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HomeMy WebLinkAbout2003 LEDC minutesMembers Present: Members Absent: Temporary EDC Members Present: Temporary EDC Members Absent: Staff Present: Guests Present: 1) Call to Order Economic Development Corporation of the City of Lansing Board of Director's Meeting Mayor's Conference Room Ninth Floor, Lansing City Hall Wednesday, April 2, 2003 4:00 P.M. Tony Benavides; Ann Brazeau; William Cook; Paula Cunningham; Brian Jeffries; William Long; Jeff Williams James Butler; Kim Coleman None Ed Carpenter; Jan Hayhow Patricia Cook; Karl Dorshimer; Barbara Foreman; Tracy Carney - Miller; Marchelle Smith Jim Ruff Chair Williams called the meeting to order at 4:10 p.m. 2) Approval of the Board of Director's Meeting Minutes from February 5, 2003 Motion - William Long motioned the Board to approve the Board of Director's Meeting Minutes from February 5, 2003 as presented and place them on file. Ann Brazeau seconded the motion. Yeas: Unanimous. Motion carried. 3) Other Business A) Financial Statements through February, 2003 The Board unanimously agreed to receive and place on file the Financial Statements through February, 2003 as presented. B) Analysis of BFAP Loans (thru 2/28/03) The Board received a copy of the Analysis of Program Loan Funds as of 2/28/03, which was prepared by Barbara Foreman. C) Lansing EDC Representative to MEDC Board Patricia Cook reminded the Board that about three years ago when the MEDC split off from the State to form its' corporation it asked for interlocal partners and there was an interlocal partnership agreement that was structured. The MEDC asked a number of agencies across the State to participate, including EDC's & DDA's. The MEDC asked that the City of Lansing EDC designate a representative to serve on the MEDC Board. For the past three years Dennis Sykes, former Planning & Neighborhood Development Director for the City, served on the MEDC Board as the EDC's & City's representative. As Dennis has left his City post to assume a position with the State, EDC staff is recommending that Jim Ruff, the new Director of P & ND, be appointed to the MEDC Board to represent the City and the EDC. Motion - William Cook motioned the Board to approve Jim Ruff, P & ND Director, as the new appointee to the MEDC Board, representing the Lansing EDC and the City of Lansing. William Long seconded the motion. Yeas: Unanimous. Motion carried. D) Resolution Approving FY `04 Budget Request to the City This item was tabled and will be discussed at the May Board Meeting. E) EDC Investments Patricia Cook stated that at the Dec. `02 Board Meeting the Board approved an Investment Proposal that will better insure some of EDC's investments. However, a review of the meeting minutes did not specifically authorize EDC staff to implement the Investment Policy. On March 20, `03 the EDC's Executive Committee met to authorize EDC staff to implement the Investment Proposal as presented. Paula Cunningham entered the meeting at 4:40 p.m. F) Closeout of HTRC - UDAG Project Patricia Cook informed the Board that an Acknowlegement of Termination of and Release and Discharge of Claims and/or Causes of Action under Interlocal Agreement is now in place. The document will be sent to Meridian Charter Township within the next few days for signatures and then a check will be issued to the City in the amount of $201,950. G) Downtown Facade and Loft Grants The Board received a copy of a database printout outlining downtown facade and loft development grant monies used and private investment dollars. The printout also shows newly proposed downtown loft development. Brian Jeffries asked if EDC staff could put together a similar database showing Neighborhood Enterprise Zone tax abatement values. Patricia Cook stated that Request for Proposals have been sent out for audit services for the EDC, TIFA & LBRA. Proposals are due back within the next few weeks. Patricia Cook informed the Board that the EDC has received a request from Dimitri Stathopulos to re -finance his BFAP loan at 3.75%. After some discussion this item was tabled until the May Board meeting. Tony Benavides suggested that Dimitri be invited to that meeting to further discuss with the Board his request. 