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Home My WebLink About2013 TIFA minutesTax Increment Finance Authority Board of Director's Meeting Minutes Large Conference Room Lansing Regional Chamber of Commerce Friday, January 11, 2013 8:00 a.m. Members Present: Members Absent: Temporary Members Present: Staff Present: Guests: Public Present: Recorded by: Calvin Jones, James Butler, Kevin O'Malley, Pierre LaVoie, Mayor Bernero Greg Ward, Kimberly Coleman, Baldomero Garcia None -. Bob Trezise, Karl Dorshimer, Marchelle Smith Stephan Blann, Rehman Teresa Choate, Rehman Randy Ensley, City of Lansing None Tedi R. Parsons, LEAP Call to Order Chair Ward called the meeting to order at 9:06 a.m. June 30, 2012 Audited Financial Statements Blann provided an overview of the TIFA audited financials, period ending June 30, 2012, noting that there were no items identified that showed any deficiencies or material weaknesses. He said the TIFA had a `clean audit' and. there are no recommendations for improvement at this time. Motion: LaVoie moved to approve the TIFA June 30, 2012 Audited Financials as presented. Motion seconded by Mayor Bernero. Yeas: Unanimous. Motion carried. Financial Statements - Period Ending November 30, 2012 Due to a time constraint, the TIFA Financial Statements, period ending November 30, 2012 will be presented at the February 2013 meeting. Approval of Meeting Minutes from Friday December 12, 2012 TIFA Board Meeting Due to a time constraint, the Friday, December 7, 2012 TIFA meeting minutes will be presented at the February 2013 meeting for approval. TIFA Update None Other Business None Public Comment None Adjournment Chair Jones declared the meeting adjourne atat 9:2 a/m. 2- Karl Dorshimer, Director, Economic Development Lansing Economic Area Partnership (LEAP) TaN increment Finance Authority t"r,E- 1 1 1-) Board of Director's Meeting minutes �?w `" Lansing Economic Area Partnership (LEAP) - Boardroom Friday, February 1, 2013 8:00 a.m. Members Present: Members Absent: Temporary Members Present: Staff Present: Guests: Public Present: Recorded by: Calvin Jones, James Butler, Kevin O'Malley, Pierre LaVoie, Baldomero Garcia Greg Ward, Kimberly Coleman, Mayor Berncro None Bob Trezise, Karl Dorshirner, Marchelle Smith None None Tedi R. Parsons, LEAP Call to Order Chair Ward called the meeting to order at 9:09 a.m. Consent Agenda The following items were approved by Consent Agenda: - Approval of TIFA Meeting Minutes - Friday, December 7, 2012 - Approval of TIFA Meeting Minutes - Friday, January 11, 2013 - Acceptance of Financial Statements, period ending November 30, 2012 - Acceptance of Financial Statements, period ending December 31, 2012 TIFA Update Dorshimer provided an update on the TIFA (handout), noting the following: • Over the last 25 -years, the TIFA has provided over $100 million dollars in revenue to the City of Lansing. • In 2009, the TIFA refinanced some of its debt to lower annual payments. • Circumstances beyond the TIFA's control have reduced revenues to the point where the TIFA, again, faces budget shortfalls. • The City of Lansing has pledged its full faith and credit to the TIFA and will be responsible for any shortfall (approximately $1.4 million dollars). The City of Lansing is aware of this and is continually kept apprised as to any developments/ changes with the TIFA. • LEAP staff continues to meet with the City of Lansing staff and Bond Council to assist in forecasting future TIFA revenues and explore new ways to restructure or refinance the TIFA debt. • LEAP staff will keep the TIFA Board updated on any developments/ changes. Garcia suggested LEAP staff look at other communities in the U.S. who may have experienced this same thing and how they handled/ resolved the issue. Discussion ensued. Other Business None Public Comment None Adjournment Chair Jones declared the meeting adjourned at 9:18 a.m. ala R. , , Karl Dorshirner, Director, Economic Development Lansing Economic Area Partnership (LEAP) Tax Increment Finance Authority Board of Director's Meeting Minutes Lansing Economic Area Partnership (LEAP) - Boardroom Friday, March 1, 2013 8:00 a.m. Members Present: Members Absent: Temporary Members Present: Staff Present: Guests: Public Present: Recorded by: Call to Order Calvin Jones, James Butler, Pierre LaVoie, Baldomero Garcia, Kimberly Coleman, Greg Ward (via phone) Mayor Bernero, Kevin O'Malley None Bob Trezise, Karl Dorshimer None None Tedi R. Parsons, LEAP Chair Jones welcomed everyone and called the meeting to order at 9:02 a.m. Approval of TIFA Meeting Minutes - Friday, March 1, 2013 Motion: Garcia moved to approve the meeting minutes from the March 1, 2013 TIFA Board of Director's meeting and place them on file. Motion seconded by LaVoie. Yeas: Unanimous. Motion carried. Financial Statements - Period Ending January 31, 2013 Dorshimer provided an overview of the TIFA Financial Statements, period ending January 31, 2012, noting there were no changes to report at this time. Motion: Coleman moved