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HomeMy WebLinkAbout2010 LEDC minutesLansing Economic Development Corporation Special Board of Director's Meeting Minutes Lansing Economic Development Corporation Conference Room Friday, January 8, 2010 7:45 a.m. Members Present: James Butler, Kim Colman, Bo Garcia, Calvin Jones, Greg Ward; Kelly Rossman-McKinney, Jeff Williams Temporary Members Present: Charley Janssen, Tim Murphy Members Absent: Mayor Bernero, Brian Jeffries Staff Present: Brian Anderson, Karl Dorshiiner, Andrea Ragan, Marchelle Smith, Kenny Szymusiak, Bob Trezise Public Present: Denise Peek, Entrepreneurial Institute of Mid -Michigan, Bob Swanson, Boarshead Board Member, Ray Michaels, IBEW President Call to Order Chair Bo Garcia called the meeting to order at 7:50 d.m. Approval of Meeting Minutes from December 4, 2009 Regular Board Meeting Motion: Kelly Rossman-McKinney moved the Board to approve the meeting minutes from the December 4, 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 November 30, 2009 Motion: Jeff Williams moved the Board to receive the November- 30, 2009 fifiancial statements and place them on file. Motion seconded by Greg Ward. Yeas: Unanimous. Motion carried. Boarshead Theater Report Bob Swanson, Boarshe,ad Theater (BHT) board member, was present to: report on the status of the theater. They had planned to reopen in December for a production but could not raise enough funds due to the downturn in the economy. All employees are currently laid off. The BHT Board is seeking a strategic partnership with LCC but a timeline for any resolution is yet to be determined. It was suggested that perhaps the loan could be written down by `a $ 1,000 per month as a gift to help strengthen their position wiih LCC if conditions are favorable to reopen by fall 2010. It was recommended that a meeting be scheduled with Dr. Knight, LCC President and the LEDC Board. Bob Trezise is to provide the board with write down options at the next board meeting. Resolution Requesting Payment in Full on Lansing Restaurant Venture's Loan Bob Trezise provided historical background on Lansing Restaurant Venture's loan. The loan matures on February 9, 2010 as outlined in the Loan Note. It is the staff's recommendation that we do not allow a five-year extension due to the fact that there is no longer a restaurant serving a public purpose in the downtown, Craig Heath has filed for bankruptcy and the paid back loan funds can be used on other projects. If payment in full is not made by the maturity date, the LEDC will proceed with drawing on the Irrevocable Standby Letter of Credit. Motion: Kelly Rossman-McKinney moved the Board to approve the resolution requesting payment in full by February 9, 2010 on the Lansing Restaurant Venture's loan and place it on file. Motion seconded by Greg Ward. Yeas: Unanimous. Motion carried. Entrepreneurial Institute of Mid -Michigan Recovery Act Loan Guarantee Bob Trezise and Kenny Szymusiak reported that through the Federal Economic Recovery Act of 2009 a large sum of money has been allocated to the Small Business Administration (SBA) to fund micro -lending institutions who lend to businesses in amounts less than $35,000. SBA requires a Loan Loss Reserve Fund (LLRF). In order to create a program that will have a large impact on the community, the LEDC and the Entrepreneurial Institute of Mid -Michigan propose that the EIMM make application to the SBA for $500,000 utilizing LEDC's UDAG monies in the amount of $175,000 to fund the LLRF allowing for a $25,000 maximum loan to each business applicant. Denise Peek addressed the need for businesses requiring anywhere from $15,000 to $35,000. EIMM has a current loan limit of $10,000. It was recommended that there be flexibility in loaning up to $35,000 of SBA funds but whenever possible Denise should utilize both resources. Motion: Jeff Williams moved the Board to approve the increasing the maximum from $25,000 to $35,000 as flexibility but whenever possible, both EIMM and SBA funds should be split $25,000 and $10,000. Motion seconded by James Butler. Yeas: Unanimous. Motion carried. Recovery Zone Bond Financing for the Accident Fund Ramp Bob Trezise reported that the bonds will go to market April 15t and that there will be a public hearing process here at the LEDC office. Tim Murphy and Charley Janssen were asked to be temporary board members for the bond process. Approval of Audited Financial Statements for the -Year Ending June 30, 2009 The LEDC's audited financial statements were provided to the board for their approval. Motion: Calvin Jones moved the Board to approve thp, audited financial statements for the year ending June 30, 2009 and place them on file. Motion seconded by James Butler. Yeas: Unanimous. Motion carried. President's Report Bob Trezise presented this report at the end of the LEIDC, LBRA and TIFA board meetings. Update "On the Grand" condominiums This item was tabled until the next board meeting. His Healing Hands Project Update Ken Syzmusiak reported that Dr. KLie's 120 -day period to match $50,000 with our loan from the faith -based community has expired and another 30 -day period was extended. Other Business None Public Comment None Adjournment Chair, Bo Garcia declared the meeting adjourned at 8:45 a.m. Motion: Kelly Rossman-McKinney moved t Board to adjourn the meeting at 8:45 a.m. Seconded by Greg Ward. / Yeas: Unanimous. Motion carried. Minutes by M. Smith Robert L. T ezise, Jr., Presid f & CEO Call to Order Chair Bo Garcia called the meeting to order at 8:15 a.m. Approval of