Missouri Development Finance Board

Transcription

1 CHAIR: Marie J. 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: Mike Kehoe Lieutenant Governor Robert B. Dixon 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 JUNE 19, 2018 The Missouri Development Finance Board met in regular session on Tuesday, June 19, 2018, 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. Chair Present Reuben A. Shelton Vice Chairman and Member Present* John E. Mehner Treasurer and Member Present Matthew L. Dameron Secretary and Member Absent Kelley M. Martin Member Present* Patrick J. Lamping Member Present* Bradley G. Gregory Member Present Mike Kehoe Lieutenant Governor and Member Absent Robert B. Dixon Director, Dept. of Economic Development and Member Present Chris Chinn Director, Dept. of Agriculture and Member Absent 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 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, Erica Griffin, Kimberly Martin, Ryan Vermette and Valerie Haller David Queen Justin Alferman, Governor s Office; Clifton Smart, Allen Kunkel and Jim Baker, Missouri State University; Doyle Edwards, Brewer Science; Matt Morrow and Ryan Mooney, Springfield Chamber of Commerce; Richard Ollis and Mary Lilly Smith, City of Springfield; John Wanamaker, BKD; 200 Madison Street, Suite 1000 P.O. Box 567 Jefferson City, Missouri Telephone: (573) Fax: (573) Visit our Web site at

2 Mat Burton, Vecino Group; Dee Wilson, Admir Gusic, and Nancy Mogelnicki, UMB Bank; and Sallie Hemenway, Missouri Department of Economic Development Chair congratulated Mike Kehoe on his appointment as Lieutenant Governor. I. Secretary s Report Secretary Dameron Mr. Miserez presented for approval the minutes from the April 17, 2018 meeting. The minutes were included in the Board materials distributed in advance of the meeting. There being no questions, corrections or additions, Member Gregory made a motion to approve the minutes as presented. Director Comer seconded the motion. The following roll call vote was recorded: Chair declared the motion passed. II. Treasurer s Report Treasurer Mehner Treasurer Mehner presented for approval the Treasurer s Reports as of and for the nine months ended March 31, 2018, and as of and for the ten months ended April 30, The Treasurer s Reports 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 Treasurer s Reports as presented. Member Gregory seconded the motion. The following roll call vote was recorded: Chair declared the motion passed. III. Department of Economic Development Director Dixon Director Dixon thanked the Board for its support of the Best in Midwest Initiative and reported the Best in the Midwest Summit will be held June 27th in St. Louis. Director Dixon noted the top two priorities of the Governor will be infrastructure and workforce 2

3 development, which will drive the State s economy forward. Director Dixon commented MDFB Members Reuben Shelton and John Mehner are members of the Initiative s Advisory Committee, and noted there is information available about the Initiative and meetings on the website at Director Dixon reported the next phases of the Initiative will be to present recommendations later this fall to the Governor on what the State s economic development and workforce development strategy could be like. IV. Department of Agriculture Director Chinn This report was deferred. V. Department of Natural Resources Report Director Comer Director Comer reported one of the Department s biggest initiatives has been to process expired permits as quickly as possible, and in the first year they have processed almost 70% of the expired permits. Director Comer reported their Parks Division is focusing on its maintenance backlog and noted the Department has put a system in place to identify what maintenance needs to be done regarding infrastructure, structures and assets at each park. Director Comer commented the parks visitorship is up approximately 10% and Missouri parks are consistently in the top five in the nation. Director Comer noted the Geological Survey Division let a RFP for a study to be conducted to evaluate the value of their geological information as it relates to the State s mineral resources. VI. Old Business A. Cerner Corporation and Subsidiaries 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 and Subsidiaries at its March 20, 2018 meeting. Ms. Martin noted the project is outside the scope of the Bannister Mall redevelopment, allowing for the renovation of a nearby pharmaceutical manufacturing facility into suitable office and training space. Ms. Martin reported all financing terms remain as originally presented and the Company will add a minimum of 650 new jobs to the State of Missouri within the first three years of operation. Staff recommended approval of the Final Authorizing Resolution for Bonds not to exceed $1,551,400. 3

