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HomeMy WebLinkAbout2008 LEDC minutesLansing Economic Development Corporation Special Board of Director's Meeting Minutes Lansing Economic Development Corporation Conference Room Tuesday, January 8, 2008 7:45 a.m. Members Present: James Butler, Bo Garcia, Brian Jeffries, Bob Johnson, Calving Jones, Kelly Rossman-McKinney, Greg Ward, Jeff Williams Members Absent: Mayor Bernero, Kim Coleman Staff Present: Brian Anderson, Karl Dorshimer, Caitlin Malloy, Marchelle: Smith, , Ken Szymusiak, Bob Trezise, Special Guests: Tom Korkoske Public Present: None i -n r Call to Order --� Vice Chair Bo Garcia called the meeting to order at 8:45 a.m. Election of 2008 Board Officers After obtaining consensus from board members, Nominating Chair, Greg Ward, proposed the following 2008 Board Officers: Chair - Kim Coleman Vice Chair - Bo Garcia Secretary - Kelly Rossman-McKinney Treasurer - James Butler Approval of Meeting Minutes from December 4, 2007 regular Board of Director's Meeting Motion: James Butler moved the Board to approve the meeting minutes from the December 4, 2007 regular Board of Director's meeting and place them on file. Seconded by Jeff Williams. Yeas: Unanimous. Motion carried. Financial Statements as of November 30, 2007 Motion: James Butler moved the Board to receive the November 30, 2007 financial statements and place them on file. Seconded by Calvin Jones. Yeas: Unanimous. Motion carried. Resignation of Temporary Board Members, Jan Hayhow and Ed Carpenter Bob Trezise reported that Jan Hayhow and Ed Carpenter have resigned as temporary board members as they have served a very long time. The board recommended that a letter of appreciation be sent to Jan and Ed. Election of Two New Temporary Board Members for Upcoming BFAP Loan Applicant Jeff McAlvey was discussed as a potential temporary board member as he has served on previous bond issues. Bob will ask the Mayor if he has other recommended candidates. Lansing Restaurant Ventures, Inc. (Majority) Loan Update Bob reported that Ron Boji and Craig Heath is aware that the Forbearance Agreement has ended December 9, 2007 and that normal principal and interest payments are to resume January 9, 2008. "Front Yard" Parks Business Pilot Partnership Program As part of an economic development strategy, Bob Trezise asked for the board's consideration to enter into a contract with the Parks Department to initiate an RFP to hire a consultant and to accept $60,000 from the Parks Department for the cost of hiring a consultant. The goal is to create a pilot program that demonstrates business's ability to give back to the community by preserving parks in partnership with area neighborhoods. Motion: James Butler moved the Board to allow the Lansing EDC to enter into a contract with the Parks Department to carry out an RFP and hire a consultant in the amount of $60,000 as provided by the Parks Department. Seconded by Kelly Rossman-McKinney. Yeas: Unanimous. Motion carried. Other Business Bob Trezise announced the following: • The BWL will be meeting this evening, January 8, to vote on selling the Ottawa Power Station to the Christman Company, A Public Hearing is scheduled January 14. • Jackson National Life will be expanding its headquarters creating 800 new jobs with $60 Million in private investment requiring a second 425 Agreement with the City. • The Mayor's State of the City is scheduled for January 30 at 7:30 p.m. • A reminder that a special meeting has been scheduled for Tuesday, January 29 from 7:45 a.m. to 12:00 Noon to continue discussion on strategic planning, mini training and idea sharing. Public Comment None Adjournment Vice Chair Bo Garcia declared the meeting adjourned 9:10 a.m. Motion: James Butler moved the Board to adjourn the meeting at 9:10 a.m. Seconded by Kelly Rossman-McKinney. Yeas: Unanimous. Motior Minutes by M. Smith Lansing Economic Development Corporation Special Board of Director's Meeting Minutes ' _, r Lansing Economic Development Corporation Conference Room B Tuesday, January 29, 20083 7:45 a.m. c u -D Members Present: James Butler, Brian Jeffries, Bob Johnson, Calvin Jones; Rossman-McKinney, Greg Ward, Jeff Williams -_ Members Absent: Mayor Bernero, Kim Coleman, Bo Garcia - Staff Present: Brian Anderson, Karl Dorshimer, Lauren Greenberger -Boylan, Caitlin Malloy, Marchelle Smith, Ken Szymusiak, Bob Trezise Special Guests: Andrea Ragan, PSD Public Present: None Call to Order Secretary Kelly Rossman-McKinney called the meeting to order at 8:10 a.m. KI Y Resolution to Amend Budget to Match City Funds for the Purpose of Hiring Federal Public Affairs Council Bob Trezise reported that Lansing is under represented in Washington DC to secure federal funds for economic development projects and recommended the Board approve a resolution to amend the Lansing EDC budget to match City funds in the amount of $10,000 for a total of $20,000 for the purpose of hiring Federal Public Affairs Council. The Board recommended that language be added to the Resolution to authorize President and CEO of the Lansing EDC to hire Federal Public Affairs Council. Motion: James Butler moved the Board to approve the Resolution with the change authorizing President and CEO of the Lansing EDC to hire Federal Public Affairs Council. Seconded by Greg Ward. Yeas: Unanimous. Motion carried. Basics 101 Bob Trezise and staff spent a majority part of the morning explaining the basics of the Brownfield program and other program incentives that are initiated on behalf of the City as part of our contract and how each of the programs impact the city's tax base and the LEDC, LBRA and TIFA budgets. Strategic Planning Due to time constraints, it was the consensus of the Board to hold