Missouri Development Finance Board

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1 CHAIR: Marie J. Carmichael MEMBERS: Reuben A. Shelton John E. Mehner Matthew L. Dameron Kelley M. Martin Patrick J. Lamping Bradley G. Gregory EXECUTIVE DIRECTOR: Robert V. Miserez Missouri Development Finance Board EX-OFFICIO MEMBERS: Michael L. Parson Lieutenant Governor Robert B. Dixon Acting Director, Economic Development Chris Chinn Director, Agriculture Carol S. Comer Director, Natural Resources MEETING MINUTES MISSOURI DEVELOPMENT FINANCE BOARD Governor Office Building 200 Madison Street, Room 1010 Jefferson City, Missouri NOVEMBER 21, 2017 The Missouri Development Finance Board met in regular session on Tuesday, November 21, 2017, 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 Reuben A. Shelton Vice Chairman and Member Present John E. Mehner Treasurer and Member Present Matthew L. Dameron Secretary and Member Present Kelley M. Martin Member Present Patrick J. Lamping Member Present Bradley G. Gregory Member Present Michael L. Parson Lieutenant Governor and Member Present Robert B. Dixon Acting Director, Dept. of Economic Develop. and Member Present* Chris Chinn Director, Dept. of Agriculture and Member Present* Carol S. Comer Director, Dept. of Natural Resources and Member Present* Robert V. Miserez Executive Director and Assistant Secretary Present *Participating via telephone conference call. Chair Carmichael called the meeting to order and declared a quorum was present. In addition to the above members, attendees were: Board Staff: Board Counsel: Others Present: Kathleen Barney, Kimberly Martin, Erica Griffin, Ryan Vermette and Valerie Haller David Queen Ward Franz, Lieutenant Governor s Office; Gayla Dunn, City of Fulton; Tom Riley, Callaway Arts Council; Bruce Hackmann, Callaway Chamber of Commerce; Becky Hunt, Madison County Health Department; David Sumoski and Lauren Russell, Nucor Corporation; Kelvin Shaw, City of 200 Madison Street, Suite 1000 P.O. Box 567 Jefferson City, Missouri Telephone: (573) Fax: (573) Visit our Web site at

2 Sedalia; Mark Dawson, Kansas City Power & Light; Michael Moeller, James Carver and Michael Zeek, City of Maryland Heights; Peter Kinsella, Summit Group; Patrick Quinn, St. Louis Legacy Ice Foundation; David Byrd, Daphne Bascom, Mark Hulet and John Mikos, YMCA of Greater Kansas City; Kerrie Tyndall and James Ryan, City of Kansas City, Missouri; Mitzi Cardenas and Pam Bean, Truman Medical Centers; Sean O Byrne, Downtown Council of Kansas City; Jerry Riffel, Lathrop & Gage; Flint Fowler, Dave Spence, Wendy Dyer and Michaelmonique Mayo, Boys & Girls Clubs of Greater St. Louis; Kevin Cahill and Pat Patrick, St. Louis Economic Development Partnership; Gerald Sprong, Agri-Business Expo Center; Steve Johnson and Clint O Neal, Missouri Partnership; Sallie Hemenway, Missouri Department of Economic Development; and Jack Suntrup, St. Louis Post-Dispatch The meeting agenda was rearranged as follows. VIII. New Business A. CLOSED RECORD Project Rotag Kimberly Martin BUILD Application Resolution of Intent Ms. Martin presented the BUILD application from the Nucor Corporation requesting approximately $4,646,700 in BUILD Bonds for the acquisition of approximately 340 acres in Pettis County, Mo., for the development of a 256,000- square foot steel micro mill. Ms. Martin reported the Company expects to create 255 new jobs and invest $250 million at this location. Ms. Martin introduced David Sumoski with the Nucor Corporation. Mr. Sumoski began a presentation by giving an overview of the Company, noting Nucor has more than 200 facilities across North America. Mr. Sumoski reported the Company shipped approximately 22 million tons of steel in 2016; made approximately $16 billion in revenue; and has approximately 25,000 teammates. Mr. Sumoski noted Nucor got its start in the steel mill industry in 1962 and discussed steelmaking and turning recycled scrap into new steel. Mr. Sumoski commented the Company s mission statement is to take care of their customers the people that buy and use their products, their shareholders, and their teammates. Mr. Sumoski discussed Nucor s culture, which includes safety first, commitment to teammates, relationships based on trust, teamwork, pay for performance, decentralized structure, long-term focus, and continual improvement. Mr. Sumoski continued his presentation and noted Nucor has been a Fortune 500 company for a considerable amount of time. Mr. Sumoski discussed their footprint in Missouri and their Electric Arc Furnace (EAF) bar mills, which uses electricity to turn recycled scrap into new steel.

