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HomeMy WebLinkAbout2009-03-09 SEDA Meeting MInutes MINUTES OF THE MEETING OF THE SPRINGFIELD ECONOMIC DEVELOPMENT AGENCY HELD MONDAY,MARCH 9,2009 The Springfield Economic Development Agency met in the Jesse Maine Meeting Room, 225 Fifth Street, Springfield, Oregon on Monday,March 9,2009 at 7:18 p.m.,with Board Chair Joe Pishioneri presiding. ATTENDANCE Present were Board Chair Joe Pishioneri and Board Members Terri Leezer, Sid Leiken,Christine Lundberg,John Woodrow,Dave Ralston and Faye Stewart. Also present were City Manager Gino Grimaldi,Attorney Bill Van Vactor, Community Development Manager John Tamulonis and Minutes Recorder Trudy Borrevik. Board Members Hillary Wylie and Bill Dwyer were absent. APPROVAL OF MINUTES a. Minutes of February 9, 2009. IT WAS MOVED BY BOARD MEMBER WOODROW WITH A SECOND BY BOARD MEMBER LUNDBERG TO APPROVE THE FEBRUARY 9,2009 MINUTES. THE MOTION PASSED WITH A VOTE OF 7 FOR AND 0 AGAINST (2 ABSENT—DWYER AND WYLIE). COMMUNICATIONS a. Business from the Audience None. b. Correspondence None. c. Business from the Staff. Community Development Manager John Tamulonis presented a brief update on the three(3) Department of Administrative Services(DAS)parcels that SEDA was looking at acquiring at the west end of Glenwood which he pointed out on a map. He advised that he was in the process of describing the access that would be shared with the DAS motor pool which should be done within a couple of weeks. Board Chair Joe Pishioneri asked if BRING was associated with the property across the slough. John Tamulonis stated yes that the central receiving station site does have BRING activities on it to recycle some materials. Mr.Pishioneri stated it was his understanding that they just applied for and are very close to be awarded a restoration grant of approximately$2M in that area. Springfield Economic Development Agency Minutes March 9,2009 Page 2 John Tamulonis stated they were looking at trying to enhance the public stormwater activities in that area. Mr. Tamulonis said he would talk with Julie Daniels from BRING about the grant. REPORT OF CHAIR None. REPORT OF COMMI I-11,ES None. PUBLIC HEARINGS None. NEW BUSINESS a. Possible Property Acquisition. Community Development Manager John Tamulonis presented the staff report on this item. Mr. Rucker offered to sell the commercial property at 4340 Franklin Boulevard(formerly Action Rental) for$450,000 pending,among several items,an acceptable Title Report,an appraisal supporting the price,and acceptable Environmental Site Assessments indicating the property as clean before purchase.Because of the timelines and unresolved issues that may require additional actions by the owner and SEDA, staff is requesting the City Manager be authorized to complete any additional steps necessary prior to purchase and,if conditions are resolved and acceptable,the purchase itself. The appraisal (Attachment 2) indicated a value of$390,000 and a Level 1 Environmental Assessment(Attachment 3)indicated the need for tests in a Level 2 Environmental Assessment on the site(Attachment 4).As a result of the appraisal findings and the Level 1 Environmental study,the owner extended the purchase timeline to March 20,2009 and amended the purchase price to$400,000 (Attachment 5). Bergeson-Boese completed the Level 2 Environmental Assessment on site and their results and report may be available for this SEDA meeting.The report may indicate the possible need for further environmental study or remediation work at the site. If remediation or clean-up is needed,it would be the responsibility of the property owner to `cure'the problem condition before the purchase is acceptable to or completed by the buyer. SEDA interest in this Glenwood parcel may help resolve some issues related to access for properties with the future development of the roundabout,riverfront bike path connections,and public transit access. Funds are available and budgeted for SEDA to acquire these properties for the revised purchase price of$400,000.There is a small month-to-month rental income from the bank storing equipment in the buildings from the last occupant of the facilities. Board Member Woodrow asked if it was in the city limits. No. Does it automatically go into the city limits if purchased? Not unless SEDA asks staff to apply for annexation. Springfield Economic Development Agency Minutes March 9,2009 Page 3 Mr. Tamulonis explained why this property was being looked at and how the property could be developed with other projects. Board Member Leiken asked if it were to be annexed would it be required to go through the same annexation process as a privately owned company and also be charged the same annexation fees as a resident. Yes. He said based on that he thought it was a good idea to purchase and that the appraisal of the property when annexed in would be substantially higher than where it is today. He stated that based on the report as far as the environmental assessments is concerned; it looks like it's a former 1000 gasoline storage tank that was decommissioned and removed in July, 1990 and pre-dated what the State has now mandated as far as clean up is concerned. He also stated that it wasn't SEDA's issue and based on the environment assessment it was somewhat minor and that he liked that it was reduced to$400,000. He suggested that if there are additional requirements as far as the environmental assessments are concerned,that is the seller's responsibility. Mr.Tamulonis stated that was correct and that it pre-dated the current ownership which brought the property on the premise that there was never an underground storage tank on the property. So there may be some other recourse for the current property owner for clean up. Board Member Stewart asked if SEDA does go forward with annexation on this property,can multiple parcels could be brought in for annexation under one application. Yes. Mr.Tamulonis stated that the other 3 parcels adjacent to this property are already within the city limits. Board Member Stewart asked how the purchase would be paid for. Do we have the money or are we going to have to borrow it through a loan from the city? Is enough money being received from the district to service the debt? Bob Duey,Finance Director, stated No that at this point most of the operating dollars being • received by SEDA are going back into operations such as the Glenwood Refinement Plan. The actual purchase of the property would be done through a loan from the city which has a payback option of interest only until such time as the city agrees to be paid back.There is currently enough revenue to pay interest only on a loan. Mr.Tamulonis stated that we would be working actively to resell the property as quickly as possible and that there are currently buyers interested in the property. IT WAS MOVED BY BOARD MEMBER WOODROW WITH A SECOND BY BOARD MEMBER RALSTONTO AUTHORIZE THE CITY MANAGER TO FOLLOW- THROUGH ON SEDA'S POSSIBLE ACQUISITION OF THE RUCKER PROPERTY AT 4340 FRANKLIN BOULEVARD IN GLENWOOD NEAR THE DOWNTOWN BRIDGES. THE MOTION PASSED WITH A VOTE OF 7 FOR AND 0 AGAINST(2ABSENT— DWYER&WYLIE) Mr. Tamulonis stated that he would bring back a short analysis of the annexation possibility for this property. Board Member Leiken stated he would like to see what the costs are going to be to SEDA. Springfield Economic Development Agency Minutes March 9,2009 Page 4 OLD BUSINESS None. ADJOURNMENT The meeting was adjourned at 7:33 p.m. Minutes Recorder—Trudy Borrevik Christine Lundberg Secretary