to approve the Financial Statements (period ending January 31, 2013) as presented and place them on file. Motion seconded by LaVoie. Yeas: Unanimous. Motion carried. TIFA Update Dorshimer provided an update on the TIFA (handout), noting the following: • Projecting that we will use the reserves of the TIFA by July 2013. • A $1.4 million yearly deficit will make the next 3 -years a challenge for the TIFA. • Continue to work with the City of Lansing on finding solutions to reduce the amount of TIFA debt. Possibly refinance some of the debt to lower annual payments. • Over the past 20 plus -years, the TIFA has provided an estimated $100 million dollars* in revenue to the City of Lansing. • Will provide a preliminary solution to the TIFA Board at the April 2013 meeting. *LaVoie requested that Dorshimer provide the TIFA board with exact amount of the deficit, in the event they are asked about this. All board members agreed this would be helpful. Other Business None Public Comment None Adjournment Chair Jones declared the meeting adjourned at 9:20 a.m. 91"11.,11 Ac" K rl Dorshimer, Director, Economic Development Lansing Economic Area Partnership (LEAP) Tax Increment Finance Authority _ Board of Director's Meeting Minutes -\ hEkJ I J Lansing Economic Area Partnership (LEAP) - Boardroom Friday, April 5, 2013 Lu i 3 �� (� k 8:00 a.m. Members Present: Members Absent: Temporary Members Present: Staff Present: Guests: Public Present: Recorded by: Call to Order Calvin Jones, Greg Ward, Pierre LaVoie, Baldomero Garcia, Kevin O'Malley Mayor Bernero, James Butler, Kimberly Cole None Bob Trezise, Karl Dorshimer, Marchelle Smith, Ken Szymusiak Brian Lefler, Robert W. Baird 8s Company None Tedi R. Parsons, LEAP Chair Jones welcomed everyone and called the meeting to order at 8:59 a.m. Approval of TIFA Meeting Minutes - Friday, March 1, 2013 Motion: Garcia moved to approve the meeting minutes from the March 1, 2013 TIFA Board of Director's meeting and place them on file. Motion seconded by LaVoie. Yeas: Unanimous. Motion carried. Financial Statements - Period Ending February 28, 2013 Dorshimer provided an overview of the TIFA Financial Statements, period ending February 28, 2012, noting there were no changes to report at this time. Motion: Ward moved to approve the Financial Statements (period ending February 28, 2013) as presented and place them on file. Motion seconded by Garcia. Yeas: Unanimous. Motion carried. TIFA Budget - 2013-2014 Dorshimer presented the TIFA Budget 2013-2014 for approval. Trezise provided a brief history of the TIFA and its importance to the City of Lansing. Motion: Ward moved to approve the TIFA Budget - 2013-2014, as presented. Motion seconded by LaVoie. Yeas: Unanimous. Motion carried. TIFA Presentation: Brian Lefler Dorshimer introduces Brian Lefler, Robert W. Baird & Company. Lefler provided a presentation on the TIFA, noting the following: o The TIFA used to collect over $5 million dollars in TIFA revenue. ® TIFA capture dropped 50% over the last five -years and 34% last year. ® Blue Cross Blue Shield of Michigan will come back on the tax rolls with a $600,000 capture/gain. * Refinancing of the TIFA was done in 2009 with two separate state statures amended to do this. ® There are currently four solutions being presented to help solve the TIFA deficit (handout provided - Exhibit # 1) 4 Planning to amend legislation that will assist in the restructuring of the TIFA debt. • Will be closely looking at the TIFA deficit over the next five -years. • School tax revenue captured through 2039 with proposed legislation that would extend the capture of school taxes through 2043. Dorshimer said instead of trying to make this a one-time fix and find a quick solution, we are looking to slowly deal with the TIFA shortfall in a conservative manner over the next several years. Trezise said the Administration's position is to take this step-by-step, noting these are policy decisions and the board needs to be very transparent in all its efforts. Discussion ensued. Other Business None Public Comment None Adjournment Chair Jones declared the meeting adjourned at 9:46 a.m. Ka/r1 Dorshimer, Director, Economic Development Lansing Economic Area Partnership (LEAP) Tax Increment Finance Authority Board of Director's Meeting Minutes Lansing Economic Area Partnership (LEAP) - Boardroon i Friday, May 3, 2013 8:00 a.m. Members Present: Members Absent: Temporary Members Present: Staff Present: Guests: Public Present: Recorded by: ;all to Order Calvin Jones, Greg Ward, Pierre LaVoie, James Butler, Baldomero Garcia, Kevin O'Malley, Kimberly Coleman Mayor Bernero z None Bob Trezise, Karl Dorshimer, Marchelle Smith, Brian Lefler, Robert W. Baird 8s Company None Tedi R. Parsons, LEAP C Chair Jones welcomed everyone and called the meeting to order at 9:38 a.m. Approval of TIFA Meeting Minutes - Friday, April 5, 2013 Motion: Ward moved to approve the meeting minutes from the Friday, April 5, 2013 TIFA Board of Director's meeting and place them on file. Motion