HomeMy WebLinkAboutCity Council Committees - Economic Development Corporation - 11/17/1989 (3) ECONOMIC DEVELOPMENT CORPORATION
November 17, 1989
The meeting was called to order at 7:40 a.m. by board member Jim White.
PRESENT: Board members Jim White, Steve Dowell , Ted Knapp; Treasurer
Tony McCarthy; Secretary Marie Jensen; Corporate Counsel Sandra
Driscoll
ALSO PRESENT: Dee Moschel and Steve Burpee of KDA; Mary Rose Williams of
East Hill Business Council ; Bill Tonkin, Bond Counsel of Foster
Pepper; Ron White of H&H Continental Mills; Councilmember Jon
Johnson, Laurie Murray of the Accounting Dept.
EDC BOARD
It was noted that inasmuch as Berne Biteman was out of the country, a Chairman
of the Board should be elected. Dowell moved to nominate White as Chairman,
• Knapp seconded. There were no further nominations and White was elected as
Chairman. It was pointed out that authorization would be sought to appoint Jon
Johnson to the Board at the November 21 Council meeting to replace Berne Biteman.
CONTINENTAL MILLS
Bill Tonkin submitted the fee and the application of H&H Continental Mills. Ron
White of Continental Mills noted that in 1986 Continental Mills went into the
frozen food business at West Valley Highway and So. 190th with a 58,000 sq. foot
facility. More room is now needed and it is proposed to add 18,000 sq. feet and
additional supporting equipment. The operation is now running seven days a week
with three shifts per day. It is proposed that the office will move out of this
building which will increase space for lunch room, locker rooms, etc. Continental
Mills is looking for a property to house the office facilities. It was explained
that Continental had two facilities in Kent, one at So. 192nd off the East Valley
Highway and the frozen food plant at 190th off the West Valley Highway. The
application is for 6 million dollars, 1 million for the building and 5 million
for equipment. New jobs will be created.
Tonkin noted that the bonds will be backed by a letter of credit from Seattle
Pacific Bank. Action at this time would be to accept the application and to
adopt the inducement Resolution No. 1989-46. Knapp so moved, Dowell seconded
and the motion carried. It was noted that the required hearing before the City
Council will be scheduled for December 5, 1989 at 7 p.m. and that the EDC bond
resolution would also be considered on December 5 at 6:30 p.m. immediately prior
to the Council meeting. Ron White invited those present to a tour of the plant,
noting that 56,000 pancakes were produced per hour.
EDC FINANCIAL REPORT
Tony McCarthy called attention to the EDC financial statement which was distri-
buted with the agenda packet. The fund balance as of 12/31/88 was shown to be
$65,942.33 plus receivables. The state has just completed the first audit which
will cost approximately $2,800. McCarthy explained the fee schedule and earnings
as well as expenses of the Corporation, concluding that the Corporation is sound
and had money to spend. He had, therefore, referred the KDA and East Hill
Business Council requests for funds to this meeting. City Attorney Driscoll
noted that we were not required to spend the funds and, if,not spent, they would
go into the City's general fund. Upon questions it was explained that the
insurance was not the City self-insured program but liability insurance. Cost
of participating in the King County EDC was shown to increase approximately
5 percent per year. In answer to Dowell 's question, Burpee noted that he knew
of no projects of the Chamber of Commerce which might prompt a request for EDC
funds.
KDA
A letter has been received from Dee Moschel of KDA requesting $5,100 from the
Corporation for 1990. The funds will be used as follows: $3,350 to expand the
banner program and $1,750 for event support and promotion. It was determined
that Jim White was on the KDA board and, therefore, had a conflict of interest.
It was decided that the item could be discussed now and action withheld to the
next meeting when it is expected that Jon Johnson will attend as a new board
member. Dee Moschel noted that KDA is now working with the "Main Street Program"
sponsored by the state. Dowell requested special information regarding location
• number and so forth of banners, and Burpee stated the information would be
- 2 -
supplied in a report back to the Corporation. All were in accord that the
request was justified and recommended approval for the December 5 meeting.
EAST HILL BUSINESS COUNCIL
Mary Rose William, President of the EHBC, addressed her written request for
$5,000 from the 1990 EDC budget to support a street banner program on East Hill .