4 Member Gregory made a motion to approve the application as presented 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 $1,551,400 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. Treasurer Mehner seconded the motion. The following roll call vote was recorded: Chair declared the motion passed. VII. New Business A. Cerner Corporation BUILD Application Kimberly Martin Resolution of Intent Ms. Martin presented the Resolution of Intent for the Cerner Corporation for Phase 3 of BUILD Bonds in an amount not to exceed $20,642,000 for the project located at the Bannister Mall site. The total project includes 16 redevelopment phases on approximately 290 acres, and total redevelopment is estimated to take place over an 11-year period that began in 2014 after DED presented its incentive proposal to Cerner. Ms. Martin reported issuances of $20 million were issued in 2015 and 2017 for Phases 1 and 2. The current request is for a third bond amount of $20 million to be issued in 2019 based on continuing job and investment projections. Ms. Martin commented currently there are more than 3,000 employees at the location and they are continuing their progress. Staff recommended adoption of the Resolution of Intent for Bonds not to exceed $20,642,000 for Phase 3 of the project. 4

5 Treasurer Mehner 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 THE THIRD PHASE OF AN ECONOMIC DEVELOPMENT PROJECT FOR CERNER CORPORATION, AND DETERMINING THE INTENT OF THE BOARD TO ISSUE A THIRD SERIES OF ITS BUILD MISSOURI REVENUE BONDS IN A PRINCIPAL AMOUNT OF APPROXIMATELY $20,642,000 TO FINANCE A PORTION OF THE COSTS OF THE PROJECT. Member Gregory seconded the motion. The following roll call vote was recorded: Chair declared the motion passed. B. Missouri State University Tax Credit for Contribution and Robert V. Miserez Direct Loan Application Mr. Miserez presented the tax credit application from Missouri State University (the University ) requesting $3 million in tax credits to raise $6 million in contributions, as well as the direct loan application for $5.8 million to support construction of a parking garage. Mr. Miserez reported the project consists of three phases totaling $54.9 million and consists of a 30,000 square foot expansion of the Jordan Valley Innovation Center (JVIC), a 100,000 square foot office building, and a 400-space parking garage. Mr. Miserez noted the facilities will be built by the Vecino Group, who is partnering with the University, and will lease the JVIC as well as the adjacent office building to the University. Mr. Miserez reported the project is in a multi-block district that was deemed a blighted area by the City of Springfield and was recently designated as one of the State s Opportunity Zone districts. Mr. Miserez introduced Clifton Smart, President of Missouri State University. Mr. Smart began by a presentation by discussing the IDEA Commons innovation district that begin in 2007 and blends the elements of innovation, design, entrepreneurship and art. The district is immediately north of the City s downtown central business district and anchored by three University facilities JVIC, the Plaster Center/The efactory, and Brick City. Mr. Smart commented the University invested in IDEA Commons to support and grow the community by focusing on technology-led economic development, job creation, retention of 5

6 talent, and to form business partnerships through research and entrepreneurship. Mr. Smart noted that since its creation, more than 1,100 jobs have been created and more than 700 business clients have been served. Mr. Smart continued and reported that currently there are 50 companies located in University facilities between JVIC and the efactory; JVIC has an immediate need to expand to meet existing business needs as well as attract additional business partners, and the efactory has a waiting list of entrepreneurs that want to become tenants. Mr. Smart commented the project represents the next phase in the development of IDEA Commons, and the University met with the City and the Springfield Chamber of Commerce to discuss leveraging a larger project that would also meet a community demand for office space and address downtown density in terms of development and parking. Mr. Smart introduced Doyle Edwards with Brewer Science. Mr. Edwards gave a brief background of Brewer Science and the materials they produce. Mr. Edwards discussed their presence at JVIC and the need for more space to do more research and development at the facility. Mr. Edwards introduced John Wannamaker with BKD. Mr. Wannamaker gave a brief background of BKD and discussed the company s growth and need of additional space while having the opportunity to further their presence and stay downtown. Mr. Wannamaker introduced Matt Morrow with the Springfield Area Chamber of Commerce. Mr. Morrow discussed the Chamber s involvement in the project and their direct funding of a portion of the project due diligence. Mr. Morrow commented on the catalytic impact the project will have for the district as well as the potential to ignite other investment in the area. Mr. Morrow introduced Mat Burton with the Vecino Group. Mr. Burton gave a brief background of the Vecino Group and commented they are a Springfield-headquartered development company founded in 2012 with a mission of doing purpose-driven development that is transformative and can make a long-term impact on communities. Mr. Burton noted their Company currently has 38 projects throughout 12 states that include supportive housing, market rate projects, residential mixed use, and public-private partnerships. Mr. Burton continued the presentation and discussed the development of the project that consists of the JVIC expansion, an office building, a parking garage, a potential expansion to the efactory, and a green space urban park. The Vecino Group will lease the land from the University, construct the development, and lease it back to the University. Mr. Burton discussed the project renderings and was available for questions. Mr. Burton introduced Councilman Richard Ollis with the City of Springfield. Mr. Ollis commented on the collaboration between the City, the Chamber of Commerce, the University, and the Vecino Group for this project and noted the downtown in the last decade has continued to be redeveloped. Mr. Ollis reported 6