further discussion on Strategic Planning at the next regular scheduled board meeting specifically on how to utilize the unrestricted Urban Development Action Grants (UDAG). Other Business None Public Comment None Adjournment Secretary Kelly Rossman-McXiriney declared t ie meeting adjourned 12:00 Noon. u Minutes by M. Smith Robert L. Trezise, Jr., Preps c ent & CEO Lansing Economic Development Corporation Regular Board of Director's Meeting Minutes Lansing Economic Development Corporation Conference Room Tuesday, February 5, 2008 7:45 a.m. Members Present: Kish Coleman, Bo Garcia, Calvin Jones, Greg Ward, Jeff Williams Members Absent: Mayor Bernero, James Butler, Brian Jeffries, Bob Johnson_ ; Kelly Rossman-McKinney Staff Present: Brian Anderson, Karl Dorshimer, Caitlin Malloy, Marchelle :Smith, Bob Trezise C Special Guests: None •`' Public Present: None Call to Order j,e... Chair Kim Coleman called the meeting to order at 8:15 a.m. Approval of Meeting Minutes from January 8, 2008 special Board of Director's Meeting Motion: Calvin Jones moved the Board to approve the meeting minutes from the January 8, 2008 special Board of Director's meeting and place them on file. Seconded by Jeff Williams. Yeas: Unanimous. Motion carried. Financial Statements as of December 31, 2007 Motion: Calvin Jones moved the Board to receive the December 31, 2007 financial statements and place them on file. Seconded by Greg Ward. Yeas: Unanimous. Motion carried. Discussion of Future Use of Urban Development Action Grant (UDAG) Funds Bob Trezise gave an overview on the Basic 101 and Strategic Planning session held at a special meeting on January 29th. Since one-half of the Board is not present at today's meeting to discuss the future use of UDAG funds, it was the consensus of the board to schedule another 2 hour special board meeting when the full board can be present. Other Business Bob Trezise reported on the YMCA building development project which will anchor Associations as tenants. There was concern by the Board as to why down payment requests on projects are being raised at City Council meetings. Bob responded that businesses and developers typically put up front money in their projects (and related public infrastructure) that greatly exceeds a 10% down payment. The board recommended that letters to the editor be sent expressing the importance of tax incentives and why they are necessary on many projects. Public Comment None Adjournment Chair Kim Coleman declared the meeting adjourned 8:55 a.m. Motion: Calvin Jones moved the Board to adjourn the meeting at 8:55 a.m. Seconded by Greg Ward. Yeas: Unanimous. Motior Minutes by M. Smith Lansing Economic Development Corporation Regular Board of Director's Meeting Minutes Lansing Economic Development Corporation Conference- Room. Tuesday, April 1, 2008L- 7:45 a.m. Members Present: Kim Coleman, Bo Garcia, Bob Johnson, Calvin Jones, Kelly Rossman- McKinney, Greg Ward Members Absent: Mayor Bernero, James Butler, Brian Jeffries, Jeff Williams Staff Present: Brian Anderson, Karl Dorshimer, Ken Szymusiak, Bob Trezise Special Guests: None Public Present: None Call to Order Chair Kim Coleman called the meeting to order at 8:15 a.m. Approval of Meeting Minutes from January 29, 2008 special Board of Director's Meeting Motion: Kelly Rossman-McKinney moved the Board to approve the meeting minutes from the January 29, 2008 special Board of Director's meeting and place them on file. Seconded by Greg Ward. Yeas: Unanimous. Motion carried. Approval of Meeting Minutes from February 5, 2008 regular Board of Director's Meeting Motion: Kelly Rossman-McKinney moved the Board to approve the meeting minutes from the February 5, 2008 Regular Board of Director's meeting and place them on file. Seconded by Bo Garcia, Yeas: Unanimous. Motion carried. Financial Statements as of February 29, 2008 Motion: Calvin Jones moved the Board to receive the February 29, 2008 financial statements and place them on file. Seconded by Greg Ward. Yeas: Unanimous. Motion carried. Update of Stadium District Grant Funds Bob Trezise gave a short update that there have been recent expenditures from the Stadium District Cool Cities Grant and as a result the EDC will be setting up a new account to handle the pass through funds. Discussion of Future Use of Urban Development Action Grant (UDAG) Funds Bob Trezise announced to the board that he and staff have been in deep discussions with Kris Elliot on the One Michigan Ave. building and that the EDC may be assisting with the financing of an addition. Other Business Bob Trezise spoke appreciatively about the greatly assist him in council budget hearings. board's input on the budget because it will Bob Trezise mentioned that a feasibility study for a consultant to look at a performing arts center is underway and will likely be extended in the next budget period. Bob Trezise updated the board on the City's purchase of the Center for the Arts Building. Kelly Rossman-McKinney moved a resolution instructing the President/ CEO to send- a letter - expressing deep concern for the Art Council's rejection of a purchase offer for the Arts Center building. Seconded by Bo Garcia. Motion carried unanimously. Public Comment None Adjournment Chair Kim Coleman declared the meeting adjourned 8:45 a.m. Motion: Calvin Jones moved the Board to adjourn the meeting at 8:45 a.m. Seconded by Greg Ward. Yeas: Unanimous. Motion carried. Minutes by B. Anderson Robert L Trezise, Jr.,�rside'nt 8s CEO Lansing Economic Development Corporation Special Board of Director's Meeting Minutes:- Christman inutes Christman Building Michigan Municipal League Conference Room: 208 N. Capitol Avenue Tuesday, April 15, 2008 8:00 a.m. Members Present: Kim Coleman, Bob Johnson, Kelly