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HomeMy WebLinkAbout2009 LEDC minutesLansing Economic Development Corporation Regular Board of Director's Meeting Minutes Lansing Economic Development Corporation Conference [Room Tuesday, January 6, 2009 7:45 a.m. Members Present: Kim Coleman, Bo Garcia, Calvin Jones, Kelly Rossman-McKinney, Greg Ward, Jeff Williams Members Absent: Mayor Virg Bernero, James Butler, Brian Jeffries Staff Present: Brian Anderson, Karl Dorshimer, Andrea Ragan, Kenny Szymusiak, Marchelle Smith, Bob Trezise Special Guests: Teresa Choate, Rehmann Robson Public Present: None Call to Order Chair Kim Coleman called the meeting to order at 8:05 a.m. Election of Board Officers for 2009 Nominations for 2009 board officers were made as follows: Bo Garcia, Chair, Jeff Williams, Vice Chair, Kelly Rossman-McKinney, Secretary, James Butler, Treasurer. Before the Chair seat was turned over to Bo, acknowledgement of thanks to Kim was given for her past leadership. Motion: Greg Ward moved the Board to approve the election of officers and place them on file. Motion seconded by Kelly Rossman-McKinney. Yeas: Unanimous. Motion carried. Approval of Meeting Minutes from November 7, 2008 special Board of Director's Meeting Motion: Greg Ward moved the Board to approve the meeting minutes from the November 7, 2008 special Board of Director's meeting and place them on file. Motion seconded by Calvin Jones. Yeas: Unanimous. Motion carried. Approval of Audited Financial Statements as of June 30, 2008 Teresa Choate from Rehmann Robson presented the audit reports for LEDC, LBRA and TIFA. There was question regarding the investment money market amounts and the amount of FDIC insurance specifically for money markets for up to $ 1 trillion. Teresa Choate will get confirmation and respond back with staff. Motion: Calvin Jones moved the Board to approve the Audited Financial Statements as of June 30, 2008 and place them on file. Motion seconded by Kelly Rossman- McKinney. Yeas: Unanimous. Motion carried. Financial Statements as of November 30, 2008 A question was raised on the value of land held in the amount of $1,021,253.04. This amount has been reflected in the financial statement since its inception of purchase associated with development of the Lansing Center. The land is a quarter acre next to the Lansing Center and currently used as a parking lot which the LEDC splits annual revenues with the Parking Office. It was recommended that our newly elected Treasurer implement a process to appraise the value of land as a 2009 project. Motion: Jeff Williams moved the Board to receive the November 30, 2008 financial statements and place them on file. Motion seconded by Greg Ward. Yeas: Unanimous. Motion carried. Outline of UDAG Bank Funds as of November 30, 2008 Marchelle informed the board of modifications to the report that outlines the new loan receivables for the Art & Culture Matching Loan program and commitments on use of the remaining funds. Business Finance Assistance Loan Program Policy Amendment Due to decline in the Prime interest rates, Bob Trezise requested that the board consider approving an amendment to our loan policy that would put a floor of 3% on future interest rates. Kris Elliott has already made loan application on the current terms of 1% below prime. However, he will not be closing until May 2009 and has agreed to accept not less than 2,25%. The current prime interest rate is 3.25%. It was recommended that the policy language be changed to: "The interest rate charged will be 1% below the prime rate, but not less than 3% at time of closing". Some other recommended modifications were made to the loan policy guidelines, but need to be further reviewed before bringing back to the board for approval. Motion: Greg Ward moved the Board to approve amending the loan policy to reflect the interest rate change only. The language will be changed to "the interest rate charged will be 1% below the prime rate, but not less than 3% at time of closing" and place them on file. Motion seconded by Calvin Jones. Yeas: Unanimous. Motion carried. Universal Pre- Agreement Bob Trezise reported that there have been some slight modifications to the document so that it is accountable, open and transparent as possible. There has been much consensus by many. Bob will send an electronic copy to the Board. Bob further informed the board that the Mayor issued an Executive Order on the Universal Pre -Agreement. EB -5 Presentation This is a federal program that brings opportunity for foreign investment in exchange for Green cards. Lansing will be the first in the State of Michigan to implement such a program. Kenny Szymusiak conducted a power point on the details of the EB -5 program. Website Update Spartan Internet has proposed that the website will be complete by the end of March. Arts & Culture Study Four consultants have responded to the RFP submitted by the State of Michigan's IIistory, Arts & Libraries Office for the Arts & Culture Study for Lansing and East Lansing. Marchelle will be part of a Joint Evaluation Committee for proposal reviews and selection on Thursday, January 801. Downtown Market Study Update Downtown Professionals Network was selected to conduct the Downtown Market Study. They will be conducting several focus groups at the Lansing Center on Wednesday, January 7th. The study is expected to be complete in March. 