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Downtown Medford

Board of Directors Board Minutes

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  • Agenda
    11.14.2006 Medford Urban Renewal Agency Board of Directors - Minutes

    A.
    Executive Session

    A meeting of the Medford Urban Renewal Agency Board of Directors was called to order in Executive Session at 6:35 p.m., on the above date, in City Hall Conference Room 338 of the City of Medford by Chair Eric Stark, with the following members in attendance:

    BOARD MEMBERS:
    Present
    Eric Stark, Chair
    Bill Dames, Vice-Chair
    Peter Naumes, Secretary
    Jason Anderson, Council Representative
    Dick Entinger
    Skip Knight, Council Representative
    Skip Patterson
    Joy Pelikan
    Greg Yechout

    STAFF:
    Present
    Jackie Rodgers, Acting Executive Director
    Terri Rozzana, Administrative Support Technician

    Pursuant to ORS 192.660(2)(e), “The governing body of a public body may hold an executive session to conduct deliberations with persons designated by the governing body to negotiate real property transactions.”

    EXECUTIVE SESSION CLOSED AT 7:04 P.M.

    B.
    Open Session
    I.
    Roll Call

    1.1 A meeting of the Medford Urban Renewal Agency Board of Directors was called to order in Open Session at 7:06 p.m., in City Hall Council Chambers of the City of Medford, on the above date, by Chair Eric Stark with the following Members and Staff in attendance:

    BOARD MEMBERS:
    Present
    Eric Stark, Chair
    Bill Dames, Vice-Chair
    Peter Naumes, Secretary
    Jason Anderson, Council Representative
    Dick Entinger
    Skip Knight, Council Representative
    Skip Patterson
    Joy Pelikan
    Greg Yechout

    STAFF:
    Present
    Jackie Rodgers, Acting Executive Director
    Terri Rozzana, Administrative Support Technician
    Carol Wedman, Special Projects Staff

    GUEST:
    Paul Nielson, a Principal of Isler & Company, Certified Public Accountant

    II.
    Minutes

    2.1 Minutes for the October 24, 2006 Medford Urban Renewal Agency Board of Directors meeting were submitted.

    Chair Eric Stark inquired whether there were any corrections to the Medford Urban Renewal Agency Board Minutes of October 24, 2006. Hearing no corrections, he stated that the Minutes stand approved as submitted.

    III.
    Communications from the Audience

    There were none.

    IV.
    Communications from Staff

    4.1 Project Updates

    a. SOU/RCC Medford Higher Education Facility

    Staff reported that SOU/RCC anticipate construction to begin March 2007 with an estimated completion date of August 2008.

    b. Middleford Commons

    Staff stated that the Agency is in the process of preparing sale agreements for property acquisitions for the Middleford Commons project.

    c. Bella Vita

    Staff deferred discussion of Bella Vita to Agenda Item 8.5.

    d. Theater Alley

    Staff reported that Valley Electric donated lighting to be installed on the Rogue Gallery and Art Center buildings west and north elevations. Staff continues discussions with the Craterian Ginger Rogers Theater, negotiating usage (from dusk to dawn) of the light fixtures that the Theater currently only uses on evenings of performances. The Agency is working with the City of Medford and Pacific Power and Light to increase illumination of the current light pole lamps in and around the area of Theater Alley.

    Grey Yechout inquired whether Staff has discussed the Craterian Ginger Rogers Theater option with the individuals that sent the letter on August 25, 2006. Staff stated that there are continued discussions between the Agency, Steve McCandless, (Craterian Ginger Rogers Theater) and Judy Barnes, (Rogue Gallery and Art Center) and Heart of Medford Association members.

    e. South Gateway DDA

    Staff stated that final letters and recorded documents of the Final Certificate of Completion have been sent to all parties. This project, URP01 South Gateway, is complete.



    f. Central Oregon & Pacific Railroad Property Reconveyance

    Staff reported that in 2005 the Agency entered into an agreement with Central Oregon Pacific Railroad to provide all material and labor to upgrade the railroad crossings located on 4th, 6th, Main, 8th and 10th Streets as part of the property acquisition along Evergreen Way. A lien was placed on the property while work was being completed and until all requirements of the agreement were satisfied.

    All work is complete and requirements of the agreement have been satisfied, and the property has been conveyed to the Agency, minus the lien.

    V.
    Written Communications

    There was none.