Meeting Minutes from January 8, 2010 Regular Board Meeting Motion: Jeff Williams moved the Board to approve the meeting minutes from the January 8, 2010 regular Board of Director's meeting and place them on file. Motion seconded by Calvin Jones. Yeas: Unanimous. Motion carried. Financial Statements as of December 31, 2009 Motion: Greg Ward moved the Board to receive the December 31, 2009 financial statements and place them on file. Motion seconded by Calvin Jones. Yeas: Unanimous. Motion carried. - Recovery Zone Bond Financing on Accident Fund Parking Ramp Karl Dorshimer gave an overview on the Recovery Zone Bond on Accident Fund's parking ramp. Bill Danhoff summarized the details of the project plan as outlined in the EDC Act 338. Motion: Jeff Williams moved the Board to approve the resolution on the Recovery Zone Bond Financing on the Accident Fund parking ramp and place it on file. Motion seconded by Kelly Rossman-McKinney. Yeas: Unanimous. Motion carried. Boarshead Loan Recommendation As requested by the Board, the LEDC made a recommendation that the loan be written down by $10,000 reducing the loan balance to $36,794.85 as a good faith measure to strengthen Boarshead Theater's position with LCC and that further write down could occur with a signed agreement between LCC and Boarshead. Kelly Rossman-McKinney Lansing Economic Development Corporation Regular Board of Director's Meeting Minutes Lansing Economic Development Corporation Conference Roorn Friday, February 5, 2010 7:45 a.m. Members Present: Bo Garcia, Bob Johnson, Calvin Jones, Kelly Rossman-McKinney, Greg Ward, Jeff Williams Members Absent: Mayor Bernero, James Butler, Kim Coleman, Brian Jeffries Staff Present: Brian Anderson, Karl Dorshimer, Andrea Ragan, Marchelle Smith, Kenny Szymusiak, Bob Trezise Special Guests: Bill Danhoff, Miller, Canfield, Paddock & Stone Sue Pigg, Ingham County Brownfield Redevelopment Authority Eric Schertzing, Ingham County Land Bank Authority Dawn Van Halst, Ingham County Land Bank Authority Public Present: Ray Michaels, IBEW President Call to Order Chair Bo Garcia called the meeting to order at 8:15 a.m. Approval of Meeting Minutes from January 8, 2010 Regular Board Meeting Motion: Jeff Williams moved the Board to approve the meeting minutes from the January 8, 2010 regular Board of Director's meeting and place them on file. Motion seconded by Calvin Jones. Yeas: Unanimous. Motion carried. Financial Statements as of December 31, 2009 Motion: Greg Ward moved the Board to receive the December 31, 2009 financial statements and place them on file. Motion seconded by Calvin Jones. Yeas: Unanimous. Motion carried. - Recovery Zone Bond Financing on Accident Fund Parking Ramp Karl Dorshimer gave an overview on the Recovery Zone Bond on Accident Fund's parking ramp. Bill Danhoff summarized the details of the project plan as outlined in the EDC Act 338. Motion: Jeff Williams moved the Board to approve the resolution on the Recovery Zone Bond Financing on the Accident Fund parking ramp and place it on file. Motion seconded by Kelly Rossman-McKinney. Yeas: Unanimous. Motion carried. Boarshead Loan Recommendation As requested by the Board, the LEDC made a recommendation that the loan be written down by $10,000 reducing the loan balance to $36,794.85 as a good faith measure to strengthen Boarshead Theater's position with LCC and that further write down could occur with a signed agreement between LCC and Boarshead. Kelly Rossman-McKinney disclosed her business relationship with LCC and that Larry Myer has stepped down from the Boarshead Board of Directors as he is an LCC Trustee. Motion: Calvin Jones moved the Board to approve the recommendation as outlined in the handout and place it on file. Motion seconded by Greg Ward. Yeas: Unanimous. Motion carried. Restaurant Venture, Inc. Loan Update Bob reported that we are prepared to draw on the Irrevocable Standby Letter of Credit that Ron Boji had secured for Restaurant Venture, Inc. if payment is not received in full by February 9ei. We have had some challenges in getting a response from Capital National Bank, but Dwight Ebaugh from Dickinson Wright has received compliance confirmation. Troppo Loan Discussion Bob reported that Kris has requested an extension to pay of the first Troppo loan and asked the Board for feedback. The Board recommended that we request to have Kris pay half the balance in August 2010 then pay the remaining balance in monthly installments for 6 months or divide the balance by 12 months. On the Grand Condominiums Bob Johnson did some extensive research in locating the original documents. Forty four (44) units were to be built by September 26, 2000 in which an extension was granted until 2003. To date 12 units have been built in Phase I and 8 units in Phase II. Phase III has not been started. The developer, David Ferguson is in violation of the agreement by which the property can revert back to the City with penalty. The city attorney will evaluate the agreement and put the developer on notice. Kelly Rossman-McKinney disclosed that she works with the Ferguson's. Other Business Jeff Williams commented on the great article on Moebius Technologies in the Greater Lansing Business Monthly. Bob announced that Brian's last day is today and pronounced his many accomplishments with the Lansing EDC. Kelly Rossman-McKinney made a motion to thank Brian for all his hard work and wishes much success as President & CEO> Public Comment None Adjournment Chair, Bo Garcia declared the meeting adjourned at 8:50 a.m. Motion: Kelly Rossman-McKinney moved