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HomeMy WebLinkAbout2012 LEDC minutesLansing Economic Development Corporation Regular Board of Director's Meeting Minutes Lansing Economic Development Corporation Conference Room Friday, January 6, 2012 7:45 a.m. Members Present: James Butler, Bo Garcia, Calvin Jones, Pierre LaVoie, Greg Ward Members Absent: Mayor Bernero, Kim Coleman, Kelly Rossman-McKinney Staff Present: Karl Dorshimer, Andrea Ragan, Marchelle Smith Guests: None Public Present: None Call to Order Chair, Greg Ward called the meeting to order at 7:50 a.m. Approval of Meeting Minutes from December 2, 2011 Regular Board Meetin `J: 17, a Fri Motion: Bo Garcia moved the Board to approve the meeting minutes from t2 ,=n December 2, 2011 regular Board of Director's meeting and place them on _ file. Motion seconded by Calvin Jones. Yeas: Unanimous. Motion carried. Uri Financial Statements November 30, 2011 Motion: Calvin Jones moved the Board to receive the November 30, 2011 financial statements and place them on file. Motion seconded by James Butler, Yeas: Unanimous. Motion carried. Update on YMCA Brownfield Project Karl Dorshimer reported the project is moving forward and provided renderings of the mixed use building. The timeline for construction is based on securing financing. Overview of LEDC/TIFA/LBRA/LDFA Karl Dorshimer provided a written summary and presented an overview on the Lansing Economic Development Corporation, the Lansing Brownfield Redevelopment Authority, the Tax Increment Finance Authority and the Lansing Development Finance Authority. Greg Ward suggested we email the written summary to absentee board members for their review. Year 2011 in Review This was tabled for the next Board meeting in February. Discussion of LEDC Strategic Objectives for 2012 Karl presented the main objectives, tasks and projects for 2012. There was discussion of anticipated projects, programs and tasks. Karl identified areas where the LEDC expects to work with LEAP. He also discussed how the work load and number of projects was starting to pick up. 2012 will be an extremely busy and important year. Other Business None Public Comment None Adjournment Chair Greg Ward declared the meeting adjourned at 9:15 a.m. Minutes by Marchelle Smith Karl Dorshimer, President & CEO Lansing Economic Development Corporation Regular Board of Director's Meeting Minutes Lansing Economic Development Corporation Conference Room Friday, February 3, 2012 7:45 a.m. Members Present: James Butler, Kim Coleman, Bo Garcia, Calvin Jones, Discussion on Comprehensive Development Agreement for the Sale of LEDC Owned Property Next to the Lansing Center Karl gave an overview of the Casino project and stated that the Board will be asked to approve a resolution for Brownfield Plan #55 Ballpark North project on today's Brownfield agenda as it ties in with the overall project. Brigham Smith, City Attorney and Al Wallace, attorney for Miller Canfield presented details of the Comprehensive Development Agreement in which part, includes the sale of LEDC property located next to the Lansing Center, known as Parking Lot #55, to Lansing Future, LLC (prospective developer) in the amount of $280,000. All parties involved will be conducting due diligence between now and August 1, 2012 or until all contingencies, terms and conditions are satisfied. The Board will review the CDA and get their questions and comments to Karl for discussion at a special board meeting on Friday, February 17 at 7:45 a.m. Motion: Kim Coleman moved the Board to review the CDA and get their questions and comments to Karl for discussion at a special board meeting on Friday, February 17 at 7:45 a.m. Motion seconded by Kelly Rossman-McKinney. Yeas: Unanimous. Motion carried. Chair, Greg Ward asked to suspend the Lansing Economic Development (LEDC) board meeting to convene the Lansing Brownfield Redevelopment Authority (LBRA) board meeting at 8:20 a.m. Motion: Kelly Rossman McKinney moved the Board to suspend the LEDC board meeting to convene the LBRA board meeting. Motion seconded by James Butler. Yeas: Unanimous. Motion carried. Kelly Rossman-McKinney, Greg Ward Members Absent: Mayor Bernero, Pierre LaVoie Staff Present: Karl Dorshimer, Andrea Ragan, Marchelle Smith 17 Guests: J.B. Buckingham and Steve Willoughby, SME Brigham Smith, City Attorney , -- Al Wallace, Miller Canfield Public Present: None Call to Order Chair, Greg Ward called the meeting to order at 7:45 a.m. Discussion on Comprehensive Development