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HomeMy WebLinkAbout2004 LEDC minutesMembers Present: Members Absent: Temporary EDC Members Present: Temporary EDC Members Absent: Staff Present: Staff Absent: 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, March 3, 2004 4:00 P.M. Tony Benavides; Ann Brazeau; Kim Coleman; William Cook; Bo Garcia; Jeff Williams James Butler; Paula Cunningham; Brian Jeffries Ed Carpenter Jan Hayhow Patricia Cook; Barbara Foreman; Tracy Carney -Miller Karl Dorshimer; Marchelle Smith Jim Ruff Chair Williams called the meeting to order at 4:08 p.m. Patricia Cook introduced new board member Bo Garcia, Regional Director of LCC's Small Business Development Center. Bo is replacing William Long. 2) Election of Officers Motion - Arm Brazeau motioned the Board to approve the following slate of officers thru December 31, 2004: Jeff Williams - Chair Kim Coleman - Vice -Chair William Cook - Secretary Ann Brazeau - Treasurer Bo Garcia seconded the motion. Yeas: Unanimous. Motion carried. A) Authorization for Bank Services M= - Ann Brazeau motioned the Board to approve Authorization for Bank Services as presented. Bo Garcia seconded the motion. Yeas: Unanimous. Motion carried. 3) Approval of the Board of Director's Meeting Minutes from December 3, 2003 M - Kim Coleman motioned the Board to approve the Board of Director's Meeting Minutes from December 3, 2003 as presented and place them on file. Bo Garcia seconded the motion. Yeas: Unanimous. Motion carried. 4) EDC Financial Statements as of 12/31/03 & 1/31/04 William Cook motioned the Board to approve the Financial Statement from 12/31/03 & 1/31/04 as presented and place them on file. Bo Garcia seconded the motion. Yeas: Unanimous. Motion carried. 5) Other Business A) EDC/TIFA/LBRA Annual Board Report Motion - Bo Garcia motioned the Board to receive and place on file the EDC/TIFA/LBRA Annual Board Report as presented. Kim Coleman seconded the motion. Yeas: Unanimous. Motion carried. B) EDC/TIFA/LBRA Proposed Work Program & Goals for 2004 Motion - Kim Coleman motioned the Board to receive and place on file the EDC/TIFA/LBRA Proposed Work Program & Goals for 2004 as presented. Bo Garcia seconded the motion. Yeas: Unanimous. Motion carried. C) Analysis of BFAP Loans (as of 12/31/03 & 1/31/04) The Board received copies of the Analysis of Program Loan Funds as of 12/31/03 & 1/31/04, which were prepared by Barbara Foreman. D) Craig Heath Restaurant Project Motion - Ed Carpenter motioned the Board to approve the Resolution approving the Commitment Letter for the Craig Heath Restaurant Project as presented. Bo Garcia seconded the motion. Yeas: Unanimous. Motion carried. A board member asked how the collateral package was determined. Was there a board policy outlining procedures and criteria for this? Staff indicated that a BFAP Loan Application had been developed some years ago with specific procedures for loan considerations. Staff indicated they would send the board a copy of this application along with information relating to the recommended collateral package. E) BFAP Loan Funds - Reprogramming Funds Certain questions relating to the appropriateness of using these funds were raised. Staff outlined to board members that these UDAG grants were closed out some many years ago, and they believed it was an allowable use of these funds, it was suggested that some further research on this matter be conducted. Staff will present information relating to this matter at a future meeting. F) Continued Seed Funding for Sculpture in the Streets Motion - Kim Coleman motioned the Board to approve Continued Seed Funding for the 2004 Sculpture in the Streets in the amount of $5,000. Tony Benavides seconded the motion. Yeas: Unanimous. Motion carried. G) Employee Fidelity Bonds Update At the recommendation of Kutas & Hawes, the EDC increased Employee's Dishonesty coverage through the EDC's Business owners Insurance Policy from $10,000 to $50,000 per incident at an annual cost increase of $60.32. H) Partnership with MEDC on CDBG Funding for Neogen project The EDC will be partnering with Ingham County and the MEDC to facilitate the use of the Michigan Mitten Program, which will provide a forgivable loan to the company for the purchase of equipment. I) Proposal to include other Insurance Options for Employee Fringe Benefit Package Motion - Bo Garcia motioned the Board to approve including disability and any other AFLAC products be made available through the City of Lansing as part of the EDC Employee Fringe Benefit Package. Ann Brazeau seconded the motion. Yeas: Unanimous. Motion carried. 