2009/2vi0 Budget Development Budget meetings have begun with all City of Lansing Department Heads for fiscal year 2009/2010. Confirm Future Regular Scheduled Board Meeting Dates The board decided to meet the first Friday of every month beginning in February. The next meeting is scheduled for Friday, February 6, 2009 at 7:45 a.m. Marchelle will email everyone a 2009 Board Meeting Schedule and to confirm the date change with those not present at this meeting. Other Business A letter was received by the Beal Family acknowledging the City and the LEDC working together in helping them move their project forward. Public Comment None Adjournment Chair Bo Garcia declared the meeting adjourned at 8:55 a.m. Motion: Jeff Williams moved the Board to adjourn the meeting at 8:55 a.m. Seconded by Greg Ward. Yeas: Unanimous. Motion. r»rriara Minutes by M. Smith Lansing Economic Development Corporation Regular Board of Director's Meeting Minutes Lansing Economic Development Corporation Conference Room Friday, February 6, 2009 7:45 a.m. Members Present: James Butler, Bo Garcia, Bob Johnson, Calvin Jones, Brian Jeffries,_; Kelly Rossman-McKinney, Greg Ward, Jeff Williams _ Members Absent: Mayor Virg Bernero, Kim Coleman, Calvin Jones, Jeff Williams - Staff Present: Brian Anderson, Karl Dorshimer, Andrea Ragan, Kenny ..Szyrausrak, Marchelle Smith, Bob Trezise Special Guests: Roger Millbrook, Siena Capital Management, Harry Hepler,-'H. InC. Public Present: Eric Hewitt Call to Order Chair Bo Garcia called the meeting to order at 7:50 a.m. Public Comment Due to not having a full quorum present at the beginning of the meeting, Bo Garcia called for public comment. Lansing Councilman Eric Hewitt commented on concerns about the Convention 8s Visitors Bureau's considering relocating from Old Town to the Stadium District. He stated that developer Pat Gillespie's Stadium District building is in violation of its development agreement. He recommended that the Board consider writing policy in future Brownfield Plans to avoid unintended consequences. Michigan Avenue Corridor Improvement Authority Power Point Presentation Brian Anderson presented the power point on the Corridor Improvement Authority (CIA) along Michigan Avenue. The cities of Lansing, East Lansing and Lansing Township propose to explore implementation of a CIA for the purpose of improving this significant Michigan corridor between the State Capitol and MSU. Bob Johnson reported that this will have a positive impact on the Cottage Lane project in the Fairview Neighborhood. The Board suggested they move to support the establishment of the CIA for acknowledgement to East Lansing and Lansing Township. The Board further recommended the following: • A fiscal analysis be performed on the CIA • Involve BWL lighting • Provide Board members with a copy of the power point presentation Motion: Kelly Rossman-McKinney moved the Board to support the establishment of a Corridor Improvement Authority and place it on file. Motion seconded by James Butler. Yeas: Unanimous. Motion carried. Resolution to Approve Changing Plan Administrators for Employee's Retirement Benefit Plan The LEDC staff has been dissatisfied with the customer service performed by ICMA Retirement Corporation out of Washington DC and began searching other plan administrators. Because they have demonstrated significant benefits and accountability, staff is recommending the Board approve a resolution to change plan administrators from ICMA-RC to Siena Capital Management. Roger Millbrook from Siena Capital Management was available for questions. Motion: Greg Ward moved the Board to approve the resolution to change plan administrators from ICMA Retirement Corporation to Siena Capital Management and place them on file. Motion seconded by James Butler. Yeas: Unanimous. Motion carried. Resolution to Approve Blue Coyote's Project Plan Utilizing UDAG Loan Funds The Board was unable to hold a full quorum due to Kelly Rossman-McKinney's recusing herself to vote on the project plan because of her client relationship with Harry Hepler. The Board tabled this item for the March 6th Board meeting. Harry Hepler gave a brief overview on the Blue Coyote's project plans and executive summary. Approval of Meeting Minutes from January 6, 2009 regular Board of Director's Meeting Motion: Greg Ward moved the Board to approve the meeting minutes from the January 6, 2009 regular Board of Director's meeting and place them on file. Motion seconded by James Butler. Yeas: Unanimous. Motion carried. Financial Statements as of December 31, 2008 Motion: James Butler moved the Board to receive the December 31, 2008 financial statements and place them on file. Motion seconded by Greg Ward. Yeas: Unanimous. Motion carried. Linking Lansing & U Job Shadow Day Andrea Ragan announced that the 3rd annual Job Shadow Day is scheduled for Tuesday, March 10th. To help meet student demand, the Board was encouraged to refer businesses who may be interested in participating. Other Business Bob Trezise recognized Brian Anderson's efforts to the Board for his commitment to multiple boards, volunteering for events specifically with the Old Town Commercial Association. The Board recommended that Brian be acknowledged with a letter signed by all board members. Bob reported meetings have been conducted with CATA regarding specific issues on the Trolley and their letters of objections to Council on tax incentives. We anticipate positive future interaction. Bob briefed the Board on this year's current budget issues and next year due to the current economy. Public Comment None Adjournment Chair Bo Garcia declared the meeting adjourned at 9:30 a.m. Motion: Greg Ward moved the Board to adjourn the meeting at 9:30 a.m. Seconded by James Butler. Yeas: Unanimous. Motion carried. Minutes by M. Smith Robert L. Trezise, Jr., President & CEO a�. :�,:.. Lansing Economic Development Corporation Regular Board of Director's Meeting Minutes Lansing Economic Development Corporation Conference Room Friday, March 6, 2009 7:45 a.m. c Members Present: James Butler, Kim Coleman, Bo Garcia, Bob Johnson, Greg Ward, Jeff Williams Members Absent: Mayor Virg Bernero, Brian Jeffries, Calvin Jones, Kelly Rossman-McKinney Staff Present: Brian Anderson, Karl Dorshimer, Mason McDonald, Andrea Ragan, Kenny Szymusiak, Marchelle