Downtown Development Authority

DOWNTOWN DEVELOPMENT AUTHORITY MINUTES Monday, February 10, 2025 Council Chambers 5:00 PM 70 S. Clayton St, GA 30046 Call to Order Chairman Merritt called the meeting to order at 5:03 pm after recognizing a quorum. PRESENT Board Member Victoria Jones Board Member Jen Young Board Member Joanie Perry Ward Board Member Jim Nash Board Member Lee Merritt ABSENT Board Member Chris Adams Board Member Jeremy Higginbotham Approval of Agenda Chairman Merritt asked to change Item #2 to Hotel Approvals instead of SPS Add Service Design Proposal. Motion to change Item #2 to Hotel Approvals made by Board Member Jones, Seconded by Board Member Perry Ward. Voting Yea: Board Member Jones, Board Member Young, Board Member Perry Ward, Board Member Nash, Board Member Merritt Motion to approve the agenda with the approved change made by Board Member Jones, Seconded by Board Member Perry Ward. Voting Yea: Board Member Jones, Board Member Young, Board Member Perry Ward, Board Member Nash, Board Member Merritt Approval of Prior Meeting Minutes No prior meeting minutes approved Downtown Development Business 1. February 2025 Downtown Development Authority Treasurer’s Report Board Member Perry Ward, Treasurer shared the February 2025 Downtown Development Authority Treasurer's Report with the Board. There was a fraudulent charge on the Hotel Escrow Account. This has been reported to the bank and the funds have been returned to the account. We have opened a new account. When the investigation period is complete we will close the old account. Motion to approve the February 2025 Downtown Development Authority Treasurer's Report made by Board Member Jones, Seconded by Board Member Nash. Voting Yea: Board Member Jones, Board Member Young, Board Member Perry Ward, Board Member Nash, Board Member Merritt 2. SPS Add Service Design Proposal Hotel Approvals. The Board has approved the entire hotel budget and there is a process in place. Harvey Rudy, Construction Manager, is the first to review invoices for approval, he sends it to Barry Mock who reviews it against the hotel budget, and Barry sends it to the hotel construction monitor who reviews it, who sends it to Keith Lee who reviews it, and he sends it to the bank for processing. We approved a purchasing policy which states that anything over $100,000 needs to be approved by the Board. Barry Mock is working with ADM to purchase all the furniture, fixtures, and equipment (FF&E). They are the project purchasing agent. The Downtown Development Authority is exempt from paying sales tax. If ADM purchases the items directly they would need to pay the sales tax and pass that on to the DDA to pay. There will be a savings of approximately $300,000 in sales taxes if the DDA, as owner, purchases the items instead of ADM. The DDA will open a checking account that ADM can use to purchase the FF&E. Finance will handle all of the transfers. The Builders Risk Insurance policy premium from Marsh McLennan Agency is $428,895.63, and is to protect our interest in the hotel during construction. This money is in the budget. Motion to approve Invoice #2990987 from the Marsh McLennan Agency for Builders Risk Insurance in the amount of $428,895.63 made by Board Member Perry Ward, Seconded by Board Member Young, Voting Yea: Board Member Jones, Board Member Young, Board Member Perry Ward, Board Member Nash, Board Member Merritt Ponder & Ponder Architects are the ones that designed the hotel. An addendum has been drafted for services to update some materials and items since the first designs were created, and since some components are no longer available. The Downtown Development Authority has requested additional work to the retail spaces that will be owned by the Downtown Development Authority. The Downtown Development Authority has requested the architect to be onsite more and increase the amount of insurance, and the project will cover that cost. The amount is $183,998 and is also included in the budget. $146,000 is the amount in the new portion. Motion to approve the modification to the Ponder & Ponder Architects agreement in the amount of $183,998.00 made by Board Member Jones, Seconded by Board Member Perry Ward. Voting Yea: Board Member Jones, Board Member Young, Board Member Perry Ward, Board Member Nash, Board Member Merritt Sims Patrick Studio, an interior design company that is handling the interior design for the entire