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 MEETING MINUTES MISSOURI DEVELOPMENT FINANCE BOARD Governor Office Building 200 Madison Street, Room 1010 Jefferson City, Missouri MARCH 20, 2018 EX-OFFICIO MEMBERS: Michael L. Parson Lieutenant Governor Robert B. Dixon Director, Economic Development Chris Chinn Director, Agriculture Carol S. Comer Director, Natural Resources The Missouri Development Finance Board met in regular session on Tuesday, March 20, 2018, beginning at 10:30 a.m. Notice of the meeting was duly posted as required by Section 610.020 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 Director, Dept. of Economic Development 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, Ryan Vermette and Valerie Haller David Queen Lauren Palmer, City of Independence; Alex Burden, Truman Library Institute; Michelle Garand, Community Partnership of the Ozarks; Sarah Kerner, City of Springfield; Jim Krischke, City of Maryland Heights; Patrick Quinn, St. Louis Legacy Ice Foundation; Scott Siemers, Cerner Corporation; Paul Eisenstein and Brian Bear, Missouri Department of Economic Development; and Jack Suntrup, St. Louis Post-Dispatch 200 Madison Street, Suite 1000 P.O. Box 567 Jefferson City, Missouri 65102 Telephone: (573) 751-8479 Fax: (573) 526-4418 Visit our Web site at www.mdfb.org
The meeting agenda was rearranged as follows. I. Secretary s Report Secretary Dameron Secretary Dameron presented for approval the minutes from the December 19, 2017 meeting. The minutes were included in the Board materials distributed in advance of the meeting. There being no questions, corrections or additions, Vice Chairman Shelton made a motion to approve the minutes as presented. Member Gregory seconded the motion. The following roll call vote was recorded: Shelton, Mehner, Dameron, Martin, Lamping, Gregory, Parson, Dixon, Chinn, Comer and Carmichael II. Treasurer s Report Treasurer Mehner Treasurer Mehner presented for approval the Treasurer s Reports as of and for the seven months ended January 31, 2018, the six months ended December 31, 2017, and the five months ended November 30, 2017. The Treasurer s Reports were included in the Board materials distributed in advance of the meeting. There being no questions, corrections or additions, Member Martin made a motion to approve the Treasurer s Reports as presented. Member Lamping seconded the motion. The following roll call vote was recorded: Shelton, Mehner, Dameron, Martin, Lamping, Gregory, Parson, Dixon, Chinn, Comer and Carmichael III. Department of Economic Development Director Dixon Director Dixon reported on recent job announcements, which included 1,500 jobs to be created at an Amazon Fulfillment Center in St. Peters, Missouri; 150 jobs being saved by Nestle Purina who purchased the ConAgra plant in Trenton, Missouri; 210 jobs to be created by Grove Collaborative in St. Peters, Missouri; and 450 jobs to be created by Magnitude 7 Metal in New Madrid, Missouri.
Director Dixon gave an update on the Nucor steel mill in Sedalia noting the Department has been working with the Company, DNR and MoDOT and the project continues to move forward in a positive way. Director Dixon updated the Board on the FY18 Supplemental Budget commenting the request to restore the $1.8 million for recruitment efforts has remained in the supplemental process, and has been approved by the House of Representatives and will be sent to the Senate. IV. Department of Agriculture Director Chinn Director Chinn noted it was National Agriculture Week and the Department has been promoting Missouri s farmers and ranchers, and the impact they have on every Missourian s life. Director Chinn reported the Department continues to focus on their MORE Campaign Feed MORE, Reach MORE, Connect MORE, and Empower MORE. Director Chinn commented the Department continues to work with DED on the broadband initiative to assist rural communities. She met with Anne Hazlett, U.S. Department of Agriculture Assistant to the Secretary for Rural Development, to discuss ways they can assist Missouri in making sure we have strong rural communities. Director Chinn noted State Director of Missouri Jeff Case has been in contact with the Department and DED about ways they can collaborate with the USDA for funding they may have available to help rural communities and the broadband initiative as well. Director Chinn reported the Department also continues to complete their regulatory obligations and assist where they can. V. Department of Natural Resources Report Director Comer Director Comer commented she was attending the Environmental Council of States Spring Meeting in Minnesota. Director Comer reported the Department has made a policy and a practice to process expired permits as quickly as possible, and they have processed approximately two-thirds of the remaining expired permits to-date. Director Comer reported the Department continues their analysis of their regulations under the Governor s Red Tape Reduction Initiative, and to-date they are recommending an approximately 37% reduction in restrictive terms; currently they are engaged in public hearings regarding those reductions. Director Comer commented the Department was proud to be a part of the team that recruited the Nucor and Magnitude 7 Metal projects. 3