the Board to adjourn the meeting at 8:50 a.m. Seconded by Jeff Williams,—, Yeas: Unanimous. Motion carr Minutes by M. Smith Lansing Economic Development Corporation Regular Board of Director's Meeting Minutes Lansing Economic Development Corporation Conference Room Friday, March 5, 2010 7:45 a.m. Members Present: James Butler, Kim Coleman, Bo Garcia, Bob Johnson, Kelly Rossman-McKinney, Greg Ward Members Absent: Mayor Bernero, Brian Jeffries, Calvin Jones, Jeff Williams Staff Present: Karl Dorshimer, Andrea Ragan, Marchelle Smith, Kenny Szymusiak, Bob Trezise Special Guests: Bill Danhoff, Miller, Canfield, Paddock 8v Stone c. Public Present: Ray Michaels, IBEW President Call to Order Chair Bo Garcia called the meeting to order at 8:25 a.m. Approval of Meeting Minutes from February 5, 2010 Regular Board Meeting Motion: Kim Coleman moved the Board to approve the meeting minutes from the February 8, 2010 regular Board of Director's meeting and place them on file. Motion seconded by Greg Ward. Yeas: Unanimous. Motion carried. Financial Statements as of January 31, 2010 Motion: Kim Coleman moved the Board to receive the January 31,-2010 financial statements and place them on file. Motion seconded by Greg Ward. Yeas: Unanimous. Motion carried. Accident Fund Parking Ramp Bond Proposal Bob Trezise gave an overview on the Accident Fund Parking Ramp Bond Proposal. The Accident Fund was not able to take advantage of the tax exempt bonds. , As an alternative, the LEDC can issue taxable bonds that the Accident Fund can use to raise funds for the project at a slightly higher interest rate than tax exempt bonds. There is no full faith and credit required by the City of Lansing or the, LEDC. The Recovery Zone bonds from both the City of Lansing and Ingham County are now available for other projects. Bill Danhoff provided technical details authorizing the $31 million taxable bonds. The LEDC will be able to collect 1/8% bond issue fees on an annual basis for the term of the bond. Motion: Kelly Rossman-McKinney moved the Board to approve the resolution on the LEDC issuing taxable bonds on the Accident Fund parking ramp and place it on file. Motion seconded by James Butler. Yeas: Unanimous. Motion carried. Entrepreneurial Institute of Mid -Michigan Loan Loss Reserve/Guaranty Ken Szymusiak summarized the details of the resolution which authorizes Bob Trezise to execute the Guaranty Agreement. The original amount of the Loan Loss Reserve (LLR) was thought to be $175,000 based on 35% of a $500,000 loan pool. However, the LLR is actually 15% based on $500,000 loan pool reducing the LLR to $75,000. His Healing Hands Loan Update Ken Szymusiak reported that Dr. Kue had made diligent effort but was not able to raise $25,000 to match the $50,000 loan. She has since partnered with Ingham Regional Medical Center (IRMC) who is providing a $25,000 grant. It is staff's recommendation that LEDC match IRMC's grant with a $25,000 loan. A commitment letter will be brought before the Board for approval at the April Board meeting Majority Loan (Restaurant Venture, Inc.) Loan Update Bob Trezise reported that he and our attorney went to Capital National Bank on February 10th and successfully collected on the Irrevocable Standby Letter of Credit. Ron Boji contacted Bob to compliment on our efficiency. Amended Budget for Fiscal Year Ending 2009/2010 Due to a 10% reduction in November 2009 in our contract with the City of Lansing for our services, the current 2009/2010 budget has been amended to reflect a reduction in payroll expense for furlough days taken and a reduction in the promotions expense account. Motion: Kelly Rossman-McKinney moved the Board to approve the resolution to amend the 200.9/2010 LEDC budget and place it on file. Motion seconded by Greg Ward. Yeas: Unanimous. Motion carried. Draft Budget for Fiscal Year 2010/2011 Bob Trezise gave an overview of the draft budget for the fiscal year ending 2010/2011. The promotions account has been drastically reduced, but have maintained six positions with a modest increase of 1.5% with the exception of Bob. Staff had not received cost of living increases since 2007. The Board was in full support of the direction Bob is going with the budget. Business Finance Assistance Loan Program Guideline Revisions To help meet the needs of businesses in these tough economic times, Bob reported that we have fully revamped the Business Finance Assistance Loan Program guidelines and asked the Board to review for approval at the April Board meeting. Other Business Bob Trezise reported that the Arts & Culture funding that flows through the City's Human Relations Department and currently administered by the Greater Lansing Arts Council (GLAC) will be directed to the LEDC in the 2010/2011 fiscal year. GLAC will continue to receive the Hotel Sales Tax that is generated by the City of Lansing to Ingham County. At least two meetings and numerous e-mail exchanges have taken place trying to establish a dialogue to get GLAC to present a position, but no feedback has come back. Bob Trezise further reported that we are examining our unrestricted loan funds for a potential business incubator. Some announcements may occur before our next Board meeting. The Board suggested that we call a special board meeting if something comes up before then. Kelly Ro ssman- McKinney mentioned that there was an article on the Technology Innovation Center in East Lansing regarding their first anniversary. Kelly will send the article to everyone. Since our next regular scheduled board meeting falls on Friday, April 2 which is Good Friday and the City is closed and the following week is Spring Break, it was decided that we hold our regular meeting on Friday April 16 at 7:45 a.m. 