Upon Dowell 's question she explained that although the big businesses such as
Fred Meyer, Albertson's, etc. are flourishing, the small businesses are not.
She noted that the East Hill Carriage Mall has about a 75 percent turnover and
that there are vacancies in the Albertson complex. Upon Jim White's question
Dee Moschel noted that the City Public Works Department stores and puts up the
KDA banners under her coordination. Mary Williams stated that her group would
like to do the same. White noted that he has a financial interest in an East
Hill business. Driscoll determined that this would be a conflict of interest.
Upon Knapp's question, it was noted that the EHBC functioned like a Chamber of
Commerce committee. He noted he was on the Chamber of Commerce board. Burpee
suggested that the EHBC should get some of the big businesses involved with the
group and Dowell suggested that the group get together with KDA.
Action on this item was deferred to the special EDC meeting scheduled for
6:30 p.m. on December 5, when both the KDA and the EHBC will be action items.
ADJOURNMENT
There was nothing further to come before the board and the meeting adjourned at
8:30 a.m.
Marie Jensen City C erk
Secretary to the Board
•
212C-01C
- 3 -
A CITY OF KENT ECONOMIC ENTERPRISE CORPORATION
NOTES TO FINANCIAL STATEMENTS
January 1, 1984 thru December 31, 1988
The following notes are an integral part of the accompanying financial statements.
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Kent Economic Enterprise Corporation follows generally accepted
accounting principles with revenue and expenditures accounted for on the modified
accrual basis.
NOTE 2 - INCOME TAXES
The Internal Revenue Code provides that gross income for tax purposes does not
include income accruing to a state or territory, or any political subdivision
thereof which is derived from the exercise of any essential governmental function
or from any public utility. According to Washington State law, the corporation
constitutes a political subdivision of,the State of Washington and is therefore
exempt from federal income taxes.
NOTE 3 - BONDS ISSUED OR BONDS APPROVED BY THE CORPORATION
The bonds issued by the corporation are not general obligations of the corporation
but are payable solely out of the revenues derived from the financing of the pro-
jects. They do not constitute the debt or indebtedness of the corporation within
the meaning of any provision or limitation of the constitution or statutes of the
• State of Washington. The repayments of these bonds by the participating corpora-
tion are made directly to the trustee and therefore are not shown as receipts and
disbursements of the corporation.
NOTE 4 - SOURCE OF REVENUE
a. AQplication Fee
The corporation requires an applicant to pay in advance for the cost of
evaluating its application.
b. Personal Service Fee
Reimbursement for costs directly related to issuer.
c. Annual Service Fee
The corporation requires each participant to pay an annual service fee over the
life of the bonds to defray expenses of the corporation. '
The annual service fee is determined as follows: The annual fee will be two-
tenths of one percent (2/10th of 1%) of the annual debt service of the bonds,
but not less than $2,500 for a privately placed issue or $5,000 for a public
issue, payable yearly in advance; provided, that the annual fee *for any year
shall not exceed an amount equal to one-eighth of one percent (.125%) of the
outstanding principal amount of the bonds for such year. The annual minimum
fee shall be adjusted, if necessary, at the commencement of each succeeding
year to reflect the amount of debt service paid in the previous year.
1261F-09F
CITY OF KENT ECONOMIC ENTERPRISE CORPORATION
STATEMENT OF REVENUE, EXPENSE, AND CHANGES IN FUND BALANCE
For The Years Ended December 31, 1988, 1987, 1986, 1985 and 1984
1988 1Q87 1986 1985 1984
Revenues: •
Intial Application Fees $0.00 $0.00 $1,500.00 $15,000.00 $9,000.00
Personal Service Fees 0.00 322.63 9,167.27 3,961.76 4,260.64
Annual Administrative Fees 26,185.48 27,649.12 44,457.02 10,546.42 5,000.00
Interest Income 2,650.99 2,274.57 1,511.63 699.45 111.56
Miscellaneous revenue 3,670.00 0.00 0.00 0.00 0.00
........... ........... ........... .•......... ...........
Total Revenues $32,506.47 $30,246.32 $56,635.92 $30,207.63 $18,372.20
Expenses:
Professional Services $0.00 $664.92 $3,582.70 $0.00 $0.00
Other Services and Charges 7,806.91 9,572.87 20,584.40 7,678.06 4,019.29
Promotion Expenses 9,469.00 13,615.76 12,280.13 12,752.17 0.00
........... ........... ........... ........... ...........
