Battle Creek Tax Increment Finance Authority

BATTLE CREEK TAX INCREMENT FINANCE AUTHORITY Tuesday, September 25, 2014 At a special meeting of the Battle Creek Tax Increment Finance Authority held on Thursday, September 25, 2014 at 2:00 p.m. at the Frederick R. Brydges Customs Cargo Center, the following were in attendance: Messrs. Bobrofsky, Christensen, Cutshall, Czerney, Frantz, Karre, Noble, Rae, Scott, Stewart and Mmes. Bedsole and Tuggle. Absent was: Mr. Bowman. Also in attendance were: Messrs. Bowron, Davin Ojala (SME), Voshell, Col. Ron Wilson (Air National Guard) and Mmes. Albrant, Beard, Brutsche, Frantz and Young. Mr. Bobrofsky called the meeting to order at 2:00 p.m. and attendance role call was made. CLOSURE OF MARTIN LUTHER KING MEMORIAL HIGHWAY (BL-94) FROM DICKMAN ROAD TO HILL BRADY ROAD Colonel Ron Wilson presented the BCTIFA Board with an update on a missile defense mission. Fort Custer is one of four sites being considered to house a new ground-based interceptor ballistic missile defense site as the Defense Department considers creating an East coast site for protection against missile attacks from Iran or other threats. Battle Creek officials are already lobbying hard for the mission. They support the Michigan Department of Transportation’s (MDOT) plans to close a portion of Skyline Drive, which could boost Fort Custer’s chances because it creates a joint base for the U.S. Army, Air National Guard and Navy. Other assets include the munitions storage area and 10,003 foot runway. Maps were distributed to show the “protected zone” area between the Air National Guard Base and Fort Custer Marines Reserves. The Ballistic Missile System is a missile that is not explosive. It is a bullet hitting another bullet in outer space. The Missile Defense Agency will be holding public meetings for the continental US Interceptor site environmental impact statement. If Battle Creek is chosen, some 200-500 new jobs could be created with a $3 billion investment and the base could be home of up to 60 missiles that sit ready to fire in partially buried concrete structures. Ms. Frantz stated that two hearings have been held in the community and both were well attended. Ms. Bedsole stated that the 10,003 foot runway is in need of rehabilitation and the City of Battle Creek is responsible for the $1.5 million expenses of resurfacing the last 3,000 feet of the runway. Mr. Voshell displayed an aerial map which showed how some BCTIFA owned property and two businesses could be impacted by the “protection zone” including the closure of Business Loop 94 from Dickman Road to Hill Brady Road. BCTIFA Board Page 2- Minutes September 25, 2014 Mr. Frantz commented that Governor Snyder has been allocating a significant amount of money to the Prosperity Regions. The 10,003 foot runway is attractive for the ballistic missile defense site and the project is an economic impact for the State of Michigan. He asked what it will take to include the remaining 2,900 feet of runway that requires rehabilitation to be included in the Prosperity Regions funding. Ms. Bedsole stated that she is working with the Governor’s office and they are supportive. Mr. Bowron stated that if the entire runway was eligible for AIP funding he would ask for $250,000. The balance that the City is responsible for is $1.5 million. The Michigan Department of Aeronautics indicates that there is no money. The Governor’s office will tie the importance of the rehabilitation of the 10,003 runway to the development of the missile defense site. Ms. Bedsole stated that once the Air National Guard lost their flying mission, there was no money that could be contributed. BCU UPDATE Ms. Brutsche stated that the BCU Officers held on-going meetings with Karl Dehn prior to his resignation. She mentioned that the Dehn family would stay in Battle Creek and was not aware of his future plans. The news release announced that Jim Hettinger would return from retirement to act as Transitional CEO with assistance from Rance Leaders. The BCU Officers are seeking individuals in the community to participate on the Search and Transitions Committees for the new CEO to be named by January 1, 2015. A nationwide search will be held. APPROVAL OF MINUTES MOTION: Mr. Rae moved that the Battle Creek Tax Increment Finance Authority Board of Directors approve the minutes of the May 28, 2014 meeting as presented. Mr. Czerney supported the motion and it was unanimously approved. BRYDGES DRIVE BUILDINGS, LAND ACQUISITION AND DEMOLITION Mr. Voshell stated that a Phase I and Phase II Environmental Study will be performed at this site and will be funded by an EPA Grant. Battle Creek Unlimited has negotiated a price to purchase the buildings located adjacent to BCU for $270,000. The BCTIFA has approved spending up to $100,000 for demolition of these five buildings. The seller has agreed for an extension on the closing to be December 1, 2014. This will allow for the completion of Phase II Environmental Study. The proposed demolition cost for the five buildings comes in just under $500,000. Staff has only asked for one bid for demolition and the existing owner is also pursuing costs for demolition. There is an opportunity to get a better price for demolition. BCTIFA Board Page 3 – Minutes September 25, 2014 It was recommended that staff send the demolition project out for bid and approve an amount not to exceed $600,000 or return for additional funding. MOTION: Ms. Bedsole moved that the Battle Creek Tax Increment Finance Authority approve a not to exceed $600,000 for demolition of proposed five buildings. Mr. Rae supported the motion and it was unanimously approved. A question was asked if the City had the resources to demolish these buildings. Ms. Bedsole stated that the only way would be to bring the buildings through the Dangerous Building Program and use public dollars. The City receives approximately $100,000 each year for demolition for the entire city. There is no grant funding for this. TIFA LEGISLATION Mr. Voshell stated that there have been some changes proposed in Lansing, to address the Tax Increment collection opportunities of communities. He presented the proposed legislation highlights:  Restricts TIF revenue to strictly infrastructure projects.  Generally prohibits TIF revenue for operational and non-capital expenses.  Funding for operational and non-capital expenses would be through assessments or millages.  Consolidates numerous TIF programs into a significantly revamped DDA Act.  Phases out TIFAs, LDFAs, Corridor Improvement Authorities and Water Resource.  Eliminates Neighborhood TIFs, Historic Neighborhood TIFs and Private Investment Financing Act (PIFAs).  Brownfield Act and Nonprofit Railway Act remain intact. MOTION: Mr. Rae moved that the Battle Creek Tax Increment Finance Authority Board of Directors pass a Resolution opposing any proposed legislative changes, eliminations or reversals that will negatively impact the opportunity for the continuation of the good and successful work that the BCTIFA organization can achieve. Mr. Christensen supported the motion and it was unanimously approved. The Resolution should be sent to Governor Rick Snyder, Kate Segal, Michael Nofs and Jase Bolger. ROBBINS BUILDING UPDATE Mr. Voshell stated that Ms. Beard will be notifying the Robbins Building Committee of a meeting to review the documents that provide options. Mr. Bobrofsky asked that the Robbins Building Committee stay for a short meeting tonight. BCTIFA Board Page 4 – Minutes September 25, 2014 5200 WEST DICKMAN ROAD Mr. Voshell stated that the demolition costs for the 5200 W. Dickman Road amounted to $127,000 and not $150,000 as proposed. Mr. Voshell asked the BCTIFA Board of their willingness to accept the BCU owned property as BCTIFA property. The BCU Board will be asked to transfer the property to the BCTIFA so that it would not have to be placed in the Land Bank prior to December 31, 2014. MOTION: Mr. Rae moved that the Battle Creek Tax Increment Finance Authority Board of Directors approve to accept the transfer of BCU-owned property located at 5200 W. Dickman Road to the BCTIFA. Mr. Cutshall 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 3:35 p.m.