Rossman-McKinney, Greg Ward, Tour of the Christman Building The morning was kicked off with a tour of the Christman Building. Strategic Planning Bob Trezise reported that due to the sale of the House Senate building to the State of Michigan, the building will be taken off the tax rolls in fiscal year 2009/2010 which will impact the TIFA tax capture by 20%. Bill Danhoff of Miller Canfield is working with Paul Stauder, Stauder, Barch & Associates to restructure the TIFA bond debt. There was discussion on having the Parking System annually pay $ 1 million per year from their reserves to help offset the $4,140,000 annual parking ramp lease debt payment so that the TIFA would have revenues to pay for other downtown projects. The board discussed the future use of the Urban Development Action Grant (UDAG) funds. Unencumbered funds in the amount of $900,000 have been loaned out at least two times over the past several years. According to HUD, there are no further restrictions on what the funds can be used for. Encumbered funds in the amount of $489,000 from the Radisson Agreement still need to be held for loans one more time. The following brain storming ideas were generated: 1. Arts & Culture match loan program 2. Encourage a city residential homeowner/ company match program (Emphasize BTS site targeting 40 single family homes with a $10,000 match) 3. 21St Century Seed Match (match federal dollars) 4. Business relocation grant 5. Business start-ups (loans vs. grants; target areas, types of businesses) 6. Marketing the City of Lansing 7. Real Estate 8. Corridors 9 Business loans 10. IPACE 11. Beautification for South corridors Jeff Williams Members Absent: Mayor Bernero, James Butler, Brian Jeffries, Calvin Jones, Bo Garcia Staff Present: Karl Dorshimer, Caitlin Malloy, Marchelle Smith, Ken Szymusiak, Bob Trezise Special Guests: None Public Present: None Tour of the Christman Building The morning was kicked off with a tour of the Christman Building. Strategic Planning Bob Trezise reported that due to the sale of the House Senate building to the State of Michigan, the building will be taken off the tax rolls in fiscal year 2009/2010 which will impact the TIFA tax capture by 20%. Bill Danhoff of Miller Canfield is working with Paul Stauder, Stauder, Barch & Associates to restructure the TIFA bond debt. There was discussion on having the Parking System annually pay $ 1 million per year from their reserves to help offset the $4,140,000 annual parking ramp lease debt payment so that the TIFA would have revenues to pay for other downtown projects. The board discussed the future use of the Urban Development Action Grant (UDAG) funds. Unencumbered funds in the amount of $900,000 have been loaned out at least two times over the past several years. According to HUD, there are no further restrictions on what the funds can be used for. Encumbered funds in the amount of $489,000 from the Radisson Agreement still need to be held for loans one more time. The following brain storming ideas were generated: 1. Arts & Culture match loan program 2. Encourage a city residential homeowner/ company match program (Emphasize BTS site targeting 40 single family homes with a $10,000 match) 3. 21St Century Seed Match (match federal dollars) 4. Business relocation grant 5. Business start-ups (loans vs. grants; target areas, types of businesses) 6. Marketing the City of Lansing 7. Real Estate 8. Corridors 9 Business loans 10. IPACE 11. Beautification for South corridors End Product: 1. Jobs in the City (certain kinds of jobs) 2. Private investment 3. Sense of place — cool factor (non-traditional use of money) 4. Spread money across the city 5. Retain/attract creative class 6. Real estate/incubator 7. High-tech employee/ student training 8. Marketing The Board recommended that we arrange to have a consultant advise as to what works and what doesn't work, what are the trends and opportunities and investment strategies. Jeff Williams said that he could talk to his colleagues from Public Sector Consultants for assistance. There was brief discussion about whether the Lansing EDC had a mission statement and decided that there really was not one. Bob will talk to the Mayor about a mission statement. The Board concluded that Bob prepare desired outcomes and make a recommendation back to the Board on three economic development priorities. Bob suggested that we hold the next Strategic Planning session at the Jeff Williams thought it would be a good idea to have the meeting late in everyone go to a Lugnuts ballgame: Marchelle will see if the Mayor's s conjunction with the Stadium DiE Minutes by M. Smith Stadium District. the day and then uite is available in Lansing Economic Development Corporation Regular Board of Director's Meeting Minutes C Lansing Economic Development Corporation Conference Room _ Tuesday, June 3, 2008 ^' 7:45 a.m. Members Present: Mayor Bernero, Kim Coleman, Bo Garcia, Bob Johnson, Calvin J6 nes Kelly Rossman-McKinney, Greg Ward Members Absent: James Butler, Brian Jeffries, Jeff Williams �- Staff Present: Brian Anderson, Karl Dorshimer, Caitlin Malloy, Ken Szymusiak,` Bob Trezise Special Guests: None Public Present: None Call to Order Chair Kim Coleman called the meeting to order at 8:15 a.m. Approval of Meeting Minutes from May 15, 2008 special Board of Director's Meeting Motion: Calvin Jones moved the Board to approve the meeting minutes from the May 15, 2008 special Board of Director's meeting and place them on file. Seconded by Bo Garcia. Yeas: Unanimous. Motion carried. Financial Statements as of April 30, 2008 Motion: Bo Garcia moved the Board to receive the April 30, 2008 financial statements and place them on file. Seconded by Greg Ward. Yeas: Unanimous. Motion carried. Resolution