4) Public Comment None, 5) Adjournment Chair Williams declared the meeting adjourned at 5:10 p.m. Minutes by B. Foreman C�A �rcr� Patricia A. Cook EDC Manager Members Present: Members Absent: Temporary EDC Members Present: Staff Present: Guests Present: 1) Call to Order Economic Development Corporation of the City of Lansing Board of Director's Meeting Mayor's Conference Room Ninth Floor, Lansing City Hall Wednesday, May 7, 2003 4:00 P.M. Ann Brazeau; Tony Benavides; Kim Coleman; William Cook; Brian Jeffries; William Long; Jeff Williams James Butler; Paula Cunningham Ed Carpenter; Jan Hayhow Patricia Cook; Karl Dorshimer; Barbara Foreman; Tracy Carney - Miller. Marchelle Smith Jim Ruff-, Dimitrios Stathopoulos Chair Williams called the meeting to order at 4:14 p.m. 2) Approval of the Board of Director's Meeting Minutes from April 2, 2003 Motion - William Long motioned the Board to approve the Board of Director's Meeting Minutes from April 2, 2003 as presented and place them on file. William Cook seconded the motion. Yeas: Unanimous. Motion carried. 3) Other Business A) Consideration to Modify Loan Terms- BFAP Loan to Dimitrios Stathopoulos (EKOS Proj ect) Patricia Cook informed the Board that the Memorandum in their Board packet outlines a request from Dimitrios Stathopoulos to refinance his EDC loan at an interest rate of 3.75 %, which would help to reduce his financial burden caused by not having a tenant in his building for 5 out of 8 years he has had his EDC loan. Patricia Cook further informed the Board that last week an Ad Hoc Loan Committee consisting of Temporary EDC Members Jan Hayhow and Ed Carpenter, EDC Board Chair Jeff Williams, Planning Director Jim Ruff, EDC Staff - Patricia Cook and Marchelle Smith met with Dimitri to discuss his request. After the meeting with Dimitri the Ad Hoc Committee discussed a number of options including his current request to further reduce the loan interest rate to 3.25%, and ultimately felt that the best possible solution in providing some immediate financial relief for Dimitri would be to allow "interest only" payments on his loan for a maximum of two years. Patricia Cook stated that the above recommendation was discussed with Dimitri and he indicated that he would discuss this option with his accountant. Dimitri briefly spoke to the Board and conveyed to them that after considering the Ad Hoc Committee's recommendation, he felt that his original request of refinancing his loan at 3.25% would be of the most benefit to him. After further discussion the Board agreed to vote on the recommendation of the Ad Hoc Committee. Motion - William Long motioned the Board to accept the recommendation of the Ad Hoc Committee, which offers Dimitri a maximum of 2 years of "interest only" payments and any legal fees associated with preparing loan document modifications would be incurred by Dimitri. It was further motioned that the Board would review the loan agreement at the end of the 2 year term. Kim Coleman seconded the motion. Yeas: Ann Brazeau; Tony Benavides; Ed Carpenter; Kim Coleman; William Cook; Jan Hayhow; Brian Jeffries; William Long; Jeff Williams Nays: None. Abstentions: None. Chair Williams stated to Dimitri that he would be receiving a formal letter from the EDC with its' recommendation for him to accept or deny. Chair Williams further stated to Dimitri that should he deny the offer of the EDC he is more than welcome to come back to the Ad Hoc Committee to discuss other possibilities he may have to alleviate his financial situation. In addition, EDC staff committed to assist Dimitri or his designated broker with marketing the building to prospective tenants. B) Financial Statements thru March, 2003 The Board unanimously agreed to receive and place on file the Financial Statements through March, 2003 as presented. C) Analysis of BFAP Loans (as of 3/31/03) The Board received a copy of the Analysis of Program Loan Funds as of 3/31/03, which was prepared by Barbara Foreman. D) Resolution Approving FY `04 Budget Request to the City Motion - William Long motioned the Board to approve the Resolution Approving the FY `04 Budget Request to the City as presented. William Cook seconded the motion. Yeas: Unanimous. Motion carried. E) NEZ Tax Abatement Values An update on the Downtown Public & Private Investment spreadsheet (which was prepared by Marchelle Smith) was made to include the NEZ Tax Abatement benefits to downtown property owners. 4) Public Comment None. 5) Adjournment Chair Williams declared the meeting adjourned at 5 p.m. Minutes by B. Foreman Ox k.