seconded by Butler. Yeas: Unanimous. Motion carried. Financial Statements - Period Ending March 31, 2013 Dorshimer provided an overview of the TIFA Financial Statements, period ending March 31, 2013, noting there were no changes to report at this time. Motion: Ward moved to approve the TIFA Financial Statements, period ending March 31, 2013, as presented and place them on file. Motion seconded by LaVoie. Yeas: Unanimous. Motion carried. TIFA Budget - 2013-2014 (update) Dorshimer reintroduced Brian Lefler, Robert W. Baird 8v Company, advising that he was back to discuss the projections for the TIFA budget shortfalls over the next 5 to 10 years. Lefler provided a presentation noting the following: • Continued conversations are taking place with the City of Lansing's Finance Department and TIFA staff. • He will be present with Trezise, Dorshimer, and Smith at the Budget Hearing of the City Council on Monday, May 6, 2013. • Reminded the board that there is no easy/quick fix and continues to look at potential refinancing solutions. Trezise said he has spoken with the Mayor and his administration about the TIFA board of directors concerns. He said that the TIFA needs to have the flexibility over the next 5 -years to deal with the TIFA shortfall. Trezise said they (Dorshimer, Smith and Lefler) have worked hard to put together a strong presentation for the Lansing City Council on Monday, May 6, 2013. Other Business None Public Comment None Adjournment Chair Jones declared the meeting adjourned at 9:49 a.m. K rl Dorshimer, Director, Economic Development Lansing Economic Area Partnership (LEAP) Tax Increment Finance Authority Board of Director's Meeting Minutes Lansing Economic Area Partnership (LEAP) - Boardroom Friday, June 7, 2013 8:00 a.m. Members Present: Members Absent: Temporary Members Present: Staff Present: Guests: Public Present: Recorded by: Call to Order Calvin Jones, Greg Ward, Pierre LaVoie, James Butler, Baldomero Garcia, Kevin O'Malley, Kimberly Coleman, Mayor Bernero None - Karl Dorshimer, None None Tedi R. Parsons, LEAP Chair Jones welcomed everyone and called the meeting to order at 8:48 a.m. Approval of TIFA Meeting Minutes - Friday, May 3, 2013 Motion: Garcia moved to approve the meeting minutes from the Friday, May 3, 2013 TIFA Board of Director's meeting and place them on file. Motion seconded by Ward. Yeas: Unanimous. Motion carried. Financial Statements - Period Ending April 30, 2013 Dorshimer provided an overview of the TIFA Financial Statements, period ending April 30, 2013, noting there was nothing unusual to report at this time. Motion: Ward moved to approve the TIFA Financial Statements, period ending April 30, 2013, as presented and place them on file. Motion seconded by Butler. Yeas: Unanimous. Motion carried. TIFA Budget (update) Dorshimer provided an update on the TIFA Budget noting that the City will be taking the $1.4 million dollar shortfall out of the General Fund. Dorshimer said amendments to two Public Acts are being presented to the legislative body to allow the TIFA to capture state taxes for a longer period. He said Brian Lefler, Robert W. Baird & Company, is working hard and representing the TIFA on this issue. Once the amendments pass, Dorshimer will present to the TIFA board the final TIFA financing solutions for their review. Other Business None reported. Public Comment None Adjournment Chair Jones declared the meeting adjourned at 9:10 a.m. I arl Dorshimer, Director, Economic Development Lansing Economic Area Partnership (LEAP) `i'axc Increment Finance Authority Board os Dl ector's Meeting ].V inixtes Pdansi.ng Economic Area Rartnershi.p (LEA..P) - Boardroom Thursday, August l , 2,013 8:00 a.m. Members Present: Members Absent: Temporary Members Present: Staff present: Guests: Public Present.: Recorded by: Cavil to Order Calvin Jones, Greg Ward, Pierre LaVoie Baldomero Garcia, Kimberly Coleman Mayor Bernero, James Butler, Kevin O'Malley N None Karl Dorshimer, Marchelle Smith, Bob Trezise cn ce) None -v None C'I C1 Tedi R. Parsons, LEAP n � M un 7 s� Chair Jones welcomed everyone and called the meeting to order at 9:52a.m. ��apy�-ONTVi1 ��1 Tf.15'1� iltrec�icirng 1Vlix�cnte:v, - �"rr.��.my, a�Iar�o 'S, BUI;i Mot:iou: Garcia moved to approve the meeting minutes from the Friday, May 3, 2013 TIFA Board of Director's meeting and place them on file. Motion seconded by Ward. .peas: Unanimous. Motion carried. TIFA. Budget (upd-a—ba) Trezise provided an update on the current status of the TIFA. He noted that City Council will be reviewing all city department budgets, which includes the TIFA. He noted that this will be done by a subcommittee of the City Council. Trezise further noted that there are currently two bills up at the House being presented that will assist in the refinancing of the TIFA. Other lc usiness None reported. Public Comment None Adjo i]!:rnment Chair Jones declared the meeting adjournedat9:57 a.m. Karl Dorshimer, Director, Economic Development Lansing Economic Area Partnership (LEAP) 1