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HomeMy WebLinkAbout1999 LEDC minutesEconomic Development Corporation - of the City of Lansing ,, •, i Special Board of Director's Meeting G J Mayor's Conference Room LA 0 CITY CLERK Ninth Floor, Lansing City Hall Wednesday, January 20, 1999 4:00 P.M. Members Present: Ann Brazeau; Paula Cunningham; David Hollister; William Long; Larry Meyer; John Petroff Members Absent: Kim Coleman; Joseph Pandy; William Porter, Jr. Temporary EDC Members Present: Ed Carpenter Temporary EDC Members Absent: Jan Hayhow Staff Present: Tracy Carney; Patricia Cook; Karl Dorshimer; Barbara Foreman Guests Present: None Due to a lack of a quorum at 4:00 p.m. Chair Long suggested that the Board proceed with items on the Agenda that required no action. 3) EDC B.F.A.P. Projects a) Analysis of Program Loan Funds (thru 12/31/98) The Board received a copy of the Analysis of Program Loan Funds dated 12/31/98, which was prepared by Barbara Foreman. b) Update on BFAP Projects: * Requests from Loan Recipients for Modifications to Loan Agreements Patricia Cook informed the Board that the EDC has had two separate requests from Peter Jubeck at Clara's regarding his loan. 1) Mr. Jubeck asked if the EDC would continue to resubbordinate its' collateral position but allow him to refinance his Eagle property at a lower rate of interest. 2) Mr. Jubeck also asked if the EDC would consider discharge of its' security in the Sir Pizza property on Pennsylvania Avenue as he now owns Clara's Restaurant. Pat stated that she had told Mr. Jubeck that it was prudent that his project be completed before considering to maneuver any of the legal documents needed to fulfil his requests. As a quorum of the Board was now present, Chair Long called the meeting to order at 4:20 p.m. Pat informed the Board that Ernie St. Pierre has requested that the EDC subordinate its existing position of collateral on his home to an additional mortgage with National City Bank. Motion - Paula Cunningham motioned the Board to authorize Patricia Cook to offer Mr. St. Pierre the option to pay down to the EDC $10,000 of the $15,000 he owes, and for that consideration the EDC would discharge its' 2nd mortgage position on his home. Larry Meyer seconded the motion. Yeas: Unanimous. Motion carried. (Item 3b - Elbinger Foreclosure Status) Pat Cook mentioned to the Board that the EDC received a cash payment of approximately $2,500 on Mr. Elbinger's Metropolitan Life Insurance Policy. Pat also mentioned that the EDC is continuing to pursue foreclosure on Mr. Elbinger's commercial property in Old Town and the sheriffs sale will probably take place sometime in February. 1) Approval of the Board of Director's Meeting Minutes from November 4, 1998 Motion - John Petroff motioned the Board to approve the November 4, 1998 Meeting Minutes as presented and place them on file. Ann Brazeau seconded the motion. Yeas: Unanimous. Motion carried. 2) Financial Statements - As of December 31, 1998 Motion - Larry Meyer motioned the Board to approve the Financial Statements (as of December 31, 1998) as presented and place them on file. David Hollister seconded the motion. Yeas: Unanimous. Motion carried. 4) Other Business a) Annual Board Report for 1998 Work Programs Motion - David Hollister motioned the Board to approve the Annual Board Report for 1998 Work Programs as presented and place it on file. Paula Cunningham seconded the motion. Yeas: Unanimous. Motion carried. b) Extension of Capital Consultants Contract through 6/30/99 - Retain GM Efforts Motion - Paula Cunningham motioned the Board to approve the extension of the Capital Consultants Contract (Retain GM Efforts) through 6/30/99 as presented. Larry Meyer seconded the motion. Yeas: Unanimous. Motion carried. c) EDC Current Projects Update (December, 1998) The Board received in their packet a listing of current EDC projects, which was prepared by Tracy Carney. d) Review of Investment Policy The Board received in their packet a copy of the City of Lansing Investment Policy. The Board unanimously agreed to receive and place on file the investment policy. 