Missouri Development Finance Board

Transcription

1 CHAIR: Marie J. Carmichael MEMBERS: John D. Starr Larry D. Neff John E. Mehner L. B. Eckelkamp, Jr. Danette D. Proctor Brian H. May Kelley M. Martin EXECUTIVE DIRECTOR: Robert V. Miserez Missouri Development Finance Board MEETING MINUTES MISSOURI DEVELOPMENT FINANCE BOARD Missouri State Fair State Fair Administrative Office Board Room Sedalia, Missouri AUGUST 17, 2010 EX-OFFICIO MEMBERS: Peter D. Kinder Lieutenant Governor David D. Kerr Director, Economic Development Dr. Jon Hagler Director, Agriculture Kip Stetzler Interim Director, Natural Resources The Missouri Development Finance Board met in regular session on Tuesday, August 17, 2010, beginning at 10:30 a.m. Notice of the meeting was duly posted as required by Section RSMo at the MDFB principal office. The following members and officers of the Board were present or absent at the meeting as follows: Marie J. Carmichael Chair Present John D. Starr Vice Chairman and Member Present* Larry D. Neff Secretary and Member Present John E. Mehner Treasurer and Member Present* L. B. Eckelkamp, Jr. Member Absent Danette D. Proctor Member Present* Brian H. May Member Present* Kelley M. Martin Member Present Peter D. Kinder Lieutenant Governor and Member Absent David D. Kerr Director, Dept. of Economic Development and Member Present Jon Hagler Director, Dept. of Agriculture and Member Present Mark Templeton Director, Dept. of Natural Resources and Member Present Robert V. Miserez Executive Director and Assistant Secretary Present *Participated via telephone conference call. Chair Carmichael called the meeting to order and declared a quorum was present. In addition to the above, those in attendance included: Board Staff: Board Counsel: Kathleen Barney, Krystal Davis, Mike Golden, Dawn Holt, Kimberly Martin and Valerie Haller James Caldwell Others Present: Rich Aubuchon, Lieutenant Governor s Office*; Bill Moore, 3M Company; Korb Maxwell, Polsinelli Shughart PC; Charles Newell, Valent Aerostructures LLC; Mary Lilly Smith, City of Springfield, Missouri; John Brancaglione and Andy Struckhoff, PGAV; Terry Maglich and Joel McNutt, Missouri Department of Economic Development and Kristie Hilgedick, Columbia Daily Tribune 200 Madison Street, Suite 1000 P.O. Box 567 Jefferson City, Missouri Telephone: (573) Fax: (573) Visit our Web site at

2 Director Hagler welcomed everyone to the State Fair and commented that every year approximately 500,000 people attend the fair, which produces a tremendous economic development opportunity for the state and also provides an opportunity to connect to agriculture. I. Secretary s Report Secretary Neff Secretary Neff presented for approval the minutes from the July 20, 2010 meeting. The minutes were included in the Board materials distributed in advance of the meeting. There being no questions, corrections or additions, Secretary Neff made a motion to approve the minutes as presented. Director Hagler seconded the motion. The following roll call vote was recorded: Starr, Neff, Mehner, Proctor, May, Martin, Kerr, Hagler, Templeton and Carmichael Eckelkamp and Kinder Chair Carmichael declared the motion passed. II. Treasurer s Report Treasurer Mehner Treasurer Mehner reported there was no Treasurer s Report due to auditors from Williams-Keepers LLC conducting the MDFB annual audit. Treasurer Mehner commented that a new Treasurer s Report would be presented at the next meeting. Mr. Miserez noted that because of the timing of the annual audit, it is common that a Treasurer s Report is not presented during the month of August. III. Department of Economic Development Report Director Kerr Director Kerr reported the Department continues to see very positive economic trends for the state, including major announcements by corporations that are expanding in Missouri such as Expedia in Springfield adding 500 new jobs; Mamtek in Moberly adding 600 jobs; IBM in Columbia adding 800 new jobs; and an upcoming announcement of an advanced manufacturing company adding 425 jobs in a rural community. Director Kerr noted that the Department continues to see good signs in terms of the economy s recovery; however, it continues to be a long recovery. Director Kerr commented that the Department will see continued growth in terms of jobs being created in Missouri, but the unemployment rate continues to lag in terms of significant reduction. Missouri continues to be below the national average in terms of unemployment rates. Director Kerr reported on the Governor s Strategic Initiative for Economic Growth and noted that the 41-member steering committee comprised of business, education, economic development, and labor leaders recently met in Columbia. Director Kerr 2

