Public Cultural & Entertainment Facilities Cooperative District

The City of Foley Public City of Foley, AL Cultural & Entertainment Facilities Cooperative District 407 East Laurel Avenue Meeting Minutes - Final Foley, AL 36535 Public Cultural & Entertainment Facilities Cooperative District Tuesday, September 1, 2015 2:00 PM City Hall Conference Room Call to Order Chairman Duane Dickson was unable to attend due to a work conflict. Vice Chairman Floyd "Skip" Davis call the meeting to order at 2:07 p.m. Roll Call All members were present with the exception of Chairman Duane Dickson. Others present: Vickey Southern, Mike Thompson, Sue Steigerwald, Don Staley and Nick Klarman of HPM. Approval of the Minutes 15-0523 Adopt the 06-01-2015 PCEFCD Minutes Attachments: 06-01-2015 PCEFCD Minutes.pdf The June 1, 2015 Minutes were approved on motion by Mr. Newton and seconded by Mr. Ebert. The vote passed unanimously. New Business City of Foley, AL Page 1 Public Cultural & Entertainment Meeting Minutes - Final September 1, 2015 Facilities Cooperative District 15-0521 A Resolution by the PCEFCD to Ratify current year actions and Amend the FY15 Budget and to Adopt the FY16 Budget Ms. Sue Steigerwald reported the Public Cultural & Events Facilities Cooperative District took certain actions throughout the year. This included legal and professional fees of approximately $150,000 and in accordance with some Governmental Accounting Standards Board (GASB) regulations the fund type will change. It was originally thought to be an enterprise fund where it would maintain itself, which it is not going to be. It will be a Governmental Fund. These actions just rearranged the balance sheet. Ms. Steigerwald further reported the second part of the resolution adopts the FY2016 Budget. It accepts the transfer of funds from the General Fund for the Debt Service, and this is an estimated amount. They anticipate perhaps dropping the bonds in January 2016 so it is a partial year and the anticipated closing costs and legal for that bond issue. As far as the actual project itself when a budget is presented for the indoor sports facility this Board will review that budget and vote on it at that time. We don't have enough information at this time to try to estimate that. A motion was made by Mr. Ebert, seconded by Mr. Newton, that this Resolution be adopted. The motion carried by an unanimous vote. Enactment No: 15-0011-PCEFCD City of Foley, AL Page 2 Public Cultural & Entertainment Meeting Minutes - Final September 1, 2015 Facilities Cooperative District Visitor Comments Mr. Davis stated, "What a good job the City staff does!" Mrs. Southern and I had a conversation yesterday that through the years' anytime you go to a meeting and you don't know what the purpose of the meeting is or you don't know what the goal is until the meeting is over you don't know why you went to the meeting to begin with. Thanks to good preparation done by all the staff, thank you to all of you. Mr. Newton and Mr. Ebert agreed. Mr. Thompson reported the City hasn't sold any bonds yet because we don't have a MOU between the City and the Tribe in place on their hotel. They do have a MOU before their attorney's who are reviewing it and again we hope that when we meet with them this Friday we hope to have a little more interaction on where they stand on that because we have submitted a MOU (Memorandum of Understanding) that will firm up that relationship. Once that is done then we can move forward with the bond so we can move forward with the events center. In regards to the bond we are trying to do a New Market Tax Credit deal for the bond. The City spoke with their professionals, who are trying to identify tax credits, who have secured between $7-10 million in tax credits for this project but they need to be closed by the end of this year. They are very anxious for us to sign on with them. We told them that we will do it contingent upon Council approval. The tax credits will lower the cost of the overall bond. The negative is we were hoping to get $16 million worth of tax credits but the problem that you have with a deal like this is that it is hard to identify just how many jobs will be created by an event center. They don't feel like the project will justify a full allotment of tax credits. They have $7-10 million available but they are not comfortable sharing the "goodie" that the tax credit creates with another CDE that would claim that same "goodie" because the "goodie" is kind of fuzzy. We can't say it will create 422 jobs but we do know that it will create some jobs in the City. It still is at the discretion of the Council and it will hold those tax credits for us in anticipation of moving forward with the build. Mr. Thompson further reported the hotel will move forward. The Tribe has a MOU from the City but we haven't received it yet but once the City gets a signed MOU he can bring it back to Council. He and Nick have driven out on the site and they have the pad built for the hotel. The north parcel has a pad. They used the City's clay that had to be moved off site and instead of the City paying to have it removed they used it to create the pad for the hotel. The Tribe is moving forward. They are beginning to dig the lake and are working towards digging the 20 acre lake. Again Mr. Thompson does not have any firm timelines. He has to wait until the City has a commitment. The bonds are rated but the longer that rating goes the staler the rating becomes and at some point S&P and Moody's will probably want to re-rate them and hopefully they will stay AA. It could go better or worse. Currently they have not told him the City will need to be re-rated but the last rating was in the Spring. The City is ready to move forward but they are still waiting on the Tribe. Mr. Newton asked what the build time once everything gets in place. Mr. Thompson reported the build time for the event center is approximately 12-14 months. They are saying the hotel would be a little longer at 14-16 months. We need to be building simultaneously and that is part of what the MOU says is that we will break ground when they break ground and we will go to a similar City of Foley, AL Page 3 Public Cultural & Entertainment Meeting Minutes - Final September 1, 2015 Facilities Cooperative District completion date. The Tribe says they anticipate breaking ground on the hotel in January but they have a lot of work to do before that happens. They have to re-assess the PDD, and re-subdivide plats because what Bilbo put down and the Tribe is doing is very different. They just have a lot of work to do before they can break ground in January. This is part of the concern the Mayor has about getting the professionals on board and getting them moving. Mr. Staley reported the Pittsburg convention that he and Mr. Ebert attended had 46 meetings with rights holders and of those 29 were with indoor events rights holders. They are all wanting to come and we told them anticipation is the fourth quarter of 2017. He won't make the mistake of booking before we know for sure like we did with the outdoor fields. It is encouraging to have a buzz about what we are doing here in the sports industry. Adjourn A motion was made by Mr. Newton, seconded by Mr. Koniar, that this meeting be adjourned. The motion carried by an unanimous vote and the meeting adjourned at 2:19 p.m.. City of Foley, AL Page 4