5) Public Comment None. 6) Adjournment Chair Long declared the meeting adjourned at 5:02 p.m. Minutes by B. Foreman (2 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, April 7, 1999 4:00 P.M. Members Present: David Hollister; James Butler; Ann Brazeau; Kim Coleman; William Long Members Absent: William Porter; Joseph Pandy; Paula Cunningham; Larry Meyer Temporary EDC Members Present: Jan Hayhow, Ed Carpenter r- Temporary EDC <' Members Absent: None c; i r -- _.x Staff Present: Patricia A. Cook, Karl Dorshimer, Tracy Carney —� - c� m •• Guests Present: Brad Shaw - The Venture Center r 7 1) CALL TO ORDER: 4:00 P.M. a) Introduction and welcome to new EDC Board member James Butler. 2) ELECTION OF OFFICERS: Motion - Mayor David Hollister motioned that the Board approve to Elect the Proposed Slate of Officers presented as follows: William Long - Chairperson; Kim Coleman - Vice Chairperson, Paula Cunningham - Secretary; Ann Brazeau - Treasurer. Kim Coleman seconded the motion. Yeas: Unanimous. Motion carried. 3) APPROVAL OF THE SPECIAL BOARD OF DIRECTORS MEETING MINUTES: Motion - Kim Coleman motioned the Board to approve the special Board of Directors Meeting Minutes from January 20, 1999, as presented and place them on file. Mayor David Hollister seconded the motion. Yeas: Unanimous. Motion carried. 4) FINANCIAL STATEMENTS - January 31, 1999 Motion - Mayor David Hollister motioned that the Board approve the statements as presented. James Butler seconded the motion. Yeas: Unanimous. Motion carried. 5) EDC BFAP PROJECTS a) Analysis of Program Loan Funds: Patricia Cook reviewed the analysis and explained the program fund availability and the status of projects which had been funded. b) Update on BFAP Projects: Brad Shaw of the Venture Center gave an update on the building search. He talked about possible state initiatives which may be announced by the Governor as early as April 23 - these incentive tools will provide some opportunity for him to make some program changes and apply for funding to support a facility. Patricia Cook explained some of the issues surrounding some of the loan projects and gave a brief explanation of each loan for the benefit of the board members. 1) Elbinger Foreclosure Status Patricia Cook received a letter from Dwight Ebaugh regarding the status of the Elbinger foreclosure. The letter provides options for the EDC Board Members to consider. The Board Members were walked through the financial implications of Mr. Ebaugh's proposal. Patricia Cook recommended that the Board Members continue with the foreclosure on the property. EDC Board Members discussed the pro's and con's of the foreclosure. Motion - Kim Coleman motioned the Board to proceed with foreclosure per the recommendation presented. Jan Hayhow seconded the motion. Yeas: Unanimous. Motion carried. 6) OTHER BUSINESS a) Annual Work Programs & Goal for, 1999 Patricia Cook explained the work program and goals that were presented and walked the Board Members through the handout provided. 1) Bill Long commented that the staff should illustrate which goals will receive emphasis this coming budget year. Board Members asked questions and discussed the goals and objectives presented. Motion - Mayor David Hollister motioned the Board vote to support the Annual Work Program and Goals for 1999. James Butler seconded the motion. Yeas: Unanimous. Motion carried. b) EDC Contract with City 1) Patricia Cook explained the purpose and status of the EDC contract and the current budget request that has been forwarded to the City. Patricia Cook stated that the EDC did not raise the contract cost of $60,000 this year, it remained the same. Motion - Kim Coleman motioned the Board to approve the following resolution. Ann Brazeau seconded the motion. Whereas, the Economic Development Corporation has submitted a $ 60,000 budget request to the City of Lansing for the purpose of contracting with the City to perform the following services, on the City's behalf, during the FY 99/00 budget year: 1) Administration of the Renaissance Zone program; 2) Administration of the Neighborhood Enterprise Zone program; 3) Administration of the City's Industrial & Commercial Tax Abatement program; 4) Administration of the Lansing Brownfield Redevelopment Authority Now, Therefore Be It Resolved, that the Economic Development Corporation of the City of Lansing hereby approves the afore -stated budget request to the City of Lansing. Yeas: Unanimous. Motion carried. c) EDC Current Projects Update Mayor David Hollister requested that the EDC Board Members speak with City Council about proposed budget cuts to finance the CSO rain fee. He asked that Board Members and citizens speak about the consequences of budget cuts on the programs that are currently available for citizens and businesses. 