Total Expenses $17,275.91 $23,853.55 $36,447.23 $20,430.23 $4,019.29
Excess of Revenues Over Expenses $15,230.56 $6,392.77 $20,188.69 $9,777.40 $14,352.91
Fund Balance Beginning of Period $50,711.77 $44,319.00 $24,130.31 $14,352.91 .-.. $0.00.
........... ........... ........... ......•....
Fund Balance Ending of Period $65,942.33 $50,711.77 $44,319.00 $24,130.31 $14,352.91
CITY OF KENT ECONOMIC ENTERPRISE CORPORATION
............................................
BALANCE SHEET
As of December 31, 1988, 1987, 1986, 1985 and 1984
ASSETS 1988 1987 1986 1985 1984
Cash $10,711.02 $1,926.81 $140.54 $3,145.84 $9,792.59
Other Investments, at cost 39,000.00 34,000.00 14,000.00 20,000.00 0.00
Accounts Receivable - Fees 14,321.72 14,042.28 31,531.18 3,983.92 4,560.32
Deferred Debits 2,661.84 1,417.18 313.88 87.80 0.00
........... ........... ........... ........... ...........
Total Assets $66,694.58 $51,386.27 $45,985.60 $27,217.56 $14,352.91
LIABILITIES AND FUND EQUITY
Accounts Payable $752.25 $674.50 $1,666.60 $3,087.25 $0.00
........... ........... ........... ........... ...........
Total Liabilities $752.25 $674.50 $1,666.60 $3,087.25 $0.00
Fund Balance $65,942.33 $50,711.77 $44,319.00 $24,130.31 $14,352.91
........... ........... ........... ........... ...........
• Total Liabilities and Fund Equity $66,694.58 $51,386.27 $45,985.60 $27,21.7.56 $14,352.91
SEE ACCOMPANYING AUDITOR'S NOTES TO FINANCIAL STATEMENTS
CITY OF KENT ECONOMIC ENTERPRISE CORPORATION
............................................
STATEMENT OF CHANGES IN FINANCIAL POSITION
For The Years Ended December 31, 1988, 1987, 1986, 1985 and 1984
1988 1987 1986 1985 1984
Sources of Working Capital
Excess of Revenue Over Expenses $15,230.56 $6,392.77 $20,188.69 $9,777.40 $14,352.91
Uses of Working Capital 0.00 0.00 0.00 0.00 0.00
........... ........... ........... ........... ...........
Increase(Decrease) in Working Capital $15,230.56 $6,392.77 $20,188.69 $9,777.40 $14,352.91
Changes in Working Capital
Cash $8,784.21 $1,786.27 ($3,005.30) ($6,646.75) $9,792.59
Other Investments, at cost 5,000.00 20,000.00 (6,000.00) 20,000.00 0.00
Accounts Receivable 279.44 (17,488.90) 27,547.26 (576.40) 4,560.32
Deferred Debits 1,244.66 1,103.30 226.08 87.80 0.00
Accounts Payable (77.75) 992.10 1,420.65 (3,087.25) 0.00
........... ........... ........... ........... ...........
$15,230.56 $6,392.77 $20,188.69 $9,777.40 $14,352.91
SEE ACCOMPANYING AUDITOR'S NOTES TO FINANCIAL STATEMENTS
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INVOICE VOUCHER
REMIT TO: OFFICE OF STATE AUDITOR
LEGISLATIVE BUILDING AS-21
"' •• OLYMPIA, WASHINGTON 98504
(206) 753-5277
T V. GRAHAM
ATE AUDITOR
INVOICE NUMBER: L 14066
INVOICE DATE: 1.1/09/89
AUDIT NUMBER: 5278
CUSTOMER NUMBER :0662
PROJECT CODE: GENL
COUNTY NUMBER: 17
KENT ECONOMIC DEVELOPMENT CORP
CITY OF I<EN1"
220 4TH AVE-' S. I hereby certify the amount listed herein is a
KENT WA 90032 proper charge for services rendered:
By: Controller
Karen K.Allen
(RETURN THIS PORTION WITH YOUR PAYMENT)
...........................................................•..............................................................._............................................•....................-----...._.......................................................................