3 announced that on September 23-25, 2010 regional planning meetings will be conducted in six regions of the state and that between business representatives are expected at each of the six regional planning meetings to receive feedback and input in terms of what needs to be done over the course of the next five years to ensure a sustainable growth economy in the state. Director Kerr reported that the initiative is to be completed by March 31, 2011; however, by December 1, 2010, the committee plans to have clearcut items to recommend to the Governor that will be included in the formulation of his legislative package for the next legislative session. Chair Carmichael questioned if the meetings will be open to the public to which Director Kerr responded that they will be open to the public. IV. Department of Agriculture Report Director Hagler Director Hagler reported the Department received a $5 million federal energy grant from the US Department of Energy to encourage energy efficiency on farms. Director Hagler noted the Department partnered with the Missouri Department of Natural Resources and the University of Missouri-Columbia for the competitive grant and that the Department of Agriculture was the only agricultural-awardee in the entire nation. V. Department of Natural Resources Director Templeton Director Templeton reported that the Department is pleased to be working with the Department of Agriculture and the Department of Economic Development on the energy efficiency and renewable energy projects. Director Templeton reported that the Department has been processing the $8 million Energize Missouri Industries initiative applications and will be announcing awards in the near future. Director Templeton reported the Department held a $3 million first ever energy-efficiency reverse auction in which approximately 20 different possible providers competed online to provide the greatest energy savings at the lowest public cost. Director Templeton commented that the Department established an incredible amount of energy to be saved for the dollars that are being invested. The reverse auction shows how innovation in terms of technology and market-based techniques can save energy, improve the environment, and induce job creation. VI. Lieutenant Governor s Report Lt. Governor Kinder This report was deferred. VII. Old Business A. Valent Aerostructures, LLC BUILD (f/k/a Tech Aerospace Mike Golden Group LLC) Final Authorizing Resolution 3

4 Mr. Golden presented the Final Authorizing Resolution for adoption authorizing the issuance of BUILD Missouri Bonds in an amount not to exceed $1,808,700 for Valent Aerostructures, LLC. Mr. Golden reported that the Board adopted a preliminary resolution expressing its intent to issue the Bonds for Tech Aerospace Group LLC at its July 20, 2010 meeting. Counsel for the Company and the Board have been working on completing the financing documents. Since that time, a name change had occurred and the company is now Valent Aerostructures, LLC. Mr. Golden commented that all financing terms remain as originally presented and the Company will add 100 new jobs and make an investment of more than $15.5 million in a facility and equipment in Washington, Missouri. Staff recommended adoption of the Final Authorizing Resolution approving issuance of the Bonds. Director Kerr commented that the Department has worked with the Company for a number of months and are a great Company that operates in Missouri, and they have been extremely professional to work with and very supportive of the state. Director Kerr made a motion to approve the following Final Authorizing Resolution: RESOLUTION AUTHORIZING THE MISSOURI DEVELOPMENT FINANCE BOARD TO ISSUE ITS BUILD MISSOURI REVENUE BONDS (VALENT AEROSTRUCTURES, LLC PROJECT), IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $1,808,700 FOR THE PURPOSE OF PROVIDING FUNDS TO MAKE A LOAN TO FINANCE A PORTION OF THE COSTS OF AN ECONOMIC DEVELOPMENT PROJECT FOR THE BENEFIT OF VALENT AEROSTRUCTURES, LLC, FORMERLY KNOWN AS TECH AEROSPACE GROUP, LLC; AUTHORIZING AND APPROVING CERTAIN DOCUMENTS IN CONNECTION WITH THE ISSUANCE OF SAID BONDS; AND AUTHORIZING CERTAIN OTHER ACTIONS IN CONNECTION WITH THE ISSUANCE OF SAID BONDS. Member Martin seconded the motion. The following roll call vote was recorded: Starr, Neff, Mehner, Proctor, Martin, Kerr, Hagler, Templeton and Carmichael Eckelkamp, May and Kinder Chair Carmichael declared the motion passed. 4

