Labor and Economic Development Committee

601 W. Jefferson Street Louisville Metro Government Louisville, KY 40202 Action Summary - Final Labor and Economic Development Committee Chair Person David Yates (D-25) Vice Chair Anthony Piagentini (R-19) Committee Member Keisha Dorsey (D-3) Committee Member Donna Purvis (D-5) Committee Member Paula McCraney (D-7) Committee Member Markus Winkler (D-17) Committee Member Robin Engel (R-22) Tuesday, April 14, 2020 3:00 PM Council Chambers Call to Order Chair Person Yates called the meeting to order at 3:01 p.m. Roll Call Chair Person Yates introduced the committee members and non-committee members present. A quorum was established. NOTE: All committee members and non-committee members except for Chair Person Yates attended the meeting virtually. Committee Member McCraney joined the meeting at 3:16 p.m. Committee Member Winkler left the meeting at 4:00 p.m. Present: 7- Chair Person David Yates (D-25), Vice Chair Anthony Piagentini (R-19), Committee Member Keisha Dorsey (D-3), Committee Member Donna L. Purvis (D-5), Committee Member Paula McCraney (D-7), Committee Member Markus Winkler (D-17), and Committee Member Robin Engel (R-22) Non-Committee Member(s) Council Member Barbara Sexton Smith (D-4), Council President David James (D-6), Council Member Brandon Coan (D-8), Council Member Kevin Kramer (R-11), Council Member Kevin Triplett (D-15), Council Member Stuart Benson (R-20), Council Member James Peden (R-23), Council Member Madonna Flood (D-24) Support Staff Laura Ferguson, Jefferson County Attorney's Office Clerk(s) Lisa Franklin Gray, Assistant Clerk Louisville Metro Government Page 1 Labor and Economic Development Action Summary - Final April 14, 2020 Committee Pending Legislation 1. O-396-19 AN ORDINANCE CREATING A NEW SECTION OF CHAPTER 113 OF THE LOUISVILLE/JEFFERSON COUNTY METRO GOVERNMENT CODE OF ORDINANCES TO ESTABLISH AN ENTERTAINMENT DESTINATION CENTER WITHIN THE WHISKEY ALLEY AREA. Sponsors:Primary David James (D-6) and Primary Barbara Sexton Smith (D-4) Attachments: O-396-19 V.1 112119 LMCO Chapter 113.pdf Updated Whiskey Alley Draft Agreement 3.10.20.pdf Whiskey Alley - LED Concept Presentation 02.25.20.pdf Whiskey Alley Draft Agreement 2.25.20.pdf EntertainmentDestinationCenter.WhiskeyAllex.Ordinance.11.15.19.do cx Chair Person Yates relinquished the chair to Vice Chair Piagentini at 3:04 p.m. and abstained from the discussion. Vice Chair Piagentini assumed the chair and stated that this item was on the floor for discussion at the conclusion of the previous committee meeting. Therefore, the item was still on the floor and open for discussion. He then thanked Bill Weyland, Weyland Ventures, and Council Member Sexton Smith for their efforts in finalizing the details of the item to its completion. He stated that a new amendment had been added to the agreement that creates a 35-year term for the initial term of the agreement with 10-year extensions. He explained the overall goal is to allow the investors to see a return to their investment while ensuring that Metro Government has the flexibility to change factors in the future if needed. Vice Chair Piagentini again thanked Council Member Sexton Smith and Bill Weyland for their work on finalizing the agreement. He also apologized to Bill Weyland for not being readily available after the last Committee meeting. Council Member Sexton Smith thanked Vice Chair Piagentini for his words of thanks. She also thanked Bill Weyland and the staff of Weyland Ventures for their work developing a reasonable agreement. She stated that previous questions about the amount of monies spent for improvements over a particular time period have been addressed in the final signed agreement. She further stated that $100,000 will be spent on improvements in the first 12 months of operation. She also thanked Council Member Coan for his leadership in getting the legislation and agreement to completion. She asked Committee members to vote to recommend the legislation. The motion to recommend for approval carried by the following vote and the Ordinance was sent to Old Business: Yes: 5- Piagentini, Dorsey, Purvis, Winkler, and Engel Absent: 1- McCraney Louisville Metro Government Page 2 Labor and Economic Development Action Summary - Final April 14, 2020 Committee Abstain: 1- Yates 2. R-041-20 A RESOLUTION PURSUANT TO THE CAPITAL AND OPERATING BUDGET ORDINANCES, APPROVING THE APPROPRIATION TO FUND THE FOLLOWING NONCOMPETITIVELY NEGOTIATED AMENDMENT TO SOLE SOURCE CONTRACT FOR THE LIBRARY CONCERNING MAGAZINE AND NEWSPAPER SUBSCRIPTIONS AND OTHER MATERIALS FOR USE BY LIBRARY PATRONS - (OVERDRIVE, INC. - $750,000 FOR A NEW NOT-TO-EXCEED AMOUNT OF $1,250,000.00). Sponsors:Primary David Yates (D-25) Attachments: R-041-20 V.1 031920 - Contract for Overdrive, Inc..pdf OverDrive Inc. Vice Chair Piagentini relinquished the chair. Chair Person Yates assumed the chair and presided over the remainder of the meeting. A motion was made by Committee Member Winkler, seconded by Committee Member Dorsey, that this Resolution be recommended for approval. The following spoke to this Resolution: - Lee Burchfield, Louisville Free Public Library - Chair Person Yates - Vice Chair Piagentini The following was discussed: - This is the contract in which the library