(DETACH AND RETAIN FOR YOUR RECORDS)
ENTITY NAME: KENT ECONOMIC DEVELOPMENT CORP
:INVOICE DATE: 1.1./09/I: 9 AUDIT PERIOD: 83--88
:INVOICE. NUMBER: l.._ .14066 PURPOSE OF BILLING: GENERAL AUDIT
MONTH EXAMINER RATE HOURS AMOUNT TRAVEL TOTAL
10/39— I-II.JN'TING"TC)N57..QQ .'aQ.'!] 11110.00_._._.___G6 4Q_____1 , 1.36. 4Q
TOTAL I')UE THIS INVOICE 30.0 1 , 110.00 26.40 1 ,136.40
941
I
•
JV NUMBER: 0277 CJ NUMBER: WT NUMBER: --_--___—_.---
WHITE•Entity CANARY-Fiscal
INVOICE VOUCHER
REMIT TO: OFFICE OF STATE AUDITOR RECEIVED
LEGISLATIVE BUILDING AS-21 nr,T a. f9e9
` r" • OLYMPIA, WASHINGTON 98504
(2061 7530277 CITY ADM)•'•^TRATIQN
RT V. GRAHAM
ATE AUDITOR
INVOICE NUMBER: L 13013.
INVOICE DATE: 10/11/89
AUDIT NUMBER: 52721
CUSTOMER NUMBER :0662
PROJECT CODE: GENL
COUNTY NUMBER: 17
KENT ECONOMIC DEVELOPMENT CORP
CITY OF KENT I hereby certify the amount listed herein is a
220 41 H AVE S. proper charge for services rendered:
KENT WA 98032 cl L
By: Controller
Karen K.Allen
(RETURN THIS PORTION WITH YOUR PAYMENT)
(DETACH AND RETAIN FOR YOUR RECORDS)
ENTITY NAME: KENT ECONOMIC DEVELOPMENT CORP
INVOICE DATE: 10/11/89 AUDIT PERIOD: 0 3--8
INVOICE. NUMBER: L .13811 PURPOSE OF BILLING: GENERAL AUDIT
-------------------------------------------------------------------------
MONTH EXAMINER RATE HOURS AMOUNT TRAVEL TOTAL
11109/097UNTINGTON--
--_- - •---'37 00—_---34.0 ,1 ,25y.00--_.._._.__38_.40----1 ,296.40M
09/e9 J(:HNSON 37.00 4.0 148.00 148.00
TOTAL DUE THIS INVOICE WO 1 ,406.00 30.40 1 ,444.MO
--------------------------------------------------------------------------
JV NUMBER: 0198 CJ NUMBER: ------------ WIT NUMBER: _._______.____
WHITE•Entity CANARY-Fiscal
P
' RECEIVED
mov 61989
KENT CITY 001?p ,7RA I(ON
Downtown Association
AHHENDED REQUEST
10-31-89
June 15, 1989
Edward Chow, Administrator
City of Kent
220 South Fourth Avenue
Kent, Washington, 98032
Re: Request for 1990 funding
Dear Mr. Chow:
The Board of Directors of the Kent Downtown Association respectfully
requests that the City of Kent continue financial support for the Kent
Downtown Association.
We are requesting $ 5100 for the budget year 1990.
We will use the money to:
a) Expand banner program (banners & brackets) S 3350.
The image that DOWNTOWN Kent presents to our world is very important.
Beauty and vitality are two impressions that are created by the banners
that we currently have in place. KDA wishes to expand the banner
program. The Kent City Council recently approved an expanded Downtown
Planning Area and we feel that it is important to include the main
entry-ways in our DOWNTOWN banner program, as well as enhance the area
which does not yet have banners. In addition, the older banners that
currently are in place must be replaced as they age and become faded,
worn or soiled.
b) Event support & promotion $ 1750.
