Redevelopment Advisory Commission

CITY OF HENDERSON REDEVELOPMENT AGENCY ADVISORY COMMISSION MINUTES December 17, 2013 I. CALL TO ORDER Chairman Mark McGinty called the Redevelopment Advisory Commission to order at 4:01 p.m. in the Annex Conference Room, City Hall Annex, 280 Water Street, Henderson, Nevada. II. CONFIRMATION OF POSTING AND ROLL CALL MaryAnne Cruzado, Recording Secretary, confirmed the meeting had been noticed in accordance with the Open Meeting Law by posting the Agenda three working days prior to the meeting at City Hall, Henderson Convention Center, Green Valley Police Substation, and Fire Station No. 86. Present: Chairman Mark McGinty Dave Johnson Richard Serfas Stan Southwick John Vanderploeg Excused: Laura Jane Spina Tom Foster Staff: Barbra Coffee, Manager of Economic Dev/Redevelopment Rory Robinson, Assistant City Attorney III Lisa Sich, Special Projects Accountant MaryAnne Cruzado, Admin Assistant III Tedie Jackson, Minutes Clerk Redevelopment Agency Advisory Commission Meeting Page 2 December 17, 2013 – DRAFT Minutes III. ACCEPTANCE OF AGENDA (Motion) Mr. Southwick introduced a motion to accept the agenda as submitted. The vote favoring approval was unanimous. Chairman McGinty declared the motion carried. IV. PUBLIC COMMENT No comments were presented by the public. V. NEW BUSINESS 1. MINUTES REDEVELOPMENT AGENCY ADVISORY COMMISSION MEETING OF October 22, 2013 Approve the minutes of the City of Henderson Redevelopment Agency Advisory Commission meeting of October 22, 2013. (Motion) Mr. Vanderploeg introduced a motion to approve the minutes of the City of Henderson Redevelopment Agency Advisory Commission meeting of October 22, 2013, as submitted. The vote favoring approval was unanimous. Chairman McGinty declared the motion carried. 2. REVISIONS TO FINANCIAL MANAGEMENT POLICY NUMBER 500-02, LOAN SUBORDINATION Adopt the revisions to the Redevelopment Agency Financial Management Policy Number 500-02, Loan Subordination. Lisa Sich, Special Projects Accountant, gave a brief presentation and stated staff recommends approval of the changes. There were no questions from the Commission. (Motion) Mr. Johnson introduced a motion to adopt the Redevelopment financial Management Policy for Loan Subordination. The vote favoring approval was unanimous. Chairman McGinty declared the motion carried. 3. SUBMISSION OF REDEVELOPMENT AGENCY ANNUAL AUDITED FINANCIAL STATEMENTS – FISCAL YEAR 2012-2013 AND REQUIRED COMMUNICATIONS LETTER Recommend to adopt the Redevelopment Agency’s Fiscal Year 2012-2013 audited Financial Statements. Redevelopment Agency Advisory Commission Meeting Page 3 December 17, 2013 – DRAFT Minutes Lisa Sich, Special Projects Accountant, gave a brief presentation of the financial statements and noted that the fund balance is over $29 million. She pointed out that $5 million is available for projects in the Downtown area and $7.6 million is available for projects in the Eastside area, and the remaining funds are reserved. She noted that Maria Gamboa with Piercy Bowler Taylor and Kern is present to answer questions. (Motion) Mr. Southwick introduced a motion to adopt the Redevelopment Agency’s Fiscal Year 2012-2013 Audited financial Statements. The vote favoring approval was unanimous. Chairman McGinty declared the motion carried. 4. OWNER PARTICIPATION AGREEMENT BY AND BETWEEN UNION VILLAGE, LLC AND THE CITY OF HENDERSON REDEVELOPMENT AGENCY FOR A PROJECT TO BE LOCATED ON APPROXIMATELY 120.53 NET ACRES AT THE NORTHEAST CORNER OF US93/95 AND GALLERIA DRIVE Recommend to approve the Owner Participation Agreement by and between Union Village, LLC and the City of Henderson Redevelopment Agency for a project to be located on approximately 120.53 net acres at the northeast corner of US 93/95 and Galleria Drive. Lisa Sich, Special Projects Accountant, presented a summary of this item and reviewed the deal points of this project. She noted that Exhibit F, which outlines the policies and procedures for performance reviews, was distributed to Commission members today. She reported that the Agency agreed to provide $80.2 million in tax increment reimbursement for improvements. She stated that the total project is projected to bring in $158 million in tax increment and add 17,000 jobs. Ms. Sich said staff recommends approval. Rory Robinson, Assistant City Attorney III, stated that she has no changes to this agreement. John Marchaino, 218 Lead Street, representing Union Village, stated that this project has been ongoing for almost three years, and a remarkable effort has been made by many people. He recognized City staff and management for their hard work. Mr. Baker stated that this project will create a lot of jobs and economic development in healthcare. He complimented City leadership and staff and the team effort made to make this project happen. He introduced Chris Farley, attorney; and Fred Johnson, partner. Responding to a question by Mr. Johnson as to who will run the hospital, Ms. Robinson said this issue should be discussed