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HomeMy WebLinkAbout1995 LEDC minutesECONOMIC DEVELOPMENT CORPORATION OF THE CITY OF LANSING SPECIAL BOARD OF DIRECTOR'S MEETING MAYOR'S CONFERENCE ROOM NINTH FLOOR, LANSING CITY HALL WEDNESDAY, JANUARY 11, 1995 6:00 P.M. MEMBERS PRESENT: Robert Brockwell; David Hollister; Steven Morris; Joseph Pandy; John Petroff; William Porter, Jr.; Joseph Reid MEMBERS ABSENT: C. Patrick Babcock; Gerald Lett TEMPORARY MEMBERS PRESENT: Ed Carpenter; Jan Hayhow STAFF PRESENT: Dennis Sykes; Patricia Cook; Barbara Foreman GUESTS PRESENT: Gerald Boerner; Will Coultas; Harry Hepler; Lenora Jadun; Richard Karp; Ken Lawless; Harold Leeman; Michael O'Leary; Steve Serkaian; Kester So; Terry Terry; Kelly Thompson Chair Hollister called the meeting to order at 6:10 p.m. 1) APPROVAL OF THE DECEMBER 7, 1994 BOARD OF DIRECTOR'S MEETING MINUTES Motion - William Porter, Jr. motioned the Board to approve the December 7, 1994 Board of Director's Meeting Minutes as presented and place them on file. John Petroff seconded the motion. Yeas: Unanimous. Motion carried. 2) APPROVAL OF THE DECEMBER 15, 1994 SPECIAL BD OF DIRECTOR'S MTG MINUTES Motion - John Petroff motioned the Board to approve the December 15, 1994 Special Board of Director's Meeting Minutes as presented and place them on file. Joseph Reid seconded the motion. Yeas: Unanimous. Motion carried. 3) FINANCIAL STATEMENTS - AUGUST, 1994 Motion - Robert Brockwell motioned the Board to approve the Financial Statements (August, 1994) as presented and place them on file. John Petroff seconded the motion. Yeas: Unanimous. Motion carried. 4) DOWNTOWN LANSING, INC. - UPDATE OF 1994 MARKETING ACTIVITIES Pat Cook reminded the Board that for the past two fiscal years EDC was a match in public and private dollars for downtown marketing activities. Pat stated that she has been working with the Downtown Business ` Association, the Lansing Regional Chamber of Commerce and several City Departments to try to find a permanent source of funding for these activities. Pat further stated that it would probably be another year before permanent funding could be in place. Kelly Thompson, from Downtown Lansing, Inc., commented on some of the activities that were funded in 1994 — Holiday Promotions (Silver Bells), the Car Capitol Celebration and also promotional materials and a downtown newsletter. Will Coultas, from Lansing 2000, Inc., thanked the Board for their past support and asked for their continued support for the next fiscal year. Jan Hayhow, owner of Michigania, mentioned that several of the downtown merchants had had their most successful Christman season, largely due to the promotional activities of Downtown Lansing, Inc. Chair Hollister stated that a recommendation from the Project Policy and Finance Committee, regarding EDC's continued financial support for downtown marketing activities, would be made to the full Board at the February 1, 1995 meeting. 5) BWL — OTTAWA STATION DEVELOPMENT Joseph Pandy gave a brief overview of the Ottawa Station Development Plan, which is approximately a 35 million dollar project that could possibly be completed by 1999. Development of the Ottawa Station would include retail stores, restaurants, various "night life" activities, etc. 6) PROJECT POLICY & FINANCE COMMITTEE REPORT A) EDC ORGANIZATION CHART 1) Additional EDC Personnel Motion — Robert Brockwell motioned the Board to approve the recommendation of the Project Policy & Finance Committee to hire two Project Coordinators for the Economic Development Corporation. (One Project Coordinator would be a permanent employee of the Economic Development Corporation and one Project Coordinator would be a contract person for approximately 18 months). William Porter, Jr. seconded the motion. Yeas: Unanimous. Motion carried. Motion — Joseph Pandy motioned the Board to approve upgrading Patricia Cook's position from Development Specialist for the EDC to Economic Development Manager with a salary increase to the level of other Planning & Neighborhood Development Department Managers. John Petroff seconded the motion. Yeas: Unanimous. Motion carried. Dennis Sykes briefly explained to the Board what the responsibilities of the Project Coordinators will involve.. The contract person will be working, over the next 18 months, on the Baseball Stadium Project, the Riverfront Development Project and also working with Joe Pandy on the Board of Water & Light Project. The permanent person will be working with the Project Policy & Finance Committee on various development projects relating to the EDC Business Financing Assistance Program and also exploring new avenues of revenue for the EDC. The Board unanimously authorized the interviewing team for the Project Coordinator positions to consist of Dennis Sykes, Patricia Cook and a representative from the Lansing Regional Chamber of Commerce. B) Project Plans Pat gave a brief overview of the following projects: 1) Lowertown Lofts (Project Contact - Richard Karp) The project proposes to rehabilitate the historic structures at 1208, 1210 & 1212 Turner Street. When completed, the project shall consist of two three- bedroom apartments and one two-bedroom apartment on the second floor and three retail/commercial units on the first floor. Financing for the project is already in place. Richard Karp is asking the EDC to guarantee 1/2 of the bank financing from First of America Bank Central, which .would amount to $80,200. 2) Bare Bone, Inc. (Project Contact - Marilyn Frye) The project involves the rehabilitation of two buildings on adjacent lots at 1236 Turner Street & 306 Clinton Street. The buildings will consist of five residential units and four fully equipped studios for art -making, such as, ceramics, print -making, paper -making, letter press, painting & drawing and photography. Marilyn Frye and Carolyn Shafer are asking the EDC to finance a portion of the project in a not to exceed amount of $100,000. 3) Hepler Project (Project Contact - Harry Hepler) This project includes the renovation of the property located at 603 E. Michigan Avenue for commercial and residential use. The first floor will be commercial space and the second floor will be a one bedroom loft apartment. Harry Hepler is requesting the EDC for a loan amount not to exceed.$100,000. 4) Blue Coyote Brewing Co., Inc. (Project Contact - Harry Hepler) The project would refurbish the 8,200 square feet of warehouse space located at 113 Pere Marquette Place for use as a 280 seat brewpub - a combination brewery and restaurant. Harry Hepler and Michael O'Leary are asking the EDC for a loan in the amount of $300,000. Motion - Joseph Pandy motioned the Board to accept the recommendations of the Project Policy & Finance Committee to set a Public Hearing and move all four of the projects presented forward with approval of the Project Plans. Yeas: Unanimous. Motion carried. Kester So informed the Board that temporary additional directors were necessary on each one of these projects. Pat Cook suggested that with the Mayor's support the two current temporary EDC directors, Jan Hayhow & Ed Carpenter, be appointed to serve on these four projects as well. C) Status of Pending Projects Pat mentioned that Dimitri has secured a $50,000 loan from First of America to pay the general contractor to date. Dimitri is awaiting City Council setting a Public Hearing, which will probably be in another week. First of America has also indicated their willingness to fund an additional $50,000, which would become a first mortgage. Pat also gave the Board an update on Elbinger's Studios. Doug Elbinger is still working on an arrangement with the Taco Factory and as yet does not have a revised Project Plan. 7) OTHER BUSINESS A) Proposed Amendment to EDC Rules of Procedure - Rule 8.0 Executive Committee The proposed amendment reads as follows: THERE IS HEREBY ESTABLISHED AN EXECUTIVE COMMITTEE OF THE CORPORATION WHICH SHALL BE VESTED WITH THE AUTHORITY TO ACT ON BEHALF OF THE BOARD OF DIRECTORS ON ALL MATTERS WHEN THE BOARD OF DIRECTORS IS NOT IN SESSION. THE EXECUTIVE COMMITTEE SHALL BE COMPRISED OF THE BOARD CHAIRMAN, AN OFFICER OF THE BOARD, THE DIRECTOR OF PLANNING/NEIGHBORHOOD DEVELOPMENT AND THE ECONOMIC DEVELOPMENT MANAGER. Robert Brockwell motioned the Board to approve the amendment to the EDC Rules of Procedure as presented. John Petroff seconded the motion. Pat mentioned that any changes to the Rules of Procedure are subject to a two week public notice and therefore a vote on the amendment cannot be taken until the February 1, 1995 Board Meeting. Kester So requested that the meeting minutes reflect that any decisions made by the Executive Committee would need to be ratified and confirmed by the full Board. B) EDC Bond Project - Snell Environmental, Inc. The Board received a copy of a Resolution which authorizes Snell Environmental's request to,prepay the amount owing on their EDC Bond. Motion - Joseph Pandy motioned the Board to approve the Resolution as presented. John Petroff seconded the motion. Yeas: Unanimous. Motion carried. 