to Extend Magnate Properties, L.L.C. BFAP Loan Marchelle Smith reported that Magnate Properties, L.L.C. has a 15 -year amortization BFAP loan with five year balloons at a 6% interest rate. They have held the loan for ten years and have asked that the loan be extended for an additional five years. All terms remain the same except the interest rate. Common language in all of the LEDC's previous loan notes state that if loans are extended, the interest rate cannot exceed the current Wall Street Prime Rate which is currently at 5%. The Board was asked to approve a Resolution to extend the loan for an additional five years at 5% interest. Motion: Bo Garcia moved the Board to approve the Resolution to extend Magnate Properties, L.L.C. loan for an additional five years at 5% interest and place it on file. Seconded by Greg Ward. Yeas: Unanimous. Motion carried. Strategic Planning Recommendations Bob presented the following strategic plan recommendations as outlined in the summaries provided to the Board: 21 Century Matching Loan (up to $400,000) • Real Estate Transactions (up to $800,000) 0 Arts & Culture Matching Loan (up to $100,000) The Board recommended that the following language be changed on the first page of the LEDC Strategic Planning Summary and Recommendations: • The word "outcomes" shall be changed to "principles" in the phrase "Suggested outcomes in decision making for unencumbered". • Add additional language to #4 to include "and will have a broad regional impact" and remove the word "exclusive". The Board expressed that the Real Estate Transactions need more detailed criteria. Motion: Kelly Rossman-McKinney moved the Board to approve recommendations #1, #2 and #3 with a stipulation that more detailed criteria for #2 Real Estate Transactions be brought back to the Board. Seconded by Bo Garcia. Yeas: Unanimous. Motion carried. Banner Policy Adoption Bob reported that several organizations such as LEAP, MSU, Sparrow Hospital, LEPFA, Stadium District, Cooley, etc. all want to hang some type of banners. Currently, there is no policy on regulating banners to avoid clutter. The LEDC will draft policy for the Board's review and approval upon which the LEDC will be making all future banner decisions. Update on PSD Management Bob gave an update on the PSD's restructuring and that the job posting has gone out for a Downtown Merchant Manager. It is anticipated that the position will be filled sometime in August. Bob stated that the PSD may become a fourth entity under the LEDC umbrella or it may remain as it currently is. SmartZone Update Due to time constraints, this item was tabled for the next Board meeting. Closed Session - President and CEO Employment Evaluation The Board asked to have a closed session to discuss Bob Trezise's employment evaluation at 9:00 a.m. Kim Coleman was empowered to work with Bob to finalize his employment contract and evaluation not to exceed 2.5%. The Board asked that Kester So review the draft language in the contract. Other Business Bob reported that, after much debate, the LEDC refused Ron Boji's request to have Majority's loan reduced by $100,000. Ron now wants to sell the FF&E collateral to an interested buyer, but cannot do so without the LEDC releasing its secured interest. Marchelle will work with Ron on this issue. Public Comment None Adjournment Chair Kim Coleman declared the meeting adjourned 9:15 a.m. Minutes by M. Smith Lansing Economic Development Corporation Regular Board of Director's Meeting Minutes • Lam' Lansing Economic Development Corporation Conference Room Tuesday, July 1, 2008 C -- e= 7:45 a.m. s " Members Present: Mayor Bernero, Bo Garcia, Calvin Jones, Kelly Rossman-McKinney; :. Greg Ward, James Butler, Jeff Williams; Members Absent: Kim Coleman, Brian Jeffries I' Staff Present: Bob Trezise, Karl Dorshimer, Brian Anderson, Ken Szymusiak Staff Absent: Marchelle Smith, Caitlin Malloy Call to Order Vice Chair, Bo Garcia called the meeting to order at 8:45 a.m. Approval of Meeting Minutes from June 3, 2008 regular Board of Director's Meeting Motion: Greg Ward moved the Board to approve the meeting minutes from June 3, 2008 regular Board of Director's meeting and place them on file. Seconded by Mayor Bernero. Yeas: Unanimous. Motion carried. Financial Statements as of May 31, 2008 Motion: Greg Ward moved the Board to receive the May 31, 2008 financial statements and place them on file. Seconded by James Butler. Yeas: Unanimous. Motion carried. Outline of UDAG Bank Funds as of May 31, 2008 Bob Trezise reported that there has been no change. Ottawa Power Station Clean-up Loan Motion: Kelly Rossman-McKinney moved that the Board approve the resolution allowing for the negotiation of the EPA Clean-up Loan for the purposes of the Ottawa Power Station Project. Seconded by Greg Ward. Yeas: Unanimous. Motion carried. City Incentive Regarding Agreements Bob Trezise reported to the Board that EDC staff is working on an overarching agreement that will outline specific criteria that must be met by companies that are utilizing incentives including such items as: being current with taxes, compliance with building safety, etc.. Board discussion ensued with recognition of the need for such a document; however the Board cautioned that it should not create a hindrance to development. The agreement will be revisited in August Majority's Proposal Requesting New Loan Terms Bob Trezise reported to the Board that Ron Boji has approached LEDC staff proposing a renegotiation of the terms currently outlined in regards to the Majority loan. Bob gave a brief overview of some terms being discussed to make the Board aware of the situation. Discussion ensued of the pros and cons associated with this change in the loan terms. Bob