Agreement for the Sale of LEDC Owned Property Next to the Lansing Center Karl gave an overview of the Casino project and stated that the Board will be asked to approve a resolution for Brownfield Plan #55 Ballpark North project on today's Brownfield agenda as it ties in with the overall project. Brigham Smith, City Attorney and Al Wallace, attorney for Miller Canfield presented details of the Comprehensive Development Agreement in which part, includes the sale of LEDC property located next to the Lansing Center, known as Parking Lot #55, to Lansing Future, LLC (prospective developer) in the amount of $280,000. All parties involved will be conducting due diligence between now and August 1, 2012 or until all contingencies, terms and conditions are satisfied. The Board will review the CDA and get their questions and comments to Karl for discussion at a special board meeting on Friday, February 17 at 7:45 a.m. Motion: Kim Coleman moved the Board to review the CDA and get their questions and comments to Karl for discussion at a special board meeting on Friday, February 17 at 7:45 a.m. Motion seconded by Kelly Rossman-McKinney. Yeas: Unanimous. Motion carried. Chair, Greg Ward asked to suspend the Lansing Economic Development (LEDC) board meeting to convene the Lansing Brownfield Redevelopment Authority (LBRA) board meeting at 8:20 a.m. Motion: Kelly Rossman McKinney moved the Board to suspend the LEDC board meeting to convene the LBRA board meeting. Motion seconded by James Butler. Yeas: Unanimous. Motion carried. Chair, Greg Ward reconvened the meeting at 9:05 a.m. Approval of Meeting Minutes from January 6, 2012 Regular Board Meeting Motion: Calvin Jones moved the Board to approve the meeting minutes from the January 6, 2012 regular Board of Director's meeting and place them on file. Motion seconded by Bo Garcia. Yeas: Unanimous. Motion carried. Financial Statements December 31, 2011 Motion: Kim Coleman moved the Board to receive the December 31, 2011 financial statements and place them on file. Motion seconded by Kelly Rossman- McKinney. Yeas: Unanimous. Motion carried. Resolution to Approve Budget Amendment Karl Dorshimer explained that it is necessary to amend the budget to move $32,000 from the Salary expenditure account to the Contract Service account to hire a consultant to assist with economic development support services in the amount of $20,000 and to contract with Downtown Lansing, Inc. to update the Downtown Market Study in the amount not to exceed $12,000. Motion: Kim Coleman moved the Board to approve resolution to amend the budget in the amount of $32,000 as outlined above and place it on file. Motion seconded by Calvin Jones. Yeas: Unanimous. Motion carried. Resolution to Approve Lease of 3D Proto-type Printer Karl Dorshimer stated that LEAP desires to lease the LEDC's 3D proto-type printer to provide proto-typing services to all Greater Lansing Regional businesses and entrepreneurs for its Lansing Regional SmartZone 3D Printing/ Proto -typing Program and requests that he be authorized to negotiate and enter into a Lease Agreement. Motion: Kim Coleman moved the Board to approve the resolution authorizing the LEDC President and CEO to negotiate and enter into a Lease Agreement with LEAP for the use of a 3D proto-type printer to assist in providing services to all Greater Lansing businesses and entrepreneurs for its Regional SmartZone 3D Printing/Proto-typing Program and place it on file. Motion seconded by James Butler. Yeas: Unanimous. Motion carried. Other Business None Public Comment None Adjournment Chair Greg Ward declared the meeting adjourned at 9:33 a.m. Minutes by Marchelle Smith arl Dorshimer, President & CEO Lansing Economic Development Corporation Special Board of Director's Meeting Minutes Lansing Economic Development Corporation Conference Room Wednesday, February 22, 2012 7:30 a.m. Members Present: Mayor Bernero, James Butler, Kim Coleman, Bo Garcia, Calvin Jones, Kelly Rossman-McKinney, Greg Ward Members Absent: Pierre LaVoie Staff Present: Karl Dorshimer, Andrea Ragan, Marchelle Smith Guests: William Cross, Lansing Future, LLC, William Martinez, Lansing Future, LLC, Brigham Smith, City Attorney Al Wallace, Miller Canfield John Wernet, Tribal Attorney Steve Willoughby, SME Public Present: Media Call to Order Chair, Greg Ward called the meeting to order at 7:35 a.m. Comprehensive Development Agreement (CDA) Review, Discussion and Action Greg Ward gave a preamble of the previous LEDC Board meeting in which the