6) Public Comment None. 7) Adjournment Chair Williams declared the meeting adjourned at 5:12 p.m. Minutes by B. Foreman Patricia A. Cook EDC Manager Economic Development Corporation of the City of Lansing Special Board of Directors's Meeting Mayor's Conference Room _.. = Ninth Floor, Lansing City Hall Wednesday, May 5, 2004 - 4:10 p.m. Members Present: Ann Brazeau; James Butler; Paula Cunningham; Bo Garcia; Brian Jeffries; Jeff Williams Members Absent: Tony Benavides; Kim Coleman; 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: Kris Elliott; Jim Ruff, Ken Stockwell 1) Call to Order As a quorum was not present for the 4:00 p.m. TIFA mtg. and the 4:05 p.m. LBRA mtg., Chair Williams called the EDC meeting to order at 4:10 p.m. to proceed with non -action items. 4) EDC Projects Effectiveness A) Discussion with Ken Stockwell, Spirit Partnership At the invitation of the Board of Directors, Ken Stockwell (Spirit Partnership), spoke about his experiences with the Facade Improvement and Loft Development Grants and the Neighborhood Enterprise Zone Property Tax Abatement and the benefits received for his properties located at 107, 109 & 111 E. Allegan and 115, 117, 119, 121 and 123 S. Washington Square. As a quorum was now present at 4:35 p.m., Chair Williams declared the EDC meeting temporarily adjourned to reconvene the TIFA & LBRA Board Meetings. Chair Williams called the EDC Board Meeting back to order at 4:49 p.m. 2) Approval of the Board of Director's Meeting Minutes from April 7, 2004 Motion - James Butler motioned the Board to approve the Board of Director's Meeting Minutes from April 7, 2004 as presented and place them on file. Brian Jeffries seconded the motion. Yeas: Unanimous. Motion carried. 3) EDC Financial Statements as of 3/31/04 Motion - James Butler motioned the Board to receive and place on file the Financial Statements as of 3/31/04 as presented. Ann Brazeau seconded the motion. Yeas: Unanimous. Motion carried. 5) Other Business A) Analysis of BFAP Loans & UDAG Funds Available - 3/31/04 In addition to the Analysis of Program Loans Report thru 3/31/04, which was prepared by Barbara Foreman, the Board received an outline of existing cash on hand for all of the UDAG bank accounts as of 3/31/04, which was prepared by Patricia Cook. B) BFAP Loan Request from Kris Elliott (Troppo) Patricia Cook introduced to the Board Kris Elliott, Owner of the former Troppo Restaurant in East Lansing. Kris is requesting a $350,000 loan from the EDC to establish a fine dining restaurant on the 1" floor of the 101 S. Washington Square building which is on the southeast corner of Michigan Avenue & Washington Square. Patricia Cook stated that the first step in the process is for the Board to approve the Resolution approving the Project Area and the Project Plan. Motion - Paula Cunningham motioned the Board to approve the Resolution approving the Project Area and the Project Plan & a loan amount up to $350,000. James Butler seconded the motion. Yeas: Unanimous. Motion carried. Patricia Cook further stated that if the Resolution approving the Project Area & Project Plan are well received by the City Council and the Planning & Neighborhood Development Committee, it is possible that packaging of a loan commitment could be in place by the June Board Meeting. C) Draft FY `05 EDC Budget Motion - Paula Cunningham motioned the Board to approve the "Draft" FY `05 EDC Budget as presented. Ann Brazeau seconded the motion. Yeas: Unanimous. Motion carried. Patricia Cook stated to the Board that should more funds become available from the City for EDC's general operations, the FY `05 Budget can be amended. Chair Williams asked that the budget be on next months Agenda. The Board received a copy of the FY `04 Work Program Detail, which was prepared by Karl Dorshimer. 