7 the City has used a comprehensive planning process and the project fits very well in their comprehensive plan. Mr. Ollis noted the City is committed financially to improve the area including $1.8 million in stormwater improvements, approximately $1 million to enhance the streetscaping, and beautifying the area north of the downtown square. Mr. Ollis continued and noted the City is reviewing the use of local and State TIFs as well as researching other incentives to support the project. Mr. Smart thanked the Board for the opportunity to present the project and their team was available for questions. Chair thanked the representatives for their presentation and commented the project will catalyze the development of technology jobs in the area as well as provide the opportunity for graduates of the University to do research there and to stay in the community. C. MDFB FY 2019 Budget Erica Griffin Ms. Griffin presented the MDFB FY 2019 Budget, along with projections for fiscal years 2020 and Ms. Griffin noted total operating revenues were being projected slightly lower than the previous year mainly attributable to the revenue stream expected from the BUILD Program, lower fees anticipated from public and private bond fees, and the loss of revenue from the Wonders of Wildlife loan that was previously written as uncollectable. The Wonders of Wildlife loan was paid off this current fiscal year. Ms. Griffin reported operating expenses were budgeted slightly lower mainly due to parking garage capital expenses, and she discussed the capital improvement plan for the garages. Ms. Griffin noted the budget was increased for professional fees as staff currently is researching a suitable replacement for the outdated compliance tracking software. Ms. Griffin reported a discretionary debt payment on the St. Louis Convention Center Hotel Garage was included in the budget and commented the bond debt matures in December Ms. Griffin was available for questions and staff recommended approval of the FY 2019 Operating Budget as presented. Member Martin made a motion to adopt the MDFB FY 2019 Budget as presented. Member Lamping seconded the motion. The following roll call vote was recorded: 7

8 Chair declared the motion passed. D. Election of MDFB Officers Chair Chair commented the current officers indicated a willingness to continue to serve in their current capacity Reuben Shelton, Vice Chairman; John Mehner, Treasurer; and Matt Dameron, Secretary. Chair asked for nominations from the floor. Member Gregory made a motion to elect the current slate of officers by acclamation. Member Martin seconded the motion. The following roll call vote was recorded: Chair declared the motion passed. VIII. Executive Director s Report Robert V. Miserez Mr. Miserez reported the Department of Economic Development entered into a contract for the Best in Midwest Initiative and the Board approved funding up to $400,000 of the contract. The final contract price was $650,000 and the Department proposed they will pay 50% of the contract price with the Board paying the remaining 50% for a total of $325,000 in funding from the Board. Mr. Miserez reported the final payment for fiscal year 2018 was made to the Hawthorn Foundation to support the Missouri Partnership in the Partnership s business recruitment efforts. Mr. Miserez commented the Board was immediately reimbursed by the Department pursuant to the prior agreement, and the Department has received the necessary funding for next year. Mr. Miserez noted that currently there is $5,250,000 remaining in tax credits for calendar year Mr. Miserez also noted the 2018 Board Retreat has been scheduled for October 14-16, 2018 in St. Louis. Mr. Miserez referenced the handout material regarding the T-REX tax credit project and that Monsanto recently announced it has pledged a $500,000 grant to T-REX toward the creation of a geospatial resource center. 8

9 IX. Adjournment There being no further business before the Board, Treasurer Mehner made a motion to adjourn the meeting. Member Gregory seconded the motion. By unanimous consent, Chair declared the motion passed and the meeting adjourned. [Assistant Secretary Miserez s Signature] 9