Battle Creek Tax Increment Finance Authority

BATTLE CREEK TAX INCREMENT FINANCE AUTHORITY Tuesday, June 19, 2012 At the special meeting of the Battle Creek Tax Increment Finance Authority held on Tuesday, June 19, 2012 at 3:00 p.m. at the Frederick R. Brydges Customs Cargo Center, the following were in attendance: Messrs. Bobrofsky, Bowman, Christensen, Cutshall, Frantz, Karre, Noble, Rae, Tsuchiyama and Ms. Tuggle. Absent was: Messrs. Czerney, Scott and Stewart. Also in attendance were: Messrs. Ritsema, Mumford, Voshell, and Ms. B. Jones. Mr. Bobrofsky called the meeting to order at 3:00 p.m. BCTIFA RECOGNITION OF OBLIGATIONS Mr. Ritsema stated that this item is being presented today in the anticipation of some legislation that the State of Michigan is considering on the elimination of the personal property tax. A large share of the BCTIFA revenue comes from personal property taxes. In the extent that this revenue is lost, there is a provision for reimbursement by the state for TIFAs, DDAs and the City. At this point, the legislation is unclear. We are anticipating that any obligation that the BCTIFA has as of June 1, 2012, may be considered for reimbursement by the state. Mr. Ritsema stated that the resolution presented today, specifically details the obligations owed by the BCTIFA to the City of Battle Creek as of June 1, 2012. These obligations are listed in A-H of the Resolution. This document is put in place to reaffirm the obligations in the anticipation that we may be reimbursed by the state. There is a chance that this may not qualify. These are obligations that the BCTIFA has incurred. The legislation was passed by the Senate and is currently in the House. We do not know when it will be addressed as it is an election year. Mr. Ritsema stated that the Battle Creek City Commission is considering approval of the same document at the meeting this evening. Mr. Mumford stated that what we are attempting to do is make it as clear as possible to the State of Michigan what the BCTIFA obligations are. This document recognizes the BCTIFA obligations to the City of Battle Creek. There are other outstanding bonds, however, this document only demonstrates the obligations listed in paragraphs A-H to the City of Battle Creek. Mr. Mumford stated that he went through the 1993 Plan and identified every element from the last 1993 Plan and simplified it. Mr. Voshell stated that BCU staff has been working very closely with the City, there are no guarantees but without the document it is not recognized. Mr. Karre recommended that the dates BCTIFA first started working on the projects be added to A-H. Mr. Mumford stated that the third WHEREAS of the Resolution states that the A-H are projects in the 1993 Plan and that the projects were just not added. BCTIFA Board Page 2 – Minutes June 19, 2012 Mr. Rae stated that A-H does not address all the obligations of what the BCTIFA does and our role as a developer of the Fort Custer Industrial Park. The BCTIFA continues to expand. Mr. Mumford stated that the BCTIFA is not permitted to expand the BCTIFA district, and where the BCTIFA has purchased property outside of the district it has not been to expand the district. Mr. Mumford was not opposed to the Board modifying the document to include what words are appropriate. The City Commission is holding its meeting this evening, and a modified document can be provided prior to the meeting. Mr. Mumford stated that it was the consensus of the BCTIFA Board to modify (paragraph D) as follows: To maintain, improve, market and build out the BCTIFA district including, but not limited to: the Dickman Road corridor; the Hill Brady Road corridor; the Kellogg Airport District; the Harts Lake property; and the area North and East of the Veteran’s Administration Medical Center. MOTION: Mr. Rae moved that the Battle Creek Tax Increment Finance Authority Board approve the Resolution as presented with the suggested revised language as presented in paragraph D. Mr. Cutshall supported the motion and it was unanimously approved. ROBBINS BUILDING CHILD CARE OPERATIONS Mr. Voshell stated that the child care facility is located on the corner of Hill Brady Road and West Dickman Road in the Robbins Building. The majority of the children that attend are from businesses located in the Fort Custer Industrial Park. The owner is facing some health issues and is interested in selling the business. The BCTIFA has a lease arrangement with the owner. Mr. Voshell stated that the Robbins Building maintenance costs are high for this building. Currently the BCTIFA owns three of the five units in the condominium. BCU staff member, Cheryl Beard, represents the BCTIFA on the potential sale or purchase of the child care. The appraisal for this unit is $130,000. Staff is not sure at this time what the potential new owner will do. There are currently 67 students that attend. The facility operates until 11:00 pm at night to accommodate the 2nd shift businesses. Mr. Voshell stated that the Robbins Building will be in need of roof replacement and parking lot repairs. More owners would be a good thing. Another issue that may need to be addressed is that the electricity is not metered properly for each unit. PUBLIC COMMENTS No comments were made. ADJOURN There being no further business, the meeting was adjourned at 3:22 p.m.