Industrial Development Authority

MINUTES OF THE TOWN OF GILBERT, INDUSTRIAL DEVELOPMENT AUTHORITY SEPTEMBER 20, 2021, 8:00AM MEMBERS PRESENT: Kevin DeRosa, Robert Elmer, Val Gale (via Teams), Emilio Gonzalez, Alan Kranzberg, Keith Lamparter, Christopher Smith, Brent Yap, and Eric Zite STAFF PRESENT: Dan Henderson, Jennifer Graves, John Baird (via Teams), Jocelyn Smith COUNCIL LIAISON PRESENT: Councilmember Kathy Tilque CALL TO ORDER AND ROLL CALL: Vice President Lamparter called the meeting to order at 8:00 a.m. and declared a quorum present. COMMUNICATIONS FROM CITIZENS Vice President Lamparter opened the floor to the public for any comments or communications for items not on the agenda. No communication from citizens. 1. Minutes—Consider approval of the September 22, 2020 meeting minutes A MOTION was made by Director Kranzberg and seconded by Treasurer DeRosa to accept and approve the minutes of September 22, 2020. Motion passed 9-0. 2. Oaths of Office Staff Liaison Graves swore in Robert Elmer, Emilio Gonzalez, Christopher Smith, and Eric Zite as appointed Directors. 3. Election of Officers—Conduct annual election of officers A MOTION to nominate Keith Lamparter as President was made by Director Gale and seconded by Treasurer DeRosa. Motion passed 9-0. A MOTION to nominate Kevin DeRosa as Vice President was made by President Lamparter and seconded by Director Kranzberg. Motion passed 9-0. A MOTION to nominate Alan Kranzberg as Secretary was made by Vice President DeRosa and seconded by President Lamparter. Motion passed 9-0. A MOTION To nominate Brent Yapp as Treasurer was made by Secretary Kranzberg and seconded by Vice President DeRosa. Motion passed 9-0. 4. Annual Financial Report – Acceptance of annual financial report for fiscal year ending June 30, 2021 Jennifer Graves provided an update on the report. The GIDA has a separate account for funds received for applications and bond issuances. The unreserved fund balance started with $17,167 and ended with $17,158; the difference would be the fees on the account. A MOTION was made by President Lamparter to approve the FY 2021 financial report and seconded by Vice President DeRosa. Motion passed 9-0. GIDA Minutes, dated 9/20/21 1|Page From members of the Authority on current & future events President Lamparter – do we have any activity on the horizon for the GIDA? Jennifer Graves responded that staff has been discussing the possibility of using the GIDA with an institution of higher education that is interested in possibly making some investments for their academic and athletic needs. This group is a not-for-profit institution and they are potentially exploring this is a financial mechanism for future projects. Dan Henderson added that staff talks about the GIDA to every industrial user that comes into the Town of Gilbert as a project or financing mechanism to inform and educate those projects on its benefits. Dan further stated that the cost to borrow is so inexpensive right now that it is challenging to generate interest because of how this program stacks up to traditional lending. Vice President DeRosa – would projects that have riskier credit be something this authority would pursue, or do we try and stay away from those things? Dan Henderson responded that the project on its merits will be funded or not. We will do a risk assessment after a project has been made. Vice President DeRosa – is the higher education interest currently here? Jen Graves responded that they are currently here. Treasurer Yap – what is the timeframe that this project would be brought to the GIDA? Jen responded probably in the next 12 months. Secretary Kranzberg – do we have any competition with another industrial development authority on this issuance and in general? Jennifer Graves responded that we don’t think that there is competition for this particular issuance. In general, Maricopa County and the City of Phoenix are the most active IDAs. We observed in the last couple of years, particularly during COVID, there were a few projects that they did, mostly around housing or higher education. Secretary Kranzberg – do we have a competitive advantage against Maricopa County and City of Phoenix? Dan Henderson responded that the work of the GIDA put together its fee structure with competition in mind as potential borrowers evaluate the merits of this GIDA over others, our price point and related fees are significantly less than our competition. Director Smith – if someone is interested in financing through the