6) Public Comments None. 7) Adjournment Chair Williams declared the meeting adjourned at 5:50 p.m. Minutes by B. Foreman (Za 4A, It.- �. 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, 2004 4:00 P.M. Members Present: Tony Benavides; Ann Brazeau; Kim Coleman; William Cook; Paula Cunningham; Bo Garcia; Jeff Williams Members Absent: James Butler; Brian Jeffries Temporary EDC Members Present: Jan Hayhow Temporary EDC Members Absent: Ed Carpenter Staff Present: Patricia Cook; Tracy Carney -Miller; Barbara Foreman Staff Absent: Karl Dorshimer; Marchelle Smith Guests Present: Ryan Thelen 1) Call to Order � _ Chair Williams called the meeting to order at 4:04 p.m. C' c, Patricia Cook asked that the minutes include Mayor Benavides' written excuse for missing the May Board Meeting. 2) Approval of the Special Board of Director's Meeting Minutes from May 5, 2004 Chair Williams asked that the May 5, 2004 meeting minutes be changed to reflect that the EDC Meeting was temporarily recessed, rather than using the word adjourned. Motion - Ann Brazeau motioned the Board to approve the Special Board of Director's Meeting Minutes from May 5, 2004 as presented (with the above change) and place them on file. Bo Garcia seconded the motion. Yeas: Unanimous. Motion carried. 3) EDC Financial Statements as of 4/30/04 Motion - Kim Coleman motioned the Board to receive and place on file the EDC Financial Statements as of 4/30/04 as presented. Ann Brazeau seconded the motion. Yeas: Unanimous. Motion carried. 4) EDC Projects Effectiveness A) Discussion with Doug Nylander re: 210 S. Washington Redevelopment Doug Nylander was not able to attend the Board meeting due to an emergency in Grand Rapids. Marchelle Smith will reschedule Doug for a future Board meeting. 5) Other Business A) Analysis of BFAP Loans & UDAG Funds Available - 4/30/04 The Board received a copy of the Analysis of Programs Loan funds & UDAG Funds Available, which were prepared by Barbara Foreman. Chair Williams mentioned to Board members that were not present at the May Board Meeting, that at his request staff has put together a second page to the Analysis Report which better outlines the programming dollars available. B) FY `04 Audit Engagement & Additional Fees Proposed The Board received in their packet a letter from Ryan Thelen, of Kutas & Hawes, stating that due to numerous corporate scandals & accounting deficiencies, Statement on Auditing Standards No. 99 "Consideration of Fraud in a Financial Audit" has been issued. The new requirements of SAS No. 99 include, but are not limited to, 1) an engagement team discussion to consider the susceptibility of the client's financial statements to material misstatement due to fraud, 2) inquiries of management and others within the organization, and 3) tailoring audit procedures in response to identified fraud risks. As a result of these new requirements, Kutas & Hawes is proposing an increase in the fees quoted in their proposal of $750. ($250. for each entity - EDC, TIFA & LBRA). Motion - Ann Brazeau motioned the Board to approve the additional fees proposed by Kutas & Hawes as presented. Kim Coleman seconded the motion. Yeas: Unanimous. Motion carried. C) FY'05 EDC Budget Discussion Patricia Cook informed the Board that the `04 - `05 Budget is projected to have an approximate shortfall of $48,000. Pat also informed the Board that one significant change for the `04 - `05 Budget is that City Council has approved an additional $30,000 for the EDC's Contract. Chair Williams asked two questions for the Board to consider: 1) what are the level of losses the EDC is willing to tolerate as a corporation? and 2) how do we treat the UDAG funds - are they an endowment, a rainy day fund or programming dollars? After some discussion, it was decided to wait for the letter from HUD (Housing on Urban Development) as to how restricted are the UDAG funds. Paula Cunningham entered the meeting during the FY `05 Budget discussion. Patricia stated that there will not be a July Board Meeting, but special board meetings for EDC & LBRA will need to take place toward the end of June to take action on Troppo's Restaurant Project and also documents for the BTS Bond Closing. 