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Home My WebLink About2012-01-23 SEDA Meeting Minutes • MINUTES OF THE MEETING OF THE SPRINGFIELD ECONOMIC DEVELOPMENT AGENCY HELD MONDAY,JANUARY 23,2012 The Springfield Economic Development Agency met in the Library Meeting Room,225 Fifth Street, Springfield,Oregon on Monday,January 23,2012 at 7:12 p.m.,with Board Chair Dave Ralston presiding. ATTENDANCE Present were Board Chair Dave Ralston and Board Members Hillary Wylie, Sheri Moore, Christine Lundberg, Sid Leiken, Sean VanGordon,Faye Stewart,Marilee Woodrow,and Joe Pishioneri. Also present were City Manager Gino Grimaldi,Assistant City Manager Jeff Towery, Attorney Mary Bridget Smith,Community Development Manager John Tamulonis and City Recorder Amy Sowa. APPROVAL OF MINUTES a. Minutes of December 5,2011. IT WAS MOVED BY BOARD MEMBER PISHIONERI WITH A SECOND BY BOARD MEMBER WOODROW TO APPROVE THE DECEMBER 5,2011 MINUTES.THE MOTION PASSED WITH A VOTE OF 9 FOR AND 0 AGAINST. COMMUNICATIONS a. Business from the Audience -None b. Correspondence -Finance Director Bob Duey spoke regarding property taxes for both urban renewal districts in Springfield.Neither area was doing well with the current economy.The tax funds in 2009 for the Glenwood District were about$337,000,for 2010 about$284,000, in 2011 about$264,000,and for FY2012 they were estimated at about$277,000.The Bakery had one more year left on the Enterprise Zone, so would be coming on in the next year. The tax funds in 2009 for the Downtown District were $140,000,for 2010 about$219,000,for 2011 about$174,000,and for FY2012 were estimated at$170,000. Downtown would probably stay at about that rate until some improvements were made on the properties. Councilor Pishioneri asked how the bakery was doing. Mr. Duey said they were doing well. The value of the property would be fluctuating. He explained. Mr. Duey said notice was received that all of the individual attorneys that had worked for the bond counsel K&L Gates had left and gone to another firm in Portland.The City decided to follow those staff to the new firm,Hawkins,Delafield,and Wood LLP. The same bond counsel was used for the City of Springfield,Metropolitan Wastewater Management Commission(MWMC),and SEDA, and the staff had a lot of experience. Springfield Economic Development Agency Minutes January 23,2012 Page 2 Mr. Duey said one of the directions from the Downtown Plan was to look into purchasing property for the plaza site. Staff had been working on that with property owners. Of three of the parcels,the one with the highest value was the middle parcel. They had a willing seller so staff was concentrating on that property. With the property tax situation, SEDA couldn't borrow money very easily. They were looking at the City purchasing the property to secure it and then doing some internal borrowing to pay that back through rent and tenants. When the urban renewal agency was ready,they would have to buy the property from the City or pay off the balance. The main point was to secure the property. Councilor Ralston asked how much the property cost. Mr. Duey said $750,000. Mr. Tamulonis said there were three parcels the City was looking at,with three different owners.There were current leases on the property under consideration. Those could be rented and used to pay back the loan. The other buildings had tenants and the City was still in discussions with those people.The central parcel was a two-story building with a beauty school and Northwest Martial Arts training. The property owner owned the building and one of the businesses,and was ready to alleviate himself of some of the responsibility. Councilor Ralston asked about the geographic area of the plaza. Mr.Tamulonis said it would be between Norm Dahlquist's business on the west,Pioneer Parkway West on the east,two apartment buildings to the north,and the motorcycle shop to the south.The area did not include those businesses,but was surrounded by those businesses. Board Member Leiken said it sounded like it was close to the original spring of Springfield. c. Business from the Staff. None. REPORT OF CHAIR REPORT OF COMMITTEES PUBLIC HEARINGS I. Supplemental Budget Resolution. Finance Director Bob Duey presented this item.At various times during the fiscal year the SEDA Board of Directors were requested to make adjustments to the annual budget to reflect needed changes in planned activities,to recognize new revenues,or to make other required adjustments. These adjustments to resources and requirements changed the current budget and were processed through supplemental budget requests scheduled by the Finance Department on an annual basis. Springfield Economic Development Agency Minutes January 23,2012 Page 3 This was the first of two scheduled FY 12 supplemental budget requests to come before the SEDA Board of Directors. The supplemental budget being presented included adjusting resources and requirements in the SEDA Glenwood General, SEDA Downtown General, and SEDA Glenwood Capital Project Funds. The Glenwood District Operating Fund (#229)had a negative beginning cash adjustment of $5,657 and an increase in its internal borrowing from the City by $250,000 to facilitate of the purchase of property located at 4095 Franklin Blvd in accordance to Resolution 2011-03 passed on December 5, 2011. The Glenwood Districts Capital Project Fund (#429)was adjusted only for beginning cash in the amount of$41,189. The Downtown District Operating Budget(#429)had a negative beginning cash adjustment of $457 and increased its internal borrowing from the City by $85,900. The increase in the internal borrowing/debt service did not increase or decrease any of the scheduled activities for the fiscal year. It was an on-paper only budget step to fulfill the requirements of the loan agreement between the SEDA and the City where SEDA must repay to the City each December any property taxes received from the County towards its outstanding loan balance and then in turn borrow additional resources from the City for budgeted activity. The net impact was $0. As of December 31,2011 the outstanding principal balance owed to the City from the Glenwood District was$510,449 and from the Downtown District was $82,479 with a budget authorized net additional borrowing by both districts this fiscal year of$400,000. The maximum borrowing capacity for this loan was$1.5M. Board Member Pishioneri asked when the most current appraisal was done on the Tom's Tapper property. Mr. Tamulonis said it was just a few months old. Board Chair Ralston opened the public hearing No one appeared to speak. Board Chair Ralston closed the public hearing. IT WAS MOVED BY BOARD MEMBER WYLIE WITH A SECOND BY BOARD MEMBER WOODROW TO ADOPT RESOLUTION NO.2011-. THE MOTION PASSED WITH A VOTE OF 9 FOR AND 0 AGAINST. NEW BUSINESS 1. Election of Officers. Community Development Manager John Tamulonis presented this item. The chair,vice chair, and secretary shall be elected annually by the Agency from among the Board members at the first regular meeting of the Agency each year, and shall hold office for one year or until their successors are elected and qualified (SEDA Bylaws—Art III, Sec 6). Nothing in the SEDA by- laws prohibited current officers from being re-elected to positions for another year. Springfield Economic Development Agency Minutes January 23,2012 Page 4 IT WAS MOVED BY BOARD PISHIONERI WITH A SECOND BY BOARD MEMBER WOODROW TO ELECT BOARD MEMBER WYLIE TO THE POSITION OF PRESIDENT,AND BOARD MEMBER VANGORDON TO THE POSITION OF VICE CHAIR. THE MOTION PASSED WITH A VOTE OF 9 FOR AND 0 AGAINST. IT WAS MOVED BY BOARD MEMBER PISHIONERI WITH A SECOND BY BOARD MEMBER RALSTON TO ELECT BOARD MEMBER MOORE TO THE POSITION OF SECRETARY. THE MOTION PASSED WITH A VOTE OF 9 FOR AND 0 AGAINST. Board Chair Wylie presided over the remainder of the meeting. OLD BUSINESS None. ADJOURNMENT The meeting was adjourned at approximately 7:26 p.m. /- Minutes Recorder—Amy Sowa • II/ ,�• Sheri Moore P. Secretary