5 VIII. New Business A. 3M Company BUILD Application Mike Golden Resolution of Intent Mr. Golden presented the application from 3M Company for Missouri BUILD Bonds in an amount not to exceed $1,038,600. Mr. Golden reported that the project consists of building modifications and equipment purchases to allow for manufacturing of four new product lines in Columbia, Missouri. Proceeds will be used to purchase machinery and equipment. Mr. Golden reported that the project consists of infrastructure costs of approximately $24 million and anticipates creating 120 new jobs at an average annual wage of $44,658. Mr. Golden introduced Bill Moore with 3M Company. Mr. Moore gave a brief history of the Company and its Columbia facility and commented it was an exciting time for 3M. Mr. Moore commented that the Company will be consolidating several businesses into a wider footprint and they are working on a solar energy product. Mr. Moore thanked the Board and was available for questions. Mr. Golden commented on the outstanding 3M Columbia facility and thanked Mr. Moore, Terry Maglich and Joel McNutt for their efforts on the project. Staff recommended adoption of the Resolution of Intent approving issuance of the Bonds. Secretary Neff made a motion to approve the following Resolution of Intent: RESOLUTION OF THE MISSOURI DEVELOPMENT FINANCE BOARD PRELIMINARILY APPROVING A PROJECT FOR 3M COMPANY, AND DETERMINING THE INTENT OF THE BOARD TO ISSUE ITS BUILD MISSOURI REVENUE BONDS IN A PRINCIPAL AMOUNT OF APPROXIMATELY $1,038,600 TO FINANCE A PORTION OF THE COSTS OF THE PROJECT. Director Hagler seconded the motion. Director Templeton commented that the Department of Natural Resources was researching federal grant dollars for energy projects when the unique opportunity for 3M surfaced and he wanted to echo Mr. Moore s passion and commitment to the project in creating the jobs for Missouri. Director Templeton noted the project was a great opportunity to improve a green manufacturing footprint in the state. Director Kerr commented that the Department of Natural Resources was instrumental in working through certain issues that helped with this expansion and being supportive of grants from federal programs. Director Kerr thanked Director Templeton and his Department for their assistance with the project. 5

6 There being a motion and second on the floor, the following roll call vote was recorded: Starr, Neff, Mehner, Proctor, May, Martin, Kerr, Hagler, Templeton and Carmichael Eckelkamp and Kinder Chair Carmichael declared the motion passed. Vice Chairman Starr disconnected from the meeting. Chair Carmichael introduced Charles Newell with Valent Aerostructures, LLC. Mr. Newell thanked the State of Missouri for recruiting the Company stating they had many opportunities to make this investment in other states. Mr. Newell commented that the Company is thrilled to be in Missouri and are grateful for the State giving them the opportunity to expand. Mr. Newell thanked the Board for providing the resources to grow, and noted that the Company s commitment is to give back to the community. IX. Executive Director s Report Mr. Miserez distributed and explained handout materials regarding the proposed redevelopment of the Heer s Department Store in Springfield, Missouri. Mr. Miserez introduced Mary Lilly Smith, Economic Development Director with the City of Springfield, Missouri, to give a perspective of the Heer s building and how the redevelopment impacts the square of downtown Springfield. Mr. Miserez noted the information was for discussion and presentation only and that there would be no recommendation or action taken at the meeting. Ms. Smith gave a brief historical overview of the Heer s Department Store and noted it was the most important redevelopment project in Springfield. Ms. Smith commented that the City believes it has a good opportunity at this juncture to redevelop the building and she discussed other renovations in the area of the Heer s building. Ms. Smith reported that the City began tracking redevelopment in center city in 1997 and since that time the City has seen approximately $190 million of investment approximately $30 million was City funds, approximately $30 million was federal and state funds, and approximately $127 million has been private investment. Ms. Smith stated the City is very proud of the ability to leverage public funds with private investment. Ms. Smith was available for questions. Member Martin questioned how the Tax Increment Financing ( TIF ) and Community Improvement District ( CID ) would be used and what infrastructures would be improved. Ms. Smith responded that the City would use the TIF and CID toward 6

7 repayment of the City/MDFB loan. Ms. Smith explained that since the Council has declared the building blighted, this is an eligible use of funds. Secretary Neff questioned if the building renters would be regulated by income in regards to the HUD loan. Ms. Smith responded that the renters would not be regulated by income and that the HUD Section 220 program is designed to build market-rate apartments in urban areas and it is not subsidized housing. Mr. Miserez discussed the draft term sheet and summary of financing plan for the Heer s Redevelopment project. Mr. Miserez noted that sources and funds for the project would include an $11.8 million FHA-insured federal HUD loan guarantee, $5.1 million in Federal Historic Tax Credits, a Board-funded $4.9 million State Historic Tax Credit Bridge Loan, a $3 million City/MDFB Loan, and the Developer s contribution of $4.4 million. Mr. Miserez reported that the request to the Board is two-fold: (1) to provide the bridge loan on state historic tax credits, and (2) to fund $1 million of the $3 million loan to the Developer at 5% interest with a 23-year loan term. Mr. Miserez discussed the collateral, security and conditions of the loan, as well as the deadlines for the project. Chair Carmichael thanked Mr. Miserez and Ms. Smith for their presentation. Chair Carmichael announced that Director Kerr had been appointed as a member of the MDFB Personnel Committee. X. Adjournment There being no further business before the Board, Director Templeton made a motion to adjourn the meeting. Director Kerr seconded the motion. The following roll call vote was recorded: Neff, Mehner, Proctor, May, Martin, Kerr, Hagler, Templeton and Carmichael Starr, Eckelkamp and Kinder Chair Carmichael declared the motion passed and the meeting was adjourned. [Secretary Neff s Signature] 7