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 Kelly Rossman-McKinney. Yeas: Unanimous. Motion carried. Minutes by M. Smith'\Y Robert L. Trezise, Jr., P",s dent & CEO Lansing Economic Development Corporation Special Board of Director's Meeting Minutes Lansing Economic Development Corporation Conference Room, Friday, April 16, 2010 7:45 a.m. Members Present: James Butler, Kim Coleman, Bob Johnson, Calvin Jones, Kelly Rossman-McKinney, Greg Ward Members Absent: Mayor Bernero, Bo Garcia, Brian Jeffries, Jeff Williams Staff Present: Brian Anderson, Karl Dorshimer, Andrea Ragan, Marchelle Smith, Bob Trezise Guests: Dr. Eleanore Kue, His Healing Hands Urgent Care Center Public Present: None Call to Order Vice Chair Greg Ward called the meeting to order at 8:15 a.m. Approval of Meeting Minutes from March 5, 2010 Regular Board Meeting Motion: Kelly Rossman-McKinney moved the Board to approve the meeting minutes from the March 5, 2010 regular Board of Director's meeting and place them on file. Motion seconded by Calvin Jones. Yeas: Unanimous. Motion carried. Resolution to Approve Loan Commitment for His Healing Hands Urgent Care . Center Dr. Eleanore Kue stated that she has received $25,000 in funds from Ingham Regional Medical Center to match the Lansing EDC's loan of $25,000. Proceeds of the loan will be applied to refinance her ownership of Condominium Suite No. 4 at His Healing Hands Urgent Care Center. Marchelle Smith outlined the terms of the loan as stated in the Commitment letter. Motion: „ Kelly Rossman-McKinney moved the Board to approve the resolution approving the Loan Commitment for His Healing Hands Urgent Care Center and place it on file. Motion seconded by James Butler. Yeas: Unanimous. Motion carried. Budget for Fiscal Year 2010/2011 As discussed at last month's board meeting, Bob restated that the LEDC had taken a 10% reduction in the City Contract in this current fiscal year. The 2010/2011 fiscal year budget is very lean reflecting an additional 11 1/2% reduction in the City Contract. With the decline in property values in the TIFA District, the TIFA administrative fees to LEDC were reduced by 15%. The overall 2010/2011 budget reflects a total reduction of 36 1/2%. An over inflated amount of an additional $156,000 appears in the City Contract line item budget because the LEDC is going to administer the City's Arts & Culture program funding rather than the City's Human Relations Department. This is merely a pass through. Initial discussions took place with the Greater Lansing Arts Council (GLAC) asking for their input on moving Silver Bells to the City and the LEDC Lansing Economic Development Corporation Regular Board of Director's Meeting Minutes Lansing Economic Development Corporation Conference Room Friday, May 7, 2010 7:45 a.m. Members Present: Kim Coleman, Bo Garcia, BrianJeffries, Bob Johnson, Calvin Jones, Kelly Rossman-McKinney, Greg Ward, Jeff Williams Kelly Rossman-McKinney, Greg Ward Members Absent: Mayor Bernero, James Butler, Staff Present: Andrea Ragan, Marchelle Smith, Ken Szymusiak, Bob Trezise Guests: None Public Present: None Call to Order Chair Bo Garcia called the meeting to order at 7:45 a.m. ` - Approval of Meeting Minutes from April 16, 2010 Special Board Meeting Motion: Kelly Rossman-McKinney moved the Board to approve the meeting minutes from the April 16, 2010 special Board of Director's meeting and place them on file. Motion seconded by Greg Ward. Yeas: Unanimous. Motion carried. Financial Statements March 31, 2010 Motion: Greg Ward moved the Board to receive the March 31, 2010 financial statements and place them on file. Motion seconded by Kim Coleman. Yeas: Unanimous. Motion carried. Business Finance Assistance Loan Program Guideline Revisions An old version and revised version of the Business Finance Assistance Loan Program Guidelines were provided to the Board. Marchelle gave an overview on the loan considerations. The Board recommended that staff provide a side-by-side comparison list of old versus new changes at the next board meeting. Downtown Incubator/Urban Development Action Grant (UDAG) Loan Policy Bob Trezise reported that only three loans have been made during his time at the LEDC and asked if the Board would consider using UDAG funds for a broader economic impact. He recommended using a portion of funds towards build out and lease space at the Knapp's building for a business incubator. Bob has been engaged with Jeff Smith from East Lansing's successful Technology Information Center (TIC). The demand for incubator space is greater than the supply. It was suggested that the Lansing business incubator be the place to graduate from the TIC as businesses grow to their second stage or perhaps provide an incentive to attract successful businesses to locate downtown. The Board recommended that we schedule a time in the next couple weeks for the Board to tour the Technology Information Center. It was further recommended that we hold a 2 - 3 hour Board meeting to tour the Knapps building and to brainstorm on how to better utilize the UDAG funds that will have the most economic impact. Bob suggested that Tom Donaldson from the Small Business Technology & Development Centel- (SBTDC) be invited to join us. LEDC Loan Committee The LEDC has begun receiving loan inquiries from riskier start-up businesses. Bob Trezise recommended that we create a loan committee to comprise of a couple