Comprehensive Development Agreement (CDA) was discussed as it pertains to the sale of LEDC property and Brownfield Plan #55. Since that time, questions have been collected from Board members for today's discussion. Mayor Bernero gave a brief speech on three key elements: The economic benefits and the transitional impact resulting from this project; the Lansing Promise; and the long term sustainability of the Lansing Center. Karl Dorshimer commented that this project is an exciting opportunity for Lansing and good for the region. With TIFA revenues on the decline, this project will increase revenues keeping the TIF from going into the red. The two main obligations to be concerned with in the CDA is the sale of LEDC land and Brownfield #55. Kelly Rossman-McKinney disclosed that she previously worked with the Greek Town Casino and the Chippewa Tribe and requested that she be recused from voting. Brigham Smith introduced the developers, William Cross and William Martinez and tribal attorney, John Wernet. William Martinez and William Cross gave a broad overview of Lansing Future, LLC and why the project is good for Lansing. John Wernet gave an overview on his expertise in tribal law, the legal process and details of conducting due diligence. Brigham Smith, Al Wallace and John Wernet addressed each of the Board member's questions to satisfaction. Motion: James Butler moved the Board to approve the sale of LEDC property, lot #55 adjacent to the Lansing Center and authorize Karl Dorshimer to execute the CDA documents. Motion seconded by Kim Coleman. Yeas: Unanimous vote by six Board members and one recusal. Motion carried. Other Business None Public Comment None Adjournment Chair Greg Ward declared the meeting adjourned at 8:55 a.m. Minutes by Marchelle Smith v1k, //W Karl Dorshimer, President 8s CEO Lansing Economic Development Corporation Special Board of Director's Meeting Minutes Lansing Economic Development Corporation Conference Room Friday, April 13, 2012 7:45 a.m. Members Present: James Butler, Kim Coleman, Bo Garcia, Calvin Jones, Kevin O'Malley, Greg Ward Temporary Members Present: Members Absent: Staff Present: Guests: Public Present: Julian Darden, Paul Holland Mayor Bernero, Pierre LaVoie Karl Dorshimer, Marchelle Smith Linda Burnham and Glenna Contemporary Art None DeJong, Michigan Institute of L� Call to Order - << Chair, Greg Ward called the meeting to order at 7:45 a.m. Approval of Meeting Minutes from February 3, 2012 Regular Board Meeting CD _ s Motion: Bo Garcia moved the Board to approve the meeting minutes fr= thb.. February 3, 2012 regular Board of Director's meeting and place. tli �ein ori file. Motion seconded by Kim Coleman. rte; Yeas: Unanimous. Motion carried. Approval of Meeting Minutes from February 22, 2012 Special Board Meeting Motion: Kevin O'Malley moved the Board to approve the meeting minutes from the February 22, 2012 special Board of Director's meeting and place them on file. Motion seconded by Kim Coleman. Yeas: Unanimous. Motion carried. Financial Statements February 29, 2012 Motion: Kevin O'Malley moved the Board to receive the February 29, 2012 financial statements and place them on file. Motion seconded by Kim Coleman. Yeas: Unanimous. Motion carried. Resolution to Approve Project Plan for a Business Loan to Lowertown Lofts Limited Dividend Housing Association Limited Partnership /Michigan Institute for Contemporary Art Glenna DeJong, Michigan Institute of Contemporary Art (MICA) board member was introduced and gave an overview of the loan project. During Old Town's earlier revitalization efforts, Lowertown Lofts, LDHALP was formed with MICA as general partner and PNC Bank as limited partner to renovate 1208,1210 and 1212 Turner Street. PNC's term of the loan note has become fully due. To assist in acquiring the property, the loan applicant has requested $82,500 gap financing amortized for 15 years with a 7 year balloon payment at 1% below the Wall Street Prime rate or no lower than 3%. Staff will be conducting its due diligence to bring back to the board for loan approval on June 1st. Motion: Calvin Jones moved the Board to approve the Project Plan resolution for a business loan to Lowertown Lofts Limited Dividend Housing Association Limited Partnership/ Michigan Institute for Contemporary Art and place it on file. Motion seconded by Kim Coleman. Yeas: Unanimous. Motion carried. Other Business None Public Comment None Adjournment Chair Greg Ward declared the meeting adjourned at 7:55 a.m. Minutes by