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Home My WebLink About2012-08-14 URA MinutesPage 1 of 4 Regular Meeting CALDWELL URBAN RENEWAL AGENCY August 14, 2012 – 12:00 Noon Caldwell City Hall, Mayor’s Conference Room The regular scheduled meeting of the Caldwell Urban Renewal Agency convened at 12:00 Noon on August 14, 2012 in the Caldwell City Hall conference room with Chairman ElJay Waite presiding. Roll was called: Present: ElJay Waite, Rob Hopper, Kathy Alder, Scott Syme and Leona Fouts. Ex Officio Commissioner present: Mayor Garret Nancolas Guests: Jamie Hoover Motion to amend the agenda to include New Business item #4A: Audit Engagement Letter, and approve the agenda as amended: Alder/Fouts M/S/P Motion to approve the minutes of the July 3, 2012 meeting: Fouts/Alder M/S/P OLD BUSINESS #1: CEDC Activity Report provided by the CEDC Board. Steve Fultz was out of town, report was read by Scott Syme. Highlights for July/August 2012 • Downtown Project…received letters from three different developers…CEDC Business and Retention Committee to review letters next week • Proposed office project in downtown…working with the City and with the potential developer/end-user on potential restoration of historic building with high-end office use • Commercial user for Caldwell (with potential in downtown) meeting with developer on 8/8/12…considering up to six sites in Boise Valley, with possibly three sites in Caldwell • Project Fish…site visit on 8/9/12 with owner, Mayor, engineers, and BVEP. Looking at the FTZ for potential site. Decision within 90 days. Need is ultimately 20,000 + sq ft for mfg, office, assembly. 20 + quality jobs • Project White…site visit week of 8/13/12 with owner for a 45,000 sq ft facility, and creation/retention of 80- 120 jobs. Potential FTZ user • Project Finish…site visit week of 8/20/12 with owner. 70,000 sq ft building with creation of 50-75 quality jobs. FTZ user • Project Prop…site visit in July, offer made…expect decision any day. Considering temporary site while building new facility. 15,000 sq ft facility with the creation of 15-20 new high-end jobs at airport • Project Center…new lead for the airport area…proposing new construction of 18,000 sq ft expandable, with creation of 15-25 new high-end jobs. Job creation grant information shared • Project Sweet…working with Russ Fulcher on potential large project to Caldwell. 100,000 sq ft and 300 + jobs. Anticipate site visit within the next 30-45 days • Project Aspen…100,000 sq ft facility headquartered in Canada. Potential 100+ jobs. Several correspondences with company owned, expect potential site visit in September. FTZ user • July developer meeting at Department of Labor with several developers, engineers, commercial real estate brokers, and lending institution in attendance • Continued work with Freehold Development on agreement and strategy for business recruitment #2 FTZ Update - No report #3 Downtown Project Update – No report Page 2 of 4 NEW BUSINESS #1 Review 2012 TVCC Lease Amendment. Chairman Waite presented a draft of the new verbiage for the TVCC lease agreement Section Eight – Maintenance & Repair; and Section Sixteen – Capital Improvements/Replacement Funds. The changes allow for the following: • New verbiage: $20,000 of the lease payment increase in Years 2-5 rent earmarked for ongoing maintenance and repair of mechanical equipment (Year-1 was covered under warranties). • Verbiage to specifically include expansion of student enrollment as an option for usage of the $20,000 lease payment increase in Years 3-5, in addition to uses already stated in the agreement (i.e. expand educational program offerings, locations and any other purpose approved by lessor to promote economic development). Chairman Waite noted that these additional funds are revenue from non-incremental sources which allows URA some flexibility in usage of the funds. The goal of the TVCC project to enhance economic development is what drives URA’s application and use of these funds. Scott Syme reported on his meeting with Dr. Kathleen Robinson and tour of TVCC. He noted a potential disconnect between TVCC and the business community. Commissioner Syme believes that business community education and training needs could be better communicated so TVCC could provide additional class offerings. Through commissioner discussion, it was noted that some businesses are very receptive to offering their facilities for classes. Also, partnerships with the Job Corp, CWI, and College of Idaho should