GIDA, then this is a large enough board that we can act quickly to convene a meeting. Jennifer Graves – we also encourage each of you to bring Gilbert opportunities as well. With the line of business that you are all in, you are party to folks that might need this. Vice President DeRosa – what is the GIDA ceiling? Dan Henderson thought that it may be around $22M, but noted that staff will research this and bring information back to the board. Vice President DeRosa – requested Dan to provide a brief Economic Development update. Dan Henderson responded that Gilbert has a very strong pipeline at the moment. Business development lead generation is one that gets our office very excited. There are a lot of prospects in that pipeline and a lot of those projects are light industrial users. That is the asset class that is performing well statewide, phoenix metropolitan wide, and in Gilbert. GIDA Minutes, dated 9/20/21 2|Page From Council and staff liaison on current & future events Councilmember Kathy Tilque gave a Council update: Councilmember Tilque is excited to join this thanked the directors for their service on the GIDA.  Streets, Transportation and Infrastructure-Related Improvements Bond. Councilmember Tilque along with Vice Mayor Yung Koprowski are working on getting this bond passed. o Mail-in ballot coming out in October o Co-Chair with Vice Mayor Koprowski to get the bond passed o Working with some of the larger HOAs to get the bond passed.  Council Retreat in November o Councilmember Tilque’s priority is to start the infill project conversation. What is our inventory, and what are we looking for in the future?  Town Ordinances and Regulations – Work on Town Ordinances and regulations to ensure that residents understand what we they can and cannot do. An example would be clarification on what we can and cannot do on short-term rentals and group homes.  Create a Community Engagement Task Force – this will be an opportunity for anyone in our community who want to engage. Dan Henderson gave an Economic Development update.  The Heritage District has a new set of banners and in addition to shop, dine and explore, now features the learn component of our downtown. Be sure to check them out next time you are in the District.  Speaking of learn, the University of Arizona. For the Fall 2021 Semester, the University of Arizona School of Nursing has 234 students enrolled and Park University has 500 students enrolled.  Opening this Fall, Heritage and Home and Forever French Baby will bring children’s apparel and home goods in one location to the Heritage Court located off of Gilbert and Cullumber.  Update on the Town-owned property located on the northwest corner of Gilbert and Elliot Roads in the Heritage District. The Town is utilizing the Request for Proposal (RFP) for the development of a mixed-use project identified as the South Anchor in the 2018 Redevelopment Plan on approximately 2.18 acres at the northwest corner of Gilbert and Elliot Roads in the Heritage District and is open until October 11th.  The Fall Downtown Concert Series presented by Openshaw Real Estate Group will take place each Thursday at 6:30 pm – 8:30 pm from on October 7 through October 28. Great opportunity to grab a blanket or lawn chair for a concert under the Gilbert Water Tower. GIDA Minutes, dated 9/20/21 3|Page   A friendly reminder that the Gilbert Farmer’s Market hours change for the fall beginning in October and will run Saturdays from 8 am – 12 pm.  Starting October 6th, ballots will be sent to all eligible voters in Gilbert for the 2021 all- mail special election. o In this election, voters will decide whether or not to approve a $515 million general obligation bond. o The Streets, Transportation and Infrastructure-Related Improvements Bond would fund projects intended to enhance the safety of our citizens and ease daily commutes. The bond measure would also address aging infrastructure of our community by reconstructing current roads, building new roads and transportation systems, and investing in transportation-related technology. o The bond would be paid for by a secondary property tax within the current rate of $0.99 per $100 of assessed value. o A link to the map of projects included in the bond will be forwarded to the GIDA directors. ADJOURNMENT A MOTION was made by President Lamparter and seconded by Vice President DeRosa to adjourn. Meeting adjourned at 8:31 a.m. __________________________________ Keith Lamparter, President GIDA Minutes, dated 9/20/21 4|Page