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HomeMy WebLinkAboutCity Council Committees - Economic Development Corporation - 02/06/1987 (3) CITY OF KENT ECONOMIC DEVELOPMENT CORPORATION February 6, 1987 The regular meeting of February 5 was postponed to this date and proper notice has been given by the Secretary. The meeting was called to order at 7:30 a.m. by Chairman Berne Biteman. Boardmembers Present: Berne Biteman, Chairman of the Board Tom Bailey, Vice Chairman Steve Dowell Walt Ramsey Ted Knapp Officers Present: Marie Jensen, Secretary of the Board Also Present: Brent McFall , City Administrator Sandra Driscoll , City Attorney MINUTES Bailey moved to approve the minutes of the special meeting of December 1 , 1986. Ramsey seconded and the motion carried. • Ramsey moved to approve the minutes of the regular meeting of December 4, 1986. Bailey seconded and the motion carried. SERVICE AGREEMENT - SEATTLE/KING COUNTY Bailey moved to approve the Service Agreement with the Seattle/King County Economic Council for 1987 and to reimburse the City in the amount of $2,698.00. Ramsey seconded and the motion carried. DEPARTMENT OF TRADE AND ECONOMIC DEVELOPMENT McFall istri u e a letter from the State Department of Trade and Economic Development explaining that, with tax reform, banks have lost some of the incentive for purchasing industrial revenue bonds. This could leave smaller industrial projects little access to tax-exempt financing. The State is now proposing a Statewide umbrella bond program to combine small issues. Requirements for such a program are to be developed and this Corporation will be informed of future meetings. He noted that we have not been involved in marketing and perhaps we should be. It was determined that funds come to our Corporation each year from those firms which have already secured financing through the corporation. The annual fees are based upon the dollar amount of the bonds issued. Upon Bailey's question, McFall noted that he had no information on the background of the State proposal to use the National Australia Bank to supply the Master Letter of Credit. • Bailey noted that DiJulio had agreed to provide an outline of parameters for this Corporation as to the latitudes which we could explore in deciding on the future of this Corporation. We could, perhaps, be working with the Chamber of Commerce. McFall noted that working with the Chamber would be entirely proper for this Corporation. We should be focusing on what can be done to market the community. McFall noted that he and Biteman had discussed this and had concluded that a survey could be conducted with some companies which chose to locate here, as well as with some who decided against this area, and the reasons given for these decisions. Knapp noted that the Chamber of Commerce is setting up an Economic Development Group to market the Kent Valley area for which the mission statement is being developed. Networking with other such groups will be important so that efforts will not be duplicated. It is proposed that this Chamber group will be a separate entity such as the KDA, with separate dues and so forth. Biteman noted that our group could be a resource for the Chamber group. He stated that the County had put together a catalog of all the businesses and industries within the County and suggested that we try to get a copy. McFall noted that we should make sure that we do not duplicate any activity, and that the Board may want to contract with or supply financial support to the Chamber group, with the Chamber providing service. It was noted that under such an arrangement, this Corporation would have input. Bailey noted that the projected income for this Corporation would be on a declining basis unless more revenue bonds were issued and, therefore, we would have to consider what our income would be for the next four or five years before determining how much we could commit to the Chamber organization. Dowell pointed out that we had a commitment also to the Incubator Program. He stated that we should determine which direction to take and channel all our energy there, rather than becoming involved in many meetings. Biteman pointed out that changes in the State law had had an effect on who could apply for IRB's through this Corporation. It was determined that this Corporation did not have the resources to seek industries which might locate in this area, but that maybe, if we pooled our resources with the Chamber Organization, this could be accomplished. Knapp noted that many people were interested in this new organization of the Chamber. He pointed out that it was planned to keep the committees small . Bailey stated that we have to make some decisions about Kent's economic development concerns and this could be addressed by the Chamber group. He noted that the developers' questions were based on what we could do for them. He again noted that he hoped that DiJulio would suppTy information ash which direction we should be taking. Dowell pointed out that the Corporation had not addressed specifics such as labor or taxes. It was determined by McFall that the Chamber group would address such things as what kind of incentives will be provided, what kind of things the City would do, legal questions and policy questions. Dowell noted that the State had been giving incentives such as postponing certain types of construction taxes. Biteman stated that perhaps we could have a liaison person with the State to determine what incentives could be given. He concurred with Bailey that we must obtain a report from DiJulio for the next meeting so that we know what our limitations are. He pointed out • that without the Kent Economic Development Corporation, the Incubator Program could not exist, and noted further that our bond sales were second only to King County's, and that this Corporation had welcomed developers and had shown our interest and cooperation by expediting the bond issuance process. Knapp noted that a large firm interested in an 800,000 to 1 ,000,000 square foot operation had found the Seattle Airport closed by fog the three times that they came here. A report is being prepared to show exactly how many days per year the airport is closed. GENERAL COUNSEL c a recommended that City Attorney Sandra Driscoll be appointed as Corporate Counsel for this Corporation. Bailey moved to terminate the outside attorney service and to name Ms. Driscoll as the Attorney of Record. Dowell seconded and the motion carried. There was no further business to discuss and the meeting adjourned at 8:15 a.m. NEXT MEETING The regular meeting for March will be held on March 12 at 7:30 a.m. Marie Jensen Secretary to the Board 0103C-lC