VI. Lieutenant Governor s Report Lt. Governor Parson Lt. Governor Parson reported his office made more than 200 visits to communities and businesses throughout the State last year and commented people are beginning to invest and expand more in businesses. Lt. Governor Parson gave an update on the Buy Missouri Initiative and noted they have teamed with the Missouri Grocers Association who will begin using the Buy Missouri logo on their items in stores. Lt. Governor Parson commented his office has been busy with veterans issues and promoting veterans in Missouri. Lt. Governor Parson discussed his recent trip to Pearl Harbor for a two-day ceremony that welcomed the USS Missouri nuclear submarine into Pearl Harbor. VIII. New Business A. Cerner Corporation and Subsidiaries BUILD Application Kimberly Martin Resolution of Intent Ms. Martin presented the BUILD application from Cerner Corporation requesting approximately $1,551,400 in BUILD Bonds to renovate a 692,436-square foot pharmaceutical manufacturing facility to convert it into suitable office and training space for 650 new employees in a distressed community of Jackson County. The Company expects to create 650 new jobs and invest approximately $12.45 million at this location. Ms. Martin noted the project is a separate and distinct project from the Bannister Mall location. Ms. Martin introduced Scott Siemers with Cerner Corporation. Mr. Siemers began a presentation and gave a brief project overview. Mr. Siemers reported the Company purchased the facility in late 2016 and is located within the city limits of Kansas City, Missouri. Mr. Siemers discussed the projected project costs, which include renovation of the interior of the building, equipping the new space with computer and audio/visual equipment, and hiring and training the 650 new employees. Mr. Siemers concluded his presentation by discussing the projected fiscal impact and the State s participation in the project. Mr. Siemers was available for questions. Member Gregory 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 AN ECONOMIC DEVELOPMENT PROJECT FOR CERNER CORPORATION, AND DETERMINING THE INTENT OF THE BOARD TO ISSUE ITS BUILD MISSOURI REVENUE BONDS IN A PRINCIPAL AMOUNT OF APPROXIMATELY $1,551,400 TO FINANCE A PORTION OF THE COSTS OF THE PROJECT. 4
Member Martin seconded the motion. The following roll call vote was recorded: Shelton, Mehner, Dameron, Martin, Lamping, Gregory, Parson, Dixon, Chinn, Comer and Carmichael VII. Old Business A. City of Maryland Heights Legacy Ice Arena Robert V. Miserez Tax Credit for Contribution Application Mr. Miserez presented the revised tax credit application from the City of Maryland Heights for the benefit of the St. Louis Legacy Ice Foundation that is requesting $2 million in tax credits subject to $4 million in contributions for the St. Louis Ice Center project. Mr. Miserez noted the project was presented to the Board at its November 2017 meeting, which at that time they were requesting $4 million in tax credits to raise $8 million in contributions; however, the project has since expanded in size to $78.5 million and the request for credits has been reduced. Mr. Miserez reported the tax credit contributions will be used by the City for land acquisition, site improvements, and basic public infrastructure. The City will issue approximately $40 million in revenue bonds, invest at least $6.5 million of City funds, and support a Community Improvement District estimated to provide $8 million in funding to help fund the construction of the ice arena. Mr. Miserez noted the Foundation has been in discussions with three major health care providers to operate a training and sports medicine center inside the Center, which are BJC Healthcare, Washington University School of Medicine, and Mercy Hospital System. Mr. Miserez introduced Patrick Quinn with the St. Louis Legacy Ice Foundation. Mr. Quinn began a presentation and discussed the project s objective and plan, which is to deliver a premier four-sheet ice facility by August 2019 that is adjoined by a family entertainment district that provides a complete family entertainment experience. Mr. Quinn reported the Center will house an event center with a 2,500-seat capacity; two additional indoor sheets of ice including one that will be the practice home of the St. Louis Blues who will be signing a 30-year lease and will be paying at or above market rates for their lease; a covered outdoor rink and summer season concert venue; a training and rehab facility; and food, beverage and retail facilities. 5