Board members, Tom Donaldson, SBTDC and others with strong lending practices to assist us with our due diligence. The Board agreed this was a great idea. Knapp's Center Project Update The Board was provided a FAQ's sheet handout on the Knapp's Center development incentives. Bob Trezise reported we are in continuous dialogue with the Eydes and are working on a Memorandum of Understanding and then a further detailed Development Agreement. The project is mixed use with residential on the top floor with a claw -back. Assuming finance is approved this fall, construction could begin in spring 2011 with completion in 18 months. Other Business Bob reported that Kris Elliott has proceeded with build out of the former Troppo location for a new cafe restaurant which is a cross between Panara's and Johnny Rocket. The first original loan is due in full August 2010 as agreed when making the secondary loan on the new Troppo location. Kris has requested us to consider forbearing payment until January 2011. The Board recommended that we prepare a written option for formal vote in June. The Lansing Brownfield Redevelopment Authority was awarded a $400,000 Environmental Protection Agency grant. Historically, the Arts & Culture program funds have flowed through the City of Lansing's Human Relations Department. Because Arts & Culture play a significant role in creating sense of place and economic development, the LEDC has budgeted for the funds to pass through the LEDC. Marchelle reported that both the TIFA and BTS local accounts have such small amounts that service charges are exceeding the interest earnings. She advised that the TIFA local account funds be transferred to the TIFA investment account and that the balance of the BTS local account be applied to the BTS bond debt payable. A request for approval will be made at the June Board meeting. Public Comment None Adjournment Chair, Bo Garcia declared the meeting adjourned at 9:20 a.m. Motion: A quorum was not preser Minutes by M. Smith Lansing Economic Development Corporation Special Board of Director's Meeting Minutes Lansing Economic Development Corporation Conferenc1.e.!' I Pom ': { Friday, June 25, 2010 7:45 a.m. ; Members Present: Kim Coleman, Bo Garcia, Brian Jeffries, Bob Johnson, Calvin Jones, Kelly Rossman-McKinney, Greg Ward, Members Absent: Mayor Bernero, James Butler, Jeff Williams Staff Present: Karl Dorshimer, Andrea Ragan, Marchelle Smith, Bob Trezise, David Wood Guests: Jean Schtokal, Foster, Swift, Collins 8s Smith Public Present: None Call to Order Chair Bo Garcia called the meeting to order at 8:15 a.m. Approval of Meeting Minutes from May 7, 2010 Regular Board Meeting Motion: Kim Coleman moved the Board to approve the meeting minutes from the May 7, 2010 regular Board of Director's meeting and place them on file. Motion seconded by Calvin Jones. Yeas: Unanimous. Motion carried. Financial Statements April 30, 2010 Motion: Calvin Jones moved the Board to receive the April 30, 2010 financial statements and place them on file. Motion seconded by Greg Ward. Yeas: Unanimous. Motion carried. Outline of UDAG Funds as of April 30, 2010 Bob Trezise reported that Dimitri's loan will be paid in full at their loan closing with MSU Federal Credit Union July 1, 2010. Kris Elliott's First Original Loan At the last Board meeting, the Board recommended that we provide written options based on Kris Elliott's request to forebear payment until January 2011. Bob Trezise provided a written summary along with several options. Kris Elliott's most favorable option was option 1 to stop payments for the rest of this year, accrue interest and resume monthly payments in January 2011 to be paid in full January 2012. He has also asked to replace the Ann Street, East Lansing collateral with other appropriate collateral. At this time, details are not known. Because Kris has demonstrated a huge amount of investment and development in the downtown, it was the consensus of the Board to approve option 1. Motion: Greg Ward moved the Board to approve option 1 to stop payments for the rest of this year, accrue interest and resume monthly payments in January 2011 to be paid in full January 2012 and place it on file. Motion seconded by Kim Coleman. Yeas: Unanimous. Motion carried. Resolution to Approve EB -5 Regional Center The agenda originally reflected that this line item was for discussion. However, staff just learned that we are advised to set up the EB -5 program under a limited liability Corporation (LLC). Bob Trezise introduced Jean Schtokal from Foster Swift who will be our legal counsel the program and presented a power point presentation explaining what the EB -5 program is. There will be a five member board consisting of the LEDC Chair, ITC, SBTDC, 5u1/3rd Bank and a foreign investment expert. Broker, attorney and other fees associated with the program will be charged as well as LEDC ownership fees of 20%. Motion: Kelly Rossman-McKinney moved the Board to approve the resolution to set up a Limited Liability Corporation for the EB -5 Regional Center and place it on file. Motion seconded by Greg Ward. Yeas: Unanimous. Motion carried. The LEDC meeting was adjourned to convene the TIFA Board Meeting to vote on action items before losing a quorum at 8:55 a.m. Motion: Greg Ward moved the Board to adjourn the meeting at 8:55 a.m. to convene the TIFA Board Meeting. Seconded by Kim Coleman. Yeas: Unanimous. Motion carried. The LEDC meeting was reconvened at 9:00 a.m. Downtown Incubator/Urban Development Action Grant (UDAG) Loan Policy Bob Trezise reported that we are