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HomeMy WebLinkAboutCity Council Committees - Economic Development Corporation - 03/12/1987 (3) CITY OF KENT ECONOMIC DEVELOPMENT CORPORATION March 12, 1987 The regular meeting was called to order at 7:30 a.m. by Chairman of the Board Berne Biteman. Present: BOARD MEMBERS: Berne Biteman, Chairman of the Board Steve Dowell , Board Member Ted Knapp, Board Member Walt Ramsey, Board Member Sandra Driscoll, General Counsel OFFICERS: Marie Jensen, Secretary of the Board Tony McCarthy, Treasurer Also Present: Brent McFall , City Administrator Laurie Murray, Accounting Department Bob Bonaci, City Beverages, representing the Kent Recreation, Health and Leisure Show KENT VALLEY CORRIDOR At Biteman's request, Knapp noted that he was heading the Kent Valley Corridor group as Chairman of the Commerce and Industry Committee. He presented the statement which will be presented to the Chamber of Commerce's full board • outlining the key elements of the Kent Valley Corridor. The purpose was given as: "To identify, assemble and coordinate available resources (both private and public); to promote and enhance quality and diversified economic development of the Kent Valley." A copy of the statement has been filed for the record. Knapp noted that there were two other "corridor-type" groups and an economic development group in Auburn. The Technology Corridor (from Bothell up through Everett) is an impressive group consisting of five property owners. This group has spent considerable money including trips to Japan and have hired an executive director. The I-90 Corridor runs from Mercer Island to Issaquah and North Bend, consists of four property owners and is not so aggressive. The Auburn EDC is a public/private group with a staff member from the City's Planning Department and this group is not aggressive. Biteman noted that a video tape shown by Knapp was impressive and commented also that it was important to be affiliated with the Seattle Economic Council under Penny Peabody. McFall noted that the Kent group was formed to promote economic development, and was primarily created to issue industrial revenue bonds. The revenue income of this corporation is limited to income derived from the administration of funds derived from bonds already issued. He pointed out that the corporation is an economic arm of the City and may coordinate with the Chamber and contract for services. The EDC funds could be channeled to this end so that efforts will not be duplicated. Biteman favored having professionals involved. Dowell moved to accept Knapp's report, Ramsey seconded. The motion carried. It was determined that it would be appropriate to have a member of this corporation • serve on the Chamber Corridor group as an ex-officio member. • MINUTES Dowell moved to approve the minutes of the regular Board meeting of February 6, 1987. Ramsey seconded, motion carried. RECREATION, HEALTH AND LEISURE SHOW Bob Bonaci of City Beverages noted that the show was scheduled for three days, Friday, April 10 through Sunday, April 12. He stated that this corporation had been a sponsor in the past and that this year Upland Industries and City Beverages would again be sponsors. There were four sponsors last year and the plan was to keep the number the same. He noted that it was expected that this would be a bigger show than ever. It was noted that this project was formerly called the Business and Industry Show. Both Biteman and Knapp questioned changing the name. Bonaci opined that more of the general public would attend under the new name. The cost of sponsorship is $2,000 and booths are available at $250 for Chamber of Commerce members and $325 for non members. As in past years, the City of Kent EDC would have a booth as a sponsor and the City departments will display promotional material at this booth. Knapp suggested that we support the Recreation, Health and Leisure this year and evaluate the focus of the show for next year with regard to the name change. Upon McFall 's question, Bonaci opined that the "Recreation, Health and Leisure" theme was not necessarily a permanent change from the former title of "Business and Industry Show". Ramsey moved to sponsor the show in the amount of $2,000, Knapp seconded and the motion carried. Biteman suggested that video clips be made of the show for future use. • FINANCIAL FORECAST McCarthy distributed financial statements of the corporation from inception to date plus a ten-year forecast, a copy of which has been filed for the record. The forecast is based upon no further sale of bonds and shows the administrative fees to be collected through the years for those bonds already issued. McCarthy pointed out that letters would be sent regarding the outstanding receivables. Expenditures were defined and the 1986 net income was $16,000 with a forecast of $15,000 for 1987. The 1987 figure allows for participation in the King County Economic Development and in the 1987 Recreation, Health and Leisure Show. McCarthy stated the revenue figures are based either on the outstanding principle amount of the bonds or on the annual debt service. The forecast for 1987 was determined to be $14,918 plus retained earnings to equal $51 ,489. Upon Ramsey's question, McFall noted that this corporation could elect to use funds in promoting economic development efforts through contracting for public/private services. Dowell noted that the Incubater Program might request assistance again. He suggested that coordination with the Chamber of Commerce was indicated and that with the declining financial forecast this corporation should not become known as a source of funds for any organization needing funding. McFall concurred with Dowell and noted that this could be discouraged through a stringent budget listing anticipated expenses. It was determined that no bonds have been issued in 1987. McFall noted that • projections do not anticipate any activities inasmuch as: 1) the new tax laws restrict IRB's to manufacturing use only and 2) IRB's will expire entirely, - 2 - t probably at the end of 1988. He pointed out that the state is anticipating putting together a pool to lump small bond issues together. Driscoll noted that she had received one inquiry but the proposed printing and binding industry could not qualify as manufacturing. McFall suggested that several projections for a tentative budget be prepared for review of the Board members at the next meeting. It was noted that if the EDC provides financial support to the Chamber of Commerce on a contractural basis for the Kent Valley Corridor, it would increase expenditures dramatically. INDUSTRIAL DEVELOPMENT RESEARCH COUNCIL MEETING Knapp noted that the IDRC would hold its annual convention in Seattle May 10-13, which would offer an opportunity for material-supplying information on Kent to be placed in the resource room. NEXT MEETING The next meeting of the EDC will be held on Thursday, April 9, 1987, at 7:30 a.m. arie Jens Secretary to the Board 0024C-01C • - 3 -