Marchelle Smith ILrl Dorshimer, President & CEO Lansing Economic Development Corporation Regular Board of Director's Meeting Minutes Lansing Economic Development Corporation Conference Room Friday, May 4, 2012 7:45 a.m. Members Present: Mayor Bernero, Kim Coleman, Bo Garcia, Calvin Jones, Kevin O'Malley Members Absent: James Butler, Pierre LaVoie, Greg Ward Staff Present: Karl Dorshimer, Marchelle Smith Guests: Angie Bennett, City of Lansing Interim Finance Director Terry Lang, Butzel Long Public Present: L.W. Morrow Discussion of LEDC Contract with LEAP Karl Dorshimer presented a partnership proposal between the LEDC and LEAP. The City will continue to contract with the LEDC for economic development services as done in the past. In collaboration under the new partnership, the LEDC will then subcontract with LEAP to perform those same services. Current LEDC staff will become employees of LEAP effective July 1, 2012. Governor Snyder and the MEDC are earmarking funds towards municipalities that work in partnership within their region. By pooling resources, the City and the Region benefit by having multi -talented professionals at its disposal and more funding opportunities. Issues of concern were discussed regarding the governance of the LEDC. The Board will be asked to consider approval of both the City of Lansing/LEDC and the LEDC/LEAP contracts at its June 1 board meeting. The LEAP Executive Committee is meeting on June 5 to consider the LEDC/LEAP contract. Call to Order Vice Chair, Calvin Jones called the meeting to order at 8:30 a.m. Approval of Meeting Minutes from April 13, 2012 Special Board Meeting Motion: Bo Garcia moved the Board to approve the meeting minutes from the April 13, 2012 special Board of Director's meeting and place them on file. Motion seconded by Kim Coleman. Yeas: Unanimous. Motion carried. Financial Statements March 31, 2012 Motion: Yeas: Bo Garcia moved the Board to statements and place them on file. Unanimous. Motion carried. receive the March 31, 2012 financial Motion seconded by Kim Colemq-n. -^ Fri �a Fiscal Year 2012/2013 Budget Karl Dorshimer presented the LEDC budget and noted that the budget excludes salaries and fringes, membership dues and training which will be paid by LEAP through the contract between the LEDC and LEAP in the amount of $350,000 effective July 1, 2012. Savings to the City will be a result of reducing the City's contract from $245,000 to $50,000. Motion: Bo Garcia moved the Board to approve the LEDC budget for fiscal year 2012/2013 and place it on file. Motion seconded by Kevin O'Malley. Yeas: Unanimous. Motion carried. Other Business None Public Comment None Adjournment Vice Chair, Calvin Jones declared the meeting adjourned at 9:10 a.m. Minutes by Marchelle Smith arl Dorshimer, President & CEO Lansing Economic Development Corporation Regular Board of Director's Meeting Minutes Lansing Economic Development Corporation Conference Room Friday, June 1, 2012 7:45 a.m. Members Present: Kim Coleman, Bo Garcia, Calvin Jones, Kevin O'Malley, Greg Ward Temporary Members Present: Julian Darden, Paul Holland Members Absent: Mayor Bernero, James Butler, Pierre LaVoie f�? Staff Present: Karl Dorshimer, Marchelle Smith Guests: Ronald Richards, Foster Swift -� Public Present: None Call to Order i - Chair, Greg Ward called the meeting to order at 8:05 a.m. ` Approval of Meeting Minutes from May 4, 2012 Regular Board Meeting r--,) c� r•a G.. Motion: Kim Coleman moved the Board to approve the meeting minutes from the May 4, 2012 regular Board of Director's meeting and place them on file. Motion seconded by Bo Garcia. Yeas: Unanimous. Motion carried. Resolution to Approve Draft Commitment Letter prepared by Dickinson Wright for Lowertown Lofts Limited Dividend Housing Association Limited Partnership Karl presented the draft commitment letter prepared by Dickinson -Wright. There was discussion regarding the LEDC being in second position to the bank on this loan. Karl noted that historically, it has been practice that the LEDC is junior to a bank's lien on mortgages to fill gap financing with an additional requirement of owner's equity. The Board has recommended that the loan committee convene to discuss existing loan policies. Further, it was recommended that loan documentation be provided to the Board for ample time to review before a board meeting. There are currently two loan committee members in addition to LEDC staff. It was suggested that an intern or other junior attorney be appointed from Kevin