hotel. A modification for $149,000 has been drafted. The additional cost would include redesigning an outside courtyard and two model rooms to be approved by Hilton. Instead of waiting until much later in the construction process we will be building these model rooms offsite at 130 South Clayton Street. This is in the budget. Motion to approve the changes to the Sims Patrick Studio contract up to $150,000 as presented made by Board Member Jones, Seconded by Board Member Young. Voting Yea: Board Member Jones, Board Member Young, Board Member Perry Ward, Board Member Nash, Board Member Merritt Gwinnett County Water & Sewer Fees of $200,000 may need to be paid. When the hotel was initially started in 2019 the City still owned the water system. Barry Mock is in the process of confirming whether the water & sewer fees have been paid. This is not in the budget. If this needs to be paid it will need to come from contingency. Barry Mock has reached out to Gwinnett County for the documentation. Motion approve up to $200,000 to pay Gwinnett County for water & sewer fees if we find they have not been paid made by Board Member Jones, Seconded by Board Member Young. Voting Yea: Board Member Jones, Board Member Young, Board Member Perry Ward, Board Member Nash, Board Member Merritt  3. Living Stone Properties Consulting Agreement Table the Living Stone Properties Consulting Agreement discussion until after Executive Session made by Board Member Merritt, Seconded by Board Member Jones. Voting Yea: Board Member Jones, Board Member Young, Board Member Perry Ward, Board Member Nash, Board Member Merritt 4. Retail Update Board Member Young and Jasmine Billings presented their retail update. Mainstreet Business Jasmine Billings, Mainstreet Director, gave the Mainstreet Update. Facade Grant request from Fishery Fitness. They are moving to the Depot District. This request has been approved by the Facade Grant Committee. The Board has awarded four facade grants this year, this would be the fifth. Motion to approve a $2,500 Facade Grant to Fishery Fitness for their upgrades as presented by Jasmine Billings made by Board Member Jones, Seconded by Board Member Young. Voting Yea: Board Member Jones, Board Member Young, Board Member Perry Ward, Board Member Nash, Board Member Merritt Andrew Young exhibit (exhibit is free) is currently on display at the Lawrenceville Arts Center until March 31, 2025. On February 17th from 6-8:30 pm Andrew Young will be present for a special evening at the Lawrenceville Arts Center. More details and tickets are available on the Lawrenceville Arts Center website for the evening with Andrew Young. The City's premier events for the year have been released. Legacy Leader's WellFest will be at the Lawrenceville Lawn on Friday, March 14th - this is a youth led event that will focus on mental health. Lawrenceville Boogie will be on Saturday, April 12th Barry Mock announced that Board Member Victoria Jones won the Public Service Award at the Gwinnett Chamber Annual Dinner. Chairman Merritt read a thank you note from Paula Foil for the plant garden that was sent to Paula and her family from the Downtown Development Board in memory of Paula's mother who passed at the end of December. Other Business No Other Business Citizen Comments No Citizen Comments Executive Session - Real Estate Motion to enter into Executive Session made by Board Member Merritt, Seconded by Board Member Young. Voting Yea: Board Member Jones, Board Member Young, Board Member Perry Ward, Board Member Nash, Board Member Merritt Motion to exit Executive Session made by Board Member Merritt, Seconded by Board Member Perry Ward. Voting Yea: Board Member Jones, Board Member Young, Board Member Perry Ward, Board Member Nash, Board Member Merritt 7 Real Estate Items Discussed: 4 Votes Taken Motion to approve the Consulting Agreement with Living Stone Properties for consulting on real estate matters made by Board Member Merritt, Seconded by Board Member Nash. Voting Yea: Board Member Jones, Board Member Young, Board Member Perry Ward, Board Member Nash, Board Member Merritt Final Adjournment Motion to adjourn made by Board Member Merritt, Seconded by Board Member Young. Voting Yea: Board Member Jones, Board Member Young, Board Member Perry Ward, Board Member Nash, Board Member Merritt Minutes Signature _________________________ Lee Merritt, Chairman _________________________ Barry Mock, Secretary