Trezise was adamant, and the Board agreed, that the letter of credit serving as collateral on the loan will not be reduced by 50%. The issue will be discussed again at the August meeting. Banner Policy Bob Trezise and Brian Anderson reported on the adoption of a Banner Policy for light poles within the city that will be overseen by the LEDC. The adoption of this policy is being spurred by the interest by multiple parties to utilize street light pole banners and the lack of oversight currently in place. Discussion ensued with the conclusion that a more formal proposal will be brought before the board in the future. Other Business Board requested an update on the PSD Director position. Bob Trezise reported that they have narrowed the field to 3 candidates and will be performing second interviews this week, and he plans to offer the position to a candidate by mid-July. Further discussion ensued regarding the future structure of the PSD and EDC, and how the new director will continue to work hand-in- hand with LEDC staff. Public Comment None Adjournment Vice Chair Bo Garcia declared the meeting adjourned 9:25 a.m. Minutes by K. Szymusiak Robert L. Treizse, Jr., President & CEO Lansing Economic Development Corporation ; . , r r- < Special Board of Director's Meeting Minutes Lansing Economic Development Corporation Conference. Room Tuesday, August 12, 2008 7•c1K a m Members Present: Kim Coleman, Bo Garcia, Brian Jeffries, Bob Johnson, Calvin Jones, Kelly Rossman-McKinney, Greg Ward, Jeff Williams Members Absent: Mayor Virg Bernero, James Butler Staff Present: Brian Anderson, Karl Dorshimer, Marchelle Smith, Ken Szymusiak, Bob Trezise Special Guests: Development & Planning Committee Members: Sandy Allen and Carol Wood, Public Present: None Call to Order Chair Kim Coleman called the meeting to order at 8:35 a.m. Approval of Meeting Minutes from July 1, 2008 regular Board of Director's Meeting Motion: Greg Ward moved the Board to approve the meeting minutes from the July 1, 2008 regular Board of Director's meeting and place them on file. Seconded by Bo Garcia. Yeas: Unanimous. Motion carried. Un -audited Financial Statements as of June 30, 2008 The June 30, 2008 Expenditure and Revenue budget reflected an increase in expenditure for the Cool Cities Grant by $33,924.50. This was due to expending almost the entire full $100,000 Cool Cities grant earlier than anticipated. The board concurred that expenditure cannot exceed the budgeted amount and that it must be amended. The board asked that the original budgeted amount of $65,000 be increased by $33,924.50 to balance the $98,924.50 expenditure. Motion: Jeff Williams moved the Board to receive the June 30, 2008 un -audited financial statements with the budget amendment to increase the original budgeted Cool Cities Grant by $33,924.50 to balance the $98,924.50 expenditure and place them on file. Seconded by Kelly Rossman-McKinney. Yeas: Unanimous. Motion carried. Incentive Development Agreement Templates Bob Trezise presented a draft on the Development Agreement to both the LEDC Board and City Council's Development and Planning Committee. The document will be submitted to the City Attorney for legal review. The following recommendations were made by the Board and D&PC: • Add a paragraph or statement at the beginning of the Agreement as to the purpose of the agreement. • Under Recitals #2 - Conditional Approval of Incentive, require that they must submit same documents to the City Council that are received by the LEDC. • Under Recitals #2 - Conditional Approval of Incentive, require that final financial figures from the bank be provided to the LEDC. • Under Recitals #2 - Conditional Approval of Incentive, change "Incentive is approved for a term up to $ • Under Recitals #6, hyphenate "for-profit entity". • Under Recitals #7, intent was for litigation on assessed value. Need to further clarify. • Under Recitals #7, specify all incentives. • Under Recitals #5 - Project Completion Progress Reports, change biannual to semi- annual. • Under Recitals #7 - Consideration of Applicant's Compliance with the Agreement, add language that states if there is lack of performance, the entity, project or all related partners may not be considered for any future applications. • Add language that requires wage detail of construction and permanent jobs created or retained. Letter from Kris Elliott Requesting BFAP Loan Bob Trezise reported that the LEDC has received a formal written letter from Kris Elliott requesting loan funds estimated at $475,000 for a new project at the One Michigan Avenue building site. This is a very important project for the Michigan Avenue gateway. An application will be submitted for approval at the next board meeting. Arts & Culture Matching Loan fund Policy & Procedure Guidelines Due to time constraints, this item was tabled for the next Board meeting. Website Design Update Bob Trezise reported that 21 web design firms had responded to the RFQ. Only one firm was from Lansing and six were regional. Twelve qualified firms were invited to submit an RFP which is due Friday, August 29th. Sign Banner Update Bob Trezise reported that Brian Anderson is working on the draft form. Other Business Bob Trezise reported that we have responded to the Majority's request of new terms. We will not accept the terms of reducing the irrevocable letter of credit from 100% to 50%. There was discussion on hearsay of Gene Townsend potentially selling the Southeast corner of the Ottawa -Butler project to an Association. Bob will be meeting with Gene this week to discuss. Public Comment None Adjournment Chair Kim Coleman declared the meeting adjourned 9:35 a.m. Motion: Bo Garcia moved the Board to adjourn the meeting at 9:35 a.m. Seconded