O'Malley's law firm, Butzel Long. Motion: Bo Garcia moved the Board to approve the resolution for Lowertown Lofts Limited Dividend Housing Association Limited Partnership's commitment letter and place it on file. Motion seconded by Calvin Jones. Nays: One (1) Yeas: Four (4) Board Members, Two (2) Temporary Board Members. Motion carried. Resolution to Approve LEDC Contract with the City of Lansing Karl explained there was no action required by the Board. co c ,.y N rl Resolution to Approve LEDC Contract with LEAP Ronald Richards from Foster Swift presented the LEDC contract with LEAP effective July 1, 2012 through June 30, 2013. The first one-half payment is due July 1, 2012 and the second one-half payment is due January 1, 2013. Karl Dorshimer outlined the project objectives and scope of services. There was discussion on what the statutory duties and responsibilities of the Board would be upon signing of the contract. The Board recommended the following modifications be made to the contract: 1. Clarify that LEAP's leadership will ensure services performed by Karl Dorshimer and Marchelle Smith will be provided by LEAP. 2. Clarify who has the authority to approve LEAP's contractual payments and who has power to terminate the contract. A special meeting will be required to review and consider the modifications made to the contract as requested by the Board. It was further discussed that modifications to the LEDC, LBRA and TIFA by-laws will need to be made. Ronald Richards offered to review the by-laws as part of their legal service contract with the LEDC. Resolution to Approve Budget Amendment Fiscal Year 2011/2012 Marchelle Smith stated that $7,500 needs to be transferred from the Fringe Benefit account to the Contract Services account pay for the legal service contract with Foster Swift associated with the LEDC/City and LEDC/LEAP contract agreements. Motion: Bo Garcia moved the Board to approve the Budget Amendment for fiscal year 2011/2012 and place it on file. Motion seconded by Kim Coleman. Yeas: Unanimous. Motion carried. Other Business None Public Comment None Adjournment Chair, Greg Ward declared the meeting adjourned at 9:40 a.m. Minutes by Marchelle Smith 4�, Karl Dorshimer, President & CEO Lansing Economic Development Corporation Special Board of Director's Meeting Minutes Lansing Economic Development Corporation Conference Room Friday, June 15, 2012 4:00 p.m. Members Present: Greg Ward, Pierre LaVoie, Calvin Jones, Bo Garcia, James Butler, Kevin O'Malley (via phone) Temporary Members Present: NA Members Absent: Mayor Bernero, Kim Coleman Staff Present: Karl Dorshimer �_- Guests: Ron Richards (via phone) = Public Present: None C7 f J Call to Order ": Chair, Greg Ward called the meeting to order at 4:00 p.m. c. Resolution to Approve Contract with the Lansing Area Economic Partnership for Economic Development Services The first order of business was the discussion of the LEDC/LEAP contract for the 2012- 2013 fiscal year. Chair Ward summarized the changes that had been made to the contract since the last LEDC board meeting. Ron Richards answered questions from the board regarding the contract changes. After discussion Calvin Jones called the matter to question and the board voted unanimously to consider the item. Motion: James Butler moved the Board to approve the contract for services with LEAP and authorize the LEDC President and CEO to enter into the contract. Motion was seconded by Bo Garcia. Yeas: Five Nays: One Motion was approved Other Business Karl Dorshimer discussed the need to hold a Special Board Meeting during the second week of July to consider an Energy Efficiency loan application. Mr. Dorshimer explained the LEDC was under a tight time table to get the loan approved and the funds dispersed to the loan applicant. After discussion those present agreed to hold a Special Board meeting on July 10th at 7:30 a.m. Public Comment None Adjournment Chair Greg Ward declared the meeting adjourned at 4:45 p.m. Minutes by Karl Dorshimer Karl Dorshimer, President & CEO Lansing Economic Development Corporation Special Board of Director's Meeting Minutes Lansing Economic Development Corporation Conference Room Tuesday, July 1.0, 2012 '6:30 a. -nn. Members Present: i`emporaxy Members Present: Members .Absent: Staff Present: Guests: Public Present: James Butler, Calvin Jones, Pierre LaVoie, Kevin O'Malley, Greg Ward Paul Holland Mayor Bernero, Kim Coleman, Bo Garcia Karl Dorshimer, Marchelle Smith Roger Millbrook, Sienna Capital Management John Sears, South Street, LLC Brigham Smith, City Attorney None Call to Order Chair, Greg Ward called the meeting to order at 7:35 a.m. Approval of Meeting Minutes from June 1, 2012 Regular Board Meeting Motion: James Butler moved the Board to approve the meeting minutes from the June 1, 2012 regular Board of Director's meeting and place them on file. Motion seconded by Pierre LaVoie. 