Smith, Bob Trezise Special Guests: Lisa Bennett, DPN, Jay Schlinsog, DPN, Caralee Swanberg, H. Inc., Eric Eggan, Honigman, Miller, Schwartz & Cohn, Mindy Biladeau, PSD, Sara Pawloski, PSD, JoAnne Jansz, PSD Business Development Committee Public Present: None Call to Order Chair Bo Garcia called the meeting to order at 7:50 a.m. Other Business Due to not having a full quorum, the Board proceeded with other non -action items until arrival of a full quorum. Bob gave a brief summary on the completed Downtown Market Study. Jay Schlinsog and Lisa Bennett, Downtown Professionals Network Consultants presented an overview on the results. Approval of Meeting Minutes from February 6, 2009 regular Board Meeting It was noted that Jeff Williams' name appeared under both Members Present and Members Absent and to correct his name to Members Absent only. Motion: Greg Ward moved the Board to approve the meeting minutes from the January 6, 2009 regular Board of Director's meeting with the noted correction and place them on file. Motion seconded by James Butler. Yeas: Unanimous. Motion carried. Financial Statements as of January 31, 2009 Motion: Kim Coleman moved the Board to receive the January 31, 2009 financial statements and place them on file. Motion seconded by James Butler. Yeas: Unanimous. Motion carried. Resolution to Approve Blue Coyote's Project Plan Utilizing UDAG Loan Funds In place of Harry Hepler, Caralee Swanberg was present to conduct a brief overview on the project. Due to the current economic challenges, the Lansing EDC's loan will be used to help leverage other financing. Therefore, the project will be given a 120 -day due diligence period, from the time City Council approves the project plan to allow time for Harry to secure other bank financing. Motion: Greg Ward moved the Board to approve the resolution for Harry Hepler's Project Plan and District Area and place them on file. Motion seconded by Jeff Williams. Yeas: Unanimous. Motion carried. Liquor License Presentation Eric Eggan, Honigman, attorney for Miller, Schwartz & Cohn was invited to discuss the requirements for the newly created Development Area Liquor Licenses that was recently approved by the State legislature. Public Comment None Adjournment Chair Bo Garcia had an early departure. Therefore, Vice Chair, Jeff Williams declared the meeting adjourned at 9:10 a.m. Motion: Greg Ward moved the Board to adjourn the meeting at 9:30 a.m. Seconded by James Butler. Yeas: Unanimous. Motion carried. Minutes by M. Smith 1� ( r I Y Rob6rt L. Trezise, J///President & CEO Lansing Economic Development Corporation Special Executive Committee Board of Director's Meeting Minutes Lansing Economic Development Corporation Conference Room Friday, April 3, 2009 7:45 a.m. Members Present: James Butler, Bo Garcia, Bob Johnson, Jeff Williams , Members Absent: Staff Present: Brian Anderson, Karl Dorshimer, Kenny Szymusiak, Bob Trezise Public Present: None Call to Order co Chair Bo Garcia called the meeting to order at 7:50 a.m. Motion: James Butler moved the Executive Committee enter into closed session to discuss real estate issues. Motion seconded by Jeff Williams. Yeas: Unanimous. Motion carried. Motion: James Butler moved the Executive Committee exit closed session. Motion seconded by Bob Johnson. Yeas: Unanimous. Motion carried. Motion: James Butler moved to approve the resolution, with proposed changes, to allow the LEDC President & CEO to pursue the purchase of real estate for the purpose of creating a downtown business incubator. Motion seconded by Bob Johnson. Yeas: Unanimous. Motion carried. Adjournment Chair Bo Garcia declared the meeting adjourned at 8:15 a.m. Motion: James Butler moved the Board to adjourn the meeting at 8:15 a.m. Seconded by Jeff Williams. Yeas: Unanimous. Motion carried. Minutes Lansing Economic Development Corporation Special Board of Director's Meeting Minutes Lansing Economic Development Corporation Conference Room Thursday, May 7, 2009 7:30 a.m. Members Present: James Butler, Bo Garcia, Bob Johnson, Calvin Jones, Greg Ward, Kelly Rossman-McKinney Members Absent: Mayor Bernero, Kim Coleman, Brian Jeffries, Jeff Williams = , Staff Present: Karl Dorshimer, Andrea Ragan, Marchelle Smith, Kenny Szymusiak, Bob Trezise Public Present: None Co Call to Order Chair Bo Garcia called the meeting to order at 7:45 a.m. Approval of Meeting Minutes from March 6, 2009 Regular Board Meeting Motion: Greg Ward moved the Board to approve the meeting minutes from the March 6, 2009 regular Board of Director's meeting and place them on file. Motion seconded by Kelly Rossman-McKinney. Yeas: Unanimous. Motion carried. Approval of Meeting Minutes from April 3, 2009 Special Executive Committee Board Meeting Bo Garcia explained that a special Executive Committee Board meeting needed to be conducted due to timing of a $2 million EPA Grant application deadline. A resolution was passed to allow the LEDC to expend up to $20,000 from unrestricted UDAG funds to pursue the purchase of a building for the purpose of a business incubator. Bob explained that the original concept of buying the Temple Club was no longer feasible. Another developer submitted an option offer at the same time as the LEDC and the Temple Club's bank accepted the other offer. Therefore, Bob informed the Board, and there was unanimous agreement, to proceed with other real estate options. Motion: James Butler moved to approve the meeting minutes from the April 3, 2009 special Executive Committee Board meeting and place them on file. Motion seconded by Calvin Jones. Yeas: Unanimous. Motion carried. Financial Statements as of March 31, 2009 Motion: Greg Ward moved the Board to receive the March 31, 2009 financial statements and place them on file. Motion seconded Calvin Jones. Yeas: Unanimous. Motion carried. Outline of UDAG Funds as of March 31, 2009 