Loading...
HomeMy WebLinkAboutItem 01 SEDA Meeting Minutes MINUTES OF THE MEETING OF THE SPRINGFIELD ECONOMIC DEVELOPMENT AGENCY HELD MONDAY, JANUARY 8, 2018 The Springfield Economic Development Agency met in the Council Chambers, 225 Fifth Street, Springfield, Oregon on Monday, January 8, 2018 at 6:16 p.m., with Board Chair Sean VanGordon presiding. ATTENDANCE Present were Board Chair Sean VanGordon, Board Vice-Chair Sheri Moore and Board Members Marilee Woodrow, Christine Lundberg, Joe Pishioneri and Leonard Stoehr. Also present were City Manager Gino Grimaldi, Attorney Mary Bridget Smith, and City Recorder Amy Sowa. Board Members Wylie and Leiken were absent (excused). CONSENT CALENDAR 1. MINUTES a. Minutes of December 4, 2017 2. RESOLUTIONS IT WAS MOVED BY BOARD MEMBER PISHIONERI WITH A SECOND BY BOARD MEMBER WOODROW TO APPROVE THE CONSENT CALENDAR. THE MOTION PASSED WITH A VOTE OF 6 FOR AND 0 AGAINST (2 ABSENT – WYLIE AND LEIKEN). COMMUNICATIONS 1. Business from the Audience – None. 2. Correspondence – None. 3. Business from the Staff – None. REPORT OF CHAIR – None. REPORT OF COMMITTEES – None. PUBLIC HEARINGS Springfield Economic Development Agency Minutes January 8, 2018 Page 2 NEW BUSINESS 1. SEDA Glenwood Urban Renewal Borrowing RESOLUTION NO. SEDA2018-01 - A RESOLUTION AUTHORIZING INDEBTEDNESS FOR CAPITAL PROJECTS DESCRIBED IN THE URBAN RENEWAL PLAN FOR THE GLENWOOD URBAN RENEWAL AREA. Accounting Manager Nate Bell from Finance presented the staff report on this item. He noted that at the July 18th, 2016 SEDA Board Meeting, the SEDA Board adopted a resolution to authorize indebtedness for the acquisition of property for projects described in the Glenwood Urban Renewal Plan for the Area. Mr. Bell said a question had been raised about the language of capital projects. Capital projects in the plan include property acquisition. Although capital projects can be more broadly defined, the intention was property acquisition. If the City does anything different, they will bring it to the SEDA Board at a later date. At the September 26th, 2016 SEDA Board Meeting, the SEDA Board authorized the Finance Director to sign a Master Borrowing Declaration that described the terms under which the 2016 Borrowing and future borrowings on parity with the 2016 Borrowing (“Parity Borrowings”) may be issued and the covenants SEDA makes with the owners of the Parity Borrowings. The Board is asked to adopt a resolution authorizing additional indebtedness not to exceed $3,000,000 for capital projects and property acquisition. Staff’s intention is to utilize the same bank that financed the 2016 borrowing if the terms are favorable; however, this resolution is drafted to allow City staff to solicit proposals from additional banks if we determine the terms are not competitive. As part of a continued strategy to stimulate public and private development within the Glenwood Urban Renewal Area, City staff request authorization to borrow funds for the purpose of property acquisitions to be used for development by the public or private sector on projects described in the Glenwood Urban Renewal Plan. City Attorney Mary Bridget Smith said SEDA would need to amend the repayment intergovernmental agreement (IGA) between the City and SEDA to make it consistent with this borrowing. Depending on how the borrowing goes, staff may be back to get approval on the Master Declaration. Mr. Bell said the financial advisor has reached out to First Interstate who funded the $2M bond and was interested in funding this additional amount. SEDA is actually behind in its borrowing for the 20 year urban renewal district. The original amount was $32M and they have borrowed less than $10M. Ms. Griesel said they had gone through a recession and growth was slow after that in terms of investing in growth. Staff will be updating the financials for the plan for projections. Mr. Bell said the district has only 7 years left for borrowing. Ms. Griesel said the plan is written to have a sunset based on performance. There is some debate about some wording used in the ballot language that may have left room for interpretation that Springfield Economic Development Agency Minutes January 8, 2018 Page 3 our sunset is coming up in 7 years. For that reason, staff is beginning a review and plan/justification to address that issue. Ms. Smith said she will come to SEDA on February 12 to discuss this issue further. She provided some background on the language in the ballot measure from the Glenwood Urban Renewal Plan that said it had a 20-year duration. There is a plausible interpretation that could mean from the date adopted. The plan is actually drafted to be to the indebtedness of a total of $32M, but we need the unqualified opinion from the bond counsel. The short-term plan is to work on this borrowing to get their objective in Glenwood for the property, and come back with refreshed projections and a path to show our urban renewal district for Glenwood extends past 20 years. Board Member Moore confirmed that the $2M borrowed in 2016 had not been spent. She asked if there is a timeline when they have to spend that money. Mr. Bell said it has to be paid back in 7 years, but not necessarily spent. Ms. Griesel said both borrowings are due at the 7 year mark. We have some internal borrowing capacity between the City and SEDA if needed for bridging the gap. There are also other funds for Glenwood project. Mr. Bell said the funds would not be borrowed unless they are able to move forward on purchasing the property. Ms. Griesel said staff can come back with final numbers. An economist is coming on to help take the projections and infuse some real future development so they begin to grow. That means they are doing an assessment on all building permit in the Glenwood area, including those not yet on the tax rolls. Mr. Bell said this borrowing is based on property taxes in the Glenwood urban renewal district for FY18, which is very solid, not including the new hotel. The property tax receipts have to be 1.25 times the amount they want to borrow. This is a borrowing to maximize use of funds within the seven years. IT WAS MOVED BY BOARD MEMBER MOORE WITH A SECOND BY BOARD MEMBER PISHIONERI TO ADOPT RESOLUTION NO. SEDA2018-01. THE MOTION PASSED WITH A VOTE OF 6 FOR AND 0 AGAINST (2 ABSENT – WYLIE AND LEIKEN) OLD BUSINESS – None. ADJOURNMENT The meeting was adjourned at 6:30 p.m. Minutes Recorder – Amy Sowa ______________________ Sheri Moore Secretary