Board Members Present: Tina Dharman (Chair), Julie Broadus, Margaret McClure, Norman Urquhart, and Joseph Johnson

Transcription

1 City of East Point Monthly Meeting Summary Business and Industrial Development Authority Thursday, August 3, Norman Berry Drive East Point, GA :30pm I. Call to order Chairperson, Ms. Dharman, established a Call to Order of the East Point Business and Industrial Development Authority (BIDA) meeting at 6:53pm. Board Members Present: Tina Dharman (Chair), Julie Broadus, Margaret McClure, Norman Urquhart, and Joseph Johnson Others Present: Maceo Rogers (Director of Economic Development), Rhonda Appleby (Secretary/Treasurer), Kirby Glaze (Legal Counsel), and Nyomi Haynes (Recording Secretary). Guest Present: Paul Johnson and Ernesto Bergeron (Marcus & Millichap) II. Adoption of Agenda Mr. Urquhart motioned to approve the agenda. Ms. Broadus seconded the motion. Approved unanimously, the motion carried. III. Approval of the Meeting Summary from the following meeting: July 19, 2017 Summary The following corrections were made to the July 19, 2017 Summary: On page 4, line The City should look into placing a grocer like Aldi or Sprouts on the Commons. Mr. Johnson stated that the text should read, Mr. Johnson suggested that the Council have the City Manager to instruct the Economic Development Staff to solicit grocers such as Aldi and Sprouts. On page 2, line 2-3 Ms. McClure placed the motion up for discussion. Ms. McClure stated that the text should be stricken from the minutes and rewrote to read, Ms. McClure thought the motion was an improper motion. BIDA Meeting Summary of August 3, 2017 Page 1 of 6

2 Mr. Urquhart motioned to approve the summary with the corrections. Mr. Johnson seconded the motion. Approved unanimously, the motion carried. IV. Presentation by Marcus & Millichap Mr. Paul Johnson informed the board that he has contacted several interested developers. Developers are hesitant to come forward when they feel that another entity is involved in the development. Development groups love to be involved in a Transit Orient Development (TOD) by building market rate developments. Ms. Dharman asked if East Point has the market for market rate rents. Mr. Paul Johnson replied that a development with structured parking and without any assistance would command $1.80 to $2.00 per square feet the high end of the market. Even if there is some assistance by the City, such as the Tax Allocation District (TAD), interest rates are so low that it should not be a problem to execute the development. Mr. Paul Johnson informed the board that he was working with legitimate developers who are willing to put up earnest money; however, he cautioned the board they would miss this opportunity after a period of time. Mr. Paul Johnson felt that the current developer should be at the closing phase (where the planning and legal activities take place) in this development; however, he felt that this development project was not at that level. Mr. Joseph Johnson made a motion to extend Marcus & Millichap s contract. Mr. Ernesto Bergeron informed the board that the rents in Hapeville were increasing to over $2.00 per square feet. College Park has Class-A development at $ to $ build-outs. Although it takes time to put together a capital structure, Mr. Bergeron stated that for months he has not seen any progress on the Commons project. Part of the delay, he felt, is that the lead developer cannot move forward because of financial reasons. Mr. Bergeron went on to state that the surrounding areas (Hapeville and College Park) were on fire but he could not figure out if BIDA was waiting for the market or for money from the City. BIDA will need to figure out which will come first the market or someone else s priority. Mr. Joseph Johnson motioned to extend Marcus & Millichap s contract. Ms. Broadus seconded the motion. Approved unanimously, the motion carried. Ms. Dharman inquired about BIDA s next step in the matter. Mr. Glaze stated that at this point, the board was waiting on the City s direction. Mr. Rogers stated that the City met with the school board and that the meeting went well. The City was looking at using the same angle as College Park. Ms. Dharman BIDA Meeting Summary of August 3, 2017 Page 2 of 6