8) PUBLIC COMMENT Joseph Pandy requested the Board to consider participating again this year in the Oldsmobile Classic as a Silver Patron. Chair Hollister recommended that Joe Pandy's request be referred to the Project Policy & Finance Committee for a recommendation from the Committee to be presented at the February 1, 1995 Board Meeting. Robert Brockwell supported the recommendation. 9) ADJOURNMENT Chair Hollister declared the meeting adjourned at 7:25 p.m. Minutes by B. Foreman 9, �, d 6,� Patricia A. Cook EDC Manager ECONOMIC DEVELOPMENT CORPORATION OF THE CITY OF LANSING Board of Director's Meeting Mayor's Conference Room Ninth Floor, Lansing City Hall Wednesday, February 1, 1995 6:00 P.M. L�i�.rr.�rrn r �•rsi � MEMBERS PRESENT: Robert Brockwell; David Hollister; Steven Morris; Joseph Pandy; John Petroff; William Porter Jr.; Joseph Reid MEMBERS ABSENT: C. Patrick Babcock; Gerald Lett TEMPORARY MEMBERS PRESENT: Ed Carpenter; Jan Hayhow STAFF PRESENT: Patricia A. Cook; Barbara Foreman; Dennis Sykes GUESTS PRESENT: Robert & Bonnie Bennett; Gerald Boerner; Cora Huguel;r; Lenora Jadun; Bob Johnson; Judy Kehler; Chuck Miller Chair Hollister called the meeting to order at 6:00 p.m. 1) ELECTION OF OFFICERS Motion — Joseph Pandy motioned the Board to re—nominate the current officers (David Hollister, Chair; Steven Morris, Vice—Chair; Joseph Reid, Secretary; and John Petroff, Treasurer). William Porter, Jr. seconded the motion. Yeas: Unanimous. Motion carried. Joseph Reid entered the meeting at 6:03 p.m. 2) APPROVAL OF THE JANUARY 11, '95 SPECIAL BD. OF DIRECTOR'S MTG. MINUTES Motion — John Petroff motioned the Board to approve the January 11, 1995 Special Board of Director's Meeting Minutes as presented and place them on file. William Porter, Jr. seconded the motion. Yeas: Unanimous. Motion carried. 3) FINANCIAL STATEMENTS — SEPTEMBER & OCTOBER, 1994 Motion — Joseph Pandy motioned the Board to approve the Financial Statements (September & October, 1994) as presented and place them on file. Joseph Reid seconded the motion. Yeas: Unanimous. Motion carried. Pat Cook asked the Board to approve the following modifications to the EDC FY '94/95 Budget: 1) Decrease Auto Expenses from $12,500 to $7,500 2) Decrease Meetings/Conferences from $10,000 to $3,000 3) Decrease Promotions & Dues from $8,000 to $3,000 This is a total savings of $17,000. Motion — Joseph Reid motioned the Board to approve the modifications to the EDC FY '94-95 Budget as presented. Joseph Pandy seconded the motion. Yeas: Unanimous. Motion carried. 4) PROJECT POLICY & FINANCE COMMITTEE REPORT A) LPGA — Oldsmobile Classic The Board received a copy of the Silver Patron Package for the Oldsmobile Classic which is a commitment of $22,000. Joseph Pandy mentioned to the Board that the Project Policy & Finance Committee unanimously recommends participation in the Oldsmobile Classic 195. Joe stated that he would abstain from making the motion for EDC to participate due to fact that he is the Vice—Chair of the Steering Committee for the LPGA this year. Motion — John Petroff motioned the Board to approve EDC's participation in the Oldsmobile Classic '95. Steven Morris seconded the motion. Yeas: Brockwell; Hollister; Morris; Petroff; Porter; Reid Abstain: Pandy It was suggested by Dennis Sykes that possibly it should be the discretion of the Mayor as to the individuals who will be invited to participate in the golf outing and that this participation should not include EDC Board Members. B) Downtown Lansing, Inc. Motion — Steven Morris motioned the Board to approve financial support for Downtown Lansing, Inc. in the amount of $15,000 for the period of January 1, 1995 through June 30, 1995. Robert Brockwell seconded the motion. Yeas: Unanimous. Motion carried. Dennis Sykes mentioned that he and Patricia Cook will be meeting with Kelly Thompson (Downtown Lansing, Inc.) on a regular basis as to the status of Downtown Lansing's projects. Chair Hollister suggested that Kelly Thompson be asked to attend future EDC Board Meetings to report to the full Board. C) Status of Pending Projects Pat Cook informed the Board that the Public Hearings for the five proposed EDC Business Financing Plans (Dimitri's, Lowertown Lofts, Bare Bone, Inc., Harry Hepler/Mich. Ave. and the Blue Coyote, Inc.) will be held at the February 6th Council Meeting. The projects will then be referred to the Economic Development & Intergovernmental Affairs Committee. The Project Policy and Finance Committee should have recommendations on all five projects for the full Board at the March 1st Board Meeting. Pat further informed the Board that a revised Project Plan for Elbingers Studios should be available for the Board's review at the March 1st Board Meeting. 5) OTHER BUSINESS A) Proposed Amendment to EDC Rules of Procedure —'Rule 8.0 Executive Committee ' Motion — Robert Brockwell motioned the Board to approve the Amendment to the EDC Rules of Procedure as presented. John Petroff seconded the motion. Yeas: Unanimous. Motion carried. B) Review EDC's 1994 Work Program; Support 1995 Programs Motion — Robert Brockwell motioned the Board to support the EDC Goals for 1995 as presented with one addition requested by Joseph Pandy (Item #15 — Continue to assist the Board of Water & Light's Task Force on the Ottawa Power Station development project). Steven Morris seconded the motion. Yeas: Unanimous. Motion carried. C) Resolution of Support for City's MDNR Request of Grant for Site Remediation at Baseball Site Motion — Joseph Pandy motioned the Board to encourage the City's application for Site Remediation funding through the Michigan Department of Natural Resources. John Petroff seconded the motion. Yeas: Unanimous. Motion carried. Pat Cook reminded the Board that between 40 & 50 Requests For Qualifications/Proposals for the Office Building were sent to project developers in the area. The RFQP's were due back to the EDC office Feb. 1, 1995 at 12 noon. Five area developers responded — Granger Construction Company, Clark Construction Company, the Christman Company, Eyde Development Corporation and Martin Commercial Properties. Pat stated that she would be contacting each of these companies by Friday, February 3rd, asking them to submit their proposals by February 24th for review by the Project Policy and Finance Committee. Joseph Pandy suggested that the EDC meeting time be changed from 6:00 p.m to a time during regular business hours. Motion — Joseph Reid motioned the Board to approve changing all future EDC Board Meeting times from 6:00 p.m. to 4:00 p.m. William Porter, Jr. seconded the motion. Yeas: Unanimous. Motion carried. Joseph Reid mentioned to the Board that, for the past four months, he has been working on the development of a business incubator for the City of Lansing. Joe stated that the Lansing Regional Chamber of Commerce is prepared to make a commitment to support a mentoring program for th'e business incubator. Joe further stated that the cost of a successful incubator could amount to approximately $500,000 and asked the Board to consider the Economic Development Corporation possibly funding 50% of the expense in the form of a subordinated debt obligation with interest. Joe also mentioned that he has been talking with the Dean of the Business School at Michigan State University as to the possibility of this project becoming a joint venture between MSU and the EDC. The Board was very enthusiastic about the project and agreed that it should be reviewed by the Project Policy and Finance Committee when the concept for the project has been further developed. Joe Pandy informed the Board that in relation to the Ottawa Power Station project he will be attending a seminar sponsored by the Urban Land Institute. The seminar will be in New York on March 16th & 17th '95 and is titled "Urban Entertainment Destinations". Chair Hollister requested Joe Pandy to send him complete details on the seminar. 6) PUBLIC COMMENT None. 7 ) ADJOURNMENT Chair Hollister declared the meeting adjourned at 6:45 p.m. (2, ��. &- e�O,_ 'i - Patricia A. Cook EDC Manager Minutes by B. Foreman ECONOMIC DEVELOPMENT CORPORATION OF THE CITY OF LANSING Special Board of Director's Meeting Mayor's Conference Room Ninth Floor, Lansing City Hall Wednesday, March 1, 1995 4:00 P.M. U.., .,' E ;. MEMBERS PRESENT: David Hollister; Steven Morris; Joseph Pandy; John Petroff; William Porter, Jr.; Joseph Reid MEMBERS ABSENT: C. Patrick Babcock; Robert Brockwell; Gerald Lett TEMPORARY MEMBERS PRESENT: Ed Carpenter TEMPORARY MEMBERS ABSENT: Jan Hayhow STAFF PRESENT: Patricia Cook; Barbara Foreman; Dennis Sykes GUESTS PRESENT: Gerald Boerner; Will Coultas; Dwight Ebaugh; Doug Elbinger; Harry Hepler; Lenora Jadun; Richard Karp; Judy Kehler; Bob Krupka; Jeff Kumfer; Harold Leeman; Chuck Miller; Michael O'Leary; Pat Reid; Christine Ryal; Steve Serkaian; Kester So; Debbie Stone; Terry Terry; Kelly Thompson Chair Hollister called the meeting to order at 4:15 p.m. 1) APPROVAL OF THE BOARD OF DIRECTORS MEETING MINUTES FROM FEB. 1, 1995 Motion - Joseph Reid motioned the Board to approve the February 1, 1995 Board of Director's Meeting Minutes as presented and place them on file. Steven Morris seconded the motion. Yeas: Unanimous. Motion carried. 