Industrial Development Authority

MINUTES OF THE TOWN OF GILBERT, INDUSTRIAL DEVELOPMENT AUTHORITY SEPTEMBER 23, 2024, 8:00AM MEMBERS PRESENT: Kevin DeRosa, Robert Elmer, Val Gale (via Teams), Emilio Gonzalez (via Teams), Alan Kranzberg, Christopher Smith (via Teams), Brett Thorpe, and Eric Zite STAFF PRESENT: Dan Henderson, Jennifer Graves, John Baird (via Teams), Jocelyn Smith COUNCIL LIAISON ABSENT: Councilmember Kathy Tilque CALL TO ORDER AND ROLL CALL: President DeRosa called the meeting to order at 8:01 a.m. Jennifer Graves did the roll call and declared a quorum present. COMMUNICATIONS FROM CITIZENS President DeRosa opened the floor to the public for any comments or communications for items not on the agenda. There is no communication from citizens. 1. Minutes—Consider approval of the September 27, 2023, meeting minutes A MOTION was made by Vice President Kranzberg and seconded by Treasurer Elmer to approve the minutes with a revision on Page 2, Paragraph 1, changing the date to September 26, 2022. Motion passed 6-0. (Director Gonzalez and Director Thorpe arrived after the vote.) 2. Election of Officers—Conduct annual election of officers A MOTION was made by Vice President Kranzberg and seconded by Treasurer Elmer to nominate Kevin DeRosa as President, Alan Kranzberg as Vice President, Emilio Gonzalez as Secretary, and Robert Elmer as Treasurer. Motion passed 7-0. (Director Thorpe arrived after the vote.) 3. Annual Financial Report – Acceptance of the annual financial report for the fiscal year ending June 30, 2024 Jennifer Graves provided an update on the report. The IDA has a separate account for funds received for applications and bond issuances. The unreserved fund balance started with $17,104, and for the period ending June 30, 2024, the account had a balance of $17,186. The difference would be the fees on the account. A MOTION was made by Vice President Kranzberg and seconded by Treasurer Elmer to approve the FY 2024 financial report. Motion passed 7-0. (Director Thorpe arrived after the vote.) GIDA Minutes, dated 9/23/24 1|Page From members of the Authority on current & future events  Jennifer Graves shared that Gilbert has launched the Business Resource Center/Catalyst in partnership with the Gilbert Chamber Foundation. The Center offers a centralized location for Gilbert-based businesses to access various community services, including those from the Small Business Development Center. The Center features a podcast studio, a content creation studio, and additional spaces for businesses to utilize technology. Office hours and workshops will also be held here. This initiative is a proud collaboration with the Gilbert Chamber, driven by the Town Council’s leadership. Director Zite inquired about the operational status of the Resource Center. Jennifer Graves confirmed it is up and running in the suite next to the Gilbert Chamber at 119 North Gilbert Road. Appointments can be scheduled via an online calendar. Director Zite also asked about podcasters. Jennifer Graves mentioned that they have partnered with Sleepy Time Studios, who have generously sponsored the podcasting space. Several businesses have already expressed interest in using this facility.  Jennifer Graves shared that the National Business Survey is currently underway. Efforts are being made to encourage the business community to participate. Despite a slow start in collecting feedback, ongoing promotion is expected to increase response rates. President DeRosa received the link for the National Business Survey and inquired if the IDA had received it. The IDA had not, so President DeRosa requested Jennifer Graves to forward the link to them. Jennifer Graves added that Polco, the survey company, requires registration. When sharing the link with the business community, inform them that we are looking into the requirement to register after completing the survey. Councilmember Tilque requested that a link to the survey also be forwarded to the Town Clerk’s Office to share with all Boards and Commission members.  Vice President Kranzberg and President DeRosa expressed their gratitude to Councilmember Tilque for her service on the Council and as Council Liaison on the IDA.  President DeRosa inquired about ways to encourage developers to use the IDA for financing new projects. Dan Henderson highlighted that commercial lending institutions are the main competitors. He noted that the IDA can be utilized by any municipality in Arizona, not just those in Gilbert. Dan also emphasized the importance of forwarding any project leads to Jennifer Graves and her team promptly. GIDA Minutes, dated 9/23/24 2|Page Dan Henderson provided the Economic Development update.  Continued to be a mentoring and coaching element with the opening of the Business Resource Center/Catalyst. It’s been a part of our Strategic Plan for 15 years. This evolution as a business resource center is far more encompassing. Businesses at any level have access to the center.  Gilbert continues to see lots of growth and accolades. We are the 5th largest city in AZ, and anticipating a change in the population count will likely change to the 4th largest city. We are the top 50th greatest city to live in. Gilbert continues to be a safe community. The demographics of our population is about 289,000 with an average household median income of about $121,000; 47% of our community has a bachelor’s degree or higher. We continue to maintain a Triple-A bond rating with an average median age of 36.1. 4.7M office and retail space were added that will attract and retain business. We received plans for a large industrial development known as The Ranch. This project will bring 3M square feet of industrial space online. We currently have about a 2% vacancy in our industrial space. This is needed inventory to continue to attract and retain in the business industry.  