Kent DOWNTOWN has Saturday Market, Canterbury Faire, Balloon Classic,
Cornucopia, Winterfest, Santa and other events to support in some
visible way. KDA encourages participation by merchants and business
owners in DOWNTOWN events by offering special support in the form of
awards. This may be a plaque for the best window display at Christmas
or Canterbury Faire, for painting and refurbishing of a building,
improved landscaping any other significant contribution to the vitality
of DOWNTOWN . In addition to awards, KDA will promote feelings of
goodwill by acquiring and paying for special entertainment at Saturday
• Market, Christmas or Canterbury Faire. We will support DOWNTOWN only
in ways that will benefit the entire DOWNTOWN community. We will not
do special promotions which will benefit a particular business, but
seek to enhance the economic vitality of the entire area.
Kent Downtown Association
P.O. Box 128 • Kent, Washington 98035 0 (206) 854-1770
r
Page 2 - KDA - Budget 1990
The Kent Downtown Association was created by the City of Kent as a
result of the the 1975 Central Business District (CBD) Comprehensive
Plan. The intent and purpose of this association was to encourage the
development of DOWNTOWN Kent as the economic and cultural heart of the
Kent community. The Economic Goals and Policies of the 1989 Downtown
Planning Area Plan recently adopted by the Kent City Council
specifically encourages the City of Kent to continue to support the
Kent Downtown Association. The funds we request will help promote
economic development in DOWNTOWN Kent.
KDA has worked on various projects during the past twelve years which
have a direct effect upon the economic health of the DOWNTOWN area.
Examples of these efforts are: a successful LID campaign to improve the
core area of DOWNTOWN as well as an LID to provide "off street"
municipal parking. Both of these projects took many hours of time by
the dedicated volunteer Board of KDA. KDA worked to keep the location
of the new library downtown. The library and Centennial Building will
each have a marked economic impact on DOWNTOWN. During these times of
rapid change, KDA will work to keep the lines of communication open
between the business and property owners in DOWNTOWN and the City. We
are also working with the retailers in a spirit of cooperation, with
the goal of blending all of the diverse groups in DOWNTOWN so that we
• will all work together toward a successful , vital and prosperous
future.
The Board of Directors are all volunteer positions, staff support for
special projects (LID, parking survey) has often come from the City of
Kent. The Kent Chamber of Commerce provides clerical and staff support
on a limited basis.
Historically, the City of Kent has given regular financial support to
this organization.
Thank you for your consideration . If you have questions or need
additional information, you may contact me at 852-7081 . If I am not
available, please contact Pat Curran at 852-6732.
Sincerely;
/�•e-� `fir -�
Dee Moschel, P sident
Kent Downtown Association
October 4, 1989 OCT - 5 1989CITY OF KENT
CITY
Mayor Dan Kelleher and City Council
City of Kent
220 4th Ave. S.
Kent, WA 98032
KEHT CHAMBER
Dear Mayor Kelleher and Council members: OF COMMERCE
On behalf of the East Hill Business Council, 2 am writing to request
the City of- Kent participate with the East Hill Business Community in
a street banner program in 1990.
The East Hill Business Council is composed of Kent area business people,
retailers, professionals, property owners, and concerned citizens who've
joined together through the Kent Chamber of Commerce to promote the vitality
of the Kent East Hill business district.
The Council is particularly interested in projects that position and
help identify the East Hill area for the general public. We believe
that the proposed banner system will brighten and attract people to the
East Hill, as well as clearly define the commercial district boundaries.
We're proposing installation of 40 banners at a total cost of $5,000.
40 banners @ $100 ea. $ 4,000
40 brackets @ $25 ea. 1 ,000
$ 5,000
The installation layout will encompass the shopping district, running
from SE 264 St. to SE 240 St. on 104th Ave. SE from 100 Ave. S. to 116th Ave. SE
on SE 240 St. , from 101st Ave. to 116th Ave. SE on Canyon Drive/SE 256th St.
and from 106th Ave. down Kent-Kangley Rd. to 116th Ave SE.
We are also requesting help from the Public Works Department to install
the banners.
2 feel strongly that the growth and prosperity of the City of Kent is
tied to the liveliness of its shopping and commercial areas. We appreciate
your consideration of our request in the 1990 budget. The banners will
be a boost for the Kent East Hill business district.
Sincerely,
Mary Rose Williams, President
East Hill Business Council
icc: Ed Chow, City Administrator
John Lindseth, President of the Kent Chamber of Commerce
on. nrNITgni AIrr.nIMf,I^M- rinTr+ne