be considered. It was further noted that CEDC would be the most effective liaison for communicating business needs and facility space with TVCC. Chairman Waite will schedule a meeting with Dr. Robinson and Steve Fultz to further discuss opportunities. The lease amendment is being reviewed by URA’s attorney and the final draft will be presented to the commissioners upon approval by legal counsel. #2 Review 2013 URA Tentative Budget and Set a Public Hearing for September 4, 2012. Chairman Waite presented the final URA budget for the 2012-2013 Fiscal Year. Motion to accept the budget and schedule a public hearing for September 4, 2012: Alder/Hopper M/S/P #3 Discussion of TVCC/City relationship (Requested by Commissioner Syme). Commissioner Syme presented a motion requesting a broker price opinion on the market price of the TVCC building and the estimated CAP rental rate at 7.5%. Discussion determined that the estimate would be valid for approximately 6 months; the building was constructed 2 years ago so the value is already known. Commissioners could not ascertain the need for such information in light of the lease agreement with TVCC and the relationship with Caldwell City and CEDC. Motion died for lack of second. #4 Discuss Freehold Development Proposal for a “Cooperative Lane & Economic Development Agreement”. Jamie Hoover, Freehold Development, presented a Draft Agreement for Cooperative Land and Economic Development between the City of Caldwell, Caldwell East Urban Renewal Agency and Freehold Development. The purpose of the agreement is to set in contract a five year term, Page 3 of 4 pricing, marketing and other criteria relating to the sale of Freehold and URA properties in the Sky Ranch Business Park. Jamie stated a need to know his strike point in pricing as he negotiates land deals with potential buyers. Commissioner points of concern were: • It creates a trust that extends for five years and presumes validity when transfer of property to the City occurs at URA’s sunset in 2014. • The City’s land regulations are different than those of an urban renewal agency and the City may not be able to fulfill the criteria in this agreement upon receipt of the land from URA. Chairman Waite stated that it is the intent of both URA and Freehold Development to sell all parcels before the sunset date of 12/31/2014. This proposed Agreement may not be necessary if the current level of activity and interest is any indication of the speed with which these parcels will sell. Commissioners were asked to review the proposed agreement and be prepared to consider the agreement at a subsequent meeting. #4A Audit Engagement Letter Chairman Waite presented a Letter of Engagement from Eide Bailly for $4,100 for their services in conducting the URA audit for this fiscal year. The price is 10% less than last year. Motion to approve the letter of engagement and authorize Chairman Waite to sign on behalf of URA: Fouts/Alder M/S/P #5 Finance Report provided by Rob Hopper: Bank of the Cascades Business Ckg Ending Balance Earnings June 30, 2012 2,207,716.87 -0- Qtrly TCD Interest July 31, 2012 2,210,733.62 -0- Qtrly TCD Interest Bank of the Cascades Time CD#1 Ending Balance Earnings May 4, 2012 250,000.00 Qtrly to checking acct Balance will remain constant. Interest earnings deposited to Business Ckg Wells Fargo Savings (#8890) Ending Balance Earnings June 30, 2012 1,065,685.40 43.80 July 31, 2012 1,065,730.65 45.25 Wells Fargo Checking (non-interest) Ending Balance Earnings June 30, 2012 3,845.98 0 July 31, 2012 3,845.98 0 Wells Fargo Money Market (#8601) Ending Balance Earnings June 30, 2012 53,591.08 2.20 July 31, 2012 53,593.36 2.28 Local Government Investment Pool Ending Balance Earnings June 30, 2012 108,008.83 18.66 July 31, 2012 108,026.85 18.02 Zions Bank (Bond Debt Service) Ending Balance Earnings Page 4 of 4 June 30, 2012 Fund 96 2,620,407.35 266.58 July 31, 2012 Fund 96 4,713,053.47 None reported #6 Invoices presented for payment: presented by Rob Hopper. $ 1,250.00 Simply Stylin’ Salon Business Incentive $ 25.00 City of Caldwell Lunch – Aug 7 $ 127,536.65 Sun Trust 2007 Revenue Note $ 128,811.65 Motion to approve invoices: Fouts/Alder M/S/P #7 Commissioner Reports Commissioner Alder reported that the County is moving forward with their building plans and looking for private investors. The next meeting will be held September 4, 2012 at 12:00noon. Motion to adjourn: Hopper/Syme M/S/P Meeting concluded at 1:23pm. Respectfully submitted, Leona Fouts Secretary