1) Karl updated Board Members about the Motor Wheel site and the LBRA opportunities. Mayor David Hollister commended the EDC staff on their excellent work on this project. 2) Patricia Cook updated the Board Members on other projects and reviewed the monthly activities update. 3) Mayor David Hollister provided updated information on the Retain GM efforts. He explained the time frame and tasks that must be completed in order for GM to be able to continue to consider the Lansing sites. He emphasized that GM has not committed to the site. He explained the constants: SB 102 and a labor union contract. He explained that the new plant is not a replacement of the existing plant. It is a new plant with a new product. Mayor David Hollister emphasized the importance of the suppliers. He also stated that he anticipated an announcement in 30 days. Mayor David Hollister also spoke about the CMI grants and commended the EDC staff on their efforts and also explained the status. d) Lansing Community Profiles & Wrap 1) Patricia Cook showed an example of the profile and explained the cooperative nature of this endeavor. She noted that this was done by a joint effort of Capital Choice and the REDT. 2) Patricia Cook gave Karl Dorshimer credit for all of his efforts on the profiles. e) Ingham County EDC Strategic Plan 1) Patricia Cook explained the status of the Ingham County EDC Strategic Plan and briefly discussed the organization of the County's EDC. She noted the cooperative efforts between the City and County's EDC. 2) Patricia Cook and Bill Long suggested that the staff draft a letter to the County EDC Board Chairperson in order to thank them and express support for the plan. EDC Board Members discussed what the letter should say and made comments. 0 Follow up on EDC Investment Policy 1) Patricia Cook explained background of request. She requested that a motion be made to authorize the EDC manager to fulfill the requirements of the investment policy and to adopt the policy. Motion - Kim Coleman motioned the Board to adopt the investment policy and authorize the EDC manager to take actions which carry out the policy. Mayor David Hollister seconded the motion. Yeas: Unanimous. Motion carried. g) Information on Parthenon Restaurant Building & Adjacent Vacant Lot 1) Patricia Cook gave an update on her meeting with the owners of the Parthenon about the opportunity that may exist with regards to their property and reviewed the handout provided. 2) Referenced the hand-out provided. 7) PUBLIC COMMENT - None S) ADJOURNMENT - 5:30 P.M. Minutes by T. Carney ���1� - — 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, June 2, 1999 4:00 P.M. .f U 7 4�I --) 1:;; � Ij LAHIS;r :0 CITY CLERK( Members Present: Ann Brazeau; James Butler; Paula Cunningham; David Hollister; William Long Members Absent: Kim Coleman; Larry Meyer; Joseph Pandy; William Porter, Jr. Temporary EDC Members Present: Ed Carpenter; Jan Hayhow Temporary EDC Members Absent: None Staff Present: Tracy Carney; Patricia Cook; Karl Dorshimer; Barbara Foreman Guests Present: Charlene Decker 1) Call to Order Chair Long called the meeting to order at 4:20 p.m. 2) Approval of the Board of Director's Meeting Minutes from April 7, 1999 Motion - Paula Cunningham motioned the Board to approve the Board of Director's Meeting Minutes From April 7, 1999 as presented and place them of file. Ann Brazeau seconded the motion. Yeas: Unanimous. Motion carried. Patricia Cook asked that one item be added to the Agenda - (4b) Report on MicroEnterprise Loan. 3) Financial Statements - As of April 30, 1999 Motion - James Butler motioned the Board to approve the Financial Statements (April 30, 1999) as presented and place them on file. David Hollister seconded the motion. Yeas: Unanimous. Motion carried. 