3 Mr. Sumoski reported the rebar micro-mill will draw upon the scrap available from their affiliate, the DJJ Company, in the region to create locally sourced rebar for the booming markets in and around the Kansas City region, throughout Missouri, and neighboring states. Mr. Sumoski highlighted the Sedalia micromill project, which represents at least $250 million in capital investments, will take approximately two years to design, build and start up, and with the Board s approval will have a targeted groundbreaking for the first quarter of Mr. Sumoski continued and reported that pending permits and regulatory approvals, the Company estimates the start up to be in the fourth quarter of 2019; the project will create at least 255 new jobs in Missouri with an average salary of approximately $65,000 per year; and create an estimated 450 temporary jobs during the construction phase of the project. Mr. Sumoski was available for questions. Lt. Governor Parson questioned if the Company will be collaborating with universities and/or community colleges in the area for their skilled workforce. Mr. Sumoski responded the Company chose Sedalia because of the skilled workforce available in the area, as well as using the local university, technical and community colleges for training. Member Martin made a motion to approve the application as presented and adopt the following Resolution of Intent: RESOLUTION OF THE MISSOURI DEVELOPMENT FINANCE BOARD PRELIMINARILY APPROVING A PROJECT FOR NUCOR CORPORATION AND CERTAIN OF ITS SUBSIDIARIES, AND DETERMINING THE INTENT OF THE BOARD TO ISSUE ITS BUILD MISSOURI REVENUE BONDS IN A PRINCIPAL AMOUNT OF APPROXIMATELY $4,646,700 TO FINANCE A PORTION OF THE COSTS OF THE PROJECT. Member Lamping seconded the motion. The following roll call vote was recorded: Shelton, Mehner, Dameron, Martin, Lamping, Gregory, Parson, Dixon, Chinn, Comer and Carmichael Chair Carmichael declared the motion passed. 3

4 VII. Old Business A. Cerner Corporation BUILD Application Kimberly Martin Final Authorizing Resolution Ms. Martin reported the Board adopted a preliminary resolution expressing its intent to issue BUILD Bonds for the Cerner Corporation at its May 19, 2015 meeting. The project allows for the redevelopment of the distressed Bannister Mall area in Kansas City, and the total project includes 16 redevelopment phases that expands over 290 acres. Ms. Martin reported BUILD incentives of $60 million were included for Phases 1, 2 and 3 of the project at a net benefit of $20 million per phase. The first issuance of $20 million occurred in December 2015, and the second issuance of $20 million is scheduled to occur December 15, Ms. Martin reported all financing terms remain as originally presented and Phase 2 will add a minimum of 1,000 new jobs within the first three years of operation upon completion of Phase 2. Staff recommended approval of the Final Authorizing Resolution for Phase 2 Bonds not to exceed $20,642,000. Treasurer Mehner made a motion to approve the request and adopt the following Final Authorizing Resolution: RESOLUTION AUTHORIZING THE MISSOURI DEVELOPMENT FINANCE BOARD TO ISSUE ITS BUILD MISSOURI REVENUE BONDS (CERNER CORPORATION PROJECT), IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $20,642,000 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 CERNER CORPORATION AND ITS SUBSIDIARIES; 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. Vice Chairman Shelton seconded the motion. The following roll call vote was recorded: Shelton, Mehner, Dameron, Martin, Lamping, Gregory, Parson, Dixon, Chinn, Comer and Carmichael Chair Carmichael declared the motion passed. 4