'yeas: Unanimous. Motion carried. Approval of meeting Minutes from June 15, 20:12 Special Board Meeting Motion: James Butler moved the Board to approve the meeting minutes from the June 15, 2012 special Board of Director's meeting and place them on file. Motion seconded by Pierre LaVoie. Yeas: Unanimous. Motion carried. Resolution to approve a Project Plan for South Street LLC for an Energy Efficiency loan from funds secured through the U.S. Department of Energy Karl Dorshimer presented a summary outlining the details of South Street, LLC's project and. loan terms from funds secured through the U.S. Department of Energy. John Sears, South Street LLC explained the use of the loan funds for a biomass hot water heat system, roof replacement and updated lighting systems. Staff recommended board approval on the Project Plan. Final approval on the loan will be presented before the board for approval at the September 7, 2012 regular board meeting. Motion: Calvin Jones moved the Board to approve the resolution to approve the Project Plan for South Street LLC and place it on file. Motion seconded by James Butler. Yeas: Unanimous. Motion carried. c_.. Approval of Meeting Minutes from June 1, 2012 Regular Board Meeting Motion: James Butler moved the Board to approve the meeting minutes from the June 1, 2012 regular Board of Director's meeting and place them on file. Motion seconded by Pierre LaVoie. 'yeas: Unanimous. Motion carried. Approval of meeting Minutes from June 15, 20:12 Special Board Meeting Motion: James Butler moved the Board to approve the meeting minutes from the June 15, 2012 special Board of Director's meeting and place them on file. Motion seconded by Pierre LaVoie. Yeas: Unanimous. Motion carried. Resolution to approve a Project Plan for South Street LLC for an Energy Efficiency loan from funds secured through the U.S. Department of Energy Karl Dorshimer presented a summary outlining the details of South Street, LLC's project and. loan terms from funds secured through the U.S. Department of Energy. John Sears, South Street LLC explained the use of the loan funds for a biomass hot water heat system, roof replacement and updated lighting systems. Staff recommended board approval on the Project Plan. Final approval on the loan will be presented before the board for approval at the September 7, 2012 regular board meeting. Motion: Calvin Jones moved the Board to approve the resolution to approve the Project Plan for South Street LLC and place it on file. Motion seconded by James Butler. Yeas: Unanimous. Motion carried. Resolution on 401(x) Retirement Plan and 457 Plan Due to the LEDC transition to LEAP effective July 1, 2012, the LEDC's 401(a) retirement Plan and 457 Plan will be frozen and all contributions and administrative fees paid by the LEDC will be ceased. The LEDC desires to maintain these frozen plans so that distribution of benefits may be provided under the terms of the Plans. The Board recommended that the follow ng language be added to the resolutions: "RESOLVED, that the LEDC shall not incur any future administrative or other fees for the plans by freezing the plans". Motion: Kevin O'Malley moved the Board to approve the resolutions on the 401(a) Retirement Plan and 457 Plan with added language as outlined above and place them on file. Motion seconded by Calvin Jones. Yeas: Unanimous. Motion carried. Discuss Foster Swift June 23, 2012 Memo Karl Dorshimer gave a brief history on Foster Swift's legal opinion regarding the LEDC's good standing letter dated May 30, 2012. .After discussion, the Board recommended that research be conducted as to what legal entity other Economic Development Corporations in the State of Michigan are filed under and present information back to the Board. Other Business Marchelle Smith explained that there is an environmental consulting company interested in subleasing the LEDC Office space. They will be bringing seven employees to downtown Lansing and adding three more by November 2013. The LEDC's current monthly lease rate is around $1,800. Their proposal is to pay $1,000 a month along with utility costs from