Redevelopment Agency

CITY OF HENDERSON REDEVELOPMENT AGENCY MINUTES REGULAR MEETING December 16, 2014 I. CALL TO ORDER Chairman Hafen called the Redevelopment Agency Meeting to order at 5:36 p.m., in the City Council Chambers, City Hall, 240 Water Street, Henderson, Nevada 89015. II. CONFIRMATION OF POSTING AND ROLL CALL The Secretary confirmed the Redevelopment Agency Meeting had been noticed in compliance with the Open Meeting Law by posting the Agenda three working days prior to the meeting at City Hall, the Multigenerational Center, the Whitney Ranch Recreation Center, and Fire Station No. 86, and by mailing a copy of the Agenda to everyone appearing thereon on the Agenda Master Mailing List. Present: Andy Hafen, Chairman Gerri Schroder, Member John F. Marz, Member Debra March, Member Sam Bateman, Member Absent: None Officers: Jacob Snow, Executive Director Josh Reid, General Counsel Sabrina Mercadante, Secretary Absent: None Staff: Richard Derrick, Chief Financial Officer Robert Herr, Acting Sr. Director of Public Works, Parks & Recreation Stephanie Garcia-Vause, Community Dev. and Services Director Tedie Jackson, Council and Commission Services Reporter Jonathon Nunes, Sr. Deputy City Clerk Redevelopment Agency Meeting Page 2 of 9 December 16, 2014 – Minutes III. ACCEPTANCE OF AGENDA (Motion) Member Debra March moved to accept the agenda as amended: RDA-6 – Note a correction to the agenda item subject and description changing the financing “gap” from $40,000.00 to $90,000.00. The backup to the item is correct in the packet. The roll call vote favoring passage was: Those voting aye: Sam Bateman, Andy Hafen, Debra March, John F. Marz, and Gerri Schroder. Those voting nay: None. Those absent: None. Those abstaining: None. Chairman Hafen declared the motion carried. IV. ITEMS OF BUSINESS RDA-1 MINUTES REDEVELOPMENT AGENCY MEETING OF NOVEMBER 18, 2014 ECONOMIC DEVELOPMENT/REDEVELOPMENT City of Henderson Redevelopment Agency Meeting Minutes of November 18, 2014. (Motion) Member Gerri Schroder moved to adopt the minutes of the November 18, 2014, City of Henderson Redevelopment Agency Meeting. The roll call vote favoring passage was: Those voting aye: Sam Bateman, Andy Hafen, Debra March, John F. Marz, and Gerri Schroder. Those voting nay: None. Those absent: None. Those abstaining: None. xMayor declared the motion carried. RDA-2 PUBLIC HEARING SALE OF 314, 318 & 322 S. WATER STREET TO BLUE SKYE DEVELOPMENT, LLC ECONOMIC DEVELOPMENT/REDEVELOPMENT Public Hearing to receive comments on the City of Henderson Redevelopment Agency’s intent to sell Assessor’s Parcel Numbers 179-18-810-056, -057 and -058, generally located at 314, 318 & 322 S. Water Street, to Blue Skye Development, LLC, with Phase I (314 Water Street, approximately .17 acres) to be sold for $52,000.00, and Phase II (318 and 322 Water Street, .19 and .17 acres respectively) to be sold for a price determined by appraisal at such time as the developer exercises their option to purchase. Redevelopment Agency Meeting Page 3 of 9 December 16, 2014 – Minutes Michelle Romero, Redevelopment Manager, reported that the sale of these three properties will be done in two phases. She said phase one will be for 314 Water Street only, which appraised for $52,000.00; and phase two is 318 and 322 Water Street. She stated that the developer will be making a deposit on 314 Water Street in the amount of $5,200.00. She explained that staff is proposing a grant of option to purchase the other two properties for phase two within three years. Ms. Romero noted that the developer will pay ten percent of the current appraised value in the amount of $11,500.00. She said the purchase price of phase two will be determined at the time the option is exercised for whatever appraised value is determined at the time. Chairman Hafen opened the public hearing at 5:39 p.m., asking if there was anyone present wishing to speak for or against this item. There being no one wishing to speak, the public hearing was closed immediately. (Motion) Member Sam Bateman moved to accept public comments. The roll call vote favoring passage was: Those voting aye: Sam Bateman, Andy Hafen, Debra March, John F. Marz, and Gerri Schroder. Those voting nay: None. Those absent: None. Those abstaining: None. Chairman Hafen declared the motion carried. RDA-3 LAND PURCHASE AND SALE AGREEMENT 314, 318 & 322 WATER STREET TO BLUE SKYE DEVELOPMENT, LLC ECONOMIC DEVELOPMENT/REDEVELOPMENT Land Purchase and Sale Agreement by the City of Henderson Redevelopment Agency, Clark County, Nevada for the sale of Assessor’s Parcel Numbers 179-18-810-056, -057 and -058, generally located at 314, 318 & 322 South Water Street, with the Phase I (314 Water Street, approximately .17 acres) purchase price of $52,000.00, and the Phase II (318 and 322 Water Street, .19 and .17 acres respectively) purchase price to be determined by appraisal at such time as the developer exercises his option to purchase, to Blue Skye Development, LLC and authorize the Executive Director to execute and deliver such agreement and all documents to be executed and delivered by the Agency thereunder. See discussion under Item 2. Michelle Romero, Redevelopment Manager, said staff concurs with the recommendation. Redevelopment Agency Meeting Page 