4) EDC B.F.A.P. Projects a) Analysis of Program Loan Funds (thru 4/30/99) The Board received a copy of the Analysis of Program Loan Funds dated 4/30/99, which was prepared by Barbara Foreman. * Elbinger Foreclosure Status Patricia Cook informed the Board that the EDC is moving forward with the foreclosure on the Elbinger property. Pat stated that the EDC will participate with the Matthews, holders of the 1 st mortgage on the property, in funding an appraisal of the property. The one condition of participating with the appraisal will be that the Matthews not foreclose on the property. Pat also mentioned that two parties in the Old Town area have expressed an interest in purchasing the Elbinger property. * Report on MicroEnterprise Loan Patricia Cook informed the Board that "Wigs & Weaves" has defaulted on its' loan from the MicroEnterprise Loan Fund. The City of Lansing and the EDC have guarantees of 50% each on any default for the MicroEnterprise Loan Fund. Steve Nikkel, Director of the MicroEnterprise Loan Fund, has requested the City and the EDC to each pay $5,000 for the defaulted loan. James Butler requested that future Analysis Reports include a column identifying which loans are in good standing, behind in payments or in default. 5) Project Policy and Finance Committee Items a) EDC FY 99/00 Budget Motion - James Butler motioned the Board to approve the EDC FY 99/00 Budget as presented. Paula Cunningham seconded the motion. Yeas: Unanimous. Motion carried. b) Engagement of Auditors Motion - David Hollister motioned the Board to approve engaging the firm of Kutas, Hawes & Wolcott PC to perform the EDC FY 98/99 Audit as presented in their letter of engagement. Ann Brazeau seconded the motion. Yeas: Unanimous. Motion carried. c) Ratification of Contract Amendments with Capital Consultants for Retain GM Efforts - Traffic Study and Infrastructure Design/Bid Motion - Paula Cunningham motioned the Board to ratify the approval of Contract Amendments with Capital Consultants for the Retain GM Efforts as presented. Ann Brazeau seconded the motion. Yeas: Unanimous. Motion carried. d) Motor Wheel Site - Brownfield Redevelopment Update Patricia Cook mentioned to the Board that a Community Forum will take place at Cristo Rey Community Center around the middle of June to discuss with area residents the plans for the redevelopment of the former Motor Wheel site with GM Powertrain's Machine Tool Operation as the anchor tenant. 6) Other Business a) Establish Securities Account at Dean Witter Reynolds, Inc. for EDC General Checking Account Motion - Paula Cunningham motioned the Board to approve by resolution the authorization of board member signatures for the new corporate checking account at Dean Witter Reynolds, Inc. Ann Brazeau seconded the motion. Yeas: Unanimous. Motion carried. b) EDC Current Projects Update (May 27, 1999) The Board received a copy of the EDC Activities Update dated May 27, 1999, which was prepared by Tracy Carney. 7) Public Comment None. S) Adjournment Chair Long declared the meeting adjourned at 5:20 p.m. Minutes by B. Foreman (�;;-4-4. &� 4 Patricia A. Cook EDC Manager i-` Economic Development Corporation of the City of Lansing Board of Director's Meeting ' Mayor's Conference Room 0ACL�R�� Ninth Floor, Lansing City Hall Wednesday, September 1, 1999 4:00 P.M. Members Present: Ann Brazeau; James Butler; Kim Coleman; Paula Cunningham; David Hollister; William Long Members Absent: Larry Meyer; Joseph Pandy; William Porter, Jr. Temporary EDC Members Present: None Temporary EDC Members Absent: Ed Carpenter; Jan Hayhow Staff Present: Tracy Carney; Patricia Cook; Karl Dorshimer; Barbara Foreman Guests Present: Charlie Hawes 1) Call to Order Chair Long called the meeting to order at 4:05 p.m. 2) Approval of the Board of Directors Meeting Minutes from June 2, 1999 Motion - Kim Coleman motioned the Board to approve the Board of Director's Meeting Minutes from June 2, 1999 as presented and place them on file. Ann Brazeau seconded the motion. Yeas: Unanimous. Motion carried. 3) June, 1999 "Unadjusted" Financial Statements The Board received a copy of the June, 1999 "Unadjusted" Financial Statements for their information - no action by the Board required. 