HomeMy WebLinkAboutCity Council Committees - Economic Development Corporation - 04/20/1990 (3) SPECIAL MEETING OF THE ECONOMIC DEVELOPMENT CORPORATION
April 20, 1990
Proper legal notice having been given by the Secretary, this special meeting
of the City of Kent Economic Development Corporation was called to order on
April 20, 1990 at 7:30 a.m. in the second floor Conference Room of the Kent
City Hall .
PRESENT: Board members: Jim White, Chairman, Jon Johnson, Walt Ramsey,
Ted Knapp, Treasurer Tony McCarthy, Secretary Marie Jensen
(Corporate Counsel Sandra Driscoll arrived at approximately
7:50 due to heavy traffic)
ALSO PRESENT: David Thompson, Attorney with Preston Thorgrimson and
Counsel for both applicants: H&S Machine Shop and King's
Command Meats; Carol Roxborough of Security Pacific Bank, Heinz
Streng of H & S Machine Shop
MINUTES
Upon Johnson's motion, seconded by Ramsey, the minutes of the special meeting
of December 5, 1989 were approved for the record.
Mr. Thompson explained that Heinz and Renate Streng had applied for a $850,000
• Industrial Development Bonds to relocate their machine shop from Seattle to
Southcenter Corporate Park in Kent. Thompson noted that the City of Kent was
not responsible for any of the bond debt, as this would be secured by the
Strengs through the bank which is underwriting the non-recourse bonds. He
commented further that Congress had left this process in place only for small
operations. Mr. Streng stated that the Machine Shop was started with five
employees in 1982 and now had 40 employees with Boeing listed as their major
customer. There were no questions from the Board and Resolution 1990-47 was
introduced. Thompson explained that passage of the resolution by the Board
did not bind the EDC to issue the bonds; that additional action will be taken
at a later date. Ted Knapp noted that his firm had developed the corporate
park in which H & S planned to locate and that he mentioned this just for the
record in case of a conflict of interest. Johnson moved to adopt Resolution
1990-47 described as official action of the City of Kent EDC. Ramsey seconded
and the motion carried.
KINGS COMMAND MEATS
Mr. Thompson advised that his firm was also representing the Baer family who
were applying for $3 million in Industrial Revenue Bonds for the purpose of
relocating their operation from Seattle to 7622 South 188th, Kent. He
explained that the EDC assumes no liability in the issuance of the bonds.
This business processes and packages meat and the bonds are proposed in the
amount of $2 million for a new plant and $1 million for new equipment. It is
expected that 70 people will be employed. There were no questions from the
• Board and Johnson moved to adopt Resolution 1990-48 comprising official action
of the EDC. Knapp seconded and the motion carried.
COUNCIL ACTION
It was explained that the City Council would now be asked to adopt resolutions
approving the resolutions passed today by the EDC. It was agreed that these
resolutions would be scheduled for the May I City Council meeting.
ADJOURNMENT
There was no further business to come before the Board and the meeting was
adjourned at 8 a.m.
Marie Jensen
City Clerk
Secretary of the Board
225C-01C