Bob gave an update on the proposed Troppo and Blue Coyote loans and another cash -ready loan request likely to soon come. Approval of Fiscal Year 2009/2010 Budget Bob presented the 2009/2010 budget which had already been presented to City Council in April. He reminded the Board that City Council does not approve the LEDC budget. They only approve the contract amount for services rendered to the City. The LEDC had been asked and attended two separate Planning & Development Committee meetings earlier this year to present accurate and detailed reporting on all 2006-2008 projects. One council member has further requested that the LEDC provide additional performance measurables beyond this Committee Report. The Board recommended that a lunch meeting be scheduled with this council member, Bob, Bo and Kelly to further discuss. Bob gave an overview on the Tax Increment Finance Authority and Lansing Brownfield Redevelopment Authority budgets. The LEDC is working to refinancing the TIFA bonds as well as amending the Boy's Training School Brownfield Plan to accommodate upcoming shortfalls. An NEZ District has been put in place to help market the property to new buyers. Motion: Greg Ward moved the Board to approve the fiscal year 2009/2010 budget and place them on file. Motion seconded Kelly Rossman-McKinney. Yeas: Unanimous. Motion carried. Dimitri's Restaurant Discussion The LEDC received a letter from Dimitri requesting that his principal payments be waived for the next twelve months. Staff will put together a recommendation that is amiable to both parties and report back to the Board. Resolution Approving Charles Schwab Trust Company as Retirement Custodian Marchelle stated the resolution is appointing Charles Schwab Trust to act as successor Custodian of the Trust as part of the retirement plan effective May 12, 2009. Motion: Kelly Rossman-McKinney moved the Board to approve the resolution approving Charles Schwab Trust Company as Custodian and place them on file. Motion seconded Greg Ward. Yeas: Unanimous. Motion carried. Invitation to Lugnuts Ball Game Since last year's event was so much fun, the LEDC is inviting Board members and their families to another Lugnut outing on Tuesday, June 9 starting at 6:00 p.m. Marchelle will email everyone to get a head count. Other Business None Public Comment None Adjournment Chair Bo Garcia declared the meeting adjourned at 8:20 a.m. Motion: James Butler moved the Board to adjourn the meeting at 8:20 a.m. Seconded by Greg Ward. n Yeas: Unanimous. Motion carried. Minutes by M. Smith Lansing Economic Development Corporation Regular Board of Director's Meeting Minutes Lansing Economic Development Corporation Conference Room Friday, June 5, 2009 7:45 a.m. Members Present: Kim Coleman, Bo Garcia, Brian Jeffries, Kelly Rossman-McKinney, Greg Ward, Jeff Williams Members Absent: Mayor Bernero, James Butler, Bob Johnson, Calvin Jones Staff Present: Brian Anderson, Karl Dorshimer, Laura Kaufman, Andrea Ragan, Marchelle Smith, Kenny Szymusiak, Bob Trezise Public Present: Denyse Ferguson, LEAP, Anthony Khedaywi, LEAP, Rae Claire Johnson, Careck Call to Order Chair Bo Garcia called the meeting to order at 8:15 a.m. Approval of Meeting Minutes from May 7, 2009 Special Board Meeting Motion: Kelly Rossman-McKinney moved the Board to approve the meeting minutes from the May 7, 2009 special Board of Director's meeting and place them on file. Motion seconded by Jeff Williams. Yeas: Unanimous. Motion carried. Financial Statements as of April 30, 2009 Motion: Kelly Rossman-McKinney moved the Board to receive the April 30, 2009 financial statements and place them on file. Motion seconded Greg Ward. Yeas: Unanimous. Motion carried. Resolution to Approve Dimitri's Loan Modification Agreement After careful review of Dimitri's financial statements from the last two years, Bob Trezise recommended Board approval for his request of interest -only payments for 12 months as outlined in the resolution. Motion: Kelly Rossman-McKinney moved the Board to approve the resolution with the correction of Martha's name and place it on file. Motion seconded by Greg Ward. Yeas: Unanimous. Motion carried. Due to Chair, Bo Garcia's necessity for early departure, Vice Chair, Jeff Williams continued to convene the meeting. Outline of UDAG Funds as of April 30, 2009 Bob reported that we continue to think of innovative and creative ways to utilize our unreserved UDAG funds and suggested a policy change. LEDC staff met with a physician who wishes to redevelop a vacant building for a non-profit medical clinic in a troubled South Lansing area. While she has been approved by a bank for financing, she asked if the LEDC could be the primary lender, rather than secondary lender, in order to further help her business plan with a low interest rate. LEDC staff suggested that she request faith -based community leaders become involved to help raise matching funds. To avoid first position on a loan, the Board suggested that we write down the bank interest rate, allow a grant versus a loan or provide a no -interest loan similar to the Arts & Culture loan fund. Bob asked the Board to allow us time to engage the borrower and come back in July for a recommendation. Discussion pursued on the UDAG report under "Program Commitments". Unlike Harry Hepler who has a deadline date to commit to close on the Blue Coyote project, there is no time frame for Kris Elliott's Troppo expansion project. The Board suggested that a 45 -day performance notice be sent to Kris. The Board further suggested the following changes to the report: Change title of Program Commitments to Programs Reserved. Combine Real Estate Transactions and 21st Century Matching Loan amounts and rename to Available Funds in the amount of $926,005.77. Careck Presentation Bob introduced Denyse Ferguson, President & CEO of LEAP who has been