6) Public Comments None. 7) Adjournment Chair Williams declared the meeting adjourned at 4:40 p.m. Minutes by B. Foreman Patricia A. Cook EDC Manager Economic Development Corporation of the City of Lansing Board of Director's Meeting Mayor's Conference Room Ninth Floor, Lansing City Hall Wednesday, July 7, 2004 4:00 P.M. Members Present: Tony Benavides; Ann Brazeau; Kim Coleman; William Cook; Bo Garcia; Brian Jeffries; Jeff Williams Members Absent: James Butler; Paula Cunningham Temporary EDC Members Present: Ed Carpenter; Jan Hayhow Staff Present: Patricia Cook; Karl Dorshimer; Barbara Foreman; Tracy Carney -Miller; Marchelle Smith Guests Present: Jim Ruff, Kester So; Paul Stauder 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 June 2, 2004 Motion - Tony Benavides motioned the Board to approve the Board of Director's Meeting Minutes from June 2, 2004 as presented and place them on file. Ann Brazeau seconded the motion. Yeas: Unanimous. Motion carried. 3) EDC Financial Statements as of 5/31/04 Motion - Tony Benavides motioned the Board to approve the EDC Financial Statements as of 5/31/04 as presented and place them on file. Bo Garcia seconded the motion. Yeas: Unanimous. Motion carried. 4) Other Business A) Analysis of BFAP Loans and UDAG Funds Available The Board received a copy of the Analysis of Program Loan Funds and UDAG Funds Available, which was prepared by Barbara Foreman. B) Letter of Commitment - Troppo's Downtown Project The Board received in their packet a Letter of Commitment for a $350,000 secured term loan for the Troppo's Downtown Project, which was prepared by EDC staff and EDC's attorney for BFAP Loans, Dwight Ebaugh of Dickinson Wright. Patricia Cook stated that the loan can be used for both physical improvements, as well as, working capital. The disbursement of funds would occur after they show proof that they have fully satisfied the amount of funds that they would bring into the project, which would be both their equity and any other type of bank financing. The loan term will be a 15 year note with a 5 year maturity term. Loan payments for the first six months will be interest only, which Pat stated is standard for BFAP Loans. Staff recommends the Board approve the applicants loan request in the full amount of $350.000. Motion - Kim Coleman motioned the Board to approve the Letter of Commitment in the amount of $350,000 for the Troppo's Downtown Project as presented. Jan Hayhow seconded the motion. Yeas: Tony Benavides; Ann Brazeau; Kim Coleman; William Cook; Bo Garcia; Brian Jeffries; Jeff Williams; Ed Carpenter; Jan Hayhow Motion carried unanimously. C) License Agreement with Lansing Municipal Parking System Patricia Cook stated that back in 1996 the EDC and the City's Parking System entered into a "gentleman's agreement" allowing the City to develop the property on the N. W. corner of Cedar and Michigan Avenue. A few years before this the City condemned the property for public purpose. The EDC paid for that purchase of those private properties with funds from the original UDAG. At that time there was a "draft" agreement that was put in place but was never executed for a variety of reasons and it took the City awhile before they developed the property into a parking lot. Patricia Cook gave the Board a brief overview of the License Agreement between the EDC and the City of Lansing's Municipal Parking System, which outlines the use of the 19,000 s.f. of space by the City parking system. After the City is