4) EDC B.F.A.P. Projects a) Analysis of Program Loan Funds (thru 7/31/99) The Board received a copy of the Analysis of Program Loan Funds dated 7/31/99, which was prepared by Barbara Foreman. b) Update on BFAP Projects: *Elbinger Foreclosure Status & Appraisal Pat Cook informed the Board that the EDC received court notice that the Matthews, holders of the 1 st mortgage on the Elbinger property, have foreclosed their mortgage. Pat also informed the Board that the EDC has engaged Lazar & Associates to assess the fair market value of the Elbinger property. *Hobie's Loan Repayments Update Pat Cook stated that Ernie St. Pierre will begin making payments in October on the remainder of his outstanding loan amount ($14,952.46) with the EDC. The monthly payments will be $175.00. *Business Owners Summary - MicroEnterprise Fund The Board received a copy of a Business Owners Summary, dated May 18, 1999, outlining information & statistics regarding the MicroEnterprise Fund. Chair Long suggested that Raynard Blake, the new Executive Director of the MicroEnterprise Fund and also Leanne Stites, Director of the Principal Shopping District be invited in the near future to an EDC Board Meeting. *Venture Center Update - Smart Park Initiative Pat Cook mentioned that the three year contract with Brad Shaw, Executive Director of the Venture Center, for the Venture Center operations will be expiring soon. Brad has joined MSU's Office of Intellectual Property. Pat further mentioned that the EDC wants to continue the partnership with MSU and the Lansing Chamber of Commerce on the Venture Center concept. Pat stated that recently the State of Michigan has introduced a new concept called a Smart Park, which is a technology driven business incubator park. The EDC has engaged a number of meetings with MSU and the Lansing Chamber of Commerce to discuss preparation of an application that the City of Lansing would submit to the Michigan Economic Development Corporation (MEDC). The application would be reviewed by the MEDC and if accepted they would ask for a full feasibility study to be developed. 5) Other Business a) Contract Amendment with Capital Consultants for Retain GM Efforts through October 2nd and Infrastructure Engineering Services Motion - Kim Coleman motioned the Board to approve Amendment #6 & Amendment #7 to the Capital Consultants Contract for the "Retain GM Efforts" as presented. James Butler seconded the motion. Yeas: Unanimous. Motion carried. * Amend EDC FY 99/00 Budget Motion - Ann Brazeau motioned the Board to approve amending the EDC FY 99/00 Budget to include the above amendments to the Capital Consultants Contract as presented. Kim Coleman seconded the motion. Yeas: Unanimous. Motion carried. b) MEDC - Interlocal Agreement Resolution Motion - Paula Cunningham motioned the Board to approve the Interlocal Agreement Resolution which authorizes EDC's participation in the Michigan Economic Development Corporation. David Hollister seconded the motion. Yeas: Unanimous. Motion carried. The Board unanimously agreed that either Dennis Sykes or Patricia Cook should represent the EDC on the MEDC Board of Directors. c) EDC Current Projects Update (June, July & August 1999) The Board received a copy of the EDC Activities Update dated June, July & August 1999, which was prepared by Tracy Carney. d) EDC Office Relocation (October, 1999) Pat Cook informed the Board that the EDC will be moving to their new location in early October. e) EDC/Ingham County Retention Contractor Update Pat Cook stated that a retention contract person may be hired sometime in October. 6) Public Comment None. 7) Adjournment Chair Long declared the meeting adjourned at 4:55 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, November 3, 1999 4:00 P.M. Members Present: Ann Brazeau; Kim Coleman; Paula Cunningham; William Long; Larry Meyer; Joseph Pandy Members Absent: James Butler; David Hollister; William Porter, Jr. Temporary EDC Members Present: Jan Hayhow Temporary EDC Members Absent: Ed Carpenter Staff Present: Tracy Carney; Patricia Cook; Karl Dorshimer; Barbara Foreman Guests Present: Reynard Blake; Charlie Hawes; James Smiertka 1) Call to Order Chair Long called the meeting to order at 4:05 p.m. 2) Approval of the Board of Director's Meeting Minutes from Sept. 1, 1999 Motion - Kim Coleman motioned the Board to approve the Board of Director's Meeting Minutes from September 1, 1999 as presented and place them on file. Ann Brazeau seconded the motion. Yeas: Unanimous. Motion carried. 