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HomeMy WebLinkAboutCity Council Committees - Economic Development Corporation - 04/16/1987 (3) M • CITY OF KENT ECONOMIC DEVELOPMENT CORPORATION April 16, 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 Tom Bailey, Vice Chairman Steve Dowell , Board Member Walt Ramsey, Board Member OFFICERS: Marie Jensen, Secretary of the Board Tony McCarthy, Treasurer Sandra Driscoll, General Counsel Also Present: Brent McFall, City Administrator Laurie Murray, Accounting Department MINUTES Ramsey moved to approve the minutes of the regular meeting of March 12, 1987. Dowell seconded and the motion carried. KENT BUSINESS DEVELOPMENT - VENTURE CENTER • Biteman noted that the Venture Center group had invited this group to meet at their new facilities located in the old Stanley Garage Door building, behind the former office of Jack Meredith on N. Central Avenue. BUDGET , McFall noted that the corporation had not had a formal budget, and projections and' promotional expense figures have been prepared through 1996 along with the resulting financial impact. Several scenarios were distributed showing the effect if promotional expenditures were increased. It was pointed out that future revenue was dependent upon receipt of fees from those corporations for which bonds have been issued. The retained earnings of the corporation as of December 31, 1986 were shown to be $14,354.00. Bailey noted that some of the firms which have been issued IRB's have the option to prepay and McCarthy agreed that therefore, the projected revenue could be on the high side. It was noted that the rate was adjustable, a percent of the prime rate. Bailey suggested that time be allowed to establish a feel from the community as to what will happen in this area before coming to a conclusion regarding the budget, with goals to be established in accordance with the local economic climate. Biteman concurred, noting that we need to know our limitations. He suggested an analysis of the bond holder's agreements to determine which firms have reserved the right to prepay. McFall noted that establishing a budget would protect the corporation from many • requests from different organizations for funding. Dowell pointed out that the clerical expenses of $8,000 per year were in-house, and McFall stated that, in effect, the corporation contracted with the City for these support services. Biteman stated that these expenses would be reduced in the future since we are no longer issuing bonds. The Secretary noted that in the past these expenses were billed directly to the firms participating in the bond activity. McCarthy determined that these funds were deposited into the City's Budget as miscellaneous revenue. McFall noted that within the next two years, under the current law, we will be out of the business of issuing bonds, but we could still be doing promotional work. He stated that currently IRB's could be used to finance manufacturing operations only. Biteman suggested that the corporation could have an article or advertise in a manufacturer's trade paper. McFall stated that Ted Knapp was working on setting up a marketing entity, a potential source of contracting for promotional services. He noted that if this corporation pooled its money with others, we could get more value per dollar. It was determined that the retained earnings are invested and are earning interest. McCarthy explained how the investments are made. Biteman suggested that we have up-to-date information as to the current limitations of this corporation for the next meeting, and then decide the goals for the corporation. Dowell noted that the Venture Center had determined that they would need funds for the next five years and they will approach the private sector first. Probably, they will ask the corporation for funds again and will • offer the use of their facility. Bailey noted that we should establish what our responsibility is to this group so that new board members will be so advised. Biteman commented that at first the corporation tried going outside to bring business into the City, which was frustrating. Taking the approach of retaining business was more successful throughout the County, however, through financing the expansion of existing businesses, etc. He suggested, therefore, that we publish an article in trade papers and then to do the same thing locally, perhaps through the Chamber of Commerce newsletter. Such an item would explain how the corporation works and what is available. Bailey referred to the establishment of goals for the corporation and how the corporation relates to the community. McFall noted that while there are limitations governing issuing IRBs, we are not limited in the promotion of the community. Dowell pointed out that we could use funds to direct interest toward the type of activity which we want to see happen in the valley rather than for "raw land". McFall commented that Ted Knapp has had experience in the concept of promoting the development of the Kent valley, and Bailey suggested that members of this Board had contact with different groups and could, therefore, reach many people. He noted for example, Dowell 's contact with the yacht club and his own contacts with the banks. Biteman suggested that Mr. Retford could ask Rich Rutowski of Green River Community College to attend the next meeting. Bailey noted that the City of Tacoma was doing a great job of promotion. Biteman suggested that Planning Director Jim Harris be advised that the corporation is interested in knowing what the Planning Department could do in the way of promoting interest in our area. McFall noted that the EDC has, in the past, limited its activity to bond issues • and that now the part of promotion should be addressed. Bailey stated that state and county groups had not offered this group much assistance. McFall opined that our participation in Seattle/King County Economic Development Council and in Team Washington is essential , but that we must take the initiative in our approach to - 2 - them so that the Kent corporation is noticed and is considered when inquiries are received. Dowell stated that it was pointed out that there are many EDC's and we need to decide where our money is best used. McFall stated that Penny Peabody of the Seattle group was always willing to answer questions and to advise the corporation. He stated also that Ted Knapp will give information on what has happened in the effort to bring the EDCs together. McFall clarified that the May 7 meeting would be devoted to the Venture Center to ` gain information as to their activities and the June meeting would be devoted to a brainstorming session aimed at promotional information and for the budget. Biteman asked that McFall give a report at the next meeting at the Venture Center as to exactly what the limitations are of the EDC so that the Center would be clear on the corporation's financial aspects. Dowell pointed out that other city groups could use the facilities at the Venture Center, as this was provided for with the grant given to the Center. The meeting adjourned at 8:40 a.m. NEXT MEETING It was determined that the next meeting would be held on Thursda , May 7, at 7:30 a.m. at the Venture Center, and that we would ask to have Bill Taylor or Rich utows i attend. . Marie Jensen Secretary 24C-IC - 3 -