involved in getting the region introduced to a new way to handle health care. Rae Claire Johnson, founder of the Careck program, presented a power point presentation on the benefits and cost savings to employers. Business Incubator Bob reported that the LEDC has received a tentative "green light" on the $2 million EPA grant for a downtown business incubator. Since the LEDC had been out bid on the Temple Club, we are pursing another building and working with that property owner. The LEDC is looking forward to working with a network of incubator services and LEAP's business acceleration springboard. Lugnuts Ball Game Bob reminded everyone of the Lugnuts ballgame on Tuesday, June 9th and that there are still 3 tickets available. Other Business None Public Comment None Adjournment Due to Vice Chair, Jeff William's need for early departure, Secretary, Kelly Rossman-McKinney declared the meeting adjourned at 9:30 a.m, Motion: Greg Ward moved the Board to adjourn the meeting at 8:20 a.m. Seconded by Brian Jeffries. Yeas: Unanimous. Motion carried. Minutes by M. Smith Lansing Economic Development Corporation Special Board of Director's Meeting Minutes Lansing Economic Development Corporation Conference Room Friday, July 10, 2009 7:45 a.m. Members Present: James Butler, Bo Garcia, Bob Johnson, Calvin Jones, Call to Order Chair Bo Garcia called the meeting to order at 7:45 a.m. Approval of Meeting Minutes from June 5, 2009 Regular Board Meeting Kenny Motion: James Butler moved the Board to approve the meeting minutes from the June 5, 2009 regular Board of Director's meeting and place them on file. Motion seconded by Greg Ward. Yeas: Unanimous. Motion carried. Financial Statements as of May 31, 2009 Motion: James Butler moved the Board to receive the May 31, 2009 financial statements and place them on file. Motion seconded by Calvin Jones. Yeas: Unanimous. Motion carried. Outline of UDAG Funds as of May 31, 2009 Bob Trezise reported that Harry Hepler has withdrawn his loan application for the Blue Coyote. He may re -apply at a later date if funds are still available. Resolution to Approve Troppo's Commitment Letter Bob introduced our two new temporary board members, Charley Janssen and Tim Murphy. As part of the EDC Act of 338, temporary board members are appointed by the Mayor and approved by City Council to oversee project plans that involve issuance of bonds and/or loans. James Butler asked for clarification and Karl replied that as long as the Lansing EDC has a secured interest in the project, temporary board members are required. Bob reported that Kris has secured his own financing and is moving forward with the Troppo relocation project. Since banks are not lending right now due to the economy, Kris has asked if he could pay half of the original Troppo loan at time of closing and pay the other half within 12 months rather than payment in full Kelly Rossman-McKinney, Greg Ward, Jeff Williams Temporary Members Present: Charles Janssen, Tim Murphy Members Absent: Mayor Bernero, Kim Coleman, Brian Jeffries Staff Present: Karl Dorshimer, Andrea Ragan, Marchelle Smith, Szymusiak, Bob Trezise Public Present: Kate Koskinen, City Master Plan Consultant Call to Order Chair Bo Garcia called the meeting to order at 7:45 a.m. Approval of Meeting Minutes from June 5, 2009 Regular Board Meeting Kenny Motion: James Butler moved the Board to approve the meeting minutes from the June 5, 2009 regular Board of Director's meeting and place them on file. Motion seconded by Greg Ward. Yeas: Unanimous. Motion carried. Financial Statements as of May 31, 2009 Motion: James Butler moved the Board to receive the May 31, 2009 financial statements and place them on file. Motion seconded by Calvin Jones. Yeas: Unanimous. Motion carried. Outline of UDAG Funds as of May 31, 2009 Bob Trezise reported that Harry Hepler has withdrawn his loan application for the Blue Coyote. He may re -apply at a later date if funds are still available. Resolution to Approve Troppo's Commitment Letter Bob introduced our two new temporary board members, Charley Janssen and Tim Murphy. As part of the EDC Act of 338, temporary board members are appointed by the Mayor and approved by City Council to oversee project plans that involve issuance of bonds and/or loans. James Butler asked for clarification and Karl replied that as long as the Lansing EDC has a secured interest in the project, temporary board members are required. Bob reported that Kris has secured his own financing and is moving forward with the Troppo relocation project. Since banks are not lending right now due to the economy, Kris has asked if he could pay half of the original Troppo loan at time of closing and pay the other half within 12 months rather than payment in full at time of closing as originally intended. The board asked if the Grand Rapids real estate had a 30% depreciated loan to value ratio. Staff will check into this. Marchelle presented key areas of the commitment letter, including the payment terms of the original loan, and asked that the form of the draft commitment letter for the Troppo project be approved and that the President and CEO is authorized to execute the commitment letter by resolution. Motion: Kelly Ro ssman- McKinney moved the Board to approve the resolution for Troppo's commitment letter and place it on file. Motion seconded by James Butler. Yeas: Unanimous. Motion carried. Completed Appraisal of LEDC Property Bob reported that we have obtained a completed appraisal on property the LEDC owns on Lot 55 next to the Lansing Center. Currently, the value of the land on our balance sheet is over $1 million. Based on the income approach, the appraisal came in at $350,000. Revenues generated from the lot average $12,000 annually after expenses and revenues split with the Parking Office. The City is considering purchasing this property. Other