2) FINANCIAL STATEMENTS - NOVEMBER & DECEMBER, 1994 Motion - Joseph Reid motioned the Board to approve the Financial Statements (November & December, 1994) as presented and place them on file. John Petroff seconded the motion. Yeas: Unanimous. Motion carried. 3) FINANCIAL STATEMENTS - JANUARY, 1995 Molion - Joseph Reid motioned the Board to approve the i— Financial Statements (January, 1995) as presented and place them on file. William Porter, Jr. seconded the motion. Yeas: Unanimous. Motion carried. 4) PROPOSED AMENDMENT TO EDC RULES OF PROCEDURE The proposed amendment reads as follows: ARTICLE 1 - GENERAL PROVISIONS Rule 1.3 Open Meetings (shall be modified to read) The Board shall regularly meet on the 1st Wednesday of of each month at 4:00 p.m. at City Hall. Motion - William Porter, Jr. motioned the Board to approve the amendment to the EDC Rules of Procedure as presented. Joseph Pandy seconded the motion. Yeas: Unanimous. Motion carried. 5) PROJECT POLICY & FINANCE COMMITTEE REPORT A) "Draft Letters of EDC Loan Commitment" Dwight Ebaugh, from Dickinson Wright, gave a brief overview of the "Draft Commitment Letters" which included Background, Borrower, Loan Amount, Loan Disbursements, Maturity, Interest Rate, Payments, Fees, Security, Appraisal, etc. 1) Dimitri's Project Motion - Joseph Reid motioned the Board to eliminate Paragraph 9 of the Commitment Letter and modify Paragraph 8 to include Dimitri's residence as collateral for the EDC loan. William Porter, Jr. seconded the motion. Yeas: Unanimous. Motion carried. Dwight mentioned several changes to the Commitment Letter that were recommended by the Project Policy and Finance Committee. a) Paragraph 4 (Maturity) - the interest rate will not be increased to a rate above the then existing prime rate. b) Paragraph 5 (Interest Rate) - line 7 which reads "whether maturity occurs by acceleration or otherwise" will be changed to read "whether maturity occurs as a result of default or otherwise." c) Paragraph 15 (Financial Reporting) - delete the last sentence of this paragraph which reads "In addition, you must participate monthly in an interview with an EDC employee or agent to allow the EDC to gather information as to the financial condition of the project and the soundness of the EDC loan." Dwight further mentioned one other change to the Commitment Letters for all of the projects that was discussed by Dwight, Dennis Sykes and Pat Cook - Paragraph 19 (Expiration) should be changed to read that the loan needs to be closed by May 15, 1995 instead of April 15, 1995. Motion - William Porter, Jr. motioned the Board to approve not deleting Paragraph 15 (Financial Reporting) from the Commitment Letter, but instead changing the applicants reporting to the EDC from monthly to quarterly. Joseph Reid seconded the motion. Yeas: Unanimous. Motion carried. 2) Harry H. Hepler Project Dwight reviewed with the Board the additions and changes to the Commitment Letter. a) Paragraph 5 (Maturity) - total maturity will be 15 years and also modify to read that the interest rate will not be increased to a rate above the then existing prime rate. b) Paragraph 6 (Interest Rate) - the initial interest rate will be at 6% per year. Line 7 will be changed to read "whether maturity occurs as a result of default or otherwise." c) Paragraph 7 (Payments) - the interest period will be two months. The amount of the monthly principal and interest payment will be $421.93. d) Paragraph 10 (Appraisal) - to be deleted, as an appraisal is not required. e) Paragraph 14 (Financial Reporting) - to reflect a quarterly interview by the applicant to the EDC rather than a monthly interview. f) Paragraph 18 (Expiration) - to read that the loan closing date will be May 15, 1995 instead of April 15, 1995. It was suggested by William Porter, Jr. that the Commitment Letter be changed to include that payments are to begin 30 days after closing. Motion - Joseph Pandy motioned the Board to approve the t Commitment Letter for the Harry H. Hepler Project as presented (including all changes listed above). John Petroff seconded the motion. Yeas: Unanimous. Motion carried. 3) Blue Coyote Brewing Company Project Dwight mentioned that the interest rate will be 6% with a 5 year balloon term and a 15 year total term. Additions and changes to the Commitment Letter are as follows: a) Paragraph 5 (Maturity) - the interest rate will not be increased to a rate above the then existing prime rate. b) Paragraph 6 (Interest Rate) - line 7 to be changed to read "whether maturity occurs as a result of default or otherwise." c) Paragraph 7 (Payments) - the monthly principal and interest payments will be $2,531.57. d) Paragraph 10 (Appraisal) - the EDC will require an appraisal value of $800,000, which is the same requirement as the bank. e) Paragraph 14 (Financial Reporting) - to be changed to reflect a quarterly interview by the applicant with the EDC instead of a monthly interview. f) Paragraph 18 (Expiration) - to read that the loan closing date will be May 15, 1995 instead of April 15, 1995. Motion - William Porter, Jr. motioned the Board to approve the Commitment Letter for the Blue Coyote Brewing Company Project as 'presented (including all changes listed above). Joseph Reid seconded the motion. Yeas: Unanimous. Motion carried. 4) Bare Bone Project Dwight stated that, as with the previous project, the interest rate will be 6% with a 5 year maturity and a 15 year total maturity. Additions & changes to the Commitment Letter are as follows: a) Paragraph 1 (Background) - the amount of the Grant will be increased to $100,000. b) Paragraph 5 (Maturity) - the interest rate will not exceed ► the then existing prime rate. d _ c) Paragraph 6 (Interest Rate) - line 7 will be changed to read "whether maturity occurs as a result of default or otherwise." Wording will also be changed to reflect the interest only would be the initial 6 months. d) Paragraph 7 (Payments) - monthly principal and interest payments will be $362,06. e) Paragraph 10 (Appraisal) - will be changed to read that the EDC will require an evaluation amount of $108,000, which is the same requirement of the bank. f) Paragraph 14 (Financial Reporting) - to be changed to reflect a quarterly interview by the applicant with the EDC instead of a monthly interview. g) Paragraph 18 (Expiration) - will be changed to read that the loan closing date will be May 15, 1995 instead of April 15, 1995. Motion - Joseph Reid motioned the Board to approve the Commitment Letter for the Bare Bone Project as presented (including all changes listed above). John Petroff seconded the motion. Yeas: Unanimous. Motion carried. 5) Lowertown Loft (guarantee) Joseph Reid requested that the EDC staff contact First of America Bank as to the possibility of modifying the loan quarantee from 16 years to a lesser amount of time. Motion - William Porter, Jr. motioned the Board to approve the Commitment Letter for the Lowertown Lofts Project as presented (including the request by Joseph Reid). John Petroff seconded the motion. Yeas: Unanimous. Motion carried. William Porter, Jr. requested that the EDC staff maintain a list of the total indebtedness (for each of the projects) which are to be paid off before the EDC is paid off. B) Consideration of Project Plans 1) Elbinger Studios The Board received a copy of the Addendum to Elbinger's EDC Application. Elbinger Studios location will be 1132-1136 N. Washington Avenue. Motion - John Petroff motioned the Board to approve the Project Plan for the Elbinger Studios a _ , Project as presented and move the Plan forward to City Council for setting of a Public Hearing. William Porter, Jr. seconded the motion. Yeas: Hollister; Morris; Pandy; Petroff; Porter Abstain: Reid Motion carried. Joseph Reid requested of Chair Hollister that he would like to abstain from all discussion, involvement and voting on the Elbinger Studios Project. 2) Terry L. Grant The Board received a copy of the Application and Project Plan for the Terry L. Grant Project. Motion — Joseph Pandy motioned the Board to approve the Project Plan for the Terry L. Grant Project as presented and move the Plan forward to City Council for setting of a Public Hearing. William Porter, Jr. seconded the motion. Yeas: Unanimous. Motion carried. Pat Cook mentioned that a motion was in order to approve the Resolution approving the Commitment Letter for each of the projects individually. Chair Hollister suggested that the motions for the Resolutions be attached to the previous motions that were made to approve each Commitment Letter. Motion — Joseph Reid motioned that Board to approve the Resolutions approving the Commitment Letter for each of the 5 projects as suggested by Chair Hollister. John Petroff seconded the motion. Yeas: Unanimous. Motion carried. 