Battle Creek Tax Increment Finance Authority

BATTLE CREEK TAX INCREMENT FINANCE AUTHORITY Thursday, August 22, 2013 At the special meeting of the Battle Creek Tax Increment Finance Authority held on Thursday, August 22, 2013 at 1:00 p.m. at the Frederick R. Brydges Customs Cargo Center, the following were in attendance: Messrs. Bobrofsky, Bowman, Christensen, Cutshall, Czerney, Karre, Noble, Rae, Scott, Stewart and Tsuchiyama. Absent was: Mr. Frantz and Ms. Tuggle. Also in attendance were: Messrs. Jared Belka (Warner Norcross & Judd LLP), Dehn, Chris Dopp (City of Battle Creek), John Grap (Battle Creek Enquirer), Jeff Hennip (616 Development), Chris Knape (Seyferthpr), Mumford, Bill Norton (Cosma Castings), Davin Ojala (SME), Ritsema, Voshell and Mmes. Albrant, Sara Bales (SME), Beard, Jennifer Bowman (Battle Creek Enquirer), Monica Clark (616 Development) and Young. Mr. Bobrofsky called the meeting to order at 1:00 p.m. APPROVAL OF MINUTES MOTION: Mr. Rae moved that the Battle Creek Tax Increment Finance Authority Board of Directors approve the minutes of the July 16, 2013 meeting as presented. Mr. Christensen supported the motion and it was unanimously approved. CLARK ROAD IMPROVEMENTS Mr. Voshell stated that Cosma Castings has acquired the former USO building at the corner of West River Road and Clark Road. As the company prepares their property for improvements, the company has identified that their driveway and Clark Road is a hazardous situation. The need for an acceleration lane going south into their driveway as well as a turn lane is needed on Clark Road. Staff has met with Michigan Department of Transportation and the City of Battle Creek and we are pursuing a “Category A” grant in the amount of $400,000. The grant requires a 20% match on the project. Staff is asking that the BCTIFA Board consider the 20% match as well as any other costs associated with this project. Mr. Dopp stated that Clark Road is currently a four lane road. One of the concerns is that when traffic is headed north bound, the volume of traffic, as well as the incline, and any heavy vehicles, would not be able to stop for vehicles turning into the driveway. Mr. Dopp provided a visual of the four lane road with the proposed new driveway for Cosma Castings. Starting at the top of the hill, Clark Road will be widened five to six feet on either side to create a turn lane, tapering back to cross West River Road. This would be approximately 2,000 feet of turn lane. The BCTIFA owns the property along the east side across from Cosma Castings all the way to West River Road. Mr. Bill Norton was introduced as the Facilities/Maintenance Manager for Cosma Castings. Mr. Norton stated that during the shift changes, the driveway is both the employee entrance and main entrance for truck traffic. The brush along Clark Road will be removed to help with visibility. BCTIFA Board Page 2 – Minutes August 22, 2013 MOTION: Mr. Rae moved that the Battle Creek Tax Increment Finance Authority Board of Directors approve the 20% match required for the “Category A” grant, not to exceed $100,000. Mr. Bowman supported the motion and it was unanimously approved. Mr. Voshell stated that if the grant is not accepted, the request would be brought back to the BCTIFA Board for discussion. TRANSPORTATION STUDY SUPPORT Mr. Voshell stated that several companies in Fort Custer Industrial Park have contacted staff regarding the local bus transportation service in the park, that it be improved for employees. The labor force is a large issue in the Fort Custer Industrial Park. Staff is working with Larry Bowron, a committee, as well as six companies on this issue. The transit bus system does not allow delivery of employees out to the Fort Custer Industrial Park in time for first shift. Moving the delivery time up one hour, changes federal regulations and would require a transportation study being implemented. The transportation study would cost approximately $20,000-$40,000. Staff is asking that the BCTIFA participate in the study to provide access to a greater labor force to allow employees out to Fort Custer Industrial Park. Mr. Voshell stated that there have been discussions with Barry and Kalamazoo Counties of a bus hook up. If the schedule is right, it would expand the labor force even greater. Staff requested that the BCTIFA consider funding $20,000 for the transportation study. MOTION: Mr. Rae moved that the Battle Creek Tax Increment Finance Authority Board of Directors approve the not to exceed $20,000 for a transportation study. Mr. Karre supported the motion and it was unanimously approved. It was asked what does the BCTIFA get for the $20,000? Mr. Ritsema stated that the City of Battle Creek has a firm that specializes in transit. The request would affect the entire system. What seems to be a simple request, changes the entire route. The firm would guide the changes to accommodate the schedules for businesses in the Fort Custer Industrial Park. The Fort Custer Industrial Park is considered Route 5. The study will find out where the labor force is coming from and what time the employees need to make their shifts. Mr. Karre asked that the study also include what it would take (cost and time) to extend the bus service into Barry and Calhoun Counties and to collaborate with Kalamazoo County. Mr. Tsuchiyama stated that there currently is not a county-wide system in place now. The firm would struggle with how they could address the request since there is not a system in place to connect to. The firm would not know what routes to take to go as far as Marshall and Albion. He stated that the request is to find out how we accommodate a change in the existing schedule so that it ties in better with the shift changes that do not negatively affect other routes. BCTIFA Board Page 3 – Minutes August 22, 2013 AUTHORIZE STAFF TO SIGN CONTRACTS AND PAYMENTS UP TO $20,000 Mr. Voshell stated that previously the BCTIFA Board has given staff the approval to spend up to $5,000 on projects without notifying the Board. Mr. Voshell has asked the BCTIFA Board for authorization for staff to sign contracts and payments for up to $20,000 to move projects quickly when necessary. Mr. Karre asked if the $20,000 was per project or expenditure. Mr. Voshell stated that the request is for projects outside of the budgeted line items. Mr. Karre asked if the request requires all three names or allows one of the three names listed. It was also suggested that the resolution list the titles (Chair, Administrator and Secretary) not the names so when there is a staff change it does not require new approval. MOTION: Mr. Rae moved that the Battle Creek Tax Increment Finance Authority Board authorizes staff or Chair to sign contracts and payments up to $20,000 as presented. Mr. Noble supported the motion and it was unanimously approved. LAND OPTION REQUEST (STEWART INDUSTRIES) Mr. Voshell stated that Stewart Industries is interested in the adjacent parcel to the west of the existing property for a wellness trail. Stewart Industries had an option of the parcel in 2005, but the option expired one year later. Mr. Stewart stated that the existing building is at 60-70% capacity. Ten new positions will be added before the end of the year. The growth of the business is modest for its size. The company plans to create a wellness trail (walking path). Mr. Karre suggested that Mr. Stewart provide staff a written proposal and staff will return to the BCTIFA Board with a recommendation. PROSPECT/PROJECT DEVELOPMENT UPDATE Mr. Voshell stated that a prospect will be visiting Battle Creek next Tuesday to tour the only vacant building in the Fort Custer Industrial Park. PUBLIC COMMENTS No public comments. ADJOURN There being no further business, the meeting was adjourned at 1:41 p.m.