Battle Creek Tax Increment Finance Authority

BATTLE CREEK TAX INCREMENT FINANCE AUTHORITY Tuesday, May 28, 2014 At a special meeting of the Battle Creek Tax Increment Finance Authority held on Tuesday, May 28, 2014 at 3:00 p.m. at the Frederick R. Brydges Customs Cargo Center, the following were in attendance: Messrs. Bobrofsky, Christensen, Czerney, Frantz, Noble, Rae, Scott and Stewart and Ms. Bedsole. Absent were: Messrs. Bowman, Cutshall, Karre and Ms. Tuggle. Also in attendance were: Messrs. Dehn, Mumford and Voshell and Mmes. Albrant and Young. Mr. Bobrofsky called the meeting to order at 3:00 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 April 29, 2014 meeting as presented. Mr. Noble supported the motion and it was unanimously approved. FINALIZATION COMMITMENT OF FUNDS FOR RELOCATION OF SANITARY AND STORM SEWER FOR PROJECT MAXWELL Mr. Voshell presented the board with a request for Project Maxwell, a German company, interested in acquiring the former Toyota Tsusho America building located at 215 N. Hill Brady Road. Maps identified the existing sanitary and storm sewer lines currently in place beneath a parking area at the property. The company has an offer to purchase the building and would like to expand once purchased. The issue is that the existing sanitary and storm sewer lines run under the existing building where the expansion would take place. City Engineering Kurt Tribbet, has provided staff with a ball park figure of $750,000 to relocate these lines to accommodate the expansion plans. At that time staff called each BCTIFA Board member to acquire a verbal approval to move forward with the project. The company has up to four years on or before July 1, 2018 to accommodate improvements. The board will entertain a request for an extension beyond July 1, 2018, should the contract not be entered into by that date. Mr. Voshell stated that the Michigan Economic Development Corporation has provided an additional $150,000 to the company that will be paid back to the BCTIFA when the line is reconstructed. The City attorney helped with the forced abandonment to satisfy the Title Company to approve the sale of the building. Mr. Voshell stated that the company has purchased the Bowers Manufacturing in Portage. This will be an additional operation. The company plans to invest $22 million and create 186 jobs. BCTIFA Board Page 2 – Minutes May 28, 2014 MOTION: Mr. Rae moved that the Battle Creek Tax Increment Finance Authority Board of Directors supports spending $750,000 to relocate and reconstruct sanitary and sewer lines for Project Maxwell as presented. Mr. Noble supported the motion and it was unanimously approved. DISCUSSION ON LAND SALE FOR NEXTHERMAL Mr. Voshell stated that he has been in discussions with the owner of Nexthermal on the sale of a 20’ x 40’ strip of land from the Harts Lake property owned by BCTIFA. The strip of land is adjacent to the ditch created to keep trespassers out. The company is proposing a 50 jobs expansion and $2 - 3 million investment in machine and equipment. The company has not provided a site plan for the expansion. Mr. Voshell stated that the Harts Lake property has been valued at $75,000 per acre. A small bump out from this parcel will not harm the site. Acceptance of a nominal fee or reasonable price ($10,000-$15,000 per acre) will satisfy staff. MOTION: Mr. Rae moved that the Battle Creek Tax Increment Finance Authority Board of Directors authorize selling a strip of land to Nexthermal for reasonable price as presented. Mr. Noble supported the motion and it was unanimously approved. PUBLIC COMMENTS No public comments were made. ADJOURN There being no further business, the meeting was adjourned at 3:30 p.m.