� A. &"'� 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 4, 2003 4:00 P.M. Members Present: Ann Brazeau; Tony Benavides; James Butler; Kim Coleman; Paula Cunningham; Brian Jeffries; William Long; Jeff Williams Members Absent: William Cook Temporary EDC Members Present: Jan Hayhow Temporary EDC Members Absent: Ed Carpenter Staff Present: Patricia Cook; Karl Dorshimer; Barbara Foreman Staff Absent: Tracy Carney -Miller; Marchelle Smith Guests Present: Jim Ruff 1) Call to Order Chair Williams called the meeting to order at 4:05 p.m. 2) Approval of the Board of Director's Meeting Minutes from May 7, 2003 Motion - Paula Cunningham motioned the Board to approve the Board of Director's Meeting Minutes from May 7, 2003 as presented and place them on file. Ann Brazeau seconded the motion. Yeas: Unanimous. Motion carried. 3) Other Business A) EDC "Draft" Budget FY 03/04 Motion - William Long motioned the Board to approve the EDC "Draft" Budget FY 03/04 as presented and place it on file. Kim Coleman seconded the motion. Yeas: Unanimous. Motion carried. B) Financial Statements through April, 2003 Chair Williams called to staffs' attention an error on the EDC Balance Sheet and requested that staff check into it. Motion - William Long motioned the Board to approve the Financial Statements through April, 2003 ( with one correction to the Balance Sheet) as presented and place them on file. Ann Brazeau seconded the motion. Yeas: Unanimous. Motion carried. C) Analysis of BFAP Loans (as of 4/30/03) The Board received a copy of the Analysis of Program Loan Funds as of 4/30/03, which was prepared by Barbara Foreman. James Butler entered the meeting at 4:20 p.m. D) Proposed Program Expansion of BFAP Loans Patricia Cook presented the Board with a proposed next phase of the EDC BFAP. Efforts under the proposed program expansion would be targeted at four additional areas of Lansing: 1) The MLK Blvd. Corridor between I-496 and Miller Rd. 2) The South Cedar Corridor between I-496 and Miller Rd. 3) East Grand River Ave. Corridor between Cedar St. and Oakland Ave. 4) The Lansing City Market After extensive discussion about the Proposed Program Expansion, the Board agreed on the following changes to the document presented: 1) Total funding is $400,000 to be spent within the four corridors. 2) Maximum loan amount of $25,000 to be eliminated. 3) The EDC Board will review the expanded BFAP after six months of operation to access the program's success and to make any necessary modifications or changes. Motion - Paula Cunningham motioned the Board to approve the BFAP Proposed Expansion as presented with the above mentioned changes. Ann Brazeau seconded the motion. Yeas: Unanimous. Motion carried. E) Recommendations for Auditing Services Contract Patricia Cook stated that 3 bidders responded to EDC's "Request for Proposal" for auditing services: 1) Rehmann Robson 2) Andrews, Hooper & Pavlik 3) Kutas & Hawes After review of all 3 proposals staff is recommending a continued Auditing Service Contract with Kutas & Hawes for the FY `02-03. Motion - Brian Jeffries motioned the Board to approve continuing auditing services with the firm of Kutas & Hawes for the EDC FY `02-03 audit. Ann Brazeau seconded the motion. Yeas: Unanimous. Motion carried. James Butler left the meeting at 4:40 p.m. F) Release of Lien on Hillhaven EDC Bond Project Motion - Paula Cunningham motioned the Board to approve the Release of Lien on the Hillhaven EDC Bond Project as presented. Ann Brazeau seconded the motion. Yeas: Unanimous. Motion carried. G) Summary of Economic Development Programs The Board received in their packet a copy of a Summary of Economic Development Incentive Programs Administered by the EDC. H) Dimitri Stathopoulos Loan Refinance Request Patricia Cook mentioned to the Board that the letter that was sent to Dimitrios Stathopoulos offering him a maximum of 2 years of "Interest Only" payments was rejected by Dimitri. Pat further mentioned that she has been in touch with Dimitri's real estate agent, Jim Vlahakis, and he stated that he had a lead from the Clinton County area who is looking at Dimitri's property. Pat will follow up with the tenant lead. I) Audited Financial Statements for Block 100 Patricia Cook stated that every year the EDC receives a copy of the Block 100 Audit. Page 2 of the audit refers to what they believe is the current loan arrangement which indicates that until they have a positive distributable