preliminarily committing up to 10,000 sq. ft. of incubator space using UDAG funds from LEDC totaling $850,000. Our expectation is to proceed with this exciting project based on construction timelines and that all development agreement requirements are met by the developer including that the Knapp's building is rehabbed fully, exterior and interior, to complete historic standards. There was unanimous consensus by the Board. Other Business To give everyone a break, there will be no July or August Board meetings. Public Comment None Adjournment Chair, Bo Garcia declared the meeting adjourned at 9:10 a.m. Motion: Greg Ward moved the Board to adjourn the meeting at 8:15 a.m. Seconded by Kim Coleman. Yeas: Unanimous. Motion carried. Minutes by M. Smith Robert L. Trezise, Jr., Pr/,&ident 8v CEO Lansing Economic Development Corporation Regular Board of Director's Meeting Minutes Lansing Economic Development Corporation Conference Room Friday, September 3, 2010 7:45 a.m. Members Present: James Butler, Kim Coleman, Bo Garcia, Calvin Jones, Kelly Rossman-McKinney, Greg Ward Members Absent: Mayor Bernero, Brian Jeffries, Jeff Williams Staff Present: Karl Dorshimer, Andrea Ragan, Marchelle Smith, Bob Trezise Guests: None Public Present: None Call to Order Chair Bo Garcia called the meeting to order at 8:40 a.m. Approval of Meeting Minutes from June 25, 2010 Special Board Meeting Motion: Calvin Jones moved the Board to approve the meeting minutes from the June 25, 2010 special Board of Director's meeting and place them on file. Motion seconded by Kim Coleman. Yeas: Unanimous. Motion carried. Un -audited Financial Statements June 30, 2010 Bob Trezise reported that the un -audited financial statements reflect actual expenditures are under budget by an estimated $70,000 and that actual revenues exceed budget by an estimated $70,000. A large part of this was a result of salary reduction due to Brian Anderson's departure and for additional bond issue revenues from the Accident Fund parking ramp. Motion: Kelly Rossman-McKinney moved the Board to receive the June 30, 2010 un -audited financial statements and place them on file. Motion seconded by Greg Ward. Yeas: Unanimous. Motion carried. Outline of UDAG Funds as of June 30, 2010 Bob Trezise reported that we have closed on the first Troppo loan Forbearance and Extension Agreement. The Knapp Center's application for the BEDI grant was not approved in this year's current round of funding. They will reapply for the next round of funds in late spring 2011. This will impact the UDAG funds we have set aside for the business incubator. 2010/2011 Budget Amendment Marchelle Smith reported that the Fagade Grant funds were not fully expended by June 30, 2010 and will need to carry forward $30,565 in the new fiscal year 2010/2011. The Board recommended that we provide a resolution for action on this item and table it for the next board meeting. Business Finance Assistance Loan Program Guideline Revisions Comparison Summary To meet the needs of our local business climate, Bob Trezise explained that the LEDC loan guidelines have been modified to allow more flexibility when making loans in today's economy. The Comparison Summary was provided to the Board outlining the recommended modifications. The loan program name has been changed from the Business Finance Assistance Program (BFAP) to LEDC Business Loan Program. Motion: Kim Coleman moved the Board to approve the loan revisions and place them on file. Seconded by Calvin Jones. Yeas: Unanimous. Motion carried. Other Business The Board asked that they be given a heads up when press releases are going out. Public Comment None Adjournment Chair, Bo Garcia declared the meeting adjourned at 9:00 a.m. Motion: Calvin Jones moved the Board to adjourn the meeting at 9:00 a.m. Seconded by James Butler. Yeas: Unanimous. Motion carried. Minutes by M. Smith U I I/ Robert L. Trezise ., President & CEO Lansing Economic Development Corporation Regular Board of Director's Meeting Minutes Lansing Economic Development Corporation Conference Ronin?;`a Friday, October 1, 2010 7:45 a.m. Members Present: James Butler, Bo Garcia, Calvin Jones, Greg Ward, Jeff Williams Members Absent: Mayor Bernero, Kim Coleman, Brian Jeffries, Kelly Rossman-McKinney Staff Present: Karl Dorshimer, Andrea Ragan, Marchelle Smith, Bob Trezise Guests: None Call to Order Chair Bo Garcia called the meeting to order at 8:10 a.m. Approval of Meeting Minutes from September 3, 2010 Regular Board Meeting Motion: Calvin Jones moved the Board to approve the meeting minutes from the September 3, 2010 regular Board of Director's meeting and place them on file. Motion seconded by Greg Ward. Yeas: Unanimous. Motion carried. Financial Statements August 31, 2010 Motion: Jeff Williams moved the Board to receive the August 31, 2010 financial statements and place them on file. Motion seconded by Greg Ward. Yeas: Unanimous. Motion carried. Outline of UDAG Funds as of August 31, 2010 There have been no changes to the report for this month. Board of Water & Light Proposed 2 -Cycle Generation System Presentation Bob Trezise introduced Peter Lark and stated that the Board of Water & Light (BWL) has been an incredible partner with the city and praised their commitment to locate their administrative offices in REO Town. Peter thanked Bob and Karl for their leadership and guidance throughout the process. He presented details on their $182 million investment for a 2 -cycle generation power plant, administrative offices and customer service center. The Board asked Peter to provide a one-page fact sheet on the project and further acknowledged Calvin Jones, as a BWL representative, for his guidance, commitment and dedication on the LEDC Board of Directors. There was further discussion on whether the Eckert Station smoke stacks should remain or be removed. Bob strongly expressed his opinion that they are a blight, represent a polluted past, and should be removed. 