5) OTHER BUSINESS A) Modify EDC FY '94/95 Budget Pat Cook informed the Board that the hiring committee for EDC, which included Pat, Dennis Sykes & Paul Roney (Lansing Regional Chamber of Commerce) had completed their interviewing for the two EDC Project Coordinator Positions. Pat stated that their recommendations to the Board are as follows: 11) Peggy Vaughn, from the Ingham County Economic Development Department, for the permanent position with the EDC. 2) Pam Blough, from Capitol Consultants, for the contract position. The cost to the EDC for the contract person will be $60,000 for a 13 month period that will be completed in April 196. Pat recommended to the Board that the $60,000 from the Salaries & Fringes in the current EDC Budget be modified to include a new catagory - Contract Services. Pat also asked the Board to approve a salary increase for Barbara Foreman, Administative Assistant for the EDC. Pat further stated that all of the above recommendations would not increase the EDC Budget for '94/95. Motion - Joseph Pandy motioned the Board to approve all of the above recommendations as presented. John Petroff seconded the motion. Yeas: Unanimous. Motion carried. Pat reminded the Board that at the February 1, 1995 Board Meeting they had approved a Resolution of Support for the City's MDNR Request of a Grant for site remediation at the Baseball site. Pat stated that the City is also applying for a Michigan Dept. of Transportation Grant for the Baseball stadium in the amount of approximately $600,000. Pat asked the Board to approve the same general resolution that was approved for the site remediation grant for the MDOT Grant. Motion - Joseph Reid motioned the Board to approve the Resolution requested by Pat Cook as presented. Joseph Pandy seconded the motion. Yeas: Unanimous. Motion carried. 6) PUBLIC COMMENT Harold Leeman mentioned that the applicant for the Lowertown Lofts Project has requested to the City Council that he be charged a service charge on the Project instead of property taxes. Christine Ryal asked if there were any environmental issues involved at the Pere Marquette site where the Blue Coyote Brewing Company is to be located. Christine also asked who would be involved in the naming of the baseball stadium and the baseball team. Joseph Pandy handed out an article regarding a Foreign Sales Corporation being formed by the Traverse Bay Economic Development Corporation. Joe suggested that the EDC staff look into the possibility of an FSC for our Economic Development Corporation. Joe Pandy also mentioned that the Ottawa Power Plant Project is continuing to progress with a completion date sometime in 1999. Ed Carpenter suggested to Joe Pandy that an open house and tour of the Ottawa Power Plant be planned before any demolition is done to the building. 7) ADJOURNMENT Chair Hollister declared the meeting adjourned at 5:36 p.m. (2.4 � 6 e'4 'A I , � �, - 6We, � Patricia A. Cook EDC Manager Minutes by B. Foreman ECONOMIC DEVELOPMENT CORPORATION OF THE CITY OF LANSING BOARD OF DIRECTOR'S MEETING MAYOR'S CONFERENCE ROOM NINTH FLOOR, LANSING CITY HALL WEDNESDAY, APRIL 5, 1995 4:00 P.M. CLEr(tl �;;iJi�at7 V MEMBERS PRESENT: Robert Brockwell; David Hollister; William Long; Val Moeller; Steven Morris; Joseph Pandy; John Petroff; William Porter, Jr.; Joseph Reid MEMBERS ABSENT: None TEMPORARY MEMBERS PRESENT: Ed Carpenter; Jan Hayhow STAFF PRESENT: Pam Blough; Barbara Foreman; Dennis Sykes; Peggy Vaughn GUESTS PRESENT: Dwight Ebaugh; Marilyn Frye; Cora Huguely; Richard Karp; Judy Kehler; Harold Leeman; Eleanor Love; Kevin McKinney; Chuck Miller; Kester So; Dimitrios Stathopoulos; Kelly Thompson Chair Hollister called the meeting to order at 4:05 p.m. Dr. Val Moeller and Bill Long, new EDC/TIFA Board Members, briefly introduced themselves to the Board. Dennis Sykes introduced Peggy Vaughn and Pam Blough, EDC's Project Coordinators. 1) APPROVAL OF SPECIAL BD. OF DIRECTOR'S MTG. MINUTES FROM MARCH 1, 1995 Motion - Joseph Reid motioned the Board to approve the March 1, 1995 Special Board of Director's Meeting Minutes as presented and place them on file. Steven Morris seconded the motion. Yeas: Unanimous. Motion carried. 2) FINANCIAL STATEMENTS - FEBRUARY, 1995 Motion - John Petroff motioned the Board to approve the Financial Statements (February, 1995) as presented and place them on file. William Porter, Jr. seconded the motion. Yeas: Unanimous. Motion carried. 3) PRESENTATION BY DOWNTOWN BUSINESS COALITION REGARDING THE ESTABLISHMENT OF A DESIGNATION FOR "PRINCIPAL SHOPPING DISTRICT" Kevin McKinney presented the Board with a "draft" report explaining the details of what is involved in creating a Principal Shopping District. After a brief overview of the report Kevin asked the Board for a motion to approve the concept of a Principal Shopping District for Downtown Lansing. Motion - Robert Brockwell motioned the Board to approve the concept of a "Principal Shopping District" for downtown Lansing. John Petroff seconded the motion. Yeas: Unanimous. Motion carried. 4) EXECUTIVE COMMITTEE MEETING A) Resolution to Reaffirm Executive Committee Authorization for Expenditure of EDC funds to Market Baseball Suites The Board received a copy of the Resolution which was approved by the EDC Executive Committee on March 13, 1995. The resolution allows a not -to -exceed expenditure of $20,000 for the marketing and promotion of the sale of the Lansing Baseball Stadium suites. Motion - Joseph Reid motioned the Board to affirm the recommendation of the EDC Executive Committee as presented. Joseph Pandy seconded the motion. Yeas: Unanimous. Motion carried. 5) BUSINESS FINANCING ASSISTANCE PROJECTS A) Loan Documents Joseph Reid suggested that due to the fact that the Board had previously considered the merits of each of the Projects, a detailed review of the Loan Documents should not be necessary. Dwight Ebaugh stated that a Resolution was in order to approve the form of the Loan Documents and also to authorize any officer of the Board to sign the documents. Motion - Joseph Pandy motioned the Board to approve the Resolution as presented. William Porter, Jr. seconded the motion. Yeas: Unanimous. Motion carried. 1) Lowertown Lofts (guaranty) Motion - Joseph Pandy motioned the Board to approve the Lowertown Lofts (guaranty) as presented. Joseph Reid seconded the motion. Yeas: Unanimous. Motion carried. 2) Blue Coyote Brewing Co. Project Motion - Joseph Reid motioned the Board to approve the Loan Documents for the Blue Coyote Brewing Co. Project as presented. John Petroff seconded the motion. Yeas: Unanimous. Motion carried. 3) Harry H. Hepler Project Motion - Joseph Pandy motioned the Board to approve the Loan Documents for the Harry H. Hepler Project as presented. Joseph Reid seconded the motion. Yeas: Unanimous. Motion carried. 4) Bare Bone Project Motion - Joseph Reid motioned the Board to approve the Loan Documents for the Bare Bone Project as presented. Robert Brockwell seconded the motion. Yeas: Unanimous. Motion carried. 5) Dimitri's Project Motion - Joseph Reid motioned the Board to approve the Loan Documents for the Dimitri's Project as presented, including an amendment to the documents which will state that the $200,000 loan will be at an interest rate of 5% for 20 years. John Petroff seconded the motion. Yeas: Unanimous. Motion carried. B) Letter of Loan Commitment 1) Elbinger Laboratories, Inc. The Board received a copy of a Resolution Waiving Conflict of Interest Relating to Dickinson, Wright et.al Representation of Douglas Elbinger. William Long suggested that line 3 of the Resolution should be changed from "and in one isolated matter: to "in a totally unrelated matter." Motion - Joseph Reid motioned the Board to waive the conflict of interest as presented. John Petroff seconded the motion. Yeas: Unanimous. Motion carried. Due to several questions that were raised by the Board regarding the Elbinger Project the Board agreed unanimously that it be tabled for this meeting. Motion — Bill Long motioned the Board to refer the Elbinger Project back to the Project Policy & Finance Committee with a recommendation from the Committee to be presented to the full Board at the May 3, 1995 Board Meeting. Joseph Reid seconded the motion. Yeas: Unanimous. Motion carried. 6) OTHER BUSINESS A) Lansing Center Office Building 1) Review Committee Recommendations Eleanor Love, City Planning Manager, informed the Board that Proposals for the Lansing Center Office Building have been excepted from Clark Construction Co., The Christman Co. and Granger Construction Co. Interviews with all three companies will take place on April 13, 1995. Recommendations will be presented to the Board at the May 3, 1995 Board Meeting. 