Approved Not Paid 2} $ 7,064

29 _{Net Available} $ 0

Balance(inc current payments & invoices)

11,275 $ -$ -$ 15,238 $ Waynesboro Economic Development Authority

Financial Dashboard April 9, 2021 - No Meeting

Bank data as of March 31, 2021

Note: Pending Reimbursement in RLF is current month and any past due payments.

Reserve / Budgeted Projects Payments Debit Card / Cleared Payments Included

Bank Accounts Operating RLF

1 Beginning Balance $ 88,779.59 $ 44,222.46 2 Deposits $ 17,129.30 $ 4,788.34 3 Payments $ 6,503.54 $ 13.30 4 Interest Deposited $ 2.50 $ 1.25 5 Ending Statement Balance $ 99,407.85 $ 48,998.75 6 Outstanding Checks $

-7 Adjusted Statement Balance $ 99,407.85 $ 48,998.75 8 Reserve Accounts Expense $ 6,140.00

9 Checks to Approve $ 7,353.67 $ -10 Invoices Outstanding (AR) $ 4,853.67 $ -11 Actual Cash Balance $ 96,907.85 $ 48,998.75 12 Total Reserve Accounts $ 36,416.78

13 Available Balance $ 60,491.07 $ 48,998.75

Payments Pending Approval Operating RLF

14 _{Stone Soup Façade 150 Race} $ 2,353.67 15 _{SCCF (Start Up Shen Val) $ 5,000.00}

16 $

-Total $ 7,353.67 $

-17 SCCF (Start Up Shen Val) 1/2 ea GW and $ 5,000.00 Operating RLF

18 Converge Local (W@W) $ 1,140.00 BW 2 $ 417.99

19 _{Auto Debt (A and M) $ 13.30}

20 21

22 $

-Total $ 6,140.00

Reserve / Budgeted Projects Budget Expense

23 Industrial Park Development $ 630,051 $ 613,776 24 CARES Renaissance Fund $ 600,000 $ 600,000 25 BeerWerks Postage $ 18,421 $ 18,421 26 Grow Waynesboro $ 30,866 $ 10,724

City Budget Façade Program Budget Expense YTD Pending Above Balance

27 Façade Grant $ 15,000 $ 7,937 $ 2,353.67 $ 4,710 28 _{Projects --- Completed Paid 3 Approved Not Paid 1} $

-29 _{Net Available} $ 4,710

Waynesboro Economic Development Authority Financial Dashboard

May 14, 2021

Bank data as of April 30, 2021

Note: Pending Reimbursement in RLF is current month and any past due payments.

Reserve / Budgeted Projects Payments Debit Card / Cleared Payments Included

Balance(inc current payments & invoices)

16,275 $ -$ -$ 20,142 $ 5/10/2021