Downtown Development Authority

BATTLE CREEK DOWNTOWN DEVELOPMENT AUTHORITY BOARD OF DIRECTORS Thursday February 14, 2019 MEMBERS PRESENT: Robert Sharkey, Commissioner Susan Baldwin, Paul Conkey, Rebecca Fleury, Ross Simpson, Kim Carter, Tom Harris ABSENT: Rebecca Fleury, Commissioner Kate Flores, Edward Guzzo, OTHERS PRESENT: Linda Morrison, Ted Dearing and Sarah McGinnis Call to order: Mr. Sharkey called the meeting to order at 1:35pm. Approval of Minutes: MOTION: Ms. Baldwin moved that the Battle Creek Downtown Development Authority Board of Directors approve the meeting minutes from October 22, 2018 as presented. Mr. Simpson supported the motion. Unanimously approved. Audited Financial Statements FY 2018: Ms. Morrison stated the year ended June 30, 2018 audited financial statement received an unmodified opinion. The auditors had no suggested changes or recommendations. DDA statements are included in the CAFR and the separately issued financial statements for the DDA are available on the City’s website. MOTION: Ms. Baldwin moved that the Battle Creek Downtown Development Authority Board of Directors approve the audited financial statements as presented. Mr. Harris supported the motion. Unanimously approved. Review the 6/30/18 Annual Report: Ms. Morrison reviewed the audited annual report. This report will be published once approved by this body and the City Commission. MOTION: Mr. Harris moved that the Battle Creek Downtown Development Authority Board of Directors approve/adopt and publish the annual report as presented. Ms. Baldwin supported the motion. Unanimously approved. Review Interim Financial statements: Ms. Morrison reviewed the interim financial report for the six months ended December 31, 2018. There will be a budget adjustment coming. The State aid revenue for the year has been received and is short of the budget. The legislative changes to personal property tax elimination that affect this line item will not go into effect until next fiscal year. We may be able to move some expenditures to Economic Development or to the General Fund, and those changes will be represented in a budget amendment to be presented in April. MOTION: Mr. Simpson moved that the Battle Creek Downtown Development Authority Board of Directors approve the interim financial statements as presented. Ms. Baldwin supported the motion. Unanimously approved. Incremental Pass through Agreement: Mr. Dearing explained the details of the agreement. This agreement is for the Battle Rock Project which proposes the capture of future incremental tax increases within a portion of the DDA district. This agreement does not add financial risk for the DDA or the City. MOTION: Mr. Simpson moved to approve and authorize the board chair to execute the Battle Creek Brownfield Redevelopment Authority Tax Increment Pass through Agreement in a form substantially similar to the form presented as approved by legal counsel for the Downtown Development Authority. Ms. Baldwin supported the motion. Unanimously approved. 1 Battle Rock Development Agreement: Mr. Dearing explained the development agreement that defines the requirements to access the funds. A minimum of $2.5 million would be invested in the physical property. If Battle Rock falls through the building has still benefitted from the upgrades. MOTION: Mr. Harris moved to approve and authorize the board chair to execute the Development Agreement between the Battle Creek Downtown Development Authority and 50 West Michigan Ave, LLC, in a form substantially similar to the form presented as approved by legal counsel for the Downtown Development Authority. Ms. Baldwin supported the motion. Unanimously approved. TIF District Reporting Requirements – Staff: Mr. Dearing explained that the reporting requirements have changed effective January 1, 2019. The State legislation has passed The Tax Increment Finance Act, 2018 PA 57. We are required to hold two informational meetings per year with at least 14 days’ notice. Project Report – Ted Dearing: Mr. Dearing stated the construction is ongoing at Heritage Tower. The New Holland project has a very aggressive construction schedule. It will require that we close the sidewalk for a short time. Record Box is requesting tax credits. The government shut down affected them. Consumers Power has requested Jackson St be closed for possibly two months. They need to tear up the street to complete some repairs. We are hoping that Michigan Ave will be open before Jackson St is closed. Member/Citizen Comments: Mr. Simpson stated there are sign issues downtown. The sign requirements are very restricted. Mr. Sharkey suggested speaking with John Hart and/or the Historic District for assistance. Adjourn: 2:35pm 2