7) PUBLIC COMMENT Joe Pandy mentioned that RFQ's on the Ottawa Power Station Redevelopment had been sent out and a number of good responses were received from local contractors and architects as well as three strong national responses. Joseph Reid informed the Board that the Business Incubator discussed at a previous Board Meeting is progressing and could possibly open in October, 1995. Joe mentioned that he is hopeful that the EDC will consider financial support for the Project. 8 ) ADJOURNMENT Chair Hollister declard the meeting adjourned at 5:08 p.m. Minutes by B. Foreman Patricia A. Cook EDC Manager ' V c D ECONOMIC DEVELOPMENT CORPORATION P i� �, ;.� OF THE CITY OF LANSING ?d u —0 �;f c. Board of Director's Meeting �� Mayor's Conference Room LANSING CIT Y CLC+'K Ninth Floor, Lansing City Hall Wednesday, May 3, 1995 EDC BOARD OF DIRECTORS & EDC TEMPORARY DIRECTORS EXECUTIVE SESSION 4:00 P.M. The EDC Board entered into Executive Session at 4:05 p.m. for the purpose of holding a discussion on the topic of Sale or Lease of Real Property owned by the EDC. The Board ended the Executive Session at 4:25 p.m. REGULAR MEETING 4:30 P.M. MEMBERS PRESENT: Robert Brockwell; David Hollister; William Long; Val Moeller; Steven Morris; John Petroff; William Porter, Jr.; Joseph Reid MEMBERS ABSENT: Joseph Pandy TEMPORARY MEMBERS PRESENT: Ed Carpenter; Jan Hayhow STAFF PRESENT: Pam Blough; Patricia Cook; Barbara Foreman; Dennis Sykes; Peggy Vaughn GUESTS PRESENT: Dwight Ebaugh; Doug Elbinger; Peter Fortin; Terry Grant; Bob Johnson; Judy Kehler; Harold Leeman; Jeff Pitts; Pat Reid; Kelly Thompson Chair Hollister called the meeting to order at 4:30 p.m. 1) APPROVAL OF THE BD. OF DIRECTOR"S MEETING MINUTES FROM APRIL 5, 1995 Motion — Joseph Reid motioned the Board to approve the April 5, 1995 Meeting Minutes as presented and place them on file. William Porter, Jr. seconded the motion. Yeas: Unanimous. Motion carried. 2) FINANCIAL STATEMENTS — MARCH, 1995 Motion — John Petroff motioned the Board to approve the Financial Statements (March, 1995) as presented and place them on file. Robert Brockwell seconded the motion. Yeas: Unanimous. Motion carried. 3) MODIFICATIONS TO BUSINESS FINANCING APPLICATION Motion — Joseph Reid motioned the Board to approve the changes to the Business Financing Assistance Program Guidelines & Application as presented. Robert Brockwell seconded the motion. Yeas: Unanimous. Motion carried. 4) BUSINESS FINANCING ASSISTANCE PROJECTS A) Pending Projects: 1) Goldenrod Distribution, Inc. Motion — Robert Brockwell motioned the Board to approve the "draft" Commitment Letter for the Goldenrod Distribution Project as presented. Steven Morris seconded the motion. Yeas: Unanimous. Motion carried. Pat Cook asked the Board for an amendment to the above motion to include approval to prepare the Loan Documents for the Goldenrod Project. The Board agreed unanimously. 2) Elbinger Laboratories, Inc. Pat Cook explained to the Board in some detail three possible loan proposals for the Elbinger Project. After much discussion, the Board approved the following: Motion — John Petroff motioned the Board to approve Proposal #3 -for the Elbinger Project as presented (see below). Robert Brockwell seconded the motion. Yeas: Brockwell; Carpenter; Hayhow; Hollister; Long; Moeller; Morris; Petroff; Porter Abstain: Reid Loan Proposal #3 — $275,000 Repayment of MSB Loan $30,000 Building Rehab 93,000 Equipment 87,000 Moving/Mktng/Training 65,000 Motion - John Petroff motioned the Board to approve the Elbinger Loan for 20 years at an interest rate of 7% with the loan maturing initially after 5 years (as structured similar to other loan documents). Steven Morris seconded the motion. Yeas: Brockwell; Carpenter; Hayhow; Hollister; Long; Moeller; Morris; Petroff; Porter Abstain: Reid 5) OTHER BUSINESS 1) Lansing Center Office Building Pat handed out to the Board a copy of the Analysis of the Proposals from the Christman Co., Granger Construction Co. & Clark Construction Co. The analysis was completed by the Lansing Center Office Building Review Committee. The recommendation of the Review Committee is to pursue the Clark Construction Company Proposal. Motion - Joseph Reid motioned the Board to accept the Review Committee Report & Recommendation, which is to move forward with the Clark Proposal and bring a final proposal back to the EDC Board. Robert Brockwell seconded the motion. Yeas: Unanimous. Motion carried. 2) Sparrow Hospital Collaborative The Board received a copy of the program objectives for the Sparrow Collaborative which was prepared by Marc Cory of the Lansing School District. Chair Hollister informed the Board that Sparrow Hospital and the Lansing Schools have proposed a Greater Lansing Health Collaborative. This Collaborative would give any student in the Lansing School System who is interested in a health career an opportunity to attend Eastern High School and while attending Eastern would have a job at Sparrow Hospital as part of their training. At the end of the process these students would be guaranteed a job, assuming they could meet the competency standards of the program. Chair Hollister further informed the Board that Marc Cory would oversee the program and asked the Board to consider assuming one-third of Marc Cory's costs -for a two year period. Sparrow Hospital and the Lansing School District would each be contributing one—third of the costs for the two year period. Pat Cook mentioned that she would be preparing a budget for the Board to review at the June 7th Board Meeting, which will include the funding for the Collaborative Project. 6) PUBLIC COMMENT None. 7 ) ADJOURNMENT Chair Hollister declared the meeting adjourned at 6:05 p.m. Minutes by B. Foreman ltet, !it- &101� Patricia A. Cook EDC Manager ECONOMIC DEVELOPMENT CORPORATION OF THE CITY OF LANSING l ecial Board of Director's Meeting 2:f Mayor's Conference Room L�� ! v CfTi CLG�,rti RN' Ninth Floor, Lansing City Hall ��;���Ic� Wednesday, June 28, 1995 4:30 p.m. MEMBERS PRESENT: Robert Brockwell; David Hollister; Val Moeller; John Petroff; Joseph Reid MEMBERS ABSENT: William Long; Steven Morris; Joseph Pandy; William Porter, Jr. TEMPORARY MEMBERS PRESENT: Ed Carpenter TEMPORARY MEMBERS ABSENT: Jan Hayhow STAFF PRESENT: Patricia Cook; Barbara Foreman; Dennis Sykes; Peggy Vaughn GUESTS PRESENT: Marc Cory; Kester So; Kelly Thompson; Joe Wald Chair Hollister called the meeting to order at 4:35 p.m. 1) APPROVAL OF THE BOARD OF DIRECTOR'S MEETING MINUTES FROM MAY 3, 1995 Motion — Joseph Reid motioned the Board to approve the May 3, 1995 Meeting Minutes as presented and place them of file. Robert Brockwell seconded the motion. Yeas: Unanimous. Motion carried. 2) FINANCIAL STATEMENTS — April, 1995 Motion — John Petroff motioned the Board to approve the Financial Statements (April, 1995) as presented and place them on file. Robert Brockwell seconded the motion. Yeas: Unanimous. Motion carried. 3) EDC PROPOSED PERSONNEL LEAVE SUMMARY Motion — Robert Brockwell motioned the Board to approve the Personnel Leave Summary for the EDC staff as presented. John Petroff seconded the motion. Yeas: Unanimous. Motion carried. 4) EDC FY 195/96 BUDGET Motion — Robert Brockwell motioned the Board to approve the EDC FY 195/96 Budget as presented. John Petroff seconded the motion. Yeas: Unanimous. Motion carried. Kelly Thompson, Downtown Lansing, Inc., handed out to the Board a flyer showing the status of downtown Lansing projects as of 6/28/95. 5) EDC PROJECTS — Update a) Report from Policy and Finance Committee Joseph Reid handed out to the Board a "draft" copy of the Proposed Business Incubator, which was prepared by the City of Lansing, Michigan State University and the Lansing Regional Chamber of Commerce. Joe requested that the Board approve a $250,000 loan, over a 7 year term, for the Incubator. The interest rate would be 3%, not collateralized, and would be ballooned. Joe mentioned that he had given a verbal presentation of the Proposal to the Project Policy and Finance Committee and the Committee unanimously supports the Proposal for the Business Incubator. Motion — John Petroff motioned the Board to approve the loan in the amount of $250,000, as recommended by the Project Policy and Finance Committee. Robert Brockwell seconded the motion. Yeas: Unanimous. Motion carried. b) MUCC Building_Project — Update Kester So gave the Board a brief update on the MUCC Building Project. At this time MUCC has not formally agreed to an eight story building and are still considering several options. Chair Hollister mentioned that hopefully some concrete decisions will be made regarding the MUCC Building by August 1, 1995. c) Resolution to Open Loan Disbursement Accounts Pat Cook explained to the Board that the Resolution authorizes EDC staff to open the necessary Commercial Savings Accounts for the various EDC Loan Projects and also authorizes opening the necessary accounts for principal and interest payments to be received from the Projects. Motion - John Petroff motioned the Board to approve the Resolution as presented. Val Moeller seconded the motion. Yeas: Unanimous. Motion carried. d) Business Financing Projects Update (June 19 memo) The Board received a copy of an update on all of the EDC Loan Projects, which was prepared by Peggy Vaughn. Peggy informed the Board that closings had taken place for four of the seven projects (Dimitri's, Elbinger, Goldenrod, Harry H. Hepler as well as the loan guarantee for the Lowertown Loft Project). Peggy stated that the closing for the Bare Bone Project should take place by July 15th and the Blue Coyote Project should close within the next 30 days. Peggy mentioned that two new Pre -Applications have been received: 1) Hobies Restaurant is planning to expand and their Pre -Application has been approved by the Project Policy and Finance Committee. Hobies will proceed and prepare their full application and make a presentation to the EDC Board at the Aug. 2nd Board Meeting. 