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HomeMy WebLinkAboutCity Council Committees - Economic Development Corporation - 11/13/1986 (5) CITY OF KENT ECONOMIC DEVELOPMENT CORPORATION November 13, 1986 The regular meeting for November 6, 1986 was rescheduled to this date and proper legal notice has been given. The meeting was called to order at 7:30 a.m. by Vice Chairman Bailey. Newly appointed Board Member, Ted Knapp, of Uplands Industries was welcomed. Present: BOARD MEMBERS: Tom Bailey, Vice Chairman Steve Dowell Walt Ramsey Ted Knapp OFFICERS: Marie Jensen, Secretary of the Board Tony McCarthy, Treasurer P. Stephen DiJulio, General Counsel Also Present: Brent McFall , City Administrator Mike Webby, Assistant City Administrator Laurie Murray, Accounting Department MINUTES 06 w-M moved to approve the minutes of the October 6th, 1986 meeting which had been rescheduled from October 2. Ramsey seconded and motion carried. KENT BUSINESS DEVELOPMENT CENTER -- INCUBATOR PROGRAM Bailey noted that at the City Council meeting of October 20, 1986, the Council had approved funding the incubator program in the amount of $10,000 with the suggestion that this might be appropriately considered by the EDC. He pointed out for Ramsey, that the Kent Business Development Center was a joint venture of Green River Community College, the Kent Chamber of Commerce, and other community groups, established to encourage, assist, and enhance small businesses. The funds have been requested for the purpose of supplying office furnishings and equipment for the facility to be located on Central Avenue. It is now proposed that this corporation fund this request by reimbursing the City's general fund in the amount of $10,000. DiJulio pointed out that the Ci'tt has specific statutory authority to engage in promotion of economic development. Such authority may be exercised through contracts with non-profit corporations. This public corporation's authority to fund such an operation should similarly be by con ract only. He suggested, therefore, that the EDC contract with the Kent Business Development Center and with the City to provide $10,000 to the City for the purpose of economic development. This corporation, in return, would receive certain benefits in the nature of economic development promotion in encouraging small businesses. McCarthy noted that from the Accounting standpoint, the City had already made the payment, but that a simple recoding of the check would show the funds paid from the EDC account. It was determined that DiJulio was still serving as General Counsel to this corporation, and as chairman, Bailey requested that DiJulio draft the required contract for consideration at the next EDC meeting on December 4, 1986, McCarthy noted that the fund balance for the corporation was approximately $40,000. Dowell and Knapp noted that each was a member of the Board of the Kent Business Development Center. INSURANCE Webby noted that Fred James Company, the City's insurance broker, had now provided two quotes for liability insurance coverage for this corporation to become effective immediately: $500,000 aggregate at a cost of $2,660 $1 ,000,000 aggregate at a cost of $3,600 Webby noted that each has a $2,500 deductible, and the figures are based on a "claims-made" basis, similar to the past coverage. He recommended that the $1 ,000,000 coverage be chosen. DiJulio noted that the risks would largely be in case the Board acted illegally or improperly. He noted that the Board never took possession, or had control of the funds, and that applicants are required to hold the corporation harmless. Ramsey moved to purchase the insurance in the amount of $1 ,000,000. Dowell seconded, and the motion carried. WORKSHOP Weber reported he had received notice of a workshop sponsored by the Department of Community Development which might be of interest to the Board or • to those involved with the new incubator program. He will make the information available to those interested. SPECIAL MEETING - Northwest Aluminum Products DiJulio noted that Northwest Aluminum Products had filed an application for $700,000, and that this would be a separate issue from the original bonds issued in 1985. They have requested that the EDC have a special meeting at 6:30 p.m. , on December 1 , 1986, immediately prior to the regular Council meeting. The Tefra Hearing for this application is scheduled for the regular Council meeting of December 1 . Northwest Bottling e secretary note that although the Tefra Hearing for Northwest Bottling was scheduled for the November 17 City Council meeting, Perkins, Coie was uncertain as to whether the paperwork would be ready in time for this to be processed at the December 1 special meeting. DiJulio suggested that the notice include both items so as to be prepared to act, should Perkins, Coie find that they could meet this time schedule. It was further determined that the regular EDC meeting of December 4 would be held as usual at 7:30 a.m. , to authorize the contract regarding the incubator program, and to consider a bond resolution for Northwest Bottlin if said resolution was not handled on December 1 . Bailey move to hold a special meeting on December 1 , 1986 at - 2 - 6:30 p.m. . Dowell seconded, and the motion carried. LOCAL EDC Knapp reported that the Commerce and Industry Committee of the Chamber of Commerce were in the process of establishing a local economic development group to learn the best ways to network with other local EDCs. He noted that a panel discussion would be arranged for early December with Penny Peabody from the Puget Sound EDC, as well as others. He will advise the Board as to the date of such a meeting. FUTURE OF THIS CORPORATION Bailey requested that McFall , DiJulio, and Biteman join him to discuss and examine the viability of continuing this corporation after January 1 , 1987. He noted that consideration also could be given to the scope of activities and the projected financial returns. He described this as a general overview of the future, and suggested that a report on this could be given at the regular meeting of December 4. FINANCE McCarthy introduced Ms. Murray of the Finance Department, and stated that he would have a financial report for the December 4 meeting. ADJOURNMENT There was no further business to discuss, and the meeting adjourned at 8:10 a.m. i NEXT MEETING DATES e Board will meet next at a special meeting to be held on Monday, December 1 , 1986, at 6:30 p.m. in the second floor conference room of the Kent City Hall (immediately prior to the Council meeting). The regular EDC meeting will be held on Thursda December 4, 1986, at 7:30 a.m. of the second floor conference room of the Kent City Hall . Marie Jens Secretary the Board 0024C-01C 49 - 3 -