reimbursed for their original investment in the property of $57,000 and also fees associated with the maintenance of the property, as well as, the Principal Shopping District's assessment, the revenues from the parking lot will be split between the City and the EDC. Chair Williams questioned Item 2 & Item 7 of the License Agreement. In Item 2 the first phrase in the first sentence states that the license agreement shall continue indefinitely and the last phrase of the paragraph says that notwithstanding any other provision hereof, the term of this License Agreement shall not exceed 15 years. Patricia Cook stated that the latter phrase is correct and that the first part of the paragraph should be eliminated. Chair Williams also questioned the language of Item 7 of the License Agreement and requested that the language be modified to provide for the EDC boards review and approval prior to any transfer or assignment of this Agreement. Further it was suggested that either the EDC legal council or the City Attorney review Item 7. Also, one typo was pointed out on the first page that read LBA and should be changed to LMPS. Motion - William Cook motioned the Board to approve the License Agreement between the EDC and Lansing's Municipal Parking System as presented with the above changes. Bo Garcia seconded the motion. Yeas: Unanimous. Motion carried. 5) Public Comment None. 6) Adjournment Chair Williams declared the meeting adjourned at 4:40 p.m. Minutes by B. Foreman Patricia A. Cook EDC Manager Economic Development Corporation 1.n of the City of Lansing - — Board of Director's Meeting = Mayor's Conference Room L= Ninth Floor, Lansing City Hall Wednesday, August 4, 2004 4:00 P.M. Members Present: Tony Benavides; Ann Brazeau; William Cook; Paula Cunningham; Bo Garcia; Brian Jeffries Members Absent: James Butler; Kim Coleman; Jeff Williams Temporary EDC Members Present: None Temporary EDC Members Absent: Ed Carpenter; Jan Hayhow Staff Present: Patricia Cook; Barbara Foreman Staff Absent: Karl Dorshimer; Tracy Carney -Miller; Marchelle Smith Guests Present: Kester So As a quorum was not present at 4:00 p.m., Secretary William Cook suggested proceeding with non -action items. 5) Other Business A) Analysis of BFAP Loans & UDAG Funds Available - 6/30/04 The Board received a copy of the Analysis of Program Loan Funds and UDAG Funds Available, which was prepared by Barbara Foreman. Patricia Cook informed the Board that the loan closing for the Troppo's Restaurant Project took place in July. The $300,000 loan will appear on the July Analysis Report. B) Letter from EDC Legal Counsel re: 401(a) & 457 ICMA Plans Patricia Cook informed the board that the ICMA Retirement Corporation has modified our 401 (a) and 457 Plans to be in compliance with the new IRS regulations, but that the EDC Board could structure its own Plan if it chose to do so. Board members reflected that if ICMA had already made our Plans IRS compliant, there was no need to modify further. C) Summary of IT Initiative "Destination Cool" Forum Patricia Cook stated that on June 15th the IT Initiative, which she manages on behalf of the EDC and the City of Lansing, had a "Destination Cool" event entitled Visioning Lansing's Technology Future. The event was an interactive laptop forum that brought end users, service providers and economic development professionals together to formulate recommendations on what the.most critical IT challenges in Lansing are. D) Projects Update Patricia Cook updated the Board on the following projects: At the end of June the closing for the Neogen Expansion Project took place. The Project has an investment of 2 million dollars and 50 new jobs will be created. Styleline Furniture has received SBT credits and the Project located on South Washington Avenue is underway. Site improvements for the Boys Training School Project are well underway. The Prudden Project Amendment has been approved by the Mayor and City Council and the Board of Water & Light will be making their improvements on the North