2) A group of investors that own the Sidestreets Deli are purchasing the building at 600 E. Michigan Avenue. They are planning to completely renovate the building and hope to entice a National Restaurant Chain to open a restaurant at the E. Michigan Ave. location. e) B.F.A.P. (Target Loan Program - up to $25,000) The Board received a Summary for the Target Loan Program which would greatly decrease the amount of time to process loans of less than $25,000. Joe Reid suggested that due to budget constraints the Target Loan Program should possibly be tabled at this time. Motion - John Petroff motioned the Board to temporarily table the Target Loan Program. Joseph Reid seconded the motion. Yeas: Unanimous. Motion carried. 6) OTHER BUSINESS a) Engagement of FY '94/95 Auditors Pat Cook stated that several local CPA offices were contacted regarding the EDC Audit. Pat recommended that the Board engage the firm of Kutas Hawes Wolcott & Bergman, P.C. The amount quoted by the firm was $3,900 for the FY 194/95 EDC Audit. Motion - Joseph Reid motioned the Board to approve engaging the firm of Kutas Hawes Wolcott and Bergman, P.C. to perform the FY '94/95 EDC Audit. John Petroff seconded the motion. Yeas: Unanimous. Motion carried. 7) PUBLIC COMMENT None. 8 ) ADJOURNMENT Chair Hollister declared the meeting adjourned at 6:03 p.m. Minutes by B. Foreman Patricia A. Cook EDC Manager ECONOMIC DEVELOPMENT CORPORATION OF THE CITY OF LANSING Board of Director's Meeting Mayor's Conference Room Ninth Floor, Lansing City Hall Wednesday, August 2, 1995 4:00 P.M. MEMBERS PRESENT: Val Moeller; Joseph Pandy; John Petoff; William Porter, Jr.; Joseph Reid MEMBERS ABSENT: Robert Brockwell; David Hollister; William Long; Steven Morris TEMPORARY MEMBERS PRESENT: Ed Carpenter; Jan Hayhow STAFF PRESENT: Patricia Cook; Barbara Foreman; Dennis Sykes; Peggy Vaughn GUESTS PRESENT: Patrick Schoof; Ernie St. Pierre; Kelly Thompson Joseph Reid called the meeting to order at 4:05 p.m. 1) APPROVAL OF THE SPECIAL BD. OF DIRECTORS MTG. MINUTES FROM 6/28/95 Motion - John Petroff motioned the Board to approve the June 28, 1995 Meeting Minutes as presented and place them on file. William Porter, Jr. seconded the motion. Yeas: Unanimous. Motion carried. 2) FINANCIAL STATEMENTS - MAY & JUNE, 1995 Motion - John Petroff motioned the Board to approve the Financial Statements (May & June, 1995) as presented and place them on file. Val Moeller seconded the motion. Yeas: Unanimous. Motion carried. 3) EDC PROJECTS - UPDATE a) Business Financing Projects Status (July 25th memo) The Board received a status report regarding the EDC Business Financing Projects which was prepared by Peggy Vaughn. Peggy mentioned that two interest payments have been received from the Dimitri Project & one interest payment has been received from the Elbinger Project. Peggy further mentioned that the loan closing for the Blue Coyote Project should take place before August 31, 1995. b) Presentation of Hobie's Downtown Project Ernie St. Pierre, owner of Hobie's Restaurant, gave a brief presentation to the Board regarding his plans to expand his downtown restaurant. The expansion would include an ice cream parlour, a flower shop and also expand the restaurant to seat four hundred people. 1) Hobie's Downtown Project Plan Pat Cook stated that the total project expenses would be $275,000. The loan amount requested from the EDC is $100,000. Pat further stated that in order for the project to move forward to the City Council for a Public Hearing, the Board needed to take action on the Resolution Designating the Project Area and Recommending the Project Plan. Motion — Joseph Pandy motioned the Board to approve the Resolution as presented. John Petroff seconded the motion. Yeas: Unanimous. Motion carried. Pat mentioned that approval of the Resolution does not obligate the Board to finance the project and that a further review of the projects proforma's would be reviewed by staff prior to the next Board meeting. c) Other Projects — Information Only 1) MUCC Project Pat informed the Board that she had received correspondence from Tom Washington, dated 7/26/95, confirming that the MUCC wishes to proceed with the tax exempt bond financing. The building will be two floors, plus a lower level. 2) CATA Project Pat mentioned that CATA is presently moving forward to implement the building design. 3) Pat stated that Marc Cory would be making a presentation to the Board at the next meeting regarding the Greater Lansing Education Health Collaborative. 4) Peggy mentioned that a presentation regarding the Quest 5 Project (601 E. Michigan Avenue) will be made to the Board at the next meeting. Peggy also mentioned that Harry Hepler has requested that Board members return to the EDC Office any documents they might have which pertain to his project application and/or business plan on the Blue Coyote Project. 5) Lansing Center Office Building Project Joe Pandy requested an update on the status of the Lansing Center Office Building Project. Pat Cook informed the Board that Clark Construction has prepared a second set of numbers for the project. At the present time EDC does not have the funds to build on the site. 6) Ottawa Station Project Joe Pandy mentioned that the Requests for Proposals have been sent out and they are due back in September. 7) William Porter, Jr. requested a copy of the report, prepared by Ernst & Young, regarding the Radisson Hotel. 4) Other Business None. 5) Public Comment Kelly Thompson invited everyone to attend the Car Capital Celebration, which will be August 25th & 26th 195. 6) Adjournment Joseph Reid declared the meeting adjourned at 4:37 p.m. Minutes by B. Foreman Patricia A. Cook EDC Manager ECONOMIC DEVELOPMENT CORPORATION OF THE CITY OF LANSING SPECIAL BOARD OF DIRECTOR'S MEETING MAYOR'S CONFERENCE ROOM NINTH FLOOR, LANSING CITY HALL WEDNESDAY, SEPTEMBER 27, 1995 4:00 P.M. f�..'� �: t_:• �. � is �ei;' yi1'c'J ( i CUT -It' I � c�-tr;rl MEMBERS PRESENT: Robert Brockwell; David Hollister; William Long; Steven Morris; Joseph Pandy; John Petroff; William Porter, Jr.; Joseph Reid MEMBERS ABSENT: Val Moeller TEMPORARY MEMBERS PRESENT: Ed Carpenter; Jan Hayhow STAFF PRESENT: Patricia Cook; Barbara Foreman; Dennis Sykes; Peggy Vaughn GUESTS PRESENT: Carol Bamberry; Pam Blough; Marc Cory; Daniel Fulgham; Charlie Hawes; James Kutt; Ken Lawless; Dave McNamara; Eric Schobert; Patrick Schoof; Gary Simons; Jim Smiertka; Kester So; Ernie St. Pierre; Tom Washington Chair Hollister called the meeting to order at 4:04 p.m. 1) APPROVAL OF THE BD. OF DIRECTORS MTG. MINUTES FROM AUGUST 2, 1995 Motion — Robert Brockwell motioned the Board to approve the August 2, 1995 Meeting Minutes as presented and place them on file. Joseph Pandy seconded the motion. Yeas: Unanimous. Motion carried. Joseph Reid entered the meeting at 4:15 p.m. 2) RESOLUTION AUTHORIZING THE ISSUANCE OF $2,140,000 EDC LIMITED OBLIGATION REVENUE BONDS — MICHIGAN UNITED CONSERVATION CLUB PROJECT Motion — William Long motioned the Board to approve the (MUCC) Bond Resolution as presented. Robert Brockwell seconded the motion. Yeas: Brockwell; Carpenter; Hayhow; Hollister; Long; Morris; Pandy; Petroff; Porter; Reid Motion carried unanimously. 3) RESOLUTION APPROVING SECOND AMENDED PROJECT PLAN — EDC BOND PROJECT — BAUCH BUILDING Due to Joseph Reid's involvement with the Bauch Building Project, he excused himself during the discussion and vote. Motion — John Petroff motioned the Board to approve the Resolution for the Amended Bauch Building Project Plan as presented. Joseph Pandy seconded the motion. Yeas: Brockwell; Hollister; Long; Morris; Pandy; Petroff; Porter Motion carried unanimously. 