Battle Creek Tax Increment Finance Authority

BATTLE CREEK TAX INCREMENT FINANCE AUTHORITY Tuesday, January 17, 2012 At a regular meeting of the Battle Creek Tax Increment Finance Authority held on Tuesday, January 17, 2012 at 3:00 p.m. at the Frederick R. Brydges Customs Cargo Center, the following were in attendance: Messrs. Bobrofsky, Bowman, Christensen, Frantz, Karre, Tsuchiyama and Ms. Tuggle. Absent was: Messrs. Cutshall, Noble, Rae and Stewart. Also in attendance were: Messrs. Dehn, Kettner, Mumford, Voshell, and Mmes. Albrant, Frantz, Morrison and Young. Mr. Bobrofsky called the meeting to order at 3:00 p.m. Approval of Minutes MOTION: Mr. Frantz moved that the Battle Creek Tax Increment Finance Authority Board of Directors approve the minutes from October 18, 2011 as presented. Ms. Tuggle supported the motion and it was unanimously approved. Approval of Audit ending June 30, 2011 Mr. Mark Kettner stated that the Audit ending June 30, 2011 was submitted for board review. The audit includes a clean and unqualified opinion letter on the financial statements. MOTION: Mr. Frantz moved that the Battle Creek Tax Increment Finance Authority Board approve the Audit for fiscal year ending June 30, 2011 as presented and respectfully submits it for City Commission approval. Mr. Christensen supported the motion and it was unanimously approved. Approval of Annual Report 2010-11 Ms. Linda Morrison stated that the Annual Report is a two page summary that provides the activity from the prior fiscal year. The Annual Report requires approval from both the BCTIFA Board and the City Commission. MOTION: Mr. Karre moved that the Battle Creek Tax Increment Finance Authority Board approve the Annual Report 2010-2011 as presented and respectfully submits it for City Commission approval. Mr. Bowman supported the motion and it was unanimously approved. Membership Nominations Mr. Karre stated that the BCTIFA Board received two resignations from Sidney Adams, Jr. and Steve Ihrig. The Nominating Committee recommends Richard Scott of Kellogg Community College and Tim Czerney of EPI Marketing to fill the two vacancies. BCTIFA Board Page 2 – Minutes January 17, 2012 MOTION: Mr. Karre moved that the Battle Creek Tax Increment Finance Authority Board approve the recommendations made by the Nominating Committee to appoint Richard Scott and Tim Czerney as presented and respectfully recommends to the City Manager and City Commission for approval. Ms. Tuggle supported the motion and it was unanimously approved. Financial Update Mr. Voshell stated that the financial statements were distributed and discussed. Land Status Mr. Voshell stated that the BCTIFA approved clearing the property of trees and brush on West Columbia Avenue (Williams Property) and is ready for development. The project has been completed. Brydges Drive/River Road/Clark Road property has been balanced and is ready for development. The project has been completed. The project was completed $6,000 under budget. The retention basin behind the Customs Cargo Center was developed to assist with the backups at Musashi Auto Parts. Dickman Road beautification project will include planting of new trees along West Dickman Road. This will be done in Spring 2012. A budget of $20,000 was proposed. Walters-Dimmick (Shell Gas Station), a Letter of Agreement was received from Walters-Dimmick admitting to the pollution and that they believe the swap of the property is a good idea. Mr. Mumford is working with Walters-Dimmick’s attorney to come to an agreement on an amount they are willing to spend to make the parking lot locate on the polluted parcel. Capital Investment Projects Federal Inspection Station - Ms. Frantz provided background information for the general aviation facility. US Customs at the Port of Battle Creek is unable to clear aircraft arrivals from points of foreign departure. This is an immigration matter that US Customs is allowed to perform under narrow circumstances. US Customs is allowed to clear an aircraft when the pilot and all passengers are US citizens, fewer than 20 people on board and paperwork was submitted in advance. If a general aviation facility existed, US Customs would be able to process persons that were on commuter or business aircraft and clear 20 persons with luggage. An area would need to be designated for entry/exit waiting. The facility would also contain the offices of the US Customs officials and equipment. BCTIFA Board Page 3 – Minutes January 17, 2012 Currently, Battle Creek Unlimited works with the General Service Administration (GSA) for US Custom’s office lease in the Customs Cargo Center. Mr. Christensen stated that Duncan Aviation could benefit by having a facility in Battle Creek. Approximately 30% of their operators are European. They typically stop overnight in Bangor, Maine and then continue on to Battle Creek for service. Kellogg Company could also benefit from the facility. Ms. Frantz stated that the preliminary costs associated to build a facility in Battle Creek would cost approximately $600,000 - $650,000 estimated by Mead & Hunt. Access to the apron, taxiway, and access road are all options. Ms. Frantz asked the board if future research was needed. Mr. Karre asked if this facility could generate revenue for someone other than the federal government. Ms. Frantz stated that future research would need to be done. The Airport Manager, Larry Bowron, suggested that the best location for this facility would be between WACO and Duncan Aviation. Ms. Frantz stated that Lansing, Michigan built a Federal Inspection Station at a cost exceeding $4 million. The facility clears much larger aircraft. It was recommended that Ms. Frantz continue further research and provide additional information for a future meeting. Prospect/Project Development Update Project Herald, is a German prospect in the biological plant research arena, 40 new jobs. The company has visited Battle Creek and was interested in two sites for new construction. West Columbia Avenue and Brady Road are both ready for development. Project Sapphire, is a Japanese LED lighting company interested in Battle Creek, 148 new job and $30 million investment. Project Duff & Phelps, is an American auto supplier, 300 new jobs. Staff will be meeting with this company this evening. Several companies in the Fort Custer Industrial Park are expanding, they include: TRMI, $30 million tax abatement from the City Commission, I I Stanley Company will apply for additional investment, Hi-Lex Corporation will be expanding its building and adding new equipment. BCTIFA Board Page 4 – Minutes January 17, 2012 The USO building located at 10 N. Clark Road is being considered by two of these prospects. An open house was held in November. No leads from the open house. Mr. Dehn stated that with the elimination of personal property tax on the legislative agenda, staff will continue to keep this issue on our radar. The reality is that we better be ready for some change. If momentum picks up, we need to look at how to protect ourselves with eligible obligations to secure the pace that we currently fund within the BCTIFA. Perhaps a 50 year contract between BCU and BCTIFA. Public Comments No comments were made. Adjourn There being no further business, the meeting was adjourned at 3:40 p.m.