by Greg Ward. Yeas: Unanimous. Motion carried. IUB Minutes by M. Smith Robert L. Trezise, Jr., Pr sident & CEO Lansing Economic Development Corporation Special Board of Director's Meeting Minutes Lansing Economic Development Corporation Conference Room :m September 12, 2008 - `"' 7:45 a.m. Members Present: Bo Garcia, Bob Johnson, Calvin Jones, Kelly Rossman-�Mcl�Wney;` ) Greg Ward, Jeff Williams Members Absent: Mayor Virg Bernero, James Butler, Kim Coleman, Brian Jeffries Staff Present: Brian Anderson, Karl Dorshimer, Andrea Ragan, Marchelle Smith, Ken Szymusiak, Bob Trezise Special Guests: Kris Elliott, Paul Novak, Brian Trent, Steve Willobee Public Present: None Call to Order Vice Chair Bo Garcia called the meeting to order at 8:10 a.m. Approval of Meeting Minutes from August 12, 2008 Special Board of Director's Meeting Motion: Kelly Rossman-McKinney moved the Board to approve the meeting minutes from the August 12, 2008 special Board of Director's meeting and place them on file. Motion seconded by Greg Ward. Yeas: Unanimous. Motion carried. Financial Statements as of July 31, 2008 Motion: Greg Ward moved the Board to receive the July 31, 2008 financial statements and place them on file. Motion seconded by Jeff Williams. Yeas: Unanimous. Motion carried. Resolution Approving Project Plan and District Area for Troppo Expansion Project Bob Trezise reported that there has been recent interest from several persons regarding the LEDC's Business Finance Assistance Program (BFAP). Kris Elliott has been the first one to bring a completed and fully collateralized loan application for construction of a two-story (12,000 square feet) restaurant adjacent to the One Michigan Avenue building located at 120 N, Washington Square on the North East corner of Michigan Avenue and Washington Square. We are required under the EDC Act to obtain resolution approval on the Project District Area and Project Plan from both the LEDC Board of Directors and the City Council. A commitment letter will then be brought back to the LEDC Board for approval. The amount of the loan request is $440,000 with a total project cost of $1,030,000 retaining 35 jobs and adding an additional 20 jobs for a total of 55 jobs. Kris Elliott presented renderings and outlined his project plan which will locate Troppo restaurant into the new building in order to expand their services, Tavern on the Square will locate into the current Troppo location and a new restaurant is anticipated to locate into the Tavern on the Square building. If the loan is approved, Kris indicated that he will be paying off the existing Troppo loan. Motion: Kelly Rossman-McKinney moved the Board to approve the resolution for Kris Elliott's Project Plan and District Area and place them on file. Motion seconded by Jeff Williams. Yeas: Unanimous. Motion carried. Resolution to Approve Acceptance of EPA Funds from LBRA Bob Trezise gave an overview on the EPA funds. Brian Anderson presented the loan agreement of up to $500,000 to be used for clean-up of contamination on the Ottawa Power Station site.. The loan will be given directly to the LEDC from the LBRA. Although on the boobs of the LEDC for 20 years, annual payments will actually be paid by the Board of Water & Light and the Power Station TIF. Motion: Jeff Williams moved the Board to approve the resolution for Acceptance of EPA funds from LBRA for clean-up of the Ottawa Power Station and place them on file. Motion seconded by Greg Ward. Yeas: Unanimous. Motion carried. Arts & Culture Matching Loan Fund Policy and Procedure Guidelines Marchelle presented the Arts & Culture Matching Loan Fund Policy and Procedure Guidelines. The Board made the following recommendations: • Change the word under the fifth bulleted item under eligibility from "stability' to "predictability". • Remove the words under the first bulleted item under Loan Program "or not more than 50% of the available loan funds". • Add "if available" next to most recent audit under Mandatory Loan Requirements The Board noted that because Marchelle sits on the Lansing Art Gallery's (LAG) Board of Directors, processing the loan documents could be considered a conflict of interest. Bob indicated that he and Marchelle have talked about her possibly resigning from the LAG Board. Sign Banner Policy Update Due to time constraints, an update will be presented at the next board meeting. New Development Agreement Update Due to time constraints, an update will be presented at the next board meeting. Fiscal Year -End Report Due to time constraints, the year-end report will be presented at the next board meeting. Rehmann Robson Audit Engagement Letter This was to inform the Board that we have entered into an audit engagement with Rehmann Robson for the fiscal year ending June 30, 2008. CATA Letters CATA continues to write letters to City Council requesting that their millage be exempt from requested tax abatements on projects. Bob suggested that the LEDC board write a letter to CATA in response to their opposition. Other Business None Public Comment None Adjournment Vice Chair Bo Garcia declared the meeting adjourned 9:00 a.m. Motion: Greg Ward moved the Board to adjourn the meeting at 9:00 a.m. Seconded by Kelly Rossman. Yeas: Unanimous. Motion carried. Minutes by M. Smith Approval of Meeting Minutes from September 12, 2008 Special Board of Director's Meeting Motion: Greg Ward moved the Board to approve the meeting minutes from the September 12, 2008 special Board of Director's meeting and place them on file. Motion seconded by Calvin Jones. Yeas: Unanimous. Motion carried. Financial Statements as of July 31, 2008 Motion: Calvin Jones moved the Board to receive the August 31, 2008 financial statements and place them on file. Motion