Mr. Quinn discussed the building layout and design of the project; and noted the increased cost to the project is for the construction of a road between the Hollywood Casino & Amphitheater and the Center. Mr. Quinn reported on the programming to enhance social, emotional and physical wellness amongst the underserved populations, noting he had positive planning conversations with the Boys & Girls Clubs of St. Louis. Mr. Quinn continued and discussed the public-private partnership for the project. He reported the City has committed a significant amount of equity; the principal users will be contributing approximately $6 million of equity capital to offset construction costs; and they anticipate raising approximately $14 million in private and corporate contributions. Mr. Quinn commented a significant amount of the private/corporate contributions will be from the St. Louis Blues and its ownership; however, the Foundation will not be asking for any tax credits that would be utilized by donors that own a portion of the St. Louis Blues. Mr. Quinn noted the St. Louis Blues will have approximately 40 percent of the equity in the Center once it is complete. Mr. Quinn reported on the significant economic and tax impact to the region as it relates to the reduction in tax credits as well as the addition to the Entertainment District. Mr. Quinn introduced Jim Krischke with the City of Maryland Heights. Mr. Krischke discussed the Maryland Park Lake District (MPLD) and the economic and development opportunities available to the area. Mr. Krischke commented the site serves as a perfect anchor for the entertainment district to support the area s significant amateur sports facilities, and the Center becomes a catalyst for development of the MPLD. Mr. Krischke concluded the presentation by recapping that the Center will drive one million visitors annually; generate 16,000 hotel room nights annually; create $20 million in annual economic impact; prove that public-private partnership is the tool to address the demand for ice sheets; will be a catalyst for further development of the multi-generational sports and entertainment district; jump start development in the Maryland Park Lake District; and be a business and community amenity. Mr. Quinn and Mr. Krischke were available for questions. Member Martin questioned if public transportation was available to the site. Mr. Quinn responded the site is on the Metro Link public transportation line and transportation would be provided for the underserved population involved in the programs at the Center to and from the site. Chair Carmichael commented she appreciated the outreach to the organizations that could help the Foundation provide the opportunity for the sport to the underserved population. Lt. Governor Parson commented it would be difficult for him to authorize tax credits for a sporting facility while the State has put the low-income housing tax credits on hold. Mr. Quinn commented he understood Lt. Governor Parson s position, but he believes the project will be beneficial to the kids, community and the State. Lt. Governor Parson commented he believes the project is good for 6
tourism and will have a positive economic impact for the State; however, it is just a timing issue for him considering that low-income housing tax credits currently are on hold. Vice Chairman Shelton made a motion to adopt the following Authorizing Resolution approving $2 million in tax credits subject to $4 million in contributions for the City of Maryland Heights for the benefit of the St. Louis Ice Center 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 Lamping seconded the motion. recorded: The following roll call vote was Shelton, Mehner, Dameron, Martin, Lamping, Gregory, Dixon, Chinn, Comer and Carmichael Parson VIII. New Business (cont d) B. City of Springfield Community Partnership of the Ozarks Kimberly Martin Tax Credit for Contribution Application Ms. Martin presented the tax credit application from the City of Springfield requesting $500,000 in tax credits subject to $1 million in contributions for the benefit of the Community Partnership of the Ozarks (CPO) and the Springfield Community Housing Center project. Ms. Martin reported the CPO plans to purchase a long-vacant elementary school and convert it into a new facility for the Springfield Affordable Housing Center (the Center ) to provide a one-stop housing assistance center. Ms. Martin noted the total project cost is estimated at approximately $2.7 million, and the item was for presentation only with no action to be taken. Ms. Martin introduced Michelle Garand with the Community Partnership of the Ozarks. Ms. Garand began a presentation and noted the CPO s mission is to facilitate and promote the building of resilient children, healthy families, and strong neighborhoods and communities through collaboration, programming, and resource development. Ms. Garand discussed the CPO s history, governance, and 7
