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HomeMy WebLinkAboutCity Council Committees - Economic Development Corporation - 12/05/1989 (3) SPECIAL MEETING OF THE ECONOMIC DEVELOPMENT CORPORATION December 5, 1989 Proper notice having been given, the special meeting of the Economic Development Corporation was called to order on December 5, 1989 at 6:30 p.m. in the Second Floor Conference Room of Kent City Hall . PRESENT: Board members: Jim White Chairman, Steve Dowell , Jon Johnson, Walt Ramsey, Corporate Counsel Sandra Driscoll , Treasurer Tony McCarthy; Secretary Marie Jensen ALSO PRESENT: Dee Moschel of the KDA MINUTES The minutes of the meeting of November 17, were approved as printed on Dowell 's motion, seconded by Johnson. H&H CONTINENTAL MILLS Secretary Jensen explained that Deborah Winter of Foster Pepper had called on Monday to advise that H&H had withdrawn their application for industrial revenue bonds. She explained that in any six year period there is a $10,000,000 capital expenditures limit. H&H - Continental Mills has exceeded this limit and therefore cannot take advantage of the tax exempt revenue bonds for this project. Ms. Winters noted, however, that H&H would go ahead with the project in Kent but would not be going through this corporation. It was determined that no further action was needed and the Secretary noted that the public hearing scheduled for the City Council meeting, later this evening, would also be cancelled. KDA 1990 BUDGET REQUEST Dowell noted that we had two requests for funds, one from KDA and one from the East Hill Business Council . He stated that we need a plan so as to know what expenditures are allowed by law. As it is now, we have no rules and we should be able to determine which requests meet the criteria of the corporation. He stated he was not comfortable in approving expenditures just because the corporation had the funds. He suggested we postpone action until such a plan is in place and stated he would be willing to work on such a plan. Dee Moschel suggested that the City staff should create the plan and Dowell agreed that organizations such as the Chamber of Commerce, KDA, etc. should give input and that guidelines should be established. McCarthy noted that a couple of years ago it was decided that $8,400 per year plus an increase of five percent each year would be earmarked for promotion. Jim White noted that he and Johnson were new on the Board and had no description of the guidelines of the Corporation. Corporate Counsel Driscoll noted that she had talked about the "purposes" of the Corporation and noted that we have not established written criteria as to how to allocate the money. She noted that since President Bush may extend the life of Industrial Revenue Bonds, that we do need to have a specific check list. Dowell asked about the recent audit by the State Auditor. McCarthy stated he saw no problem since the guidelines say $8,400 plus, per year for promotional endeavors. Driscoll suggested we could approve the current budget and then come back with guidelines and criteria for future requests. McCarthy stated that the 1990 Budget was $9,300-9,400. Upon Ramsey's question it was determined that • $4,000 was for insurance, $2,800 for the State Audit and $3,200 for the King County Economic Development Corporation. Dowell noted that the money was to be used for economic development and that this was needed downtown. He stated that East Hill does not appear to be economically deprived and again suggested that a plan and guidelines be drafted. Jon Johnson moved to approve the $5,100 request by KDA as described at the last meeting, Ramsey seconded, the motion carried with White abstaining. Dee Moschel noted that she would work with anyone assigned to establish a plan. White stated that we should have a meeting including the Chamber of Commerce to determine the amount to be budgeted and how it should be spent. EAST HILL BUSINESS COUNCIL Dowell moved to deny the request of the East Hill Business Council for $5,000 as described at the last meeting, Ramsey seconded. Dowell stated that it was difficult to determine that money was needed to promote business on the East Hill . Johnson noted that there is a lot of business turnover on the East Hill among the small shops. He suggested that this item be deferred until an overall plan was in place and moved to amend the motion to defer action until a plan is addressed. Dowell concurred and the motion carried, with White abstaining. GOODWILL PINS McCarthy presented a bill from COPS R US for $77.83 for two dozen U.S.A./U.S.S.R. Goodwill pins. He noted that the Mayor had forwarded the bill to EDC to request payment. Driscoll stated that she could not recommend payment of this bill . Johnson moved to deny payment, Dowell seconded and the motion carried. BUDGET McCarthy distributed the budget for 1990 for the EDC. Johnson moved to approve the 1990 budget, Dowell seconded and the motion carried. ADJOURNMENT There was no further business to discuss and the meeting adjourned at 6:55 p.m. Marie Jensen Secretary City Clerk 214C-01C - 2 -