seconded by Greg Ward. Yeas: Unanimous. Motion carried. Outline of UDAG Bank Funds as of August 31, 2008 The Board recommended that the Troppo Expansion Project's.;;proposed loan be added under "Program Commitments" in the amount of $440,000. Resolution Approving Project Plan for Angevine, Inc. Loan Application for Reopening Blue Coyote This item has been tabled until staff has completed its due diligence. Resolution Approving BoarsHead Theater's Application for the Arts & Culture Matching Loan Fund BoarsHead Theater is the first to apply for the Arts & Culture Matching Loan Fund. Marchelle gave an overview on the terms and conditions of the Commitment Letter. Bob Trezise is authorized to sign loan documents at time of closing. Motion: Calvin Jones moved the Board to approve the resolution for a loan to the BoarsHead Theater as outlined in the Commitment Letter and place them on file. Motion seconded by Greg Ward. Yeas: Unanimous. Motion carried. Lansing Economic Development Corporation Special Board of Director's Meeting Minutes Lansing Economic Development Corporation Conference Room Tuesday, October 14, 2008 7:45 a. m. c:) Members Present: Kim Coleman, Bo Garcia, Brian Jeffries, Calvin Jones, Kelly Rossman-McKinney, Greg Ward, Jeff Williams Members Absent: Mayor Virg Bernero, James Butler Staff Present: Kar]. Dorshimer, Marchelle Smith, Bob Trezise Special Guests: Sue Warren, Board of Water & Light -' Public Present: None - - C711 Call to Order Chair Kim Coleman called the meeting to order at 7:50 a.m. Approval of Meeting Minutes from September 12, 2008 Special Board of Director's Meeting Motion: Greg Ward moved the Board to approve the meeting minutes from the September 12, 2008 special Board of Director's meeting and place them on file. Motion seconded by Calvin Jones. Yeas: Unanimous. Motion carried. Financial Statements as of July 31, 2008 Motion: Calvin Jones moved the Board to receive the August 31, 2008 financial statements and place them on file. Motion seconded by Greg Ward. Yeas: Unanimous. Motion carried. Outline of UDAG Bank Funds as of August 31, 2008 The Board recommended that the Troppo Expansion Project's.;;proposed loan be added under "Program Commitments" in the amount of $440,000. Resolution Approving Project Plan for Angevine, Inc. Loan Application for Reopening Blue Coyote This item has been tabled until staff has completed its due diligence. Resolution Approving BoarsHead Theater's Application for the Arts & Culture Matching Loan Fund BoarsHead Theater is the first to apply for the Arts & Culture Matching Loan Fund. Marchelle gave an overview on the terms and conditions of the Commitment Letter. Bob Trezise is authorized to sign loan documents at time of closing. Motion: Calvin Jones moved the Board to approve the resolution for a loan to the BoarsHead Theater as outlined in the Commitment Letter and place them on file. Motion seconded by Greg Ward. Yeas: Unanimous. Motion carried. Budget Amendments Bob Trezise asked the Board to approve amending the budget to reduce Promotions expense by $15,000 and increase Salary and Fringe Benefits expense by $15,000. Motion: Greg Ward moved the Board to approve the budget amendment and place them on file. Motion seconded by Kelly Rossman-McKinney. Yeas: Unanimous. Motion carried. Due to delay in project completion, anticipated Fagade Grant payment to Larry Nakfoor for improvements to 212/214 S. Washington Square in the amount of $15,000 did not occur as of June 30, 2008 as reflected in the budget. The Fagade Grant Program revenue and expense for this project will occur in fiscal year 2008/2009 rather than 2007/2008 and therefore request that pass through accounts be increased by $15,000. Motion: Kelly Rossman-McKinney moved the Board to approve the budget amendment and place them on file. Motion seconded by Greg Ward. Yeas: Unanimous. Motion carried. Fiscal Year -End Report Bob Trezise reported that a written core year-end report will be presented to the Board next month. Bob noted specific projects achievements such as the Ottawa Power Station Redevelopment project, City Market, Capitol Club Towers and designation of a Renaissance Zone, 123 retention visits, Arts & Culture Matching Loan Fund Program, new website design, performing arts center study, Downtown Market Study, restructuring the TIFA debt, Corridor Improvement Authority on Michigan Avenue from East Lansing to the State Capitol, Facade Design Committee projects, Board strategic planning and Linking Lansing & U Program. The Board asked how we market our successes. Recommendations were made to meet with the LSJ Editorial Board, MSU Student PR Society, Capital Gains, news releases and news events. The Board asked that Andrea Ragan make a presentation on the Linking Lansing & U program. The Board further asked that the Development Agreement language be included in the written year-end report. CATA Letters CATA continues to write letters to City Council requesting that their millage be exempt from requested tax abatements on projects. Bob will draft a letter from the Lansing EDC Board of Directors addressed to the CATA Board of Directors. Other Business To better accommodate schedules, it was discussed that the board meetings be changed from Tuesdays to Fridays. Since November 4th Board meeting falls on voting day, this would be a good opportunity to see if Fridays work. Permanent dates will be confirmed at the November board meeting. Public Comment None Adjournment Chair Kim Coleman declared the meeting adjourned at 8:45 a.m. Motion: Greg Ward moved the Board to adjourn the meeting at 8:45 a.m. Seconded by Calvin Jones. Yeas: Unanimous. Motion carried. Minutes by M. Smith It V/' / 1-7f� � // Robert L. Trezise, Jr., P�,�dent & CEO