growth, and noted that last year for every dollar of Caring Communities state funding received, they leveraged an additional $10.52 for their community. Ms. Garand reported the CPO currently is working in 21 counties in southwest Missouri; they served or impacted 81,516 people last year; and 8,771 volunteers gave more than 48,458 volunteer hours. Ms. Garand reported the CPO, in partnership with the City of Springfield, launched the Center in 2013 to offer a centralized location where residents can access multiple agencies and organizations that offer safe, decent, and affordable housing. Ms. Garand discussed the project, which is the purchase and redevelopment of the long-vacant Pepperdine School to allow for growth of the Center, increase services and partners onsite to reduce barriers, and add a training center for community education and training onsite. Ms. Garand continued and discussed the project renderings and photos of the site. Lt. Governor Parson asked what types of educational training the CPO provides. Ms. Garand responded their organization provides educational, housing and employment training geared toward the population they serve. Sarah Kerner with the City of Springfield reported the Springfield City Council strongly supports the project, the City has committed a $1 million allocation of their CDBG funding, and the City Council has approved rezoning of the property. Chair Carmichael thanked the project representatives for their presentation. C. City of Independence Farmers Market Kathleen Barney Tax Credit for Contribution Application Ms. Barney presented the tax credit application from the City of Independence requesting $250,000 in tax credits subject to $500,000 in contributions for the benefit of the Farmers Market project. The City is planning to construct one enclosed pavilion, one open-air pavilion, and parking spaces to house the City-run Farmers Market on the historic downtown square. Ms. Barney reported total project cost is estimated at $3.3 million and funding sources include City funds, HUD CDBG, and TIF funding. Ms. Barney reported staff received the tax credit application in late December 2017 with the anticipation of presenting the application at the Board s January and February meetings. Ms. Barney noted the application denoted construction to start early March 2018; however, due to the cancellation of the January and February meetings, the application was not presented. The MDFB Executive Committee met and supported that the application be presented at the March meeting for approval and believed that receipt of the application by staff and its overall eligibility had those prior meetings been held would meet the but for test. Ms. Barney introduced Lauren Palmer with the City of Independence. Ms. Palmer began a presentation and gave a brief background history of the historic Independence Square. Ms. Palmer noted a citizen satisfaction survey was 8
conducted in 2016 and 89 percent of respondents stated it is important to maintain the character of the Square. Ms. Palmer reported that in response to the satisfaction survey and other community input, the City Council adopted a new five-year strategic plan in 2017 that identified critical goals for the community that include improving the visual appearance of major commercial corridors and historic sites, as well as improving the condition and maintenance of public infrastructure and facilities. Ms. Palmer commented the City believes the Farmers Market aligns with their strategic plan, but also the public purposes criteria because it contributes to the physical health and economic vitality of their community. Ms. Palmer noted that 17 percent of their residents live below the poverty level and 13 percent are reliant on SNAP benefits. Ms. Palmer continued and reported the Farmers Market will support local farmers; reduce reliance on transportation for delivering foods; reduce food waste; is designed to be a community gathering place for special events; and will create a synergy and more foot traffic for other businesses on the Square. Ms. Palmer concluded her presentation by discussing the project schedule, project renderings, private support and funding. Member Martin made a motion to adopt the following Authorizing Resolution approving $250,000 in tax credits subject to $500,000 in contributions for the City of Independence for the benefit of the Farmers Market 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, Comer and Carmichael Treasurer Mehner disconnected from the meeting for another commitment. 9
