HomeMy WebLinkAbout01-27-2012 INDUSTRIAL DEVELOPMENT CORP K
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INDUSTRIAL DEVELOPMENT CORP.
BOARD MEETING
January 27, 2012
10:10 A.M.
Mayor Garret Nancolas called the Industrial Development Corporation Board (IDC) Meeting to order.
The following Board Members were present: Julie Taylor, Ron Gipson, Rick Skinner, Steve Fultz, and
Janie Aguilar.
CONFLICT OF INTEREST DECLARATION
Nancolas reported that Mark Hilty had submitted a letter resigning as a member of the Board of
Directors for the IDC. Hilty stated in his letter that it would present a conflict of interest for him to
serve as both legal counsel for the City (and by extension the IDC) while also serving on its Board.
PRESENTATIONS
Rick Skinner of Skinner Fawcett LLP stated that the first business of the Board would be to elect
officers: President, Vice President, Secretary, and Treasurer.
MOVED by Fultz, SECONDED by Taylor to nominate Gipson as President of ?DC.
Those in favor: unanimous.
MOTION CARRIED
MOVED by Taylor, SECONDED by Fultz to nominate Aguilar as Vice President of IDC.
Those in favor: unanimous.
MOTION CARRIED
MOVED by Nancolas, SECONDED by Aguilar to nominate Debbie Geyer as Secretary of IDC.
Those in favor: unanimous.
MOTION CARRIED
MOVED by Nancolas, SECONDED by Fultz to nominate Taylar as Treasurer of IDC.
Those in favor: unanimous.
MOTION CARRIED
Skinner stated that the purpose of the meeting was to reinstitute this committee for the project
proposed by the manufacturing business, Southwark Metal Manufacturing Co. (Southwark). He
prepared two documents for the board to review: 1) inducement Resolution No. 2012-1 and 2)
Indemnification and Compensation Agreement.
Fultz spoke about the Southwark project and gave a brief summary of the business and their
background. He reported that Southwark already has their financing in arder and their bonding. To
start, they expect to build an 80,000 square foot building on a 12 acre parcel with about 30 employees.
Future expansion is expected. Employee wages will start at $l0 per hour with an additional benefit
package valued at $5.50. Management positions will be in the $75,000 range.
Fultz asked whether Southwark could request inducements once they expand. Skinner responded that
yes, they can. Skinner also spoke about the bond process and the tax savings on the bonds.
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Skinner stated that documents will be coming forward for the board to approve. The bond issuance
would need to be approved by the board and the Caldwell City Council as well. He stated that there is
an IRS limit of about $270 million for private activiry bond issuance in Idaho. However, this should �
not be a problem with this project.
Skinner identified the process for this project: signature of documents, public notice, public hearing
board and council approval, and closing. During closing, there will be more documents that wouid
need to be completed. These documents would require the signatures of the IDC President and
Secretary. This process would take approximately one month to two months.
Skinner reported that the protections for this project are the indemnification agreement, state statutes,
and the bonds. The liabilities would be that essentially anyone can sue and Southmark would need to
make sure that they could cover the legal costs. Also, board members are liarle should they act in a
negligent manner.
Gipson asked whether the $5.5 million bond was sufficient far the notice of this project. Skinner stated
that the small issuance of manufacturing bonds is limited to $10 million. He stated that setting the band
amount is important in order to avoid having to go through this process again. However, he noted that
Southwark is planning on using some of their own money.
Skinner presented the Inducement Resolution No. 2012-1 and reviewed the language with board
members.
Fultz reported that the City's development team is moving aggressively on this project. He expects
them to have a plat for this project to City Council on February 21, 2012.
MOVED by Fultz, SECONDED by Taylor to approve and authorize the execution of the Inducement
Resolution No. 2012-1 as written.
Those in favor: unanimous.
MOTION CARRIED
Skinner will work with Geyer to prepare the notice and send out for publication. He anticipated that the
next meeting with the board would be within a month to six weeks from now.
Nancolas asked if anyone had any concerns about this project or how other business leaders may feel
about this project. Aguilar stated that her concerns and liability issues were answered by Skinner.
Gipson stated that the City has been really good about trying to get businesses to Caldwell and this is a
good thing; the city needs this.
Nancolas spoke about Urban Renewal's role in making these types of projects and growth in Caldwell
possible.
MOVED by Aguilar, SECONDED by Taylor to approve and authorize the execution of the
Indemnification and Compensation Agreement as written.
Those in favor: unanimous.
MOTION CARRIED
The documents were signed by the President and will be signed by the Secretary and mailed to
Skinner.
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ADJOURNMENT
MOVED by Fultz, SECONDED by Nancolas to adjourn at 10:57 a.m.
MOTION CARRIED
APPROVED AS written THIS 27`
DAY OF January 2012.
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