2010/2011 Budget Amendment Resolution Marchelle Smith reported that the Fagade Grant funds were not fully expended by June 30, 2010 and that $30,565 will need to be carry forwarded in fiscal year 2010/2011. Motion: Jeff Williams moved the Board to approve the 2010/2011 Budget Amendment Resolution and place it on file. Motion seconded by Greg Ward. Yeas: Unanimous. Motion carried. LEDC Re -organization Plan Bob Trezise presented a power point presentation and an organizational chart on restructuring the LEDC focused toward the New Economy. Staff has worked with Foster, Swift, Collins & Smith to set up an L.L.C. established under the umbrella of the LEDC for the Innovation and International Business Investment Zone which includes a business incubator and the EB -5 Regional Center. There was discussion on who should be Chair of the Innovation and International Business Investment Zone. There was further discussion on staff titles. Other Business Bob Trezise announced that Karl Dorshimer successfully secured a $ 1.7 million EPA grant for the MSU Foundation to improve the MBI building in the SmartZone. Public Comment None Adjournment Chair, Bo Garcia declared the meeting adjourned at 9:30 a.m. Motion: Calvin Jones moved the Board to adjourn the meeting at 9:30 a.m by James Butler. Yeas: Unanimous. Motion carri Minutes by M. Smith Seconded Lansing Economic Development Corporation Regular Board of Director's Meeting Minutes Lansing Economic Development Corporation Conference Room Friday, November 5, 2010 7:45 a.m. r, Members Present: James Butler, Kim Coleman, Bo Garcia, Calvin Jones, E-1 Kelly Rossman-McKinney, Greg Ward, Jeff Williams Members Absent: Mayor Bernero, Brian Jeffries Staff Present: Karl Dorshimer, Andrea Ragan, Marchelle Smith, C, Ken Szymusiak, Bob Trezise r--� Guests: None Public Present: Denise Peek, Entrepreneur Institute of Mid -Michigan Thomas Williams, Vice Chair, Entrepreneur Institute of Mid -Michigan Call to Order Chair Bo Garcia called the meeting to order at 7:45 a.m. Approval of Meeting Minutes from October 1, 2010 Regular Board Meeting Motion: Calvin Jones moved the Board to approve the meeting minutes from the October 1, 2010 regular Board of Director's meeting and place them on file. Motion seconded by Greg Ward. Yeas: Unanimous. Motion carried. Public Comment Denise Peek, Executive Director of the Entrepreneur Institute of Mid -Michigan and her Vice Chair, Thomas Williams was present to report that their Board of Directors approved $25,000 one week ago to provide for $1,000-$2,000 business loans. Their goal is to increase loan activity for "jump start" level loans over the next 90 days. Financial Statements September 30, 2010 Motion: Kelly Rossman-McKinney moved the Board to receive the September 30, 2010 financial statements and place them on file. Motion seconded by Jeff Williams. Yeas: Unanimous. Motion carried. Final LEDC Restructuring Plan Bob Trezise presented changes to the organizational chart based on recommendations made by the Board last month. Question ensued regarding the separation of EB -5 and the LEDC and its governance. Staff will verify with Foster, Swift, Collins and Smith and report back at the next board meeting. Ray Dewinkel will be added to the EB -5 Board on the organizational chart. Motion: James Butler moved the Board to approve the restructuring plan and place it on file. Seconded by Kelly Rossman-McKinney. Yeas: Unanimous. Motion carried. Resolution to Approve Budget Amendment to Reflect Funds Secured from the U.S. Department of Energy for an Energy Efficiency Revolving Loan Program Marchelle Smith stated that the Mayor's Go Green Initiative Office has secured funds in the amount of $230,000 from the U.S. Department of Energy (DOE) allocated under the American Recovery & Reinvestment Act to be used for energy efficient loans. The LEDC budget will need to be amended to reflect the revenues and accounts receivables when the loans get made. Bob Trezise pointed out that we have partnered with the Mayor's Go Green Initiative Office because we have experience in processing loans and that these funds are merely a pass through. It was recommended that Taylor Heins, Go Green Initiative coordinator, be invited to the next board meeting to talk about the Energy Efficiency Grant from DOE. Motion: Greg Ward moved the Board to receive $230,000 to be used Seconded by James Butler. Yeas: Unanimous. Motion carried. approve the resolution amending the budget to for energy efficient loans and place it on file. Discussion on the Entrepreneur Institute of Mid -Michigan Bob Trezise reported that there is a remaining loan guaranty balance of $4,196 which is very small. At this time, Denise Peek has not asked for renewal of the loan guaranty. Discussion on the LEDC Micro -enterprise Loan Fund Program Bob Trezise restated the Mayor's interest in SBA funds to secure micro loans through the Entrepreneur Institute of Mid -Michigan (EIMM) last year. The LEDC had originally reserved $75,000 for the EIMM loan loss reserves. EIMM made application to SBA in July 2010 but did not receive allocations. In combination with the $75,000 and the repayment of Dimitri's and Majority loans, the LEDC would