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HomeMy WebLinkAboutCity Council Committees - Economic Development Corporation - 01/17/1985 (3) CITY OF KENT • ECONOMIC DEVELOPMENT CORPORATION SPECIAL MEETING January 17, 1985 The special meeting of the Kent Economic Development Corporation was called to order at 7:35 a.m. by Chairman of the Board, Tim Leahy. Present: BOARD MEMBERS: Councilman Tim Leahy, Chairman Councilman Tom Bailey Councilman Berne Biteman Leo Powers Mike Miller OFFICERS: City Attorney P. Stephen DiJulio, General Counsel Finance Director Tony McCarthy, Treasurer City Clerk Marie Jensen, Secretary CITY OFFICIALS: Dick Cushing, City Administrator The purpose of the meeting was to consider the Plemmons No. 2 application and Jim Plemmons was in attendance. It was determined that Plemmons had contacted the firm of Roberts, Shefelman as legal counsel , inasmuch as the City has been using this firm exclusively. Bailey noted that he would support the inducement resolution, but noted that the financial statement had not been included with the application nor had the statement from the underwriters. He noted that he would want to see these before this Board would be called upon to consider the future resolution for the financing. He moved to adopt Inducement Resolution 1985-18 and Miller seconded. Biteman noted that the banks will be scrutinizing all of the documents since the greater monetary risk is theirs. It was noted that the Board would naturally have some concerns about the kinds of projects with which this Corporation would be associated. DiJulio briefly described the process and noted that the Board could inform the applicant that certain documents would be required before the final resolution is considered. i ECONOMIC DEVELOPMENT CORPORATION January 17, 1985 Plemmons noted that this application was for $4,006,950 for Phase 2 of the project and would accommodate the same kind of "incubator" businesses described in his first application (Inducement Resolution 1985-16). He stated that due to the possibility of restrictions by the government, he had submitted this application sooner than he had planned. He pointed out that his existing projects, which have been operating for fifteen years, had been very successful and that more similar business accommodations were needed. He commented that Flow Industries had started in the Plemmons complex as a small business with 1800 square feet and that Northwest Aluminum and Competition Specialties had also started in similar small quarters. He opined that the bank would be impressed with the past record of the existing two complexes and requested further that his financial statements be kept confidential . Upon questions, Plemmons noted that this phase of the project had not been made a part of the first application because it had been more difficult to acquire this 6.8 acres. Leahy noted that the motion to adopt Resolution 1985-18 was conditioned upon submission of the proper financial documents by the applicant. The motion carried unanimously. It was later determined that Plemmons' financial documents could be sent to DiJulio's office and the Board members could peruse them without having copies sent out to all . Miller explained the procedures used by the banks. Upon McCarthy's question, DiJulio noted that the bonds are usually not public issue bonds and the backing of the bank is required to make the bonds marketable. He noted in the case of Associated Grocers, two letters of credit were furnished. He stated that the concern was to protect the reputation of the Corporation. The E.D.C. would want to be assured that the project will be successful and that the financial statement of the applicant should be available, however, the detailed scrutiny would be handled by the financial institutions. He noted that Plemmons understood that the businesses operated - 2 - a y ECONOMIC DEVELOPMENT CORPORATION January 17, 1985 by his lessees would have to comply with the qualifying uses specified for industrial revenue bonds and that the trustee would do this monitoring for the project. It was determined that a representative from Rainier Bank would be asked to attend a meeting of the corporation to describe their procedures. INFORMATION ITEMS Bond Counsel DiJulio noted that he would be meeting with a Seattle Assistant City Attorney to review their procedure for calling for bids for bond counsel and to review their policies for their Industrial Revenue Bond Corporation. • TELEPHONE BUSINESS DiJulio noted that he had checked with the Division of Municipal Corporations and had determined that by changing our by-laws, telephone input could be received from members, by using a speaker phone during the meeting. He stated that he would check this further and that this might prove to be a valuable alternative when Board members were out of town. BILLS DiJulio noted that upon the execution of the closing documents, payment had been received from both Associated Grocers and Continental Mills, and that the Corporation's account now contained approximately $19,000. He noted that bills had been paid covering the expenses of the City and that payment of bills should be made a part of the regular agenda. CLOSINGS DiJulio noted that he had several copies of the "private placement memorandum" for Associated Grocers, which is a summary of the closing procedures. He stated that these were available should the Board members desire to see them. - 3 - Y ' ECONOMIC DEVELOPMENT CORPORATION January 17, 1985 BUSINESS AND TRADE SHOW Cushing noted that the Chamber of Commerce is putting together a Business and Trade Show to be held in the Kent Commons early in May. Booth space would be rented to businesses to display wares and promote business. He noted that the Chamber was formulating a plan to promote the show and was seeking contributions of $1 ,000 or $2,000 from several corporations. Those contributing would be identified as co-sponsors. He suggested that this Corporation might want to participate as a sponsor and thus project the name of the Corporation, enhancing our image. He also noted that the Corporation might have a booth and suggested that the City should also have a booth. DiJulio noted that action could not be taken at this special meeting, but that it could be considered at the next regular meeting. The Board seemed favorably inclined and Biteman expressed concern as to the poor acoustics in the Commons gyms. The meeting adjourned at 8:15 a.m. NEXT MEETING DATE The next regular meeting will be held on Thursday, February 7, 1985, at 7:30 a.m. in the second floor conference room. MARI E JE City Clerk Secretary of the Board 0024C-01C - 4 -