HomeMy WebLinkAboutItem 01 2013 June 24 SEDA Minutes MINUTES OF THE MEETING OF THE
SPRINGFIELD ECONOMIC DEVELOPMENT AGENCY
HELD MONDAY, JUNE 24, 2013
The Springfield Economic Development Agency met in the Jesse Maine Meeting Room, 225
Fifth Street, Springfield, Oregon on Monday, June 24, 2013 at 7:15 p.m., with Board Vice-Chair
Sean VanGordon presiding.
ATTENDANCE
Present were Board Vice-Chair Sean VanGordon and Board Members Sheri Moore, Christine
Lundberg, Sid Leiken, Marilee Woodrow, Bob Brew and Dave Ralston. Also present were City
Manager Gino Grimaldi, Attorneys Mary Bridget Smith and Lauren King, and City Recorder
Amy Sowa.
Board Chair Hillary Wylie was absent (excused).
APPROVAL OF MINUTES
a. Minutes of June 10, 2013.
IT WAS MOVED BY BOARD MEMBER WOODROW WITH A SECOND BY BOARD
MEMBER MOORE TO APPROVE THE JUNE 10, 2013 MINUTES. THE MOTION
PASSED WITH A VOTE OF 7 FOR AND 0 AGAINST (1 ABSENT – WYLIE).
COMMUNICATIONS
a. Business from the Audience - None
b. Correspondence - None
c. Business from the Staff
REPORT OF CHAIR - None
REPORT OF COMMITTEES - None
PUBLIC HEARINGS - None
NEW BUSINESS
1. Property Purchase.
RESOLUTION NO. SEDA2013-07 - A RESOLUTION AUTHORIZING THE ACQUISITION OF
138 MAIN STREET, SPRINGFIELD, OREGON (MAP AND TAX NO. 17-03-35-32-04500)
Community Development Manager John Tamulonis presented the staff report on this item. The
adopted Downtown Design Plan proposed locating a public plaza on a one-half block that now
had three buildings. In discussions with building owners on their plans, one property owner
offered to sell his property, possibly becoming the first property of the eventual Mill Plaza
Springfield Economic Development Agency Minutes
June 24, 2013
Page 2
development in 7-10 years. The proposed parcel for purchase for $669,000 was at 138 Main
Street including leases with the current tenants Northwest Martial Arts, LLC and IBS School of
Cosmetology (Savoy, LLC).
Mr. Tamulonis noted the length of the lease for each of the tenants. Funds for the purchase of the
property would come from Community Development Block Grant (CDBG) funds ($50,000),
Economic Development funds ($219,000), and Urban Renewal revolving fund ($400,000).
Board Member Moore asked how they determined the condition of the building.
Mr. Tamulonis said Jim Polston, Facilities Manager for the City, looked over the building. There
had also been a recent review by the City’s building department of improvements made a couple
of years ago by the owner. The City would be putting in a small investment of a heat pump for
the west side of the building. Currently, it was under one system. If that area was re-leased at a
later date, it would be beneficial to have a separate unit. The cost of adding the second unit could
be $4000 or $5000.
Board Member Moore asked if there was something that could be done to improve the
appearance of the building.
Mr. Tamulonis said there was probably something that could be done to fix it up.
Board Member Leiken asked how many square feet were in the building.
Mr. Tamulonis said about 11,000 square feet, but it was configured oddly. There were two floors.
Board Member Leiken asked how much the tenants were paying and how much per square foot.
Mr. Tamulonis said one was paying $1900/month and the other $2000/month. That came to
about $0.42 per square foot.
Board Member Ralston said he supported the recommendation. He felt SEDA should be looking
to see if there was a better lease agreement to fully utilize the building; something that would
make it more beneficial to the downtown plan.
Mr. Tamulonis said the Martial Arts facility was used by a lot of people in the evening. The
Cosmetology School also brought in a lot of people into the downtown area when they were open
and people were there training. Having long-term tenants was beneficial, leaving the vacancies to
a minimum. If they could get higher rents it would be better, but the configuration was very
difficult. It could possibly be broken up into smaller areas and be leased. Staff could be agressive
about that over time.
Board Member Woodrow said during the tour of SPROUT, Ms. Carpenter-Seguin mentioned that
Hatch would be looking for more space for start-up businesses so that could be a possibility.
Mr. Tamulonis said they showed the space to the Chamber of Commerce, but it was too
expensive for them to lease the whole building. Another issue was that there was no parking so it
was difficult to divide up. Staff had been working with the current owner for a long time and
many things had changed since they first started talking.
Springfield Economic Development Agency Minutes
June 24, 2013
Page 3
Board Member Brew asked about the building to the west and if it was part of this purchase.
Mr. Tamulonis said it was not. That building had been vacant for over a year, but people using
the Martial Arts facility used the parking lot, as well as those at the Alternative Medical
Treatment facility. Staff had talked with the owners of that building to see if they wanted to sell.
At one point one of the three owners was interested, but her siblings were not.
Board Member Leiken asked if SPROUT paid property taxes.
Mr. Tamulonis said they would pay property taxes on for-profit businesses that rented space.
OLD BUSINESS - None.
ADJOURNMENT
The meeting was adjourned at approximately 7:26 p.m.
Minutes Recorder – Amy Sowa
______________________
Sheri Moore
Secretary