5 B. City of Kansas City Downtown YMCA Robert V. Miserez Tax Credit for Contribution Application Mr. Miserez reported the project application was presented and discussed at the October 24, 2017 Board meeting, in which the City of Kansas City is requesting $4 million in tax credits to raise $8 million in contributions for the benefit of the Downtown YMCA of Greater Kansas City project. Mr. Miserez reported total project cost is $30.6 million; the City is investing $16.9 million and the Users will be raising and/or investing $5.7 million to complete the financing for the project. Mr. Miserez introduced Kerrie Tyndall with the City of Kansas City. Ms. Tyndall began a presentation and reported the City has allocated $16.9 million in tax increment financing by amending the existing 11th Street Corridor TIF plan to include the renovation of the historic Lyric Opera House (the Lyric ). Ms. Tyndall discussed the historic Lyric Opera House that has been vacant since 2012 and the project location, which is located in downtown Kansas City and is in close proximity to the Streetcar corridor as well as the Truman Medical Center (TMC) campus. Ms. Tyndall commented on the importance of the TMC participation in providing an accessible location for health screening and referral services to the increasing number of residents and employees in the downtown district. Ms. Tyndall introduced David Byrd with the YMCA of Greater Kansas City. Mr. Byrd noted the YMCA s three areas of youth work are youth development, healthy living and social responsibility. Mr. Byrd reported on the project, which will include a commons area, aquatics, community engagement, recreation center, and wellness center. Mr. Byrd continued and discussed the downtown community need as well as the need for positive youth development programs. Mr. Byrd introduced Dr. Daphne Bascom with the YMCA. Dr. Bascom reported on the partnership with TMC in relationship to the Community Integrated Health (CIH) Center, which will be managed and operated by TMC. Dr. Bascom introduced Mitzi Cardenas with Truman Medical Centers. Ms. Cardenas discussed TMC s community health strategy and health outcomes within the strategic target areas in Kansas City to help prevent or reduce the risk of chronic diseases, and the importance this facility location will play in helping to address these needs. Vice Chairman Shelton questioned the length of the agreement between the YMCA and TMC. Mr. Byrd responded the YMCA has a Memorandum of Agreement with TMC that is open-ended. Jerry Riffel with Lathrop & Gage commented the TMC lease at the Linwood YMCA is for a term of 20 years. Sean O Byrne with the Downtown Council of Kansas City discussed the City s downtown resurgence, the significant public infrastructure and private investments made in recent years, and the importance and impact this critical redevelopment and reuse of the Lyric will contribute to ongoing downtown revitalization efforts. Mr. O Byrne also highlighted prior downtown projects the 5

6 Board assisted with and the substantial positive economic impacts these resulted in. Mark Hulet with the YMCA discussed the existing conditions of the Lyric, as well as the design plans for the existing façade and new addition. Mr. Hulet introduced Mr. Riffel who discussed the source of funds and the Downtown Council partnership for the project. Member Martin made a motion to adopt the following Authorizing Resolution approving up to $4 million in tax credits subject to $8 million in contributions for the City of Kansas City for the benefit of the Downtown YMCA of Greater Kansas City project: RESOLUTION OF THE MISSOURI DEVELOPMENT FINANCE BOARD MAKING CERTAIN FINDINGS AND DETERMINATIONS; APPROVING OF THE ISSUANCE OF TAX CREDITS PURSUANT TO THE TAX CREDIT STATUTE; AND AUTHORIZING THE EXECUTION OF CERTAIN DOCUMENTS IN CONNECTION WITH SUCH APPROVAL. Vice Chairman Shelton seconded the motion. Mr. Miserez commented there was a question as to the length of the agreement between the YMCA and TMC, as well as a desire to at least mirror the lease term that is currently in place at the Linwood YMCA. Vice Chairman Shelton commented TMC is a critical component of the project and he would like to see a similar commitment from TMC for the Downtown YMCA project. Mr. Queen commented that language can be added to the project s tax credit agreement that an affiliation between the YMCA and TMC be maintained for the same term as the lease. Vice Chairman Shelton made a motion to amend Member Martin s motion to require that an affiliation between the YMCA and TMC be maintained for the same term as the lease. Member Martin seconded the amended motion. The following roll call vote was recorded on the motion to amend: Shelton, Mehner, Dameron, Martin, Lamping, Gregory, Parson, Dixon, Chinn, Comer and Carmichael Chair Carmichael declared the motion to amend passed. Chair Carmichael then presented the original motion, as amended, for a vote. The following roll call vote was recorded: 6