end starting within the next 30 days. Percy Bean from Popeye's Chicken on MLK is planing to build his corporate headquarters on the same site. The Project will have an approximate private investment of $350,000. Tom Arnold has a building on Grand River Ave. in Old Town and EDC staff is working with him to possibly redevelop the property for residential and commercial space. NTH should be moving into their new location on S. Washington Avenue sometime this fall. E) Retention Contacts, June 2004 EDC's retention contractor, Dru Mitchell, provided the Board with an outline of her retention calls to businesses for the month of June, `04. 1) Call to Order As a quorum was now present, Secretary William Cook called the meeting to order at 4:25 p.m. 2) Approval of the Board of Director's Meeting Minutes from July 7, 2004 Motion - Tony Benavides motioned the Board to approve the Board of Director's Meeting Minutes from July 7, 2004 as presented and place them on file. Ann Brazeau seconded the motion. Yeas: Unanimous. Motion carried. 3) Lansing Community College Projects Update - Paula Cunningham Paula Cunningham, President of LCC, gave the Board a brief overview of the new construction projects they are involved with, including: 1) a new Administrative Services Building which will be located in the Northwest quadrant of the downtown campus on Capitol Avenue; 2) a Health & Human Services Careers Building which will be located on Washington Square near the north end of LCC's Main Campus; 3) a Michigan Technical Education Center which will be located at 5708 Cornerstone Drive in Delta Township (North side of Mt. Hope, between Creyts and Snow Rd.) 4) a West Campus which will also be located at the Cornerstone address. 4) Unadjusted EDC Financial Statements as of 6/30/04 Motion - Bo Garcia motioned the Board to accept and place on file the Unadjusted EDC Financial Statements as of 6/30/04 as presented. Ann Brazeau seconded the motion. Yeas: Unanimous. Motion carried. 6) Public Comment None. 7) Adjournment Secretary William Cook declared the meeting adjourned at 4:55 p.m. Minutes by B. Foreman Gk� d &k-- Patricia A. Cook EDC Manager Economic Development Corporation Guests Present: John Grettenberger; John Grettenberger Jr.; Jim Ruff, Ryan Thelen 1) Call to Order Chair Williams called the meeting to order at 4:10 p.m. 2) Approval of the Board of Director's Meeting Minutes from August 4, 2004 Motion - Bo Garcia motioned the Board to approve the Board of Director's Meeting Minutes from August 4, 2004 as presented and place them on file. James Butler seconded the motion. Yeas: Unanimous. Motion carried. 3) Other Business A) Analysis of BFAP Loans & UDAG Funds Available - 7/31/04 of the City of Lansing Board of Director's Meeting Mayor's Conference Room Ninth Floor, Lansing City Hall Wednesday, September 1, 2004 4:00 P.M. Members Present: Tony Benavides; James Butler; Kim Coleman; Bo Garcia; Jeff Williams Members Absent: Ann Brazeau; William Cook; Paula Cunningham; Brian Jeffries Temporary EDC Members Present: None Temporary EDC Members Absent: Ed Carpenter; Jan Hayhow Staff Present: Patricia Cook; Karl Dorshimer; Barbara Foreman Staff Absent: Tracy Carney -Miller; Marchelle Smith Guests Present: John Grettenberger; John Grettenberger Jr.; Jim Ruff, Ryan Thelen 1) Call to Order Chair Williams called the meeting to order at 4:10 p.m. 2) Approval of the Board of Director's Meeting Minutes from August 4, 2004 Motion - Bo Garcia motioned the Board to approve the Board of Director's Meeting Minutes from August 4, 2004 as presented and place them on file. James Butler seconded the motion. Yeas: Unanimous. Motion carried. 