D. City of Independence Truman Presidential Library & Kathleen Barney Museum Tax Credit for Contribution Application Ms. Barney presented the tax credit application from the City of Independence requesting $3.66 million in tax credits subject to $7.32 million in contributions for the benefit of the Harry S. Truman Library Institute for National and International Affairs (the Institute ). Ms. Barney noted the Board approved tax credits in 1999 and 2005 for the renovations at the Harry S. Truman Library and Museum (the Library ). The current project cost is approximately $18.3 million for building renovations, expansion, and new exhibits. Ms. Barney introduced Lauren Palmer with the City of Independence. Ms. Palmer commented the Truman Library is a critical partner in the City s tourism and strategic plan. Ms. Palmer introduced Alex Burden with the Truman Library Institute. Mr. Burden began a presentation and commented the Library is one of 14 presidential libraries operated by the federal government and was built in 1957. Mr. Burden reported that last year there were approximately 97,000 visitors to the museum, more than 50,000 students and teachers attended educational programs, and more than 10,000 attended public programs. Mr. Burden reported the Institute engaged consultants to produce a new Master Plan for building renovations, expand the reach of their educational programs, and new exhibits. Mr. Burden discussed each of the needs of the capital project including new interactive and multimedia, new research, new exhibits, and expansion and renovation of the existing public spaces to improve patron accessibility, amenities and wayfinding through the Library. Mr. Burden reported on the projected uses of the project and the Institute s campaign strategy for fundraising, noting the federal government will operate and be financially responsible for daily operations, visitor amenities, and any operational expenses that are incurred as a result of the renovation and expansion to the Library. The Institute s $25 million campaign goal includes $18.3 million in hard project costs, $3 million for educational and community programming, $1 million for fundraising, and $2.7 million for the endowment. Mr. Burden continued and discussed the impacts, goals and objectives of the project, noting attendance is projected to increase by 25 percent following its reopening in 2020. Mr. Burden reported on the project s economic impact, commenting on the construction and Library jobs, the projected long-term increases per year, and the total direct and indirect economic impact over five years. Mr. Burden concluded his presentation and was available for questions. Chair Carmichael thanked the project representatives for their presentation. Secretary Dameron and Director Comer disconnected from the meeting for other commitments. 10
CLOSED SESSION Member Martin made a motion to go into closed session to discuss legal action, causes of action, or litigation as authorized by Section 610.021 (1) RSMo; and to discuss specifications for competitive bidding as authorized by Section 610.021 (11) RSMo. Member Gregory seconded the motion. The following roll call vote was recorded to go into closed session: Shelton, Martin, Lamping, Gregory, Parson, Dixon, Chinn and Carmichael Mehner, Dameron and Comer Upon completion of discussion, Vice Chairman Shelton made a motion to move the meeting back into open session. Member Lamping seconded the motion. The following roll call vote was recorded: Shelton, Martin, Lamping, Gregory, Parson, Dixon, Chinn and Carmichael Mehner, Dameron and Comer Chair Carmichael declared the motion passed and moved the meeting into open session. OPEN SESSION E. DED Funding Request Robert V. Miserez Mr. Miserez presented the request from the Missouri Department of Economic Development for $400,000 from the Board to financially support DED s proposal for the bidding, selection and engagement of a private consultant. The consultant will conduct a comprehensive review of the Department to produce an economic forecast for Missouri, a report comparing DED to other economic development agencies, and transformative strategy, program, structure, process and practice recommendations. Mr. Miserez noted the Office of Administration is assisting DED in the procurement process. Vice Chairman Shelton made a motion to approve $400,000 to financially support the Department of Economic Development s Best in Midwest proposal for the bidding, selection and engagement of a private consultant. Member Martin seconded the motion. The following roll call vote was recorded: 11
Shelton, Martin, Lamping, Gregory, Parson, Dixon, Chinn and Carmichael Mehner, Dameron and Comer Lt. Governor Parson and Director Chinn left the meeting for other commitments. IX. Executive Director s Report Robert V. Miserez Mr. Miserez reported that Special Olympics Missouri, Inc. requested an extension to their tax credit agreement to allow them to continue accepting contributions. Their tax credit agreement expired December 31, 2017, but they are short on their fundraising goal and currently have not drawn down any funds. Mr. Miserez reported he intended to amend the tax credit agreement to allow contributions to be received no later than September 28, 2018. Mr. Miserez discussed the tax credit applications received to date, as well as the tax credit inquires for the 2018 program year. X. Adjournment There being no further business before the Board, Member Lamping made a motion to adjourn the meeting. Vice Chairman Shelton seconded the motion. By unanimous consent, Chair Carmichael declared the motion passed and the meeting adjourned. [Secretary Dameron s Signature] 12