Business Bob reported that the T1FA refinancing was approved at the Committee of the Whole July 9t". Public Comment None Adjournment Chair, Bo Garcia declared the meeting adjourned at 8:30 a.m. Motion: Greg Ward moved the Board to adjourn the meeting at 8:30 a.m. Seconded by Jeff Williams. Yeas: Unanimous. Motion carried. Minutes by M. Smith Lansing Economic Development Corporation Special Board of Director's Meeting Minutes Lansing Economic Development Corporation Conference Room =O Friday, August 28, 2009 7:45 a.m. Members Present: Mayor Bernero, James Butler, Kim Coleman, Bo Garcia, Calvin Jones, Kelly Rossman-McKinney, Greg Ward, Jeff Williams_. Temporary Members Present: Charles Janssen, Tim Murphy Members Absent: Brian Jeffries Staff Present: Karl Dorshimer, Andrea Ragan, Marchelle Smith, Kenny Szymusiak, Bob Trezise Public Present: Sagar Sheth and Kory Wiever, Moebius Technologies, Dr. Kue, His Healing Hands Urgent Care Center, Tim Padot and Dennis Blue, Jackson National Life, Al Hooper Old Town Temple, LLC Call to Order Chair Bo Garcia called the meeting to order at 7:45 a.m. Approval of Meeting Minutes from July 10, 2009 Special Board Meeting Motion: Kelly Rossman-McKinney moved the Board to approve the meeting minutes from the July 10, 2009 special Board of Director's meeting and place them on file. Motion seconded by Greg Ward. Yeas: Unanimous. Motion carried. Un -Audited Financial Statements as of June 30, 2009 Motion: Jeff Williams moved the Board to receive the June 30, 2009 un -audited financial statements and place them on file. Motion seconded by Kelly Rossman-McKinney. Yeas: Unanimous. Motion carried. Outline of UDAG Funds as of June 30, 2009 Bob Trezise reported that the LEDC closed on the Troppo Relocation project on August 24th. Kris Elliott had paid one-half of the principal balance on the first original Troppo loan. The remaining balance of that loan will be paid in full within one year. Resolution to Approve Moebius Technology's Project Plan for an LEDC Business Loan Bob Trezise gave a brief overview on the significant impact our business loan will have on this innovative company. Sagar Sheth and Kory Wiever was invited to give a power point presentation on their medical device industry and provided samples of their orthopedic medical devices. They are currently producing these devices in Windsor and wish to purchase equipment that will allow them to produce them here in Lansing bringing 8 full-time jobs. Ken Szymusiak presented the details of the loan with a number of flexible options. The Board was favorable to option 2. Moebuis has at least three purchase orders and needs the equipment to rapidly move forward. It anticipated that full due diligence will be performed and brought back to the Board on October 2 for approval of the loan commitment letter. The Board asked to be taken on a tour at the completion of the project. Motion: Kelly Ro ssman- McKinney moved the Board to approve the resolution for Moebius Technology's Project Plan for an LEDC business loan and place it on file. Motion seconded by Greg Ward. Yeas: Unanimous. Motion carried. Resolution to Approve His Healing Hands Urgent Care Center's Project Plan for an LEDC Business Loan Bob Trezise gave a brief overview on this new urgent care facility. The project is located in a distressed area of South Lansing and will involve making improvements to an abandoned building. Dr. Kue was invited to give a power point presentation and demonstrated the need to provide a walk-in clinic for urgent care services to the uninsured and underinsured. Ken Szymusiak presented the details of the loan in which our $50,000 loan would act as a community fundraising match. It anticipated that full due diligence will be performed and brought back to the Board on October 2 simultaneously with Moebius for approval of the loan commitment letter. Motion: Jeff Williams moved the Board to approve the resolution for His Healing Hands Urgent Care Center's Project Plan for an LEDC business loan and place it on file. Motion seconded by James Butler. Yeas: Unanimous. Motion carried. Other Business None Public Comment None Adjournment Chair, Bo Garcia declared the meeting adjourned at 8:35 a.m. Motion: Greg Ward moved the Board to adjourn the meeting at 8:35 a.m. Seconded by Kelly Rossman-McKinney. Yeas: Unanimous. Motion carried. Minutes by M. Smith Lansing Economic Development Corporation Regular Board of Director's Meeting Minutes Lansing Economic Development Corporation Conference Room Friday, October 2, 2009 7:45 a.m. Members Present: Mayor Bernero, James Butler, Bo Garcia, Kelly Rossman-McKinney, Greg Ward, Jeff Williams Members Absent: Kim Coleman, Brian Jeffries, Calvin Jones Staff Present: Karl Dorshimer, Andrea Ragan, Marchelle Smith, Kenny Szymusiak, Bob Trezise Public Present: Sagar Sheth and Kory Wiever, Moebius Technologies, U' Call to Order Chair Bo Garcia called the meeting to order at 7:47 a.m. Approval of Meeting Minutes from August 28, 2009 Special Board Meeting Motion: Jeff Williams moved the Board to approve the meeting minutes from the August 28, 2009 special Board of Director's meeting and place them on file. Motion seconded by Greg Ward. Yeas: Unanimous. Motion carried. Un -Audited Financial Statements as of August 31, 2009 The board noted that the application fee revenues are coming in faster than projected in the budget. Due to the slowing economy, staff projected budget revenue for this line item to be somewhat conservative. However the LEDC received unanticipated revenues for loan closing application fees. Staff will monitor to' determine whether this budget item should be increased in the future. Motion: Kelly Rossman-McKinney moved the Board to receive the August 3l,'2009 financial statements and place them on file. Motion seconded by Jeff Williams. Yeas: Unanimous. Motion carried. Outline