3 stated that BIDA needed to be on Council s Executive Session because the project cannot be delayed any further. Mr. Rogers stated that the City Manager wanted to work out the measure with the school board before having Steve McCauley come before Council. Also, the City Manager wanted the opportunity to talk to the Mayor first before bringing the matter to Council. Mr. Joseph Johnson mentioned that on August 15, 2017, the school board would be present at Asa Hilliard Elementary School. Ms. McClure stated that Steven McCauley knew the project did not have the school board s participation; therefore, BIDA should terminate his agreement. She felt that the board should suggest to Council not to approve him as the developer of the project with or without the school board s support. Ms. Dharman felt that the school board s decision should continue, but the Council needed to make a decision. Mr. Joseph Johnson motioned to reach out to the Council about scheduling an Executive Session on the matter. Mr. Urquhart seconded the motion. The motion was approved with Ms. Broadus opposing the motion. V. Director s Report Mr. Rogers stated that the City would be breaking ground on the new government center. He distributed a map of the downtown area that highlighted temporary public and employee parking at the Commons. The old Fire Station, old City Hall, and auditorium will be affected. Parking will be needed for the next 18 months. Ms. Dharman asked what would happen if BIDA found a developer within the next 18 months. Mr. Rogers replied that the City would execute an agreement with the new developer or in the case with Steven McCauley, negotiate new terms on the existing agreement. Ms. McClure asked if the public would be able to leisurely park at the Commons. Mr. Rogers replied that parking was allowable only for City and court business as well as for employee parking. Mr. Rogers stated that segments of the Law Enforcement Center parking area would go away. People can still park at the Customer Care building. Due to the parking situation, Ms. McClure expressed her concerns about the board s liability. Mr. Glaze asked if the City was planning to do any land improvements on the lots. Mr. Rogers replied that the City was planning to place gravel, asphalt and concrete on the lots. Mr. Joseph Johnson asked about the staging area. Mr. Rogers replied that the Fire Station would be demolished. He stated that the second phase would be rodent control, which would happen before the development. Currently, the auditorium s roof was being repaired and the asbestos removed. The Planning and Community Development Department will be housed in the newly renovated City Hall. Mr. Joseph Johnson asked about BIDA s incidental liability. Mr. Glaze recommended granting the City a temporary open-ending easement for parking at the Commons with the option to terminate BIDA Meeting Summary of August 3, 2017 Page 3 of 6

4 the contract with a 90-day notice. The City will be responsible for any improvements in maintaining, securing, and policing the property. It will be the City s responsibility in making sure that the Commons will be used for its intended purpose. Ms. McClure motioned to grant the City an open-ending temporary easement for parking on the two (2) parcels of land owned by BIDA. Mr. Joseph Johnson seconded the motion. Approved unanimously, the motion carried. Mr. Rogers informed the board that the Soccer in the Streets (S.I.T.S.) project was moving forward. He stated that there was a scheduled meeting with the representatives next week. Ms. Dharman stated that she has yet to see an executed lease. Mr. Glaze stated that S.I.T.S is a duly registered Georgia nonprofit organization. Ms. Dharman stated that they needed to appear before the board. Mr. Rogers stated that the representative has invited him to tour their downtown soccer site. Ms. Dharman expressed her concerns about the matter. She found the matter troubling because the board has presented a lease agreement to an entity who has yet to come before the board. She felt that Mr. Sanjay Patel should present before the board. She went on to state that the board still did not have an executed lease agreement, therefore, would not move forward without one. Ms. Broadus felt that a representative from the organization should appear before the board, not necessarily Mr. Patel. Mr. Joseph Johnson stated that he wanted to see a listing of names and addresses of S.I.T.S. as well as incorporating their official name in the agreement. VI. Secretary/Treasurer Report Ms. Appleby entered Ms. Haynes invoice into record. Mr. Joseph Johnson motioned to approve Ms. Haynes invoice. Mr. Urquhart seconded the motion. Approved unanimously, the motion carried. Ms. Appleby entered the board s financial report into record. VII. VIII. Chairperson s Report None reported Legal Report Mr. Glaze reported that he was still working on the quitclaim deed to 2797 Main Street. Ms. Dharman stated that BIDA could not go forward with S.I.T.S. until they get a clear title on the Main Street property. Mr. Glaze stated that he would get with the City s Attorney regarding the matter. BIDA Meeting Summary of August 3, 2017 Page 4 of 6