on the next agenda item. Mr. Baker commented that this partnership with Valley Health System will benefit all of Clark County. Redevelopment Agency Advisory Commission Meeting Page 4 December 17, 2013 – DRAFT Minutes In response to a question by Mr. Vanderploeg regarding how the vision for Union Village has changed and when development will begin, Ms. Sich stated that Union Village still plans to have a continuing care hospital, physician access center, skilled nursing facility, retail, athletic club, multi-plex cinema, residential, independent living, Alzheimer’s living, and assisted living. She said they plan to have part of this project completed in 2015 and total completion date in 2021. Mr. Serfas complimented staff and Union Village representatives for their patience and willingness to work things out during these difficult economic times. He stated that this is a true public-private partnership, and this project will help the city grow, prosper, and create jobs. (Motion) Mr. Serfas introduced a motion to approve the Owner Participation agreement by and between Union Village, LLC and the City of Henderson Redevelopment Agency for a project to be located on approximately 120.53 net acres at the northeast corner of US 93/95 and Galleria Drive. The vote favoring approval was unanimous. Chairman McGinty declared the motion carried. 5. OWNER PARTICIPATION AGREEMENT BY AND BETWEEN VALLEY HEALTH SYSTEM LLC AND THE CITY OF HENDERSON REDEVELOPMENT AGENCY FOR A PROJECT TO BE LOCATED ON APPROXIMATELY 30.19 NET ACRES AT THE NORTHEAST CORNER OF US 93/95 AND GALLERIA DRIVE Recommend to approve the Owner Participation Agreement by and between Valley Health System LLC and the City of Henderson Redevelopment Agency for a project to be located on approximately 30.19 net acres at the northeast corner of US 93/95 and Galleria Drive. Lisa Sich, Special Projects Accountant, presented a summary of this item and reviewed the deal points of this project. She said the Agency is pledging $33 million in future tax increment, and the note will accrue six-percent interest. She noted that the motion for this item has been revised to add the following language “subject to the delivery, prior to delivery of the Owner Participation Agreement, of a completion and cost overrun guaranty in favor of the Redevelopment Agency, or other assurances with respect to completion of the hospital, in a form approved by the Agency’s Executive Director and General Counsel.” Rory Robinson, Assistant City Attorney, reviewed changes to the Owner Participation Agreement in Section 1.1, Section 3.1.2, Section 6.2, and Exhibit C. She noted that the applicant has reviewed these changes. Greg Vermaze, 3773 Howard Hughes Parkway; and Jim Mayes, representing Valley Health Systems, confirmed that they reviewed the changes with staff. Redevelopment Agency Advisory Commission Meeting Page 5 December 17, 2013 – DRAFT Minutes Responding to a question by Mr. Johnson as to who will run the hospital, and if the owner is the operator, Mr. Vermaze said to his knowledge the owner is also the operator of the hospital. Mr. Vanderploeg thanked Valley Health System for being part of this project. Mr. Mayes commented that the City has been very cooperative. Mr. Serfas stated that he believes that Valley Health System will be a great healthcare provider for the community. (Motion) Mr. Vanderploeg introduced a motion recommending approval of the Owner Participation Agreement by and between Valley Health System LLC and the City of Henderson Redevelopment Agency for a project to be located on approximately 30.19 net acres at the northeast corner of US 93/95 and Galleria Drive, subject to the delivery, prior to delivery of the Owner Participation Agreement, of a completion and cost overrun guaranty in favor of the Redevelopment Agency, or other assurances with respect to completion of the hospital, in a form approved by the Agency’s Executive Director and General Counsel, and as amended per changes read by the Assistant City Attorney. The vote favoring approval was unanimous. Chairman McGinty declared the motion carried. 6. PROJECTS UPDATE Lisa Sich, Special Projects Accountant, gave an update on ongoing projects in the Redevelopment Area. (Motion) Mr. Serfas introduced a motion to accept the Projects Update Report as presented. The vote favoring approval was unanimous. Chairman McGinty declared the motion carried. VII. PUBLIC COMMENT There were no comments presented by the public. VIII. DIRECTOR’S/CHAIRMAN’S AND MEMBERS’ BUSINESS Ms. Sich commented that when the financial statements are adopted, the Commission members will receive the monthly financial statements. IX. SET NEXT MEETING The next meeting was scheduled for January 28, 2014, at 4:00 p.m. Redevelopment Agency Advisory Commission Meeting Page 6 December 17, 2013 – DRAFT Minutes X. ADJOURNMENT There being no further business to be discussed, the meeting was adjourned at 4:29 p.m. Respectfully submitted, __________________________ Tedie Jackson, Minutes Clerk