of UDAG Funds as of August 31, 2009 ' Marchelle reported the Troppo II loan closed in August. The August 31 report reflects a new line item for an accounts receivable in the amount of $440,000 for the Troppo loan which reduces the restricted funds to zero. Resolution to Approve Moebius Technology's Loan Note Kenny gave an overview on the project and loan terms. Dickinsen Wright has conducted due diligence on behalf of the LEDC and the loan will be closed on October 9, 2009. Motion: James Butler moved the Board to approve the resolution for Moebius Technology's Loan Note and place it on file. Motion seconded by Greg Ward. Yeas: Unanimous. Motion carried. Introduction to the New LEDC Website Brian Anderson presented the new website to the board. The board made the following recommendations: • Contact information should be easily available for the user. • Add news room section, announcements, ground breaking. • More diversity in the "Why Lansing" video. • Net of tax credit, return on investment (ROI), economic impact. • Administrative login password should be longer and more complex. • Add user comment section. • What should LEDC logo be? • Correct Kelly Rossman's name to Kelly Rossman-McKinney Bob asked the board to take some time to view the site and to provide feedback at the next board meeting. Other Business Bob reported on the following: The Accident Fund parking ramp cannot not be developed by the developers with conventional financing due to the bank loan crisis. The Christman Company has made a formal written request to Ingham County and the City of Lansing for Recovery Bonds. It is preferred that the LEDC handle the bonding for this project. This is a shovel -ready project utilizing Recovery Bonds that are meant for private development. The Mayor emphasized this project needs board advocacy to educate county commissioners, city council and the general public. Karl is preparing a.Fact Sheet for the board. CATA has submitted a formal written letter stating that they will no longer object to the use of tax incentives. The Detroit News printed tan article on Michigan's Gross Domestic Product (GDP). Out of the whole state, Lansing's GDP was over 9% compared to negative GDP in other Michigan cities. The LEDC complied with a Freedom of Information Act (FOIA) request from City Pulse for all LEDC, LBRA and TIFA meeting minutes from 2006 to present. The City Market project came in above bid whereas other projects have come in lower. Nothing has been brought to the LEDC as a contingency. The board asked how we could help Pat Gillespie to continue the momentum of interest utilizing the River. It was suggested that perhaps the Brownfield revolving loan fund could help pay for a month-long boat tour sponsored by the LEDC. Public Comment None Adjournment Chair, Bo Garcia declared the meeting adjourned at 9:07 a.m. Motion: Kelly Rossmatz-McKinney moved the Board to adjourn the meeting at 9:07 a.m. Seconded by Greg Ward. Yeas: Unanimous. Motion carried. Minutes by M, Smith Lansing Economic Development Corporation Regular Board of Director's Meeting Minutes Lansing Economic Development Corporation Conference Room Friday, November 6, 2009 7:45 a.m. Members Present: James Butler, Kim Coleman, Bo Garcia, Calvin Jones, Greg Ward, Jeff Williams Members Absent: Mayor Bernero, Brian Jeffries, Kelly Rossman-McKinney Staff Present: Brian Anderson, Karl Dorshimer, Andrea Ragan, Marchelle:_Smith, Kenny Szymusiak, Public Present: Bob Ford, Landscape Architects & Planners, Professor Warren Rauhe, MSU, Denise Peek, Entrepreneur Institute of Mid -Michigan Call to Order Chair Bo Garcia called the meeting to order at 8:10 a.m. t, Approval of Meeting Minutes from October 2, 2009 Regular Board Meeting Motion: Calvin Jones moved the Board to approve the meeting minutes from the October 2, 2009 regular 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, 2009 Motion: Jeff Williams moved the Board to receive the September 30, 2009 financial statements and place them on file. Motion seconded by Greg Ward. Yeas: Unanimous. Motion carried. Outline of UDAG Funds as of August 31, 2009 Karl Dorshimer reported that the BoarsHead Theater announced going dark for a few months while they reorganize financially. The Board recommended that Bob Trezise request the BoarsHead to provide a formal letter on their letterhead explaining their plans and intension in paying back the Arts & Culture loan. The Board also requested that a BoarsHead representative be asked to come to the next Board meeting to explain their current situation. The Board also asked what is a reasonable timeframe to write off the loan if there is a loss or do we need to create a liability on the balance sheet? Marchelle will follow up. Motion: Greg Ward moved the Board to request that the BoarsHead Theater provide a formal letter on their letterhead explaining their intension in paying back the Arts & Culture loan and to invite a representative to attend the next Board meeting. Motion seconded by Kim Coleman. Yeas: Unanimous. Motion carried. Resolution to Approve The Entrepreneur Institute of Mid -Michigan's Guaranty Agreement Denise Peek gave an overview on the Entrepreneur Institute of Mid -Michigan's activity. They have reorganized the board and are updating their strategic plan over the last year. She is working with the Public Service Department and local businesses impacted by the CSO project on a loan program to assist businesses in meeting storm water separation requirements and for loans to assist with working capital and cash flow. Denise suggested that she may come back to the Board to request additional loan guaranty funds. Motion: Calvin Jones moved the Board to approve the resolution for the Entrepreneur Institute of Mid -Michigan's Guaranty Agreement and place it on file. Motion seconded by Kim Coleman. Yeas: Unanimous. Motion