purchases digital and downloadable materials such as e-books and downloadable audio books - There is an increase in the amount spent on these materials by the library due to an increase in demand due to closures from the Covid 19 pandemic - This may also be due to out-of-school students using this platform for research -The increase may not be necessarily due to the number of licenses, but perhaps a particular number of titles that the library holds along with the increased demand - This also allows the library to broaden its collection of e-books by purchasing titles that were previously only available in print, but is now digitally available - This encourages more citizens to make use of the digital options available through the library The motion carried by a voice vote and the Resolution was sent to the Consent Calendar. Louisville Metro Government Page 3 Labor and Economic Development Action Summary - Final April 14, 2020 Committee 3. R-044-20 A RESOLUTION DETERMINING A PARCEL OF REAL PROPERTY LOCATED AT SOUTH FOURTH STREET AND OWNED BY LOUISVILLE/JEFFERSON COUNTY METRO GOVERNMENT (“METRO GOVERNMENT”) AS SURPLUS AND NOT NEEDED FOR A GOVERNMENTAL PURPOSE AND AUTHORIZING ITS TRANSFER TO SLS MANAGEMENT, LLC. Sponsors:Primary Barbara Sexton Smith (D-4) Attachments: R-044-20 V.1 031920 - Marketplace Square Surplus Property.pdf R-044-20 ATTACH 031920.pdf A motion was made by Vice Chair Piagentini, seconded by Committee Member Dorsey, that this Resolution be recommended for approval. The following spoke to this Resolution: - Chair Person Yates - Jeff O' Brien, Develop Louisville - Council Member Sexton Smith The following was discussed: - This is the property immediately north of the Marketplace restaurant that Louisville Metro owns at 651 South 4th Street - This property has the Marketplace patio on it - In 2009 when the restaurant was improved and built Metro Government signed a 50-year lease with SLS Management - In 2012 Metro Government modified the previous lease and signed a 30-year lease following improvements and further investment to the patio made by the management company - Metro Government also deeded an 8 x 133 foot strip of land to SLS Management - SLS Management has made $500,000 in improvements to the land and patio area and would like to make further improvements - SLS Management is requesting to purchase the property from Metro Government rather than continuing with the lease agreement - The proposed purchase price is $15,000 and there are significant easements that encumber it that require benefiting Metro Government and access to the rear of the Palace Theater - The lease agreement allows Metro Government to receive tax revenue for the land since there have been significant improvements made - The appraised value was deduced by the sale price in 2009, what has been done historically with the property, the easements, inflation and improvements to the property - SLS Management had invested $850,000 previously at the request of the previous administration, they are ready to make further investments with control of the property The motion carried by a voice vote and the Resolution was sent to the Consent Calendar. Louisville Metro Government Page 4 Labor and Economic Development Action Summary - Final April 14, 2020 Committee 4. R-046-20 A RESOLUTION PURSUANT TO THE CAPITAL AND OPERATING BUDGET ORDINANCES, APPROVING THE APPROPRIATION TO FUND THE FOLLOWING NONCOMPETITIVELY NEGOTIATED SOLE SOURCE CONTRACT FOR PARC CONCERNING UPGRADES TO PROPRIETARY FIRE DETECTION EQUIPMENT - (SIEMENS INDUSTRY, INC. - $50,000.00). Sponsors:Primary David Yates (D-25) Attachments: R-046-20 V. 1 040920 PARC - SIEMENS INDUSTRY, INC. - $50,000.00.pdf Siemens Industry Inc NCCR_Redacted.pdf A motion was made by Vice Chair Piagentini, seconded by Committee Member Winkler, that this Resolution be recommended for approval. The following spoke to this Resolution: - Tiffany Smith, PARC The following was discussed: - This is a sole source contract as Siemens Industry who creates the fire panels installed in all PARC garages - To maintain consistency and maintenance of the equipment Siemens was retained for all upgrades and improvements The motion carried by a voice vote and the Resolution was sent to the Consent Calendar. Louisville Metro Government Page 5 Labor and Economic Development Action Summary - Final April 14, 2020 Committee 5. R-048-20 A RESOLUTION APPROVING THE GRANTING OF LOCAL INCENTIVES TO INTERAPT, LLC AND ANY SUBSEQUENT ASSIGNEES OR APPROVED AFFILIATES THEREOF PURSUANT TO KRS CHAPTER 154, SUBCHAPTER 32. Sponsors:Primary David Yates (D-25) and Primary Anthony Piagentini (R-19) Attachments: R-048-20 V. 1 040920 LOCAL INCENTIVES - INTERAPT, LLC.pdf Interapt, LLC-Local Support Letter.pdf Interapt, LLC - Board Report.pdf A motion was made by Committee Member Winkler, seconded by Vice Chair Piagentini, that this Resolution be recommended for approval. The following spoke to this Resolution: - Rebecca Fleischaker, Economic Development The following was discussed: - A rapidly growing company recruiting 250 new jobs - Interapt will be making a $3.7 million dollar investment - The tech and IT jobs average $28 an hour - Since the pandemic the company has focused more on data science and software engineering - They are