7 Shelton, Mehner, Dameron, Martin, Lamping, Gregory, Parson, Dixon, Chinn, Comer and Carmichael Chair Carmichael declared the motion as amended passed. Director Comer disconnected from the meeting for another commitment. C. Madison County Health Department Kimberly Martin Tax Credit for Contribution Application Ms. Martin reported the project application was presented and discussed at the October 24, 2017 Board meeting in which the Madison County Health Department is requesting $160,000 in tax credits to raise $320,000 in contributions to assist in raising contributions to pay for upgrades to their existing health department facility. Ms. Martin noted there were a few questions regarding the redevelopment plan of the building and staff discussed those questions with Becky Hunt, Administrator of the Madison County Health Department. Ms. Hunt began a presentation and gave a brief historical background of the Department, which is located in southeast Missouri and began in Ms. Hunt discussed foundational public health services and data, which includes the prevention and control of communicable disease; prevention and control of chronic disease and injury; environmental health; maternal child and family health; and access to and linkage with clinical care. It was noted in the application and presentation that 75% of clients receiving services are low-income residents of the county. Ms. Hunt continued and discussed how the Department has implemented innovative services for billings and a blood draw program, and reported on the Department s funding as of Chair Carmichael questioned how the Department accesses grant funding. Ms. Hunt responded she researches grants, writes the grants, and then staff reviews them. Ms. Hunt discussed the current and proposed changes to the reception, clinical and training areas, as well safety and security measures. Ms. Hunt commented they intend to hire an architect for the project to ensure they address disability access. Ms. Hunt reported on the fundraising commitments received for the project and was available for questions. Lt. Governor Parson questioned if the Department has a security plan. Ms. Hunt responded one of their employees is a previous county sheriff s deputy and she has been giving guidance on safety and security features, and the architect will be giving guidance as well. 7

8 Member Lamping made a motion to adopt the following Authorizing Resolution approving $160,000 in tax credits subject to $320,000 in contributions for the Madison County Health Department project: RESOLUTION OF THE MISSOURI DEVELOPMENT FINANCE BOARD MAKING CERTAIN FINDINGS AND DETERMINATIONS; APPROVING OF THE ISSUANCE OF TAX CREDITS PURSUANT TO THE TAX CREDIT STATUTE; AND AUTHORIZING THE EXECUTION OF CERTAIN DOCUMENTS IN CONNECTION WITH SUCH APPROVAL. Vice Chairman Shelton seconded the motion. The following roll call vote was recorded: Shelton, Mehner, Dameron, Martin, Lamping, Gregory, Parson, Dixon, Chinn and Carmichael Comer Chair Carmichael declared the motion passed. Directors Dixon and Chinn disconnected from the meeting for other commitments. VI. Lieutenant Governor s Report Lt. Governor Parson Lt. Governor Parson reported his office has launched the Buy Missouri campaign, which promotes businesses that produce products in Missouri. Lt. Governor Parson commented he will be presenting the Buy Missouri campaign to the National Lieutenant Governor s Association. Lt. Governor Parson commented on the need to address the skilled workforce issue in Missouri and to continue promoting the skilled workforce arena. Lt. Governor Parson left the meeting for another commitment. VII. Old Business (cont d) D. City of Fulton Brick District Theatre, Phase II Kimberly Martin Tax Credit for Contribution Application Ms. Martin presented the tax credit application from the City of Fulton requesting $150,000 in tax credit to raise $300,000 in contributions for the benefit of the Brick District Playhouse Theatre. Ms. Martin noted total project cost for this phase is $400,000. 8