Northern Anchor at Juniper, there is a large parcel of land called Heritage Park, that is in the process of submitting their plans to begin construction. Anticipate the first phase of this development to start construction before December. It started as a single-phase project, but it’s now being delivered in multiple phases. The office component will be delivered in the second phase, and that will include additional retail and parking that will be open to the public. In Phase 1, retail and restaurants are anticipated, and ground floor retail with residential above. President DeRosa asked if there would be rental residential or condos to sell to purchase. Dan responded that it would be a rental. This project will accommodate about 800,000 square feet of mixed-use development on the site. Director Zite – with the construction of Heritage Park, what impact will there be on traffic on Gilbert Road? Dan Henderson responded that there shouldn’t be much of an impact as they will access the site from Juniper and Ash as well as using other egress options. Director Zite asked if the anticipated timeline is December 2024 to 2026. Dan Henderson responded that we are probably looking at 18 months for the first phase, but difficult to estimate the complete date.  Creating a Construction Campaign to provide an update on the construction of the capital improvement projects as well as the private construction in the Heritage District. This Campaign will help to understand what those impacts look like so that we can maintain ingress and egress parking and business access. GIDA Minutes, dated 9/23/24 3|Page   Water Tower Way - There will be a connection point that brings you into the district. It will connect the South side of the railroad tracks over the railroad tracks to the north end, ensuring that the pathway has a view of the water tower.  Wayfinding in the Heritage District is a new element coming into the district with branded HD marks that mark notable places to go; parking and gathering spaces. There will be a multi-phase delivery of some additional wayfinding to help people at the pedestrian and car level. Some use of technology will be the use of parking counts on different structures to navigate the district efficiently and safely.  Tourism – visitor expenditures are up. Events: o Sound Bites Food Festival, the Gin Blossoms – October 12 at Gilbert Regional Park. o Fall Marketing Campaign – Harvest in the HD that will include a community art piece, a mural that you can contribute to, and Fall theming in the HD that includes lamp posts with Fall décor. o Viva Festival that Parks and Recreation is putting on October – November 2024.  Vice President Kranzberg –any knowledge of SWC of Hacamor and Gilbert Roads. Dan Henderson responded that we have no additional information, but he will check with Planning to provide an update.  Treasurer Elmer requested an update on the Northwest Corner (NWC) of Gilbert Road. Dan Henderson responded that, following Council approval on June 18, 2024, the area was approved as a redevelopment area. We are currently in the outreach and planning stages. Our commitment to the Council includes engaging with the community for 6-8 months and preparing a Redevelopment Plan by June 2025. We aim to attend HOA meetings to engage with citizens and groups, provide updates, and identify key stakeholders for ongoing engagement. These meetings will also help us understand the tools and programs the community needs for reinvestment and revitalization. President DeRosa inquired about the timeframe for attending these meetings, to which Dan Henderson replied that any time would be suitable. Councilmember Tilque emphasized the importance of hearing from residents to incorporate their needs into the Plan. Dan Henderson also mentioned the development of a 10-year Plan, highlighting that this comprehensive effort will outline ways to reinvest in the area. Unlike the Heritage District, GIDA Minutes, dated 9/23/24 4|Page  this initiative is not intended to create an entertainment district. Instead, it focuses on creating tools and programs to encourage reinvestment and revitalization under the redevelopment brand. Council Liaison Update  Councilmember Tilque thanked the IDA for their service, and the Gilbert staff for everything they do.  Council agenda item in October – raising sales tax from 1.5% to 2%.  Included in the November ballot: o Yes Campaign - Educate people on how important it is that decisions that are going to impact your everyday life are going to be at the bottom of a four-page ballot. o Arizona law requires that there is an expenditure limit. The current expenditure limit is based on a 1980’s population. There needs to be a permanent base adjustment, and there is a question asking the voters to raise this limit. We have conducted a financial and data analysis to see what that limit should be.  Teen Violence task force – there are approximately 30 kids in our community that are actively involved in this type of activity. We are working on making it safer to report. We performed an AZ Youth Teen Survey and are looking to increase the number of students that were surveyed from 1,000 to 5,000. Director Zite asked if the task force is located in Gilbert’s Police Department. Councilmember Tilque responded that it’s a community task force. We will also be working closely with schools to work on tracking information early on, getting involved early on, and how to get the parents they need to get help.  Advocacy Center is breaking ground in January 2025. ADJOURNMENT A MOTION was made by Vice Kranzberg and seconded by Treasurer Elmer to adjourn. The meeting adjourned at 9:07 a.m. __________________________________ Kevin DeRosa, President GIDA Minutes, dated 9/23/24 5|Page