now assisting companies whose employees are working remotely and are expected to recruit more than the 250 jobs The motion carried by a voice vote and the Resolution was sent to the Consent Calendar. Special Discussion Louisville Metro Government Page 6 Labor and Economic Development Action Summary - Final April 14, 2020 Committee 6. ID 20-0474 Special Discussion: COVID-19 Economic Impact Payments & Projected Economic Impact - 1. Dr. Paul Coomes, University of Louisville 2. Steve Trager, Republic Bank and Trust 3. David Oetken, Louisville Small Business Development Center Chair Person Yates introduced the special discussion noting that many district offices have received calls regarding economic impacts to constituency, businesses and our community as a result of the Covid 19 pandemic. The special presenters will be addressing these economic questions as well as what may be expected going forward. The following spoke to this item: - Dr. Paul Coomes, University of Louisville - Steve Trager, Republic Bank - David Oetken, Louisville Small Business Development Center - Chair Person Yates - Vice Chair Piagentini - Council President James - Council Member Sexton Smith The following was discussed: - To date, approximately 75,000 employees have been impacted by Covid 19 and roughly 19,000 businesses have been affected that may be eligible for federal assistance - Federal loan programs such as the Paycheck Protection Program have been implemented to assist small businesses for sustainability as the community moves past the Covid 19 pandemic - Businesses may apply for these loans through the Small Business Association web site or with banks, the banks will in turn receive federal funds - Upon application, businesses must submit payroll history for the past twelve months detailing the economic impact the pandemic has made - The application process can be completed quickly and funds may be disbursed within a matter of days to help businesses - Any loan that is not a forgivable loan the borrower is responsible for the loan at a one percent interest rate per 2-year term - Banks act as facilitators for the loans and heavily rely on customer certification during the loan process - Having businesses viable will increase revenue and encourage spending - Small Business Association (SBA) is also offering economic disaster and injury loans which may be applied for at www.sba.gov - There are also forgivable, match fund and/or express bridge loans available on the SBA site to businesses - Some banks and community lenders are designated as express lenders - Relief measures have also been taken for businesses that have existing loans, all are encouraged to apply fee free - When applying several factors are included in the compensation definition such as state/local taxes, rent, utility payments, interest, health insurance, etc. Louisville Metro Government Page 7 Labor and Economic Development Action Summary - Final April 14, 2020 Committee - Non-profits, Sole Proprietorships, and Veteran organizations are eligible, as well as contractors and self-employed - Most businesses impacted at this time are entertainment venues, retail outlets, and restaurants - There will likely be a two to three month recession following the effects of the pandemic - A business friendly enviroment may be realized when people will feel more comfortable gathering after some safeguards are put into place such as public health screenings, etc.; this is comparable to the introduction of the TSA system in airports following the events of September 11 - Returning to pre-pandemic economy is still too early to predict -- two determining factors are health policy and how long businesses are shut down. The real probability is anywhere from 4-6 months or more - Greater Louisville, Inc., has launched a recruiting effort to create a renewal task force to address business and economic impacts, viable partners, and relief efforts for input on exit strategy from quarantine. This task force is open to the broader business community as well as GLI partners looking at both long/short term possibilities - Business and community partners may contact Sarah Davasher-Wisdom, President/CEO, GLI, is a good resource for the task force - Louisville Forward is also a great resource to assist businesses - It is expected that over $1 billion dollars will be sent to the local economy in the next several months to keep the economy moving forward, however, there will also be a weighted balance between those that may save monies rather than returning it to the local economy - Local economies receive highest revenues from occupational taxes however in this current crises communities are unable to benefit from unemployment or relief payments. Options for other sources of revenue may be viable such as increases in other areas, for example Nashville sales/property tax increase - Fiscally, true economic impacts will not be realized for some months as occupational taxes begin to decline and show mitigating effects on the local economy Adjournment Without objection, Chair Person Yates adjourned the meeting at 4:12 p.m. *NOTE: Items sent to the Consent Calendar or Old Business will be heard before the full Council at the Metro Council Meeting on April 23, 2020. Louisville Metro Government Page 8