9 Ms. Martin reported the Board approved $100,000 in tax credits in June 2015 for Phase I renovations that focused on the preservation of the Theatre, and the City was very successful in utilizing the tax credit allocation for that phase. Ms. Martin commented the City is requesting additional credits to assist in furthering the renovation and Phase II will focus on interior improvements needed to secure more revenue-generating events within the Theatre. Ms. Martin introduced Tom Riley, President of the Callaway Arts Council. Mr. Riley began a presentation and gave a historical background on the Brick District, and the Theatre that was built in Mr. Riley discussed the revitalization efforts of the Brick District and the Theatre. Mr. Riley introduced Bruce Hackmann with the Callaway Chamber of Commerce. Mr. Hackmann discussed the improvements to the Brick District, and the economic impact to the area including tourism, new businesses and jobs. Mr. Riley continued and discussed the public-private partnership for the project as well as the Theatre restoration efforts to date. Mr. Riley noted Phase II will focus on the interior improvements to complete the project to realize its potential as a performing arts venue. Improvements include electricity, architectural and engineering, site preparation, construction contracts, renovation costs, machinery and equipment, stage and technical lighting, sound system, auditorium floor and interior remodeling. Mr. Riley discussed future financial support and the sustainability of the project. Mr. Riley reported a for-profit tenant pays monthly rent and provides food for events in the building, and the Bistro, auditorium and stage is available to rent as well. Mr. Riley reported on future host venues including a Theater Reaching Young People & Schools (TRYPS) Institute satellite location, receptions, concerts, dinner theatre, and community forums and events. Mr. Riley discussed the future economic impact of the project as well the future cultural impact to the area. Member Gregory made a motion to adopt the following Authorizing Resolution approving $150,000 in tax credits subject to $300,000 in contributions for the City of Fulton for the benefit of the Brick District Playhouse Theatre Phase II project: RESOLUTION OF THE MISSOURI DEVELOPMENT FINANCE BOARD MAKING CERTAIN FINDINGS AND DETERMINATIONS; APPROVING OF THE ISSUANCE OF TAX CREDITS PURSUANT TO THE TAX CREDIT STATUTE; AND AUTHORIZING THE EXECUTION OF CERTAIN DOCUMENTS IN CONNECTION WITH SUCH APPROVAL. Member Martin seconded the motion. The following roll call vote was recorded: Shelton, Mehner, Dameron, Martin, Lamping, Gregory and Carmichael 9

10 Parson, Dixon, Chinn and Comer Chair Carmichael declared the motion passed. VIII. New Business (cont d) B. City of Maryland Heights Ice Arena Robert V. Miserez Tax Credit for Contribution Application Mr. Miserez presented the tax credit application from the City of Maryland Heights requesting $4 million in tax credits to raise $8 million in contributions for the benefit of the St. Louis Legacy Ice Foundation Arena. Mr. Miserez reported the project is the construction of an approximately $75 million, 315,000-square foot ice hockey arena housing three indoor and one outdoor covered ice rinks. Mr. Miserez noted the item was for presentation only and no action would be taken at the time. Mike Moeller, City of Maryland Heights Mayor, began a presentation by discussing the importance of the project and the economic development potential it holds for the City and region in terms of tourism, recreational, and entertainment activity. Mr. Moeller commented it is anticipated that the ice sports complex will draw more than one million visitors annually from a 500-mile radius and bring significant revenues to the City, region and State while broadening the City s economic base. Mr. Moeller introduced Patrick Quinn, Chairman of the St. Louis Legacy Ice Foundation (the Foundation ). Mr. Quinn discussed the need for the St. Louis Ice Center (the Center ) in that new ice rinks are needed to accommodate demand; the aging/phasing out of several ice surfaces has intensified demand; the challenges to participation for recreational players, girls, women and those with special needs; and that the region lacks the ability to secure major amateur ice sport events to drive sports tourism. Mr. Quinn reported on the regional vision for the Center and discussed the publicprivate partnership in which the Foundation raises the equity, the City provides the opportunity to borrow, and the Foundation pays off the revenue bonds the City intends to issue to help fund the Center. Chair Carmichael questioned if the City would be in a position to guarantee the payments on the $39 million revenue bonds it plans to issue. Mr. Quinn responded the City will guarantee the bonds and provide an annual revenue deficit (shortfall) pledge of approximately $400,000, although discussions on the final amount are ongoing. Mr. Quinn discussed the site location, site plans and renderings. The Center will house an event center with a 3,500-seat capacity, two additional indoor sheets of ice including one that would be used as the St. Louis Blues practice center during 10