4 of 9 December 16, 2014 – Minutes (Motion) Member Gerri Schroder moved to approve the Land Purchase and Sale Agreement. The roll call vote favoring passage was: Those voting aye: Sam Bateman, Andy Hafen, Debra March, John F. Marz, and Gerri Schroder. Those voting nay: None. Those absent: None. Those abstaining: None. Chairman Hafen declared the motion carried. RDA-4 PUBLIC HEARING SALE OF 10,680 SQUARE FEET OF VACANT LAND LOCATED AT THE SOUTHWEST CORNER OF SOUTH WATER STREET AND VICTORY ROAD TO LOVELADY BREWING COMPANY, LLC ECONOMIC DEVELOPMENT/REDEVELOPMENT Public Hearing to receive comments on the City of Henderson Redevelopment Agency’s intent to sell approximately 10,680 square feet of vacant land, identified as a portion of Assessor’s Parcel Number 179-18-810-056, generally located at the southwest corner of South Water Street and Victory Road, to Lovelady Brewing Company, LLC for $120,000.00. Michelle Romero, Redevelopment Manager, read the following correction in the item description: The parcel number should read 179-18-218-001. She noted that the parcel number is correct on the rest of the items and in the backup material. She presented a summary of this item and noted that the applicant will be making a deposit in the amount of $12,000.00 Chairman Hafen opened the public hearing at 5:41 p.m., asking if there was anyone present wishing to speak for or against this item. There being no one wishing to speak, the public hearing was closed immediately. Responding to a question by Member Marz as to the construction cost on the brew pub, Ms. Romero said it is approximately $2.65 million. Member March commented that she thinks this project will be a wonderful investment to Downtown Water Street and bring a lot of activity to the area. Redevelopment Agency Meeting Page 5 of 9 December 16, 2014 – Minutes (Motion) Member Debra March moved to accept public comments, as amended. The roll call vote favoring passage was: Those voting aye: Sam Bateman, Andy Hafen, Debra March, John F. Marz, and Gerri Schroder. Those voting nay: None. Those absent: None. Those abstaining: None. Chairman Hafen declared the motion carried. RDA-5 LAND PURCHASE AND SALE AGREEMENT 10,680 SQUARE FEET OF VACANT LAND LOCATED AT THE SOUTHWEST CORNER OF SOUTH WATER STREET AND VICTORY ROAD LOVELADY BREWING COMPANY, LLC ECONOMIC DEVELOPMENT/REDEVELOPMENT Land Purchase and Sale Agreement by the City of Henderson Redevelopment Agency, Clark County, Nevada, for the sale of approximately 10,680 square feet of vacant land, identified as a portion of Assessor’s Parcel Number 179-18-810-056 generally located at the southwest corner of South Water Street and Victory Road, to Lovelady Brewing Company, LLC for $120,000.00 and authorize the Executive Director to execute and deliver such agreement and all documents to be executed and delivered by the Agency thereunder. Note: See discussion under Item 4. Michelle Romero, Redevelopment Manager, read the following correction in the item description: The parcel number should read 179-18-218-001. (Motion) Member Debra March moved to approve the Land Purchase and Sale Agreement, as amended. The roll call vote favoring passage was: Those voting aye: Sam Bateman, Andy Hafen, Debra March, John F. Marz, and Gerri Schroder. Those voting nay: None. Those absent: None. Those abstaining: None. Chairman Hafen declared the motion carried. Redevelopment Agency Meeting Page 6 of 9 December 16, 2014 – Minutes RDA-6 GRANT AWARD CONSTRUCTION OF A BREW PUB LOVELADY BREWING COMPANY, LLC ECONOMIC DEVELOPMENT/REDEVELOPMENT Grant to Lovelady Brewing Company, LLC in the amount of $40,000.00 for the construction of a Brew Pub on a portion of Assessor’s Parcel Number 179-18-810-056 generally located at the southwest corner of South Water Street and Victory Road pursuant to NRS 279.486. Michelle Romero, Redevelopment Manager, stated that the Agency was provided with a memorandum outlining the following changes: Changing the grant amount from $40,000.00 to $90,000.00. She noted that the backup material and the grant agreement is correct; The parcel number is corrected to 179-18-218-001; At the end of the subject, the following language should be added: “and approved downtown redevelopment grant award agreement between the City of Henderson Redevelopment Agency and Lovelady Brewing Company, LLC;” The account number should read: 2092-601436-H0108; and Add the following language in the background portion: “The developer has submitted to the Agency’s consultant, National Development Council (NDC) for review on behalf of the Agency a business plan for the project, personal financial statements, a capital equipment schedule, and a letter of interest from the lender with respect to the loan to finance the project. Based on this financial information, the NCD has advised the agency that developer does have financial resources to provide the equity investment required by the proposed lender, and that there is a financial gap that may be partially filled by financial assistance from the Agency in the amount of $90,000.00.” Member Schroder stated that the memorandum reads: Based on this financial information, the NDC has advised the Agency that developer does “not” have financial resources to provide the equity investment required