3) FY '98/99 EDC "Draft" Audit Charlie Hawes, of Kutas, Hawes & Wolcott PC, gave the Board a brief overview of the "Draft" Audit for FY'98/99. Board members suggested some additional clarifying language regarding EDC loans. 2: 10 LA`ISi(G CITY CLERK Motion - Ann Brazeau motioned the Board to accept the FY'98/99 EDC "Draft" Audit (with modifications) as presented and place it on file. Kim Coleman seconded the motion. Yeas: Unanimous. Motion carried. At 4:20 p.m. City Attorney James Smiertka entered the meeting. Mr. Smiertka presented the Board with a Resolution requesting the EDC to participate in a loan guaranty for the purpose of providing improvement loans for facade improvements to property owners/merchants of commercial buildings within the Old Town District of the City of Lansing. Patricia Cook stated that she would need to have further conversation with Amy Collett,. Program Manager for Old Town Main Street, before making a recommendation to the Board regarding the loan program. Larry Meyer motioned.the Board to table this item until the December, '99 Board meeting. The Board agreed unanimously. 4) Lansing Community Microenterprise Fund Update -Reynard Blake, Executive Director * Loan Guarantee Renewal Reynard Blake, Executive Director of the Lansing Community Microenterprise Loan Fund, gave a brief presentation to the Board on the activities of the Fund over the past several months. Mr. Blake expressed his appreciation to the EDC Board for their support of the Microenterprise Loan Fund Program and requested that the Board consider support of the Project for another year. Motion - Paula Cunningham motioned the Board to approve authorization of a $20,000 Loan Guarantee for the Microenterprise Loan Fund (November 6, 1999 to November 6, 2000). Kim Coleman seconded the motion. Yeas: Unanimous. Motion carried. 5) EDC B.F.A.P. Projects a) Analysis of Program Loan Funds (thru 9/30/99) The Board received a copy of the Analysis of Program Loan Funds dated 9/30/99, which was prepared by Barbara Foreman. By Board request the Analysis of Program Loan Funds has been changed to reflect loans that are in default. Patricia Cook informed the Board that loan pay-off checks have been received by the EDC from both Ernie St. Pierre (Hobies Loan) in the amount. of $14,900.43 and Harry Hepler (Harry Hepler Loan) in the amount of $38,760.36. b) Update on BFAP Projects: * Status of Elbinger Loan -Negotiate. with 1 st Mortgagee Motion - Ann Brazeau motioned the Board to ratify previous Board approval (by fax) that gave EDC staff the authority to proceed and negotiate to settle the 1 st mortgage on the Elbinger property. Larry Meyer seconded the motion. Yeas: Unanimous. Motion carried. * Smart Park Initiative (Lansing Regional Technology Park) The Board received information in their Board packet, which was prepared by Patricia Cook, regarding the proposed development of a Lansing Regional Technology Park. 6) Other Business a) EDC Current Projects Update (September, 1999) The Board received a copy of the EDC Activities Update dated September, 1999, which was prepared by Tracy Carney. b) EDC/Ingham County Retention Contractor Update Patricia Cook informed the Board that the Agreement with Ingham County and the EDC, for the hiring of a retention contractor, has been finalized. The Lansing Regional Chamber of Commerce, the Regional Economic Development Team and the Michigan Economic Development Association are running ads for the contract. Patricia stated that the intent is to have the position filled by the beginning of Dec. '99. 7) Public Comment None. S) Adjournment Chair Long declared the meeting adjourned at 5:00 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 1, 1999 4:00 P.M. Members Present: Ann Brazeau; James Butler; Kim Coleman; David Hollister; William Long; Joseph Pandy Members Absent: Paula Cunningham; Larry Meyer; William Porter, Jr. Temporary EDC Members Present: Jan Hayhow Temporary EDC Members Absent: Ed Carpenter Staff Present: Patricia Cook; Karl Dorshimer; Barbara Foreman Staff Absent: Tracy Carney Guests Present: Amy Collett; Amy Salisbury; Leanne Stites; Ron Wilson 1) Call to Order Chair Long called the meeting to order at 4:05 p.m. 2) Approval of the Board of Director's Meeting Minutes from Nov. 3, 1999 Motion - James Butler motioned the Board to approve the Board of Director's Meeting Minutes from November 3, 1999 as presented and place them on file. Ann Brazeau seconded the motion. Yeas: Unanimous. Motion carried. C(_ER'; 3) Financial Statements *Final June, 1999 *July thru September, 1999 The Board unanimously agreed to accept and place on file the Financial Statements (Final June, 1999 & July thru September, 1999) as presented. 