5 a. Bond Inducement Resolutions Updates Mr. Glaze stated that even though he has received several phone calls regarding Bob Johnson s Bond Inducement Resolution, the project has yet to move forward. Mr. Glaze stated that the owner of Airport Employment Training (AETC) lost the contract on the property and was looking for another property. Mr. Rogers added that the property owner wanted too much for the site, thereby, making the AETC s owner search other areas. Mr. Glaze stated that when another property site is found, he would amend the Inducement Resolution. Mr. Glaze reported that Arden s Garden project keep stalling. He believes that the financial institution that is handling the financing will also handle the construction and permanent financing. It is his belief that their financial institution will also be the buyer of the bonds. Currently, Arden s Garden main focus is on construction. Once the project finishes the construction phase, Mr. Glaze believes the bond issuance will resume. Mr. Rogers added that on August 29, 2017, Arden s Garden would be one of the bus touring sites of the Electric Cities of Georgia (ECG). Participants of the ECG bus tour will tour the Arden s Garden facility. Ms. Dharman inquired if Arden s Garden has applied for their historical tax credits. Mr. Rogers stated that they have not. Mr. Glaze stated that he would contact their Bond Counsel. Mr. Glaze advised the board that if Arden s Garden did not close their bonds by the end of this calendar year, they would be in jeopardy of losing next year s tax benefits. IX. New Business Mr. Joseph Johnson suggested that the City deed BIDA three (3) abandon properties to sell as a consolidated piece of property or as scattered sites. Ms. Dharman asked Mr. Glaze if BIDA could function as a land bank. Mr. Glaze replied that BIDA could function as a land bank in the sense that properties that are acquired by the City and transferred to BIDA are a result of lien foreclosures. As in the City s process, the properties would come off the tax role. Land banks have specific authority with respect to clearing various liens (liens that are not cleared by a foreclosure) on the property. BIDA does not have that authority. The City would choose to transfer properties acquired through foreclosures, liens or for other purposes and is no longer using it for that purpose. BIDA s advantage is that they can negotiate directly with potential developers and builders on those lots, unlike the City who would have to place the lots up for bid. If the lots are residential, then BIDA could negotiate with the builder for developing infill housing. Mr. Glaze requested that Mr. Joseph Johnson send him a list of the potential land lots so that he could meet with the City Manager on the matter. Ms. Dharman inquired about the tax sales listings. Mr. Glaze stated that the sales are published in the Fulton Daily Report in the legal section. If the property were acquired by a tax lien, then BIDA would have to go BIDA Meeting Summary of August 3, 2017 Page 5 of 6

6 thru the process of foreclosing the right of redemption. Unless you go through the judicial process on the tax liens, the original property owner has a 12-month period to redeem the property. If that happens, then the owner has to pay all of the property taxes and applicable fees. Mr. Joseph Johnson stated that the Atlanta Regional Commission (ARC) had a study done by Georgia Tech that listed 7,100 properties, not necessarily vacant, in East Point. Mr. Glaze added that most developers do not want to deal with properties that have a tax lien. Mr. Joseph Johnson motioned for the Chairperson to ask Mayor and Council to look into this item so that the City does not have to fund BIDA every year. Ms. Dharman felt that Mr. Glaze first needed to contact the City Manager and Staff Attorney. X. Old Business Ms. McClure expressed her concerns regarding Alexia Ryan s attendance. She felt that the board needed to make the necessary recommendations to City Council for her removal since her lack of attendance was causing cancelled meetings or the lack to reach a quorum. Ms. McClure motioned for BIDA to recommend to Mayor and Council that Alexia Ryan be removed due to her nonattendance to the monthly meetings for over two (2) years. Ms. Broadus suggested that the board also place the Mayor on the recommendation list. Ms. McClure informed Ms. Broadus that due to the nature of the bylaws, BIDA does not have the authority to remove the Mayor or the Mayor s appointee. Ms. Dharman stated that she spoke to Ms. Ryan s Councilperson regarding the matter. Mr. Glaze informed the board that it takes an action by the Mayor and Council to remove her. At this point, Ms. McClure restated her motion. Mr. Joseph Johnson seconded the motion. Approved unanimously, the motion carried. Ms. McClure added that she has personally reached out to Ms. Ryan but felt that Ms. Ryan did not intend to return to the board. Mr. Glaze stated that he would draft a recommendation letter to the Council. Adjournment Having no further business, the meeting properly adjourned at 7:45pm following a unanimous adoption of a motion made by Mr. Joseph Johnson, seconded by Mr. Urquhart. Approved unanimously, the motion carried. BIDA Meeting Summary of August 3, 2017 Page 6 of 6