3) Other Business A) Analysis of BFAP Loans & UDAG Funds Available - 7/31/04 The Board received in their packet a copy of the Analysis of Program Loan Funds and UDAG Funds Available, which was prepared by Barbara Foreman. Patricia Cook called to the Board's attention that the Troppo's Restaurant Project Loan has been added to the BFAP Analysis Report. The Troppo's Loan Closing took place on July 21". At the time of closing the only monies disbursed were for legal and recording fees in the amount of $4,941. B) Retention Visits - July, 2004 EDC's retention contractor, Dru Mitchell, provided the Board with an outline of her retention calls to businesses for the month of July, `04. C) Request to Extend Craig Heath Loan Commitment to 111105 Patricia Cook informed the Board that the Craig Heath Restaurant Project BFAP Loan is scheduled to close on Friday, September 3`d. However, the EDC has recently been informed by Craig Heath that he will not need any funds disbursed until January, `05. Because of this and as a part of the requirements of the loan closing, there is a $318,000 letter of credit that is required. Craig asked to explore with the EDC the following alternatives: 1) Close now (September 3`d), but not disburse any loan funds until a satisfactory letter of credit is issued. This would have the effect of "locking" the interest rate, but it would enable Craig to postpone the issuance of the letter of credit. 2) Postpone the closing until EDC money is needed. This would require an extension of the closing deadline in the EDC's commitment letter, but the interest rate would not be "locked" at the current time. Patricia requested that the Board approve affording her the opportunity, if necessary, to extend the Craig Heath Project Loan until January 1, 2005 without locking the interest rate but allowing time to obtain the letter of credit. Motion - James Butler motioned the Board to approve affording Patricia Cook the opportunity, if necessary, to extend the Craig Heath Project Loan until January 1, 2005 without locking the interest rate but allowing time to obtain the letter of credit. Bo Garcia seconded the motion. Yeas: Unanimous. Motion carried. The Board received in their packet of information an updated 2004/2005 Budget Revenue Summary which includes additional revenue sources for the EDC. The Board also received in their packet a copy of an article from the Business Direct Weekly regarding the Courtland Software Services, Inc. who opened an office in downtown Lansing in July, `04. 4) Public Comment None. 5) Adjournment Chair Williams declared the meeting adjourned at 4:25 p.m. Minutes by B. Foreman Od Alt� Patricia A. Cook EDC Manager Members Present: Tony Benavides; Ann Brazeau; James Butler; Kim Coleman; William Cook; Paula Cunningham; Bo Garcia; Brian Jeffries; Jeff Williams Members Absent: Temporary EDC Members Present: Temporary EDC Members Absent: Staff Present: Staff Absent: Guests Present: 1) Call to Order None Jan Hayhow Ed Carpenter Patricia Cook; Karl Dorshimer; Barbara Foreman; Tracy Carney -Miller; Marchelle Smith None Denise Peek; Jim Ruff-, Ryan Thelen Chair Williams called the meeting to order at 4:10 p.m. 2) Approval of the Special Board of Director's Meeting Minutes from October 6, 2004 Motion - Brian Jeffries motioned the Board to approve the Special Board of Director's Meeting Minutes from October 6, 2004 as presented and place them on file. Ann Brazeau seconded the motion. Yeas: Unanimous. Motion carried. 3) LCMF Guaranty Agreement Denise Peek, Executive Director of the Lansing Community Micro -Enterprise Fund, was present at the meeting to ask the EDC Board to consider a one-year renewal of the Guaranty C`o Economic Development Corporation of the City of Lansing -- Board of Director's Meeting c CO Mayor's Conference Room u Ninth Floor, Lansing City Hall - Wednesday, December 1, 2004 - 4:00 P.M. Members Present: Tony Benavides; Ann Brazeau; James Butler; Kim Coleman; William Cook; Paula Cunningham; Bo Garcia; Brian Jeffries; Jeff Williams Members Absent: Temporary EDC Members Present: Temporary EDC Members Absent: Staff Present: Staff Absent: Guests Present: 1) Call to Order None Jan Hayhow Ed Carpenter Patricia Cook; Karl Dorshimer; Barbara Foreman; Tracy Carney -Miller; Marchelle Smith None Denise Peek; Jim Ruff-, Ryan Thelen Chair Williams called the meeting to order at 4:10 p.m. 2) Approval of the Special Board of Director's Meeting Minutes from October 6, 2004 Motion - Brian Jeffries motioned the Board to approve the Special Board of Director's Meeting Minutes from October 6, 2004 as presented and place them on file. Ann Brazeau seconded the motion. Yeas: Unanimous. Motion carried. 