by the proposed lender, and that there is a financial gap that may be partially filled by financial assistance from the Agency in the amount of $90.000.00. Ms. Romero clarified that the developer does have the financial resources with the Agency filling in the gap. Redevelopment Agency Meeting Page 7 of 9 December 16, 2014 – Minutes Responding to questions by Member Marz, Ms. Romero confirmed that this grant will be awarded in two parts. She said the first $40,000.00 would be released once the owners close on the property, have paid all the permits to the City, and have paid all the required fees. She stated that the second $50,000.00 would be released upon certificate of occupancy as a reimbursement after the project is finished. She noted that the $50,000.00 is under this grant, but the applicant would have qualified for a tenant improvement grant. Member Marz asked when the guidelines for the tentative improvement grant were established by the Agency? Ms. Romero replied that it has been in operation for approximately three years, and was slightly modified last year. In response to a question by Member Schroder, Ms. Romero clarified that without the financial assistance from the Agency, the developer will not be able to have enough equity. With the Agency’s financial assistance of $90,000.00, that fills the gap and they will meet the requirement for the bank. Member Bateman commented that the extra financial assistance is about three percent of the total investment. Responding to a question by Member March as to how many jobs will be created, Ms. Romero said they will begin with three or four jobs, but they will add more as they build their business. She commented that this does not include construction jobs. (Motion) Member Sam Bateman moved to approve a grant to Lovelady Brewing Company, LLC in the amount of $90,000.00 for the construction of a Brew Pub on a portion of Assessor’s Parcel Number 179-18-218-001, generally located at the southwest corner of South Water Street and Victory Road, pursuant to NRS 279.486. The roll call vote favoring passage was: Those voting aye: Sam Bateman, Andy Hafen, Debra March, John F. Marz, and Gerri Schroder. Those voting nay: None. Those absent: None. Those abstaining: None. Chairman Hafenr declared the motion carried. Redevelopment Agency Meeting Page 8 of 9 December 16, 2014 – Minutes RDA-7 INTERLOCAL AGREEMENT CITY OF HENDERSON REDEVELOPMENT AGENCY AND THE CLARK COUNTY SCHOOL DISTRICT 18% EDUCATIONAL SET ASIDE REQUIREMENT ECONOMIC DEVELOPMENT/REDEVELOPMENT Interlocal Agreement between the City of Henderson Redevelopment Agency and the Clark County School District providing for the 18-percent educational set aside requirement pursuant to NRS 279.676, including disbursement schedule and reporting requirements. Michelle Romero, Redevelopment Manager, stated that this agreement brings the Agency into compliance with Assembly Bill 417, which requires the Agency to set aside 18 percent for education once a reset it initiated. She noted that staff has begun setting aside those funds for the School District. Ms. Romero said the funds can only be used for schools located within a redevelopment area or serving people living within a redevelopment area. She commented that it has to be in the redevelopment area it is located in. Responding to a question by Member Marz as to whether the School District has to tell what they use the money for, Ms. Romero confirmed that the School District has to provide an annual report to the Agency showing how they used any funds, or a report saying the funds have not been used this year. Member Marz asked that staff provide the Agency with a formal report of what the School District does with those funds. Ms. Romero replied that staff will generate a report at the end of the year. Member Schroder commented that these funds will also be used for schools that provide services to redevelopment areas. Ms. Romero provided the example that Basic High School and Brown Junior High School are not located within a redevelopment area, but they serve people residing in the redevelopment area. (Motion) Chairman Andy Hafen moved to approve the Interlocal Agreement between the City of Henderson Redevelopment Agency and the Clark County School District establishing the 18-percent educational set aside requirement pursuant to NRS 279.676, including disbursement schedule and reporting requirements. The roll call vote favoring passage was: Those voting aye: Sam Bateman, Andy Hafen, Debra March, John F. Marz, and Gerri Schroder. Those voting nay: None. Those absent: None. Those abstaining: None. Chairman Hafen declared the motion carried. Redevelopment Agency Meeting Page 9 of 9 December 16, 2014 – Minutes V. CHAIRMAN\MEMBER COMMENTS Chairman Hafen announced that this meeting is being video recorded and streamed live to the Web. VI. PUBLIC COMMENT No comments were presented by the public. VII. ADJOURNMENT There being no further business to come before the Redevelopment Agency, Chairman Hafen, in concurrence with the Redevelopment Agency, adjourned the Redevelopment Agency Meeting at 5:52 p.m. PASSED AND ADOPTED THIS 17th DAY OF MARCH, 2015. ______________________ Andy Hafen Chairman ATTEST: ________________________ Sabrina Mercadante, MMC Secretary