11 off-peak, morning hours, and one covered outdoor rink. The Facility will include a skills development center; a training and rehab facility; and food, beverage and retail facilities. Chair Carmichael questioned if the Blues practices would be open to the public and if the Blues will be paying rent. Mr. Quinn responded the Blues typically practice Monday through Friday from 10 a.m. to 12 p.m. and the practices are typically open to the public and free to attend. Mr. Quinn reported the Blues will have a 30 year-lease at the facility at market rate, and they will pay for their ice for two hours every Monday through Friday from September through April whether they use the ice or not. Mr. Quinn commented the Center will be a facility that is home to a wide variety of not-for-profit partners, and the Blues will bring a significant brand value to the facility, but will represent approximately 2% of the ice utilization. Mr. Quinn discussed the pathways to participation in which they will be working with local corporations to sponsor programming that will enhance the social, emotional and physical wellness amongst the underserved population including afterschool programs, study rooms, and ice time. Mr. Quinn continued and discussed the sources and uses of funds for the project and noted the project cost is approximately $75 million. Mr. Quinn noted the City intends to issue $39 million in revenue bonds and will invest approximately $6.5 million in infrastructure and cash support toward the Facility; the principal users have committed $8 million to offset construction costs, long-term leases have been negotiated with these users; and additional pledges not conditioned on credits total approximately $6 million. Member Martin asked if they expected the tax credits this year or in Mr. Quinn responded that if they needed to split the tax credits they could; the important thing is to close the gap and receive $4 million in tax credits total. Mr. Quinn reported on the economic benefits to the region in which the Center will drive one million people annually, generate 16,000 hotel room nights annually, create $20 million in annual economic impact, and provide the publicprivate partnership to address the demand for ice sheets. Mr. Quinn commented the Center will be a catalyst for further development of the multi-generational sports and entertainment district; jump start development in the Maryland Park Lake District; increase casino visitation and revenue; and be a business and community amenity. Mr. Quinn was available for questions. Chair Carmichael questioned if the college teams will be paying rent for ice time as well. Mr. Quinn responded the teams will be paying rent for the ice; everyone skating there will be paying and no organizational user or lessee will receive a discount. Member Martin asked if there were any TIF or CID funds involved. Mr. Quinn responded that presently there is no TIF or CID in the area. Chair Carmichael requested additional information on the funding opportunities for the disadvantaged youth, and encouraged the representatives to revisit their 11

