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HomeMy WebLinkAbout2013-01-28 SEDA Meeting Minutes I MINUTES OF THE MEETING OF THE SPRINGFIELD ECONOMIC DEVELOPMENT AGENCY HELD MONDAY,JANUARY 28,2013 The Springfield Economic Development Agency met in the Jesse Maine Meeting Room,225 Fifth Street, Springfield,Oregon on Monday,January 28, 2013 at 7:44 p.m.,with Board Vice- Chair Sean VanGordon presiding. ATTENDANCE Present were Board Vice-Chair Sean VanGordon and Board Members Sheri Moore, Christine Lundberg, Marilee Woodrow, Bob Brew and Dave Ralston. Also present were City Manager Gino Grimaldi,Assistant City Manager Jeff Towery,Attorney Joe Leahy and City Recorder Amy Sowa. Board Chair Hillary Wylie and Board Members Sid Leiken and Faye Stewart were absent (excused). APPROVAL OF MINUTES a. Minutes of December 3,2012. IT WAS MOVED BY BOARD MEMBER WOODROW WITH A SECOND BY BOARD MEMBER RALSTON TO APPROVE THE DECEMBER 3,2012 MINUTES.THE MOTION PASSED WITH A VOTE OF 6 FOR AND 0 AGAINST(3 ABSENT—WYLIE, LEIKEN,AND STEWART). 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 1. Supplemental Budget Resolution. RESOLUTION NO. SEDA2013-01 —A RESOLUTION ADJUSTING RESOURCES AND REQUIREMENTS IN THE FOLLOWING FUNDS: SEDA GLENWOOD GENERAL AND SEDA DOWNTOWN GENERAL FUNDS. Finance Director Bob Duey presented the staff report on 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 • Springfield Economic Development Agency Minutes January 28.2013 Page 2 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. This was the first of two scheduled FY 13 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 and SEDA Downtown General Funds. The overall financial impact of the Supplemental Budget Resolution was to increase the SEDA Downtown General Fund for the purchase of property in the downtown area for the future use of a public plaza as described in the Council adopted Downtown Revitalization Plan. This resolution would also adjust beginning cash in the SEDA Downtown General and SEDA Glenwood General. Lastly it would recognize the increase in anticipated property tax. Mr. Duey explained the adjustments in the supplemental budget resolution. He noted that this was the first year the bakery in Glenwood was on the property tax role, giving an increase of $300,000 to the Glenwood Urban Renewal District. He suggested keeping the additional funds in reserves for this year. It would be nice to have funds to look at for longer term debt as they tried to move from a planning district to more of an infrastructure district. Board Member Ralston asked why SEDA was borrowing for the NEPA project if the taxes were higher than the cost of the project. Mr. Duey said the arrangement between the City and SEDA is that whatever money came in for property taxes must be used to pay previous loans. Mr. Tamulonis noted that the urban renewal district was supposed to be in debt so that was how the repayment scheduled was set. Mr. Duey said SEDA would be paying back $600,000,then borrowing$250,000. He noted that property taxes in the Downtown District were still declining, mainly in commercial so the first adjustment was for beginning cash. The other adjustment was to put the budget in place for possible acquisition of property for the Downtown Plaza. He explained further. Board Member Moore asked about the value of the property. Mr. Duey said about$750,000. Board Member Brew asked if would have rental income. Mr. Duey said yes. but not enough to make the payments. There were currently two tenants; one with a longer-term lease, and one with a short-term lease. Half of the loan for the property would be longer-term financing and the second half would be short-term in order to get it paid off in a reasonable amount of time. As the district developed,they would pay off the longer-term loan. Board Member Moore noted that some of the properties downtown were now schools, which were not taxable. On the other hand,the property values were being increased. She asked about the tax base in downtown. Springfield Economic Development Agency Minutes January 28,2013 Page 3 Mr. Duey said rents were not yet increasing. Until that occurred,the property value downtown would remain fairly flat. That was why he suggested the loan be separated into two loans to allow time for those values to increase. City Manager Gino Grimaldi suggested they make the transfer tonight, but could transfer it back out if they determined they did not want to make the purchase. Mr. Tamulonis said staff would bring back any property purchase discussion to the SEDA Board and City Council for a decision at a later date. He noted that as long as the City leased the property to someone else.the City paid taxes. Mr. Grimaldi said there were other funds for downtown, such as Community Development Block Grant(CDBG)funds. They were setting priorities when making these decisions. Board Member Brew shared Board Member Moore's concern about taxable entities downtown. He liked seeing growth, but wanted to see commercial growth downtown. Discussion was held regarding the positive and negative impacts of non-taxable properties in downtown. Mr. Tamulonis said it was typical for urban renewal districts to have a decrease in tax income in the first five to ten years. He explained. Mr. Duey said staff would come back with information regarding the proposed property. Board Vice-Chair VanGordon opened the public hearing. No one appeared to speak. Board Vice-Chair VanGordon closed the public hearing. IT WAS MOVED BY BOARD MEMBER RALSTON WITH A SECOND BY BOARD MEMBER WOODROW TO ADOPT RESOLUTION NO. SEDA2013-01. THE MOTION PASSED WITH A VOTE OF 6 FOR AND 0 AGAINST(3 ABSENT—WYLIE,LEIKEN AND STEWART). NEW BUSINESS I. Election of New SEDA Board Officers. Community Development Manager John Tamulonis presented the staff report on this item. The chair(currently Hillary Wylie) shall be elected by the Board members of the Agency and shall preside at all meetings of the Agency. After approval by the Board members, except as otherwise authorized by resolution of Board members,the chair shall sign all contracts, deeds and other instruments made by the Agency. At each meeting, the chair shall submit such recommendations and information as the chair may consider proper concerning the business, affairs. and policies of the Agency. (SEDA Bylaws—Art III, Sec 2) The vice chair(currently Sean VanGordon)shall be elected by the Board members of the Agency and shall perform the duties of the chair in the absence or incapacity of the chair: and in case of Springfield Economic Development Agency Minutes January 28,2013 Page 4 AIM resignation or death of the chair,the vice chair shall perform such duties as are imposed on the chair until such time as the Board shall elect a new chair. (SEDA Bylaws—Art III, Sec 3) The secretary(currently Sheri Moore) shall be elected by the Board members of the Agency and shall perform the duties of the chair in the absence or incapacity of both the chair and the vice chair,and shall perform the duties of the vice chair when the latter acts as chair. In coordination with the staff liaison,the secretary shall keep the records of the Agency,act as secretary of the meetings of the Agency and record all votes,keep a record of the proceedings of the Agency, perform all duties incident to the office,and keep in safe custody all records confirmed by the Board members of the Agency. (SEDA Bylaws—Art III, Sec 4) IT WAS MOVED BY BOARD MEMBER WOODROW WITH A SECOND BY BOARD RALSTON TO KEEP THE CURRENT SLATE OF OFFICERS.THE MOTION PASSED WITH A VOTE OF 6 FOR AND 0 AGAINST(3 ABSENT—WYLIE,LEIKEN AND STEWART). OLD BUSINESS -None. Mr. Tamulonis said he would be proposing an adjustment to the Board. That would go to the City Council first,then back to the SEDA Board. ADJOURNMENT The meeting was adjourned at approximately 8:00 p.m. Minutes Recorder—Amy Sowa - heri Moore • Secretary C