4) EDC PROJECTS a) Business Financing Projects Status (Sept. 22nd Memo) Peggy Vaughn informed the Board that the closing for the Blue Coyote Project had taken place on Sept. 18th 195. Peggy stated that the projects with interest payments due to the EDC are being received in a timely manner. Peggy reminded the Board that the Mayor's Tour of the Downtown area and North Lansing/Old Town will be Saturday, October 14, 1995, starting with breakfast at 8:30 a.m. at the Dancing Goat. b) Hobie's Downtown Project — Approving Loan Commitment The Board received a memo regarding the Analysis of Funding Request by Ernie St. Pierre (owner of Hobie's Downtown Restaurant) and also EDC staff recommendations. Peggy stated that the project would be completed in two stages. Stage I would be the development of an ice cream parlour and a small floral shop. Stage II would be the expansion of the Hobie's Restaurant. The loan amount being requested from the EDC is $100,000. Peggy further stated that the staff recommends approving the Letter of Commitment based on the terms and conditions that are outlined in the memo. Motion — Joseph Pandy motioned the Board to approve the Letter of Commitment for the Hobie's Project as presented. Joseph Reid seconded the motion. Yeas: Brockwell; Carpenter; Hayhow; Hollister; Long; Morris; Pandy; Petroff; Porter; Reid Motion carried unanimously. c) Presentation of Quest 5 Project Peggy introduced to the Board the members of the Quest 5 Project, Dave McNamara, Gary Simons, James Kutt and Daniel Fulgham. Dave McNamara gave a brief presentation to the Board regarding the Quest 5 Project. The project includes the renovation of the exterior and interior of the building located at 601 E. Michigan Avenue, which has been purchased by the members of Quest 5. Dave mentioned that they are currently in negotiations with several people concerning the development of a upscale restaurant and lounge for the building. 1) Resolution Designating Project Area; Recommending Project Plan Motion - Joseph Reid motioned the Board to approve the Resolution for the Quest 5 Project as presented. Robert Brockwell seconded the motion. Yeas: Unanimous. Motion carried. Peggy mentioned to the Board that she had received requests from several individuals who are interested in leasing the 601 E. Michigan Avenue property from the Quest 5 group and they are also looking for funding from the EDC. Peggy asked the Board how she should proceed with two applicants for the same building/project. Joseph Reid stated, and the Board agreed, that the EDC should accept applications from persons interested in leasing the building at 601 E. Michigan Avenue. 5) OTHER BUSINESS a) Greater Lansing Health Education Collaborative - Update Marc Cory, GLHEC Project Coordinator, handed out to the Board copies of a monthly report and also weekly reports on the progress of the Collaborative. Marc mentioned that he has formulated a "rough draft" of the planning process for the GLHEC. b) Agreement with MSU's Breslin Center for Phase One The Board received a copy of a letter that was sent from Patricia Cook to Scott Breckner, Director of the MSU Breslin Student Events Center, regarding the EDC's agreement to contract with MSU's Breslin Center Management to provide the Phase One Development of programming guidelines for the Lansing baseball stadium. MSU, the City of Lansing and the EDC will be in partnership to market the stadium for non—baseball events. A report from Scott Breckner on Phase One will be provided to Dennis Sykes no later than November 15, 1995. c) Future EDC Funding — Status Report Peggy Vaughn prepared for the Board a Summary of Economic Development Funding of Other Organizations in Michigan. Bill Long will be working with Peggy and Pat Cook to identify future sources of revenue for the EDC. d) Purchase of 1 Additional Computer (Additional Budget Item) Motion — Joseph Reid motioned the Board to approve the purchase of 1 additional computer for the EDC (approximately $2,500). William Long seconded the motion. Yeas: Unanimous. Motion carried. Joe Pandy suggested that in the future the EDC Manager should be given the authority for expenditures of up to $10,000 without Board approval. Bill Long suggested that EDC staff present a proposal to the EDC Board at the November Board Meeting regarding this matter. e) Other New Business Pat Cook mentioned that a meeting had taken place on September 12, 1995 regarding the Radisson Hotel. Included in the meeting were Dennis Sykes, Kester So, Pat Cook, and several Radisson representatives — their General Manager, their Chief Financial Officer from the Churchill Company and their General Council. The Board received a "confidential" copy of information that was presented at the meeting regarding the Radisson's current cash flow, projected cash flow and the status of their refinancing. After some discussion, as to how to proceed with the Radisson, Joe Pandy suggested that the Board & EDC staff take no further action until he has had a chance to meet with the Radisson representatives on a business level. The Board agreed and Joe will report back to the Board at the November Board Meeting. 6) PUBLIC COMMENT Joe Reid mentioned that there will be a press conference with the Mayor, September 28, 1995, at 9:00 a.m. at the Chamber, to announce the incubator. The name for the incubator is The Venture Center, Inc. 7 ) ADJOURNMENT Chair Hollister declared the meeting adjourned at 5:41 p.m. Minutes by B. Foreman (2,4� A��- Patricia A. Cook EDC Manager ECONOMIC DEVELOPMENT CORPORATION OF THE CITY OF LANSING t ij, BOARD OF DIRECTOR'S MEETING IJ MAYOR'S CONFERENCE ROOM Y CvE ,'il NINTH FLOOR, LANSING CITY HALL i rye WEDNESDAY, NOVEMBER 1, 1995 4:00 P.M. MEMBERS PRESENT: David Hollister; Val Moeller; John Petroff; William Porter, Jr.; Joseph Reid MEMBERS ABSENT: Robert Brockwell; William Long; Steven Morris; Joseph Pandy TEMPORARY MEMBERS PRESENT: Ed Carpenter; Jan Hayhow STAFF PRESENT: Pat Cook; Barbara Foreman; Dennis Sykes; Peggy Vaughn GUESTS PRESENT: Marc Cory; Charlie Hawes; Steve Kutas; Bill Rieske; Kester So Chair Hollister called the meeting to order at 4:10 p.m. As of 4:10 p.m. a quorum was not present. Pat Cook stated that three items needed to be added to the agenda under Other Business: b) Marc Cory's update on the Greater Lansing Health Education Collaborative. c) Bill Rieske, from the City Planning Department, regarding the EDC providing matching Business Assistance funds to both City of Lansing and State Grant Funds for historic preservation for some of the EDC Projects in the North Lansing/Old Town area. d) Resolution re: Upjohn/Pitney Bowes Bond Issue. Charlie Hawes, from Kutas Hawes Wolcott & Bergman PC, briefly reviewed with the Board portions of the FY 194/95 "Draft" Audit. Val Moeller and Joseph Reid entered the meeting at 4:18 p.m. A quorum was now present. 1) APPROVAL OF THE SPECIAL BD. OF DIRECTOR'S MTG. MINUTES FROM 9/27/95 Motion — John Petroff motioned the Board to approve the September 27, 1995 Meeting Minutes as presented and place them of file. William Porter, Jr. seconded the motion. Yeas: Unanimous. Motion carried. 2) EDC FY 194/95 AUDIT (DRAFT) Motion — John Petroff motioned the Board to receive and place on file the FY '94/95 Audit, which was prepared by Kutas Hawes Wolcott & Bergman PC. William Porter, Jr. seconded the motion. Yeas: Unanimous. Motion carried. 3) EDC PROJECTS — UPDATE ONLY Hobies Downtown Development Project: Peggy Vaughn informed the Board that letters had been received from both Dr. Hermann and Ken Stockwell regarding their support for the Hobie's Project and also requesting that the design plans for the project be made available for their review. Peggy mentioned that she would be contacting Dwight Ebaugh (Dickinson Wright) to begin drafting the legal documents for the Hobies Project. 4) OTHER BUSINESS a) Update on Discussions with Block 100 Hotel (Radisson) Pat Cook stated that in Joe Pandy's absence, he had requested that she update the Board on the discussions with representatives of the Radisson Hotel. Pat informed the Board that two meetings had taken place during the month of October. The first meeting was held with the General Manager of the Radisson, Roy Croop, and also in attendance were Mayor Hollister, Dennis Sykes, Joe Pandy and Pat Cook. During this meeting refinancing of the Radisson's existing debt was discussed, as well as, the possibility of repositioning the EDC as a higher priority for repayment. Pat mentioned that she was not in attendance at the second meeting that took place with Jim Phelps from the Northcrest Corporation. Discussions with representatives from the Radisson will continue over the next 30 days and another update will be presented to the Board at the December Board Meeting. b) Greater Lansing Health Education Collaborative — Update Mary Cory, GLHEC Project Coordinator, handed out to the Board copies of a monthly report and also weekly reports on the progress of the Collaborative. Marc mentioned that the planning process for the Collaborative has been formalized. c) Historic Preservation Grant Program Bill Rieske, from the City Planning Department, handed out to the Board a copy outlining the Proposed PreDevelopment Assistance Pilot Program, which includes the EDC, the City of Lansing and the State of Michigan working in partnership to apply for and utilize the state's Historic Preservation Grant program funds for historic preservation surveys, planning and predevelopment costs. Grant funds would match Business Assistance Loans at a ratio of 60:40. The proposal will be presented to the EDC Project Policy and Finance Committee and a recommendation by the Committee will be given to the Board at the December Board Meeting. d) Resolution — Upjohn/Pitney Bowes (Quit Claim Deed & Bill of Sale) Motion — Yeas: 5) PUBLIC COMMENT Joseph Reid motioned the Board to approve the Resolution as presented. John Petroff seconded the motion. Unanimous. Motion carried. 