12 financial model to see if they could work with less funding. Mr. Queen commented the Foundation might want to look at strategic partnerships with the local YMCA and other similar organizations to assist with opportunities for using the facility by disadvantaged youth. Chair Carmichael thanked the representatives for their presentation. C. St. Louis County Port Authority Boys & Girls Clubs of Kimberly Martin Greater St. Louis Tax Credit for Contribution Application Ms. Martin presented the tax credit application from the St. Louis Port Authority requesting $2.5 million in tax credits to raise $5 million in contributions for the benefit of the Boys & Girls Clubs of Greater St. Louis (BGCSTL). Ms. Martin reported total project cost is estimated at approximately $8.5 million and the BGCSTL plans to construct a new Teen Center of Excellence (the Teen Center ) in Ferguson, Mo., which is a key part of a larger $25 million campaign to expand and sustain the services offered to the youth in the area. Ms. Martin introduced Flint Fowler, President of the Boys & Girls Clubs of Greater St. Louis. Mr. Fowler began a presentation and commented the BGCSTL is celebrating their 50-year anniversary, and they are a member of the national federation of Boys & Girls Clubs of America, which collectively serves approximately four million youth. Mr. Fowler reported on the $25 million A Place to Become Campaign originating out of the 2014 unrest in Ferguson and includes the Teen Center and implementing BGCSTL operations in three new school sites in North County. Mr. Fowler discussed the importance of building the next generation of good citizens and the issues surrounding today s youth, which includes unsupervised children, health concerns, unemployment, low academic achievement, and limited production and positive outlets for high school students. Mr. Fowler reported the Teen Center will be a new 20,000+ square foot building that will be available to approximately 1,500 teens in the Ferguson-Florissant, Jennings, Normandy and Riverview Gardens school districts. Mr. Fowler discussed the components of the Teen Center, which will include an innovation center/maker space, college/career resource center, community space, visual and performing arts center, teaching kitchen, outdoor garden, huddle areas, and a gymnasium. The Teen Center will focus on health and wellness, education and workforce development, S.T.E.A.M., and leadership and civic engagement. Mr. Fowler introduced Michaelmonique Mayo, 2018 Youth of the Year. Ms. Mayo discussed the challenges and struggles of her home life in North St. Louis and the statistical poverty levels in the area. She commented on the positive care she received from the BGCSTL including guidance, job opportunities and support. Ms. Mayo discussed her vision of developing her own youth center to help decrease the struggles of poverty and mental health in youth. Such a center would provide job opportunities, food drives, a place to connect 12

13 with other peers to develop positive social traits and self-confidence, and professional counselors and therapists. Mr. Fowler introduced Dave Spence, Chairman of A Place to Become Campaign. Mr. Spence discussed the vision and logistics of the campaign, and reported the Campaign has raised $11.7 million to date and they anticipate raising the full $25 million. Wendy Dyer, President of Wendy Dyer Fund Development Consultants, reported on the finances and timeline of the project. Ms. Dyer noted $3,560,000 has been committed to date towards the capital construction of the $8,560,000 Teen Center, and commented on their positive experience with raising contributions in relation to tax credit incentives. Ms. Dyer reported the timeline anticipates breaking ground in August 2018 and the Teen Center opening in summer Kevin Cahill, Vice President of Strategic Initiatives with the St. Louis Economic Development Partnership, discussed the St. Louis Port Authority s role in the project and voiced their support for the project. Mr. Miserez questioned if there were sources of funding from the Port Authority in the project. Mr. Cahill responded the Port Authority and St. Louis County has supported a number of local initiatives in the past. Pat Patrick, Economic Recovery Coordinator for the St. Louis Economic Development Partnership, discussed the Teen Center s role in the overall redevelopment strategy for the West Florissant corridor. Chair Carmichael thanked the representatives for their presentation. E. Buchanan County Agri-Business Expo Center Robert V. Miserez Revision to Tax Credit Agreement Mr. Miserez presented a request from the Agri-Business Expo Center for a modification to the Tax Credit Agreement for permission to record a second mortgage. The Center has a $150,000 note with a lender and they are having difficulties repaying the note due to cash flow shortages resulting from the project taking much longer than originally scheduled to develop. Mr. Miserez reported the lender is willing to extend the note, but has requested a second mortgage on the project s land. The Tax Credit Agreement requires approval of MDFB to place a mortgage on the property. Mr. Miserez noted the Center is working with Buchanan County to build interior roads through the site. Mr. Miserez invited Gerald Sprong, Vice Chair of the Agri-Business Expo Center Board, to give a status update on the project. Mr. Sprong reported the interchange has been completed and accepted by MoDOT. Mr. Sprong discussed the unanticipated problems with the interchange that slowed construction and caused delays in the project. Mr. Sprong reported on their fundraising activities and commented they have raised approximately $3.2 million of their $5 million goal to finish the project. 13