3) LCMF Guaranty Agreement Denise Peek, Executive Director of the Lansing Community Micro -Enterprise Fund, was present at the meeting to ask the EDC Board to consider a one-year renewal of the Guaranty Agreement between the EDC and LCMF (in the amount of $8,657.56) as stated in a letter to Patricia Cook dated Oct.15`h , `04. The letter also states two proposed changes to -the Guaranty Agreement: change number one defines the word "Indebtedness" as: the outstanding principal portion of a loan obligation of a Borrower whose business is located in the City, and the second change is a 4`h condition to be added to Part 6 of the Guaranty of Collection; to guarantee collection which specifies that all funds collected by the LCMF as a result of the sale of collateral, shall be deducted from the Indebtedness prior to guarantee collection. Motion - Tony Benavides motioned the Board to approve the extension of the LCMF Guaranty Agreement for one year (from Nov. 5" , `04 through Nov. 5`h `05) as outlined above. Ann Brazeau seconded the motion. Yeas: Unanimous. Motion carried. 4) Financial Statements A) Draft EDC FY 03/04 Audit Ryan Thelen, of Kutas and Associates, gave the Board a brief overview of the "Draft" EDC FY 03/04 Audit. Board members had an opportunity to ask questions relating to the audit, as well as, why there was no management letter attached to the audit summary. The auditor disclosed that during the course of the audit, the EDC Manager brought to their attention that the financial software is not accurately reflecting some of the payroll liabilities outlined in the Corporation's books. Further discussion was held and it was decided that a management letter outlining these issues would be drafted. Motion - Kim Coleman motioned the Board to receive and place on file the "Draft" EDC FY 03/04 Audit as presented. James Butler seconded the motion. Yeas: Unanimous. Motion carried. B) Financial Statements - Final, June `04 Motion - James Butler motioned the Board to receive and place on file the Financial Statements - Final, June `04 as presented. William Cook seconded the motion. Yeas: Unanimous. Motion carried. C) Financial Statements - Through October `04 Motion - Bo Garcia motioned the Board to receive and place on file the Financial Statements - Through October `04 as presented. Kim Coleman seconded the motion. Yeas: Unanimous. Motion carried. 5) Other Business A) 100 Block - Radisson Hotel Patricia Cook informed the Board that a meeting has been set for December 8`h with herself, City Finance Director Glenn Kirk, City Attorney Paul Novak and representatives from Churchill to continue discussion on EDC's loan & note. B) Analysis of BFAP Loans & UDAG Funds Available - 10/31/04 The Board received a copy of the Analysis of Program Loan Funds and UDAG Funds Available, which was prepared by Barbara Foreman. C) Retention Visits - September & October, 2004 EDC's retention contractor, Dru Mitchell, provided the Board with an outline of her retention calls to businesses for the months of September & October, 2004. D) Loan Commitment Extension - Craig Heath Project Patricia Cook informed the Board that the Craig Heath Loan will not be closing by December 315` `04 as was originally planned. Action by the Board is needed to extend the loan commitment to March 315` `05, although Pat stated that the closing will probably take place by the end of January, `05. Motion - Brian Jeffries motioned the Board to extend the Craig Heath Project Loan Commitment through March 315` `05. Paula Cunningham seconded the motion. Yeas: Unanimous. Motion carried. 6) Public Comment None. 7) Adjournment Chair Williams declared the meeting adjourned at 5: 20 p.m. Minutes by B. Foreman Patricia A. Cook EDC Manager