1) Pat Cook mentioned that due to the New Year's Holiday the January Board Meeting should be changed from January 3rd to January 10th, 195. All agreed. 2) Joe Reid informed the Board that Bradley Shaw has been hired to manage the Venture Center Project (Incubator). It will be located on the first floor of the Corr Building. The Center will have a 15 member Board of Directors; 7 from the Lansing Regional Chamber of Commerce, 7 from Michigan State University and the Director of the Venture Center. Pat Cook asked Joe Reid how many members representing the EDC would be appointed to the Venture Center Board. Joe stated that no EDC Board Members would be serving on the Venture Center Board. 6) ADJOUNMENT Chair Hollister declared the meeting adjourned at 4:40 p.m. Minutes by B. Foreman Patricia A. Cook EDC Manager ECONOMIC DEVELOPMENT CORPORATION OF THE CITY OF LANSING BOARD OF DIRECTOR'S MEETING MAYOR'S CONFERENCE ROOM NINTH FLOOR, LANSING CITY HALL WEDNESDAY, DECEMBER 6, 1995 4:00 P.M. MEMBERS PRESENT: Robert Brockwell; David Hollister; William Long; Val Moeller; Joseph Pandy; John Petroff; William Porter, Jr.; Joseph Reid MEMBERS ABSENT: Steven Morris TEMPORARY MEMBERS PRESENT: Ed Carpenter; Jan Hayhow STAFF PRESENT: Pat Cook; Barbara Foreman; Dennis Sykes; Peggy Vaughn GUESTS PRESENT: Marc Cory; Daniel Fulgham; Harold Leeman; Dave McNamara; Kevin McKinney; Bill Rieske; Frank Scozzafave; Gary Simons; Kester So; Kelly Thompson Chair Hollister called the meeting to order at 4:08 p.m. 1) APPROVAL OF THE BOARD OF DIRECTOR'S MEETING MINUTES FROM NOVEMBER 1, 1995 Motion — John Petroff motioned the Board to approve the November 1, 1995 Meeting Minutes as presented and place them on file with one correction on page two. Mary Cory should be changed to read Marc Cory. Yeas: Unanimous. Motion carried. The Board received a copy of the 1996 Board of Director's Meeting Dates. Motion — Robert Brockwell motioned the Board to receive and place on file the 1996 Board of Director's Meeting Dates as presented. Yeas: Unanimous. Motion carried. 2) EDC FINANCIAL STATEMENTS — Adjusted, June 1995 Motion — Joseph Reid motioned the Board to receive and place on file the EDC Financial Statements (Adjusted, June 195) as presented. Joseph Pandy seconded the motion. Yeas: Unanimous. Motion carried. 3) DOWNTOWN LANSING PRESENTATION — PRINCIPAL SHOPPING DISTRICT Kevin McKinney and Kelly Thompson presented to the Board an overview of the 1996-1997 Marketing Plan for the Principal Shopping District and asked the Board for their continued support as they move forward with a proposed ordinance to the Lansing City Council. Motion — Robert Brockwell motioned the Board to approve EDC's continued support of the designated Principal Shopping District area. Joseph Pandy seconded the motion. Yeas: Unanimous. Motion carried. 4) EDC BUSINESS FINANCING ASSISTANCE PROGRAM PROJECTS a) Project Status Update — November 30th The Board received a copy of the B.F.A.P. Project Status Update prepared by Peggy Vaughn. Peggy mentioned that the Lowertown Lofts open house had taken place on November 15th and also Goldenrod Distributing had an open house on December 1st to celebrate their project's completion. b) Bare Bones Project — Old Kent's additional loan The Board received a copy of a Resolution requesting that the EDC approve $35,000 of further subordination of its loan to the Bare Bones Project, if the Bank (Old Kent) agrees to invest the additional $35,000 in the Project. After some discussion the Board asked that the Resolution be modified as follows: The EDC wil-.i.iot subordinate our existing loan to the new -- proposed bank loan. The EDC prefers to be in a co—equal position with our current $43,000 loan and Old Kent Bank's proposed $35,000 loan. Motion — William Long motioned the Board to approve the Resolution as presented (including the above modification). Yeas: Unanimous. Motion carried. c) Quest 5 Project — Consideration of Loan Commitment After much discussion it was recommended by William Long that the Quest 5 Project be referred back to the Project Policy and Finance Committee for further review of the loan commitment etc. The Committee will present their recommendations regarding the Quest 5 Project to the full Board at the January 10, 1996 Board Meeting, if the project applicants can expedite some information requested by EDC staff. d) Historical Preservation Loan Program (City/State Grant) Motion — Joseph Reid motioned the Board to support the City's grant application as presented, with the EDC setting aside $5,000 to loan specific applicants for pre—development costs associated with historic building preservation. Yeas: Unanimous. Motion carried. 5) OTHER BUSINESS a) Update on Discussions with Block 100 Hotel (Radisson) Joe Pandy informed the Board that at the last meeting with representatives of the Radisson Hotel they offered a "draft" document of a second amendment to the EDC's agreement, which included a willingness in the amendment to reprioritize the eventual proceeds of cash flow distributions, to provide that the EDC Loan and the UDAG Loan would be grouped together and as a total would be treated proportionate with the partnerships original equity capital, all other terms remaining in place. This would improve EDC's subordination by one position. Another meeting with Radisson representatives will possibly take place on December 12th. b) Venture Center, Inc. — Loan Terms Pat Cook handed out to the Board a copy of the Commitment Letter and reviewed the loan terms for the Venture Center. Motion — Joseph Pandy motioned the Board to approve the Letter of Commitment for the Venture Center as presented. John Petroff seconded the motion. Yeas: Brockwell; Hollister; Long; Moeller; Pandy; Petroff; Porter Abstain: Reid Motion carried. Pat Cook mentioned that the loan closing for the Venture Center Project could take place as early as the end of December. 6) EDC BOND — BAUCH BUILDING REFUNDING PROJECT — Resolution Authorizing the Issuance of Bonds, Indenture, Loan Agreement, Bond Purchase Contract, Guaranty, Assignment of Mortgage & Security Agreement, Mortgage and Security Agreement Motion — John Petroff motioned the Board to approve the documents for the refunding of the Bauch Building as presented. William Porter, Jr. seconded the motion. Yeas: Brockwell; Hollister; Long; Moeller; Pandy; Petroff; Porter Abstain: Reid Motion carried. Joe Pandy and Joe Reid were excused from the meeting at 5:05 p.m. (OTHER BUSINESS CONT) c) 1996 EDC Work Program — Proposed Contract Services to City (information only) Pat Cook mentioned to the Board that a meeting had taken place with Peggy Vaughn, Bill Long and herself to discuss future funding for the EDC. One of the programs that was discussed was the Neighborhood Enterprise Zone, which would give the EDC the opportunity to offer residential incentive programs. These incentive programs would be similar to commercial and industrial tax abatements. Pat further mentioned that the EDC staff has drafted a new work program and it has been submitted to the City Planning & Neighborhood Development Office asking them to contract services from the EDC for this program — this would probably require the EDC hiring another staff person. Pat stated that an initial review with the budget staff of the City had taken place and a meeting to review this program with the Mayor would take place on December 8th. d) Upjohn/Pitney Bowes — EDC Bond Project (information only) Pat Cook reminded the Board that at the November Board Meeting they had taken action to administer documents for the Unjohn/ Pitney Bowes EDC Bond Project. At that time the attorney for Upjohn/Pitney Bowes was under the impression that the Project was going to be sold. The sale did not take place and the Board received a copy of a letter from the attorney for Upjohn/ Pitney Bowes explaining the current status of the Project. e) Greater Lansing Health Education Collaborative — Update Marc Cory, GLHEC Coordinator, handed out to the Board copies of a monthly report and also weekly reports on the progress of the Collaborative. Marc mentioned that on December 18th the Mayor, Pat Cook, Peggy Vaughn and himself would be taking a trip to Flint to visit the Genessee Intermediate School District where a health collaborative program is already in place. Marc further mentioned that hopefully the Collaborative for the Lansing area will be in place by the beginning of the 1997 school year. 7) PUBLIC COMMENT None. 8) ADJOURNMENT Chair Hollister declared the meeting adjourned at 5:25 p.m. Minutes by B. Foreman Patricia A. Cook EDC Manager