4) Principal Shopping District Overview -Leanne Stites, Executive Director Leanne Stites, Executive Director of the Principal Shopping District, gave the Board a brief overview of how the PSD is structured and also outlined the various activities of the PSD. 5) Old Town Facade Loan Guaranty Agreement Motion - James Butler motioned the Board to approve the form of the Old Town Facade Loan Guaranty Agreement & also the Resolution Authorizing the Guarantee Agreement as presented. Ann Brazeau seconded the motion. Yeas: Unanimous. Motion carried. 6) EDC B.F.A.P. Projects a) Analysis of Program Loan Funds (thru 10/31/99) The Board received a copy of the Analysis of Program Loan Funds dated 10/31/99, which was prepared by Barbara Foreman. Pat Cook informed the Board that since this report was prepared, Dimitri's loan payments are current. b) Update on BFAP Projects: * Status of Elbinger Loan - Negotiate with 1 st Mortgagee Pat Cook stated to the Board that she has continued to try and negotiate with Mr. Matthews, 1 st Mortgagee on the Elbinger property, and Mr. Matthews' legal council, for a payoff amount on the property. * Status of Loans in Default --Blue Coyote Brewing Co. Patricia Cook informed the Board that over the last 12 months, 9 payments for the Blue Coyote Loan have been received late and the last two payments due on September 18th & October 18th'99 were not received until November 2nd '99. The Board received a copy of a letter that was sent to Harry Hepler & Michael O'Leary by Patricia Cook which was dated November 19, 1999. The letter stated that, in accordance with the repayment terms of the loan agreement, the entire unpaid balance of the loan is due and payable to the EDC immediately. The letter also stated that the rate of interest being charged to the principal balance, from the last payment received (11/2/99), will now be at an accelerated rate of 11.5%. Pat Cook stated that a letter addressed to the EDC Board from Harry Hepler & Michael O'Leary was received in the EDC office about 30 minutes before this Board meeting started. The letter requested a postponement of loan payments for 90 to 120 days during which time the Blue Coyote will be aggressively marketing the sale of the business & the property. After much discussion by the Board it was decided that another letter be sent to Mr. Hepler & Mr. O'Leary (which would be signed by Chair Long) stating: 1) the interest rate will not be accelerated if payments are received on time. 2) include the current amount due for the November, '99 payment. 3) ask for a written plan outlining a proposal for the Blue Coyote property & ask that this be submitted to the EDC office by a specific date. 4) ask that any project information be relayed directly to the EDC office staff. Motion - Kim Coleman motioned the Board to authorize Patricia Cook to create the letter to be sent to Harry Hepler & Michael O'Leary that will include the above mentioned items. (#1 thru #4). David Hollister seconded the motion. Yeas: Unanimous. Motion carried. 7) Other Business a) 100 Block Hotel Agreement Update No information as this time. b) EDC Current Projects Update (November, 1999) The Board received a copy of the EDC Activities Update dated November, 1999, which was prepared by Tracy Carney. c) EDC/Ingham County Retention Contractor Update Pat Cook mentioned that four proposal for the Retention Contractor position have been received. Interviews will be conducted the week of Dec. 4th, '99, and the plan is to have the position filled by the beginning of Jan. 2000. 8) Public Comment None. 9) Adjournment Chair Long declared the meeting adjourned at 5:15 p.m. Minutes by B. Foreman ��C* A -A' -W. - &tek'� Patricia A. Cook EDC Manager