September 2012 through June 2013 and then pay the full lease rate with utility costs until the lease term ends October 31, 2013. The Board recommended that we negotiate with Arbaugh Development to split the difference 50/50 with the LEDC paying 50% up front. Staff will be meeting with the interested company and Arbaugh development later in July to discuss terms. Karl noted that. there will be no August Board meeting and that the next regular scheduled meeting will be held on September 7, 2012. Public Comment None Adjournment Chair, Greg Ward declared the meeting adjourned. at 8:45 a.m. MinuCes by Marchel:le Smith Karl Dorshimer, President 8s CEO Lansing Economic Development Corporation Board of Director's Meeting Minutes Downtown Lansing, Inc. - Conference Room Friday, September 7, 2012 7:45 a.m. Members Present: Temporary Members Present: Members Absent: Staff Present: Guests: Public Present: Recorded by: Greg Ward, James Butler, Kim Coleman, Pierre LaVoie, Kevin O'Malley Paul Holland Mayor Bernero, Calvin Jones, Bo Garcia Karl Dorshimer, Marchelle Smith LEAP Staff None Tedi R. Parsons, LEAP Call to Order Chair Ward called the meeting to order at 7:48 a.m. Members were made around the table. Introductions by the Board` r. LEAP Presentation .. LEAP President & CEO, Bob Trezise, provided an overview of LEAP and the current projects underway and noted the smooth transition with the LEDC staff as they settle into the LEAP office. Introductions of the LEAP staff were made. LEAP staff Ken Szymusiak and Jeff Smith provided a presentation of The Runway incubator project funded by the LEDC. Smith noted that this initiative is designed to be sustainable. Chair Ward said he liked the concept and proposed the LEDC Board approve the continue work of this important project. Motion: LaVoie moved to approve the continued support of The Runway initiative. Motion seconded by Butler. Yeas: Unanimous. Motion carried. Approval of Meeting Minutes from July 10, 2012 Special Board Meeting Motion: Coleman moved to approve the meeting minutes from the July 10, 2012 Special Board of Director's meeting and place them on file. Motion seconded by Butler. Yeas: Unanimous. Motion carried. Unaudited Year -End Financial Statements - Period Ending June 30, 2012 Marchelle Smith provided an overview of the Unaudited Year -End Financial Statements, period ending June 30, 2012. Smith noted that the financials are looking sound and the energy efficiency loan is not included in the June 30, 2012 financials. Motion: Coleman moved to approve the Unaudited Year -End Financial Statements (period ending June 30, 2012) as presented and place them on file. Motion seconded by O'Malley. Yeas: Unanimous. Motion carried. Financial Statements - Period Ending July 31, 2012 Smith provided an overview of the LEDC; Financial Statements, period enriing J„ly 31 2012, noting there were no delinquencies reported. Motion: Coleman moved to approve the Financial Statements (period ending July 31, 2012) as presented and place them on file. Motion seconded by LaVoie. Yeas: Unanimous. Motion carried. Urban Development Action Grant (UDAG) Report July 31, 2012 Smith provided an overview of the UDAG report (July 31, 2012) noting the $824,025, which is being held in reserve for the continued support of The Runway project. Resolution to Approve Commitment Letter - Energy Efficiency Loan Dorshimer provided an overview of the commitment letter for the Energy Efficiency Loan between the LEDC and South Street LLC. Dorshimer noted he will represent this loan to South Street LLC (John K. Sears). O'Malley opened discussion on who at the LEDC has binding authority to sign legal documents on its [LEDC] behalf. Coleman stated that the ultimate authority for signatures and approval of legal matters resides with the LEDC Board. O'Malley proposed LEDC staff meet with legal counsel and get their input/direction on this important matter. Discussion ensued. Motion 1: Coleman moved to approve the Resolution as presented with notice to second Motion made. Motion seconded by O'Malley. Yeas: Unanimous. Motion carried. Motion 2: Coleman moved to approve what LEDC legal counsel advises on who has binding/ signatory authority. Motion seconded by O'Malley. Yeas: Unanimous. Motion carried. Other Business No other business was reported. Public Comment None Adjournment Chair Ward declared the meeting adjourned at 8:58 a.m. L,% ///'� 2 / �' 2 /' , arl Dorshimer, Director, Economic Development Lansing Economic Area Partnership (LEAP)