Laserfiche WebLink
182 <br /> <br /> Mr. George Ray, Director of Economic Development, <br />explained that in 1981 industrial development bonds were <br />approved for the construction of Safeway in Barracks Road <br />Shopping Center and Safeway is now seeking to refinance due <br />to substantially reduced interest rates. Mr. Ray stated that <br />the Charlottesville Industrial Development Authority (CIDA) <br />has approved the refinancing and recommended Council <br />approval. <br /> <br /> Ms. Slaughter questioned whether Safeway had an expanded <br />affirmative action plan beyond the policy included in the <br />application. <br /> <br /> Mr. Dennis Jones, representing Safeway, explained that <br />Safeway has a lengthy affirmative action plan which can be <br />made available, but the policy was thought to be adequate for <br />inclusion in the application. <br /> <br /> Responding to a question from Ms. Slaughter, Mr. Gary <br />Coles, Assistant Manager of the Barracks Road Safeway,. stated <br />that of the 61 employees, fourteen are black, one is Asian, <br />and 23 are female. Mr. Coles also stated that there is a <br />black assistant manager and two black female department <br />heads. <br /> <br /> Mr. Toscano questioned whether the savings Safeway would <br />realize from the refinancing would be reinvested in local <br />Safeway stores. <br /> <br /> Mr. Jones stated that he was uncertain about where the <br />savings would be invested, but some stores are pooled <br />together in certain areas to balance and he thought the money <br />might go directly back to the store for which the bonds were <br />issued. <br /> <br /> Mr. Toscano stated that he.would like to see Safeway use <br />the savings to help the River Road Safeway and recommended <br />that it be stressed to Safeway that capital investment in a <br />locality is part of the reason for the issuance of industrial <br />development bonds. <br /> <br /> Ms. Waters recommended that the Mayor write a letter to <br />Safeway encouraging them to reinvest the savings locally. <br /> <br /> Responding to a question from Ms. Waters, Mr. Ray stated <br />that Kroger and Giant Food Stores have also received <br />industrial development bond financing and may be requesting <br />similar refinancing. _ <br /> <br /> Mr. Bob Brugh, a resident of Albemarle County, stated <br />that Council should review the criteria for issuance of bonds <br />and, while he has nothing against Safeway Stores, he does not <br />think they meet the intent of bond financing. <br /> <br /> Mr. Toscano stated that if this was an original request <br />for industrial development bond financing he might oppose it <br />since he felt use of these bonds for supermarkets was not <br />necessarily their best use. He continued that since this was <br />a refinancing, and Safeway qualified under the bond <br />guidelines, he would support the resolution. Mr. Toscano <br />added that no local dollars are involved in the financing. <br /> <br /> Mr. Hendrix noted that sales tax generated from the <br />grocery stores in the City help finance City services. <br /> <br /> On motion by Mr. Toscano, seconded by Ms. Slaughter, <br />Council unanimously approved industrial development bond <br />refinancing for Safeway. <br /> <br /> WHEREAS, the Industrial Development Authority of the <br />City of Charlottesville, Virginia ("Authority"), has <br /> <br /> <br />