carried. Downtown Grand Vision Development Plan Bob Ford, Landscape Architect Planners and Professor Warren, MSU gave a power point presentation on river front improvement prepared by MSU students. The presentation shared a vision of what the river front could look like in many ways between Kalamazoo and Shiawassee Street. Next steps will be to show developers and City Departments. Downtown Business Incubator Update Karl reported that we are still looking for the right building and exploring funding options for an incubator and will report back when one is found. Website Update The Board suggested that we hold off on viewing the videos until more Board members are present. Other Business Greg Ward suggested that a nomination committee be formed for election of Board officers in December. Marchelle reported that the audits are almost complete and that a draft will be presented at the December board meeting to allow for Board member input. Public Comment None Adjournment Chair, Bo Garcia declared the meeting adjourned at 9:00 a.m. Motion: James Butler moved the Board to adjourn the meeting at 9:00 a.m. Seconded by Greg Ward. Yeas: Unanimous. Motion carried. Minutes by M. Smith I &0, `''��� Karl Dorshimer, Vice President Lansing Economic Development Corporation Regular Board of Director's Meeting Minutes Lansing Economic Development Corporation Conference Room Friday, December 4, 2009 7:45 a.m. Members Present: James Butler, Bo Garcia, Calvin Jones, Greg Ward, Kelly Rossman-McKinney, Jeff Williams Temporary Members Present: Tim Murphy i Members Absent: Mayor Bernero, Kim Coleman, Calvin Jones Staff Present: Brian Anderson, Karl Dorshimer, Andrea Ragan, Marchelle Smith, Kenny Szymusiak, Bob Trezise Public Present: Stephen Blann and Teresa Choate, Rehmann Robson, Bill Darihoff, Miller Canfield, Tom Korkoske, City of Lansing, Anthony Pecchio, Christman Company Call to Order Chair Bo Garcia called the meeting to order at 7:50 a.m. Approval of Meeting Minutes from November 6, 2009 Regular Board Meeting Motion: James Butler moved the Board to approve the meeting minutes from the November 6, 2009 regular Board of Director's meeting and place them on file. Motion seconded by Kelly Rossman-McKinney. Yeas: Unanimous. Motion carried. Financial Statements as of October 31, 2009 Motion: Jeff Williams moved the Board to receive the October 31, 2009 financial statements and place them on file. Motion seconded by James Butler. Yeas: .. Unanimous. Motion carried. June 30, 2009 Year-end Draft Audits Stephen Blann from Rehmann Robson presented year-end draft audits for LEDC, LBRA and TIFA. The Board recommended that the word "cost" on page 8 under Land Held for Development in the LEDC draft audit be. changed. Rehmann Robson suggested that the word can be modified to "original carrying value" ,and will make the change. The Board will take action to approve the audits at the January 8, 2010 board meeting. Resolution to Approve Accident Fund Recovery Zone Financing Bob Trezise reported that City Council has allocated $14,821,000 Recovery Zone Facility Bond and that the LEDC has applied to Ingham County for the remaining portion of $16,179,000 to assist with the development of a parking ramp on the Accident Fund world headquarters site. It is an ideal use of the bonds for this type of project and is shovel ready. Bill Danhoff from Miller Canfield outlined the details of the resolution. Anthony Pecchio from the Christman Company stated the Recovery Zone Bonds are crucial due to the financial crisis. The board asked that Ingham County's portion be added in the resolution under the last WHEREAS clause on page 2. Motion: Kelly Rossman-McKinney moved the Board to approve the resolution with the addition of Ingham County's portion of the $16,179,000 bond for the Accident Fund Recovery Zone Financing and place it on file. Motion seconded by James Butler. Yeas: Unanimous. Motion carried. BoarsHead Theater Update Bob stated that he had invited John Dale Smith to this month's meeting as the Board had requested. Bob reported on the BoarsHead Theater going dark for a few months and their inability to currently pay on the LEDC loan. When we implemented the Arts & Culture Loan Program, we assumed that there would be some risk involved. They are having informal discussions with LCC and the Dart Auditorium. Lansing Restaurant Ventures, Inc. (aka Majority Restaurant) Loan Maturity Bob reported that Lansing Restaurant Venture's loan balloons on February 9, 2010. The loan note originally states that the LEDC may extend the loan an additional 5 years if the borrower is not in default under its obligations. While Ron Boji continues to make timely payments, Craig Heath (Borrower) has filed bankruptcy and the restaurant no longer exists. Therefore, it is our recommendation that we call the full loan note due at that time. Bob has met and discussed this with Ron. The Board will be asked to take action at the January 8, 2010 meeting. Election of Board Officers Greg Ward presented the 2010 Officer slate: Bo Garcia, Chair, Greg Ward, Vice President, James Butler, Treasurer, Jeff Williams, Secretary. Motion: Kelly Ro s sman- McKinney moved the Board to approve the 2010 Officer slate and place it on file. Motion seconded by James Butler. Yeas: Unanimous. Motion carried. Other Business Bob Johnson is to be invited at the January 8, 2010 Board meeting to talk about "On the Grand" Condominiums and conditions that were made several years ago. LEDC staff was asked to look into providing retirement health care for LEDC employees. Public Comment None Adjournment Chair, Bo Garcia declared the meeting adjourned at 9:20 a.m. Motion: Kelly Rossman-McKinney moved the Board to adjourn the meeting at 9:20 a.m. Seconded by Greg Wgrd1 Yeas: Unanimous. Motion r�1 Minutes by M. Smith / (/-- Robert L. Trezise, JK President & CEO