amount, they do not have to make any payments to the EDC on their 2 loans, which total to approximately $13 million dollars. J) Office Vacancy Initiative Proposal The purpose of the Office Occupant Incentive Program is to support the recruitment of new office tenants and office workers to designated areas of downtown Lansing. The City of Lansing and the Michigan State Housing Development Authority through the Capital Region Community Foundation, have allocated $50,000 to be awarded to five new office occupants as an incentive for them to locate in the designated area. Eligible businesses will receive a customized package of goods and services with a total value not to exceed $10,000.00 for the purpose of assisting the new business during the first six months of operation. The program will be administered through the EDC. The document also outlines the criteria necessary to be eligible for the program. 4) Public Comment None. 5) Adjournment Chair Williams declared the meeting adjourned at 5:39 p.m. Minutes by B. Foreman Patricia A. Cook EDC Manager Members Present: Members Absent: Temporary EDC Members Present: Temporary EDC Members Absent: Staff Present: Guests Present: 1) Call to Order Economic Development Corporation 1 of the City of Lansing " Board of Director's Meeting ;''. Mayor's Conference Room Ninth Floor, Lansing City Hall J Wednesday, October 1, 2003 4:00 P.M. Ann Brazeau; James Butler; William Cook; Paula Cunningham; Brian Jeffries; William Long; Jeff Williams Tony Benavides; Kim Coleman None Ed Carpenter; Jan Hayhow Patricia Cook; Karl Dorshimer; Barbara Foreman; Tracy Carney - Miller; Marchelle Smith Jodie Garcia; Jim Ruff, Linda Sutton; Ryan Thelen Chair Williams called the meeting to order at 4:02 p.m. 2) Approval of the Board of Director's Meeting Minutes from August 6, 2003 Motion - William Cook motioned the Board to approve the Board of Director's Meeting Minutes from August 6, 2003 as presented and place them on file. Ann Brazeau seconded the motion. Yeas: Unanimous. Motion carried. 3) Other Business A) Old Town Commercial Association Loan Guarantee Patricia Cook introduced to the Board Linda Sutton, Executive Director of the Old Town Commercial Association and Jodie Garcia, President of the OTCA Board of Directors. Patricia Cook reminded the Board that at the last Board Meeting the request for a second loan guarantee was tabled due to the fact that one of the OTCA loans (from the 151 OTCA Loan Guarantee) has had a history of falling behind with their loan payments and as of October, `03 were two months delinquent. Linda Sutton informed the Board that the delinquent loan has been brought current and the Board received in their Board packet an outline of the procedure for collection that will be used on the new loans. Patricia Cook recommended to the Board that they approve the current OTCA Loan Guarantee request. Motion - William Long motioned the Board to approve the OTCA Loan Guarantee, with one change to Item #6 of the Guarantee Agreement, striking the words "OTCA's collection expenses". Ann Brazeau seconded the motion. Yeas: Unanimous. Motion carried. B) Analysis of BFAP Loans (as of 8/31/03) The Board received a copy of the Analysis of Program Loan Funds, which was prepared by Barbara Foreman. Patricia Cook informed the Board that 4,000 sf of Dimitri's office space has been leased to the Star Centre for Performing and Visual Arts. There is still 9,500 sf of office space available in Dimitri's building. C) Quit Claim Deed for property at Cedar/Michigan - EDC to City of Lansing Patricia Cook gave the Board a brief history of the property at Cedar/Michigan, which is owned by the EDC. The Quick Claim Deed for Board approval will deed back to the City of Lansing a 20 foot wide vacated alley on the Northern portion of the property north of the retaining wall. This area is on the Lansing Center site where loading and unloading for conventions occur. Motion - William Long motioned the Board to approve the Quick Claim Deed to transfer the 20 foot wide vacated alley to the City of Lansing. James Butler seconded the motion. Yeas: Unanimous. Motion carried. D) Neighborhood Enterprise Zone Case Study The Board received a copy of a Case Study Example on the Neighborhood Enterprise Zone Program for New Construction and Rehabilitation of Existing Buildings, which was prepared by Marchelle Smith. Chair Williams requested that the columns on the Rehabilitation part of the Case Study be changed to match up with the columns on the New Construction part of the Case Study. 