Lansing Economic Development Corporation Special Board of Director's Meeting Minutes -� • (_ Lansing Economic Development Corporation Conference„Ropm Y J Friday, November 7, 2008 7:45 a.m. Members Present: James Butler, Kim Coleman, Bo Garcia, Brian Jeffries, Greg Ward Members Absent: Mayor Virg Bernero, Calvin Jones, Kelly Rossman-McKinney Staff Present: Karl Dorshimer, Andrea Ragan, Kenny Szymusiak, Marchelle Smith, Bob Trezise Special Guests: David Gross, Lansing Symphony Orchestra, Denise Peek, Entrepreneur Institute of Mid -Michigan Public Present: None Call to Order Chair Kim Coleman called the meeting to order at 8:05 a.m. Approval of Meeting Minutes from October 14, 2008 Special Board of Director's Meeting Motion: James Butler moved the Board to approve the meeting minutes from the October 14, 2008 special Board of Director's meeting and place them on file. Motion seconded by Greg Ward. Yeas: Unanimous. Motion carried. Financial Statements as of September 30, 2008 Motion: Greg Ward moved the Board to receive the September 30, 2008 financial statements and place them on file. Motion seconded by James Butler. Yeas: Unanimous. Motion carried. Resolution to Approve Annual Renewal of Guaranty Agreement for the Entrepreneur Institute of Mid -Michigan (EIM) EIM has requested that the previous agreement dated November 6, 2008 be renewed for another year with the remaining balance of the guaranty balance of $4,195.91. The original amount of the guaranty was $25,000. Denise Peek gave an overview on the status of the organization and its name change formerly known as Lansing Community Microenterprise Fund. Motion: James Butler moved the Board to approve the resolution for annual renewal of Guaranty Agreement for the Entrepreneur Institute of Mid -Michigan and place them on file. Motion seconded by Greg Ward. Yeas: Unanimous. Motion carried. Universal Incentive Pre -Development Agreement Bob Trezise, staff and city attorney have finalized draft of the agreement. The document is not a Development Agreement but rather a Universal Pre -Agreement that allows for transparency and accountability. The Pre -Agreement would accompany the Development Agreement. Bob asked the Board to put their business hats on to review the document. The Board recommended that #6 on page 3 change the wording to "late" instead of "delinquent". There is no action required by the Board. Council wishes to have this approved before the end of the year. Resolution to Approve Commitment Letter for the Lansing Symphony Orchestra's Application for the Arts & Culture Matching Loan Fund Marchelle Smith outlined the terms of the loan in the amount of $25,000 at no interest evidenced by a Promissory Note with a five (5) year term to maturity. David Gross, LSO Executive Director, stated that due to the busy schedule at the Wharton Center, the Lansing Symphony had to perform nearly half of its season between the beginning of September and the beginning of November creating significant cash flow challenges. The use of the loan will go to addressing the payroll demands and satist7ing payables that are a result of scheduling challenges in the 2008-2009 seasons. Motion: Greg Ward moved the Board to approve the resolution for a loan to the Lansing Symphony Orchestra as outlined in the Commitment Letter and place them on file. Motion seconded by James Butler. Yeas: Unanimous. Motion carried. Resolution to Approve Commitment Letter for the Lansing Art Gallery's Application for the Arts & Culture Matching Loan Fund Marchelle Smith outlined the terms of the loan in the amount of $10,000 at no interest evidenced by a Promissory Note with a three (3) year term to maturity. The use of the loan is earmarked toward Art Smart after-school enrichment classes, art demonstrations and art exhibitions. The Board recommended that the Lansing Symphony and Lansing Art Gallery coordinate programs with the schools. Motion: Bo Garcia moved the Board to approve the resolution for a loan to the Lansing Art Gallery as outlined in the Commitment Letter and place them on file. Motion seconded by Greg Ward. Yeas: Unanimous. Motion carried. Year -End Report Bob Trezise presented the 2008 year-end draft report outlining 37 public incentives worth $26 million in public investment leveraging $115 million in private investment, 942 new jobs and 57 jobs retained. The Board made the following recommendations: • The year-end report should list the names of the organizations receiving incentives. • A summary of objectives be presented for the upcoming year. • Publish an Annual Report. Bo Garcia offered to assist. Linking Lansing & U Andrea Ragan gave a power -point presentation on the Linking Lansing & U Program. The Board suggested that she identify businesses that will commit to interning 1-2 students. Other Business There will be no regular Board meeting in December. Election of Board Officers will take place at the January 6, 2009 Board meeting. Kim Coleman will coordinate a nominating committee. Bob announced that Board members are invited to a Holiday Open House on Tuesday, December 16 from 4:00 - 7:00 p.m. at the Center for the Arts building, 425 S. Grand Avenue coordinated by the Planning & Neighborhood Development Office. Marchelle will send an email reminder. Bob reported that the LEDC obtained a legal opinion from Dicldnson Wright on the Troppo project prevailing wage issue as it pertains to furniture, fixtures and equipment. Prevailing wage would only be required on the installation of the FF&E. Public Comment None Adjournment Chair Kim Coleman declared the meeting adjourned at 9:35 a.m. Motion: Greg Ward moved the Board to adjourn the meeting at 9:35 a.m. Seconded by Bo Garcia. Yeas: Unanimous. Motion carried. Minutes by M. Smith