like to put $175,000 towards an LEDC micro loan program of its own. Once we have one-year of micro lending experience, the LEDC will qualify to apply for SBA funds. This does not preclude other organizations like EIMM to partner. An updated UDAG report will be provided next month outlining the reallocation of UDAG funds. Resolution to Approve Write-off on Boarshead Theatre Loan The board concurred there are no assets of the Boarshead Theatre and that the loan be written off as recommended by the auditors. Motion: James Butler moved the Board to approve the resolution to write of the Boarshead Theatre loan and place it on file. Seconded by Calvin Jones. Yeas: Unanimous. Motion carried. Other Business Bob Trezise took a moment to speak about the gubernatorial campaign and the major (in- kind) advertising Lansing received due to statewide media attention to Mayor Bernero's "Lansing economic development record". The Free Press and Detroit News did front page stories with independent researchers that validated job creation numbers. More and more, the State of Michigan is voicing an opinion that Lansing is at least in the same league as Ann Arbor and Grand Rapids. The Board concurred that this was an excellent reflection on Bob. The Board wished to honor the Mayor in showing recognition by Resolution signed by all Board members. Effective the end of the year, Jeff Williams announced his resignation after 10 years of service on the Board of Directors. Board members expressed their gratitude and appreciation of Jeff's invaluable expertise. It was recommended that Jeff be given a Resolution of Departure and hold a parting event in his honor. Adjournment Chair, Bo Garcia 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 Kim Coleman. Yeas: Unanimous. Motion carrie Minutes by M. Smith Lansing Economic Development Corporation Regular Board of Director's Meeting Minutes Lansing Economic Development Corporation Conference Room Friday, December 3, 2010 7:45 a.m. Members Present: Mayor Bernero, James Butler, Kim Coleman, Bo Garcia, Calvin Jones, Kelly Rossman-McKinney, Jeff Williams Members Absent: Brian Jeffries, Greg Ward Staff Present: Karl Dorshimer, Andrea Ragan, Marchelle Smith, Ken Szymusiak, Bob Trezise Guests: Angie Bennett, City of Lansing Stephen Blann, Rehmann Robson Teresa Choate, Rehmann Robson Public Present: None Call to Order Chair Bo Garcia called the meeting to order at 7:55 a.m. Resolution Recognizing Jeff Williams' Service on the Board of Directors Bob Trezise read and presented a Proclamation to Jeff Williams in honor of his dedication and commitment as a member of the Board of Directors for the last several years. The Board recommended that Jeff be awarded emeritus status for his long and distinguished service. Motion: James Butler moved the Board to approve Jeff Williams' emeritus status. Motion seconded by Kelly Rossman-McKinney. Yeas: Unanimous. Motion carried. Approval of Meeting Minutes from November 5, 2010 Regular Board Meeting Motion: James Butler moved the Board to approve the meeting minutes from the November 5, 2010 regular Board of Director's meeting and place them on file. Motion seconded by Kelly Rossman-McKinney. Yeas: Unanimous. Motion carried. Draft Audited Financial Statements for Fiscal Year Ending June 30, 2010 Stephen Blaen from Rehmann Robson presented the LEDC draft audited financial statements for the fiscal year ending June 30, 2010. Teresa Choate from Rehmann Robson and Angie Bennett from the City's Finance Department were present to answer questions. Motion: Kelly Rossman-McKinney moved the Board to approve the draft audited financial statements for the fiscal year ending June 30, 2010 and place them on file. Motion seconded by James Butler. Yeas: Unanimous. Motion carried. Financial Statements October 31, 2010 Motion: Calvin Jones moved the Board to receive the October 31, 2010 financial statements and place them on file. Motion seconded by Kelly Rossman- McKinney. Yeas: Unanimous. Motion carried. Resolution to Revoke $75,000 EIMM Loan Loss Reserve Bob Trezise expressed that the $75,000 originally earmarked for the EIMM loan loss reserve be revoked as EIMM was unsuccessful in receiving micro loan funds from the Small Business Administration. The resolution included an allocation totaling $175,000 towards an LEDC micro loan program of its own. Motion: Kelly Rossman-McKinney moved the Board to approve the resolution and place it on file. Seconded by Calvin Jones. Yeas: Unanimous. Motion carried. Presentation on City of Lansing Green Capital Initiative Revolving Loan Fund Taylor Heins gave an overview on the Energy Renewable Efficiency Grant that she applied for through the Mayor's Go Green Initiative Office. This project has not yet been announced. The Board recommended that we have a project out the gate for announcement at the Press Conference. By -Laws Discussion Based on discrepancies with Board terms from the City Clerk's Office and our By -Laws, Bob Trezise informed the Board that he will be bringing Board term changes before them next month for approval. 2011 Election of Board Officers Nomination Committee Chair, Bo Garcia recommended that James Butler, Kelly Rossman-McKinney and himself put a slate together for a nominating committee. Other Business A 2011 Board meeting scheduled was provided to Board members. Adjournment Chair, Bo Garcia declared the meeting adjourned at 8:50 a.m. Motion: Kelly Rossman-McKinney moved the Board to adjourn the meeting at 8:50 a.m. Seconded by Calvin Jones. Yeas: Unanimous. Motion carrie Minutes by M. Smith