HomeMy WebLinkAbout2015-10-19 SEDA Meeting Minutes MINUTES OF THE MEETING OF THE
SPRINGFIELD ECONOMIC DEVELOPMENT AGENCY
HELD MONDAY OCTOBER 19,2015
The Springfield Economic Development Agency met in the Council Chambers,225 Fifth Street,
Springfield,Oregon on Monday October 19,2015 at 7:32 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,Hillary Wylie and Dave Ralston. Also
present were City Manager Gino Grimaldi,Attorneys Mary Bridget Smith and Lauren King,and
City Recorder Amy Sowa.
Board Member Leiken was absent(excused).
APPROVAL OF MINUTES
a. Minutes of July 13, 2015
IT WAS MOVED BY BOARD MEMBER WOODROW WITH A SECOND BY BOARD
MEMBER PISHIONERI TO APPROVE THE JULY 13,2015 MINUTES.THE MOTION
PASSED WITH A VOTE OF 7 FOR AND 0 AGAINST(1 ABSENT—LEIKEN).
CCOMMUNICATIONS
a. Business from the Audience -None
b. Correspondence -None
c. Business from the Staff-None
REPORT OF CHAIR -None
REPORT OF COMMITTEES -None
PUBLIC HEARINGS-None
NEW BUSINESS
1. Intergovernmental Capital Project Loan to Springfield Economic Development Agency:
Franklin Blvd Improvement Project Phase 1.
RESOLUTION NO. SEDA2015-05—A RESOLUTION AUTHORIZING INDEBTEDNESS
FOR CAPITAL PROJECTS DESCRIBED IN THE URBAN RENEWAL PLAN FOR THE
GLENWOOD URBAN RENEWAL AREA.
Finance Director Bob Duey presented the staff report on this item.
Springfield Economic Development Agency Minutes
October 19,2015
Page 2
The Council has previously approved in the 5-Year CIP the capital project to improve Franklin
Blvd within the Glenwood Urban Renewal Plan. Phase 1 of this project has already been initiated
with expenses incurred for design work and right-of-way acquisition. The project budget and the
Adopted Budget for FY 15 documented the need to borrow the required $3.6M match for Phase 1.
The Springfield Economic Development Agency(SEDA)had included this borrowing as part of
their adopted budget for FYI5 but subsequent decisions on the project concerning the application
for the Tiger 7 grant has delayed the actual borrowing until this year.
Staff is now recommending that the City proceed with completing the financing for Phase 1 by
initiating a loan from the City to SEDA in the amount of$3,000,000. This loan would be paid
back over a period not to exceed 10 years. This financing arrangement still allows for the
possible $3.6M in external financing to able to be made available for Phase 2 if the Tiger 7 grant
is received.
IT WAS MOVED BY BOARD MEMBER WOODROW WITH A SECOND BY BOARD
MEMBER PISHIONERI TO ADOPT RESOLUTION NO. SEDA2015-05. THE MOTION
PASSED WITH A VOTE OF 7 FOR AND 0 AGAINST(1 ABSENT—LEIKEN).
IT WAS MOVED BY BOARD MEMBER WOODROW WITH A SECOND BY BOARD
MEMBER PISHIONERI TO APPROVE THE INTERGOVERNMENTAL AGREEMENT
TO MAKE FINANCIAL PAYMENTS. THE MOTION PASSED WITH A VOTE OF 7
FOR AND 0 AGAINST(1 ABSENT—LEIKEN).
1. Authorization to Incur Debt for Franklin Blvd. Improvement Project Phase 2.
RESOLUTION NO. SEDA2015-06—A RESOLUTION OF THE CITY OF SPRINGFIELD,
OREGON AUTHORIZING FINANCING OF CAPITAL PROJECTS DESCRIBED IN THE
URBAN RENEWAL PLAN FOR THE GLENWOOD URBAN RENEWAL DISTRICT.
Finance Director Bob Duey presented this item.
The City's decision to seek Tiger 7 matching funds for the Franklin Blvd Project Phase 2 has
resulted in the combined match of the City for Phases 1 and 2 to increase from $3.6M to $9.6M.
The award of the additional grant funds has not yet been determined but staff is recommending
that action be taken by the Council at this time to put the financing plan in place so that if
awarded in the near future the City will be more readily able to move into the grant award
negotiation phase.
To be able to fund the required $9.6M in matching funds for the combined project it will be
necessary for the City to borrow$3.6M from an external source. This amount is the same as what
the City had originally intended to borrow as part of Phase 1 but that requirement has now been
met through internal resources. An Intergovernmental Agreement to Make Financing Payments
between the City and SEDA will allow for the repayment of the loan with tax increment
financing. If the Tiger 7 grant is not awarded to the City,the borrowing of any resources from
this action for Phase 2 will be tabled.
Board Member Wylie asked if inner-borrowing was good practice according to other Urban
Renewal and City projects in other communities.
Springfield Economic Development Agency Minutes
October 19,2015
Page 3
Mr. Duey said it was not uncommon. They could send out a Request for Proposals(RFP)to
banks,choose one and negotiate to get urban renewal as the primary loan agency, but they would
have to pay interest rates and other costs. With the City being able to do this,we will get the best
interest rate. We have faith in our urban renewal district for payback so there is no risk on the
City's part. It allows SEDA to move forward. When dealing with debt for urban renewal districts,
they have to have the increment taxes already in place,not what they will be after the investment.
Each project that helps generate tax increment financing revenue helps finance the next project.
Board Member Moore asked how much time until completion of the project that will bring in
additional revenue.
Mr. Duey said the Franklin Boulevard project will not bring in taxes, but will encourage
development.They will start construction of Franklin Boulevard Phase I in 2016 and finish in
2017. Phase II would start during the next construction season.
IT WAS MOVED BY BOARD MEMBER PISHIONERI WITH A SECOND BY BOARD
MEMBER WOODROW TO ADOPT RESOLUTION NO. SEDA2015-06. THE MOTION
PASSED WITH A VOTE OF 7 FOR AND 0 AGAINST(1 ABSENT—LEIKEN).
IT WAS MOVED BY BOARD MEMBER PISHIONERI WITH A SECOND BY BOARD
MEMBER WOODROW TO APPROVE THE INTERGOVERNMENTAL AGREEMENT
TO MAKE FINANCING PAYMENTS. THE MOTION PASSED WITH A VOTE OF 7
FOR AND 0 AGAINST(1 ABSENT—LEIKEN).
OLD BUSINESS -None.
ADJOURNMENT
The meeting was adjourned at approximately 7:40 p.m.
Minutes Recorder—Amy Sowa
Marilee Woodrow
Secretary