4) Next Meeting A) MDOT Acquisition for Capitol Loop (Cedar/Michigan property) B) "Square One" EDC Loan Request Patricia Cook stated that some changes are currently being made to the Project Plan for the "Square One" project and will be brought back to the Board at the November Board Meeting. 5) Public Comment None. 6) Adjournment Chair Williams declared the meeting adjourned at 4:38 p.m. Minutes by B. Foreman 0.4 �U-" �* 44. 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 3, 2003 4:00 P.M. Members Present: James Butler; Kim Coleman; Paula Cunningham; Brian Jeffries; William Long; Jeff Williams Members Absent: Tony Benavides; Ann Brazeau; William Cook Temporary EDC Members Present: Jan Hayhow Temporary EDC Members Absent: Ed Carpenter Staff Present: Patricia Cook; Karl Dorshimer; Barbara Foreman; Tracy Carney -Miller; Marchelle Smith Guests Present: Linda Fredrickson; Jim Ruff, Peter Sullivan; Ryan Thelen; David Wiener 1) Call to Order Chair Williams called the meeting to order at 4:08 p.m. 2) Approval of the Board of Director's Meeting Minutes from November 5, 2003 Motion - William Long motioned the Board to approve the Board of Director's Meeting Minutes from November 5, 2003 as presented and place them on file. James Butler seconded the motion. Yeas: Unanimous. Motion carried. 3) Loan Extension Request - Magnate Properties, L.L.C. Motion - William Long motioned the Board to approve the Resolution extending the Magnate Properties loan for another five year term with the interest rate - , remaining at 6%. Jan Hayhow seconded twe't 6tion. Yeas: Butler; Coleman; Cunningham; Jeffries; Long; Williams; Hayhow Nays: None. Abstentions: None. Motion carried unanimously. 4) EDC FY 02/03 "Draft" Audit Ryan Thelen, from the auditing firm of Kutas & Hawes. P.C., gave the Board a brief overview of the FY 02/03 "Draft" Audit. The Board asked that one change be made on pg. 12 - Item D (Clara's Note). The last sentence of the paragraph should be changed to read as follows: The Corporation intended to extend the note for two additional 5 year terms provided the note was not in default, however, this note was paid in full on September 19, 2002, therefore, no extension is necessary. Motion - Kim Coleman motioned the Board to accept and place on file the EDC FY 02/03 "Draft" Audit (with the above mentioned change to pg. 12) as presented. Paula Cunningham seconded the motion. Yeas: Unanimous. Motion carried. The Board received a copy of a letter from Kutas & Hawes, P.C. stating that during their audit of the EDC they became aware of the fact that the EDC does not currently have fidelity bond coverage. The letter further states that they believe that purchasing fidelity bond coverage may be an opportunity to strengthen internal controls and operating efficiency. Patricia Cook stated that further discussion regarding fidelity bonds will take place at the next EDC Board meeting. 5) Other Business A) Analysis of BFAP Loans (as of 10/31/03) The Board received a copy of the Analysis of Program Loan Funds, which was prepared by Barbara Foreman. Patricia Cook made mention to the Board that the Analysis as of 10/31/03 reflects that Goldenrod Distribution paid their loan off in full. B) Business Loan between EDC & LEPFA The Board, EDC staff, & Peter Sullivan, Executive Director of the Lansing Center, engaged in a lengthy discussion regarding how- the EDC & LEPFA (Lansing Entertainment & Public Facilities Authority) could assist small businesses in locating at the Lansing City Market. Patricia Cook stated that one way to facilitate this would be to have the EDC and LEPFA enter into an agreement that would allow the EDC to loan money directly to LEPFA and LEPFA would then have the risk of collecting payments from prospective tenants. The board shared concerns that although they support providing loans to both new and existing businesses at the City Market, they would not want the community to feel that a direct loan to LEPFA would be perceived as avoiding the public input process currently used for other EDC loans. It was expected that further discussion would take place on this matter. 6) Public Comments None. 7) Adjournment Chair Williams declared the meeting adjourned at 5:03 p.m. Minutes by B. Foreman (�q& Patricia A. Cook EDC Manager