Tax Increment Financing Industrial District Number 2 Board

TIFID #2 Board (Mill Creek) Meeting Thursday, June 16, 2016 – 4:00pm ADLC 3rd Floor Courtroom Members Present: Vice Chair Carl Nyman, James Davison, Bill Finnegan, and Leonard Hoscheid Members Absent: Gene Vuckovich, Gerry Nolan, Rich Rivers Guests: Sarah Jones and John Roseberry, Copper Environmental Consulting Others Attending: Eric Hoiland, ADLC Treasurer; Julie Pooley, Clerk of Commission; and Kevin Hart, ADLC Commission Chair Vice-Chair Carl Nyman called the meeting to order at 4:10 p.m. Approval of the May 12, 2016 Minutes: Bill Finnegan questioned whether proxy voting was allowed and Eric Hoiland informed him the County Attorney said no. As a result, the bylaws will need to be amended. He will add this as an agenda item for an upcoming meeting. Bill Finnegan moved to approve the minutes from the May 12, 2016 meeting; seconded by Leonard Hoscheid. Motion carried unanimously. Update on the Fatbeam Project with the School District Jim Davison informed the board that the Downtown TIFD came up with the match for this project. Broadband should be installed by Thanksgiving and up and running by Christmas. The long-term plan is to run it out to the Mill Creek TIFID area and out to Job Corps. Developer’s Packet for Phase II Implementation Jim Davison suggested including general information about the community, as well as information regarding utility services, population, work force, and broadband systems. He also suggested information about program funding, as well as information about Anaconda’s educational system and its transportation advantages. Sarah Jones informed the board that Copper Environmental would like to focus on a marketing packet as the first step in the process. She envisions three steps in this process: A developer’s packet, a website and a marketing strategy. Page 1|4 Carl Nyman would like to include a series of maps – aerial maps with boundaries, utility maps and topographical maps. Information regarding Superfund can be included in the second or third phase of information that gets distributed. Sarah Jones would like to focus on a general developer’s packet, a website and a targeted developer’s packet depending on what type of industry is requesting information. Jim Davison informed the group the State brought a company through town and Dave McCarthy prepared a packet. He noted this packet needs to be cleaned up a little bit but it would be a good start for a developer’s packet. Mr. Davison and Ms. Jones both emphasized that the website needs to be a marketing tool but once a developer “signs in” the information would become more technical and tailored to the developer’s questions and needs. They both agreed it should be accessible but separate from the County’s website and include links to Montana government offices. The group agreed it would be best to utilize all the resources that are currently in place in order to stay within budget. Commissioner Hart suggested creating a domain name under the contract the County has with Vauthier Ferguson in order to cross-link the websites. The group discussed a timeline for the project and determined there should be a series of dates for upcoming meetings. Carl Nyman reminded everyone that meetings must be noticed if a quorum of the board is going to be present and official action taken. The group agreed the best way to disseminate information is through Eric Hoiland. Sarah Jones suggested the first deliverable of the project should be a schedule and an outline describing what information is needed from each individual. Carl Nyman informed Ms. Jones he has a packet from the Missoula Development Corporation which he will forward to her. Commissioner Hart informed the group that the Commission has full faith in the TIFID Board and Copper Environmental. The Commission will not impede the process, it will hold Special Meetings if necessary to approve funding and will do everything necessary to ensure development takes place. Sarah Jones asked how often the Commission would like input and Commissioner Hart noted he will always try to attend the TIFID meetings. Eric Hoiland noted the Commission will always be involved regarding any decisions involving land or finances. Budget Discussion for Next Fiscal Year Eric Hoiland informed the group there is currently $10,000 in the operating budget and $40,000 in reserve. In 2012, there were no more improvements to the power plant so the increment dropped and a natural depreciation of assets occurred. In 2015, the increment increased compared to the revenue of the power plant which created a difference of $476,000. If this proves to be revenue and not asset replacement these funds should come to the TIFID. If so, the TIFID would not have to build reserves. The TIFID needs to come up with a list of projects and estimate the cost and take this information to the CEO and Commission during the budget hearings. If the TIFID cannot capture the money as revenue, the TIFID will have to ask the Page 2|4 County for money to put into reserves. Carl Nyman feels it is hard to come up with a list of projects as it seems premature until the area is developed. However, it seems like everyone is in agreement the reserve fund needs to be built up so it can be used for a defined purpose such as marketing and development of a website. Any work done in the TIFID is not going to be cheap. Jim Davison informed the group that Premium is very interested in development. He wondered what it would take to separate out a parcel in a short amount of time. Carl Nyman noted that he has been clear with Rick Tabish that the subdivision process has to be followed, and he has been provided with a list of things that need to be done. Carl Nyman noted it is important to remember that the specifics for this project have changed three times so it may change again. He suggested the County can move forward with its due diligence process at the same time Premium does. Jim Davison would like to further discuss this strategy so the board is not shuffling its feet if Premium decides to move forward in the very near future. Carl Nyman informed the board that Ordinance 89 needs to be amended because it does not match up with MCA. An analysis of the existing codes needs to take place to determine what needs to be changed to be in compliance with MCA. Once this is done, it will be brought before the Commission and go through the public hearing process. With regard to the budget hearing, Carl Nyman informed the group the hearings start the week of July 4th. He suggested requesting $80,000-$100,000. If the revenue is available then the TIFID will not need to ask for anything. Commissioner Hart asked if the TIFID requests $50,000 every year. Eric Hoiland informed him the TIFID did not request any money last year and the $50,000 that is currently in reserve is from FY 2014-2015. Carl Nyman asked if a request for $100,000 was reasonable. Commissioner Hart was unsure but noted that some of the increment is used to backfill the general fund. Jim Davison suggested that if nothing is ventured then nothing is gained. Bill Finnegan noted that the TIFID may incur a lot more expenses because it will become much more active once the developer’s packets go out. Bill Finnegan moved to request $100,000 for the TIFID; seconded by Jim Davison. Motion passed unanimously. Mill Creek Increment Tax Disbursement Eric Hoiland informed the board he needs their approval to release the disbursement. The billed revenue in 2015 was $2,149,026.81 and the bond payment was $2,041,301.81. Leonard Hoscheid moved to release the TIFID disbursement; seconded by Bill Finnegan. Motion carried unanimously. Page 3|4 New Business Summer Meeting Time Jim Davison asked if the summer meetings can be held at 4:00 p.m. Leonard Hoscheid is the only member who may have a conflict with the time, but stated it does not make a difference one way or the other. Public Comment: No public comment. Adjournment: Meeting adjourned at 5:34 p.m. ____________________________ _______________________ Julie K. Pooley Carl Nyman Clerk of Commission Vice-Chair Page 4|4