14 Mr. Miserez asked about the status of the creation of the 60 jobs required to maintain the forgivable loan and non-repayment status of the MoDOT funding. Mr. Sprong responded no jobs will be created until the interior site roads have been completed. Chair Carmichael asked if funds had been expended. Mr. Miserez responded the Board has disbursed approximately $137,000 for engineering costs. Chair Carmichael asked for an update on the funding for the entire project. Mr. Sprong responded they are working on a proposal for a local tax increase to fund the construction of the main facility. Mr. Miserez expressed his concern with the Center meeting its obligation to MoDOT based upon their deadline and the need to repay the funds if 60 jobs are not created. Mr. Sprong responded their current agreement with MoDOT is to create the 60 jobs by July 2020 or the funds will need to be returned to MoDOT. Vice Chairman Shelton made a motion to approve an amendment to the Tax Credit Agreement to allow permission to record a second mortgage on the project s land. Member Martin seconded the motion. The following roll call vote was recorded: Shelton, Mehner, Dameron, Martin, Lamping, Gregory and Carmichael Parson, Dixon, Chinn and Comer Chair Carmichael declared the motion passed. D. Approval of MDFB FY 2017 CAFR Erica Griffin Ms. Griffin presented for approval the MDFB FY 2017 Comprehensive Annual Financial Report. Ms. Griffin reported the CAFR was issued an Unqualified or clean opinion by the Williams-Keepers LLC auditors. The MDFB Audit Committee met November 7, 2017 and approved the FY 2017 CAFR. Staff recommended approval of the CAFR as presented. Treasurer Mehner made a motion to approve the MDFB FY 2017 Comprehensive Annual Financial Report. Member Lamping seconded the motion. The following roll call vote was recorded: Shelton, Mehner, Dameron, Martin, Lamping, Gregory and Carmichael Parson, Dixon, Chinn and Comer 14

15 Chair Carmichael declared the motion passed. II. Treasurer s Report Treasurer Mehner Treasurer Mehner presented for approval the Treasurer s Reports as of and for the three months ended September 30, 2017, the two months ended August 31, 2017, the one month ended July 31, 2017, and the twelve months ended June 30, The Treasurer s Reports were included in the Board materials distributed in advance of the meeting. Treasurer Mehner noted the American Fish & Wildlife Loan has been repaid in full. There being no questions, corrections or additions, Member Gregory made a motion to approve the Treasurer s Reports as presented. Member Martin seconded the motion. The following roll call vote was recorded: Shelton, Mehner, Dameron, Martin, Lamping, Gregory and Carmichael Parson, Dixon, Chinn and Comer Chair Carmichael declared the motion passed. I. Secretary s Report Secretary Dameron Secretary Dameron presented for approval the minutes from the July 18, 2017 and October 24, 2017 meetings. The minutes were included in the Board materials distributed in advance of the meeting. There being no questions, corrections or additions, Treasurer Mehner made a motion to approve the minutes as presented. Member Lamping seconded the motion. The following roll call vote was recorded: Shelton, Mehner, Dameron, Martin, Lamping, Gregory and Carmichael Parson, Dixon, Chinn and Comer Chair Carmichael declared the motion passed. III. Department of Economic Development Director Dixon This report was deferred. IV. Department of Agriculture Director Chinn This report was deferred. 15

16 V. Department of Natural Resources Report Director Comer This report was deferred. X. Executive Director s Report Robert V. Miserez Mr. Miserez reported a Carter County MIDOC disaster loan application was approved for $150,000. XI. Adjournment There being no further business before the Board, Vice Chairman Shelton made a motion to adjourn the meeting. Member Gregory seconded the motion. By unanimous consent, Chair Carmichael declared the motion passed and the meeting adjourned. [Secretary Dameron s Signature] 16