    VI.
    Report from Chair

    6.1 Board Holiday Meeting Schedule

    Staff stated that Thanksgiving falls on Thursday, November 23, 2006 and the regular Board meeting is scheduled for Tuesday, November 28, 2006, which should not create any holiday conflicts. The regularly scheduled Board meetings for December fall on Tuesday, December 12, 2006 and December 26, 2006.

    Consensus of the Board was to cancel the Tuesday, December 26, 2006 regular Board meeting. It was noted that if a matter needing direction arises, a special meeting could be arranged.

    VII.
    Reports of Committees

    7.1 Parking Committee

    Staff reported that the Parking Committee meeting was held November 8, 2006. The Parking Committee agenda was included in the Board packet. The Parking Committee Minutes will be provided in the next Board packet following their approval by the Parking Committee.

    VIII.
    Business

    8.1 Presentation: Isler Corporation, L.L.C. – Fiscal Year 2005-2006 Financial Audit

    Staff introduced Mr. Paul Nielson, Isler Corporation, L.L.C., Certified Public Accountant. Mr. Nielson presented to the Board a brief description of what is involved in an audit: 1) Management Responsibilities; 2) Auditor Responsibilities; 3) Required Communication; 4) Capital Assets and Related Debt; 5) Capital Projects Fund; 6) Debt Service Fund; and 7) Advisory Comments. There were no reported discrepancies in the audit.

    Mr. Nielson reported that due to a new accounting standard the Agency may want to consider calculating depreciation in-house.

    Greg Yechout inquired as to the slight decline in revenue from 2005 to 2006 in the Debt Service Fund. Mr. Isler stated that the decline was caused by property taxes. Staff reported that property taxes this year declined due to the Qwest issue.

    Eric Stark requested that his name be corrected in the bound copy of the Medford Urban Renewal Agency Report on Audit of Financial Statements and Supplemental Information for the year ended June 30, 2006.

    8.2 Consideration to accept Medford Urban Renewal Agency Report on Audit of Financial Statements and Supplemental Information for the year ended June 30, 2006.

    Staff reported that the annual audit for Fiscal Year 2005-2006 has been completed and presented. The auditing firm of Isler & Company L.L.C. conducted their audit in accordance with auditing standards generally accepted in the United States. The auditors disclosed no instances of noncompliance, and found no matters involving the internal control over financial reporting and its operation that were considered to be material weaknesses.

    The June 30, 2006 ending fund balance of $4,539,090 is distributed as follows:

    General (Capital) Fund $1,598,270
    Debt Service Fund $2,940,820
    Ending Balance $4,539,090
    Carol Wedman, Agency Special Projects Staff reported that the Agency’s assets totaled $35.3 million at June 30, 2006 and consisted mainly of cash and investments of $5.0 million and capital assets of $29.4 million. The Agency’s liabilities totaled $21.6 million at June 30, 2006 and consisted mainly of long-term debt of $20.9 million. Net assets (assets minus liabilities) were $13.7 million at June 30, 2006. Net assets increased by $2.5 million. The Agency’s net capital assets increased by $2.7 million. The key factor in this increase was the increase in construction in progress. Revenues for the fiscal year ended June 30, 2006 totaled $4.8 million and consisted mainly of property taxes of $4.3 million.

    MOTION: It was moved by Skip Patterson to accept the Medford Urban Renewal Agency Report on Audit of Financial Statements and Supplemental Information for the year ended June 30, 2006. Skip Knight seconded the motion.

    The Board directed Staff to begin calculating depreciation in-house in accordance with new accounting standards, which the auditors would review.

    VOTE: The following Board members passed the motion with a unanimous affirmative vote: Jason Anderson, Bill Dames, Dick Entinger, Skip Knight, Peter Naumes, Skip Patterson, Joy Pelikan, Eric Stark and Greg Yechout.

    8.3 Discussion: Bond Sale 2007

    Staff stated that in earlier meetings Staff advised the Board that, based on City Council’s approval of the Middleford Commons Project and the conclusively presumed validity of the Substantial Amendment to the City Center Revitalization Plan, the Agency was moving forward on a bond sale for Fiscal Year 2006-2007.

    Staff is currently compiling information to proceed with a competitive bank placement bond sale, Series 2007. The bond would be approximately $2.5 million, tax-exempt, and funds should be available in late January 2007.

    Rebecca Chao, Regional Financial Advisors, Inc., has requested proposals, specifying terms of purchase of the bonds, from Bank of America, Key Bank and US Bank. These banks are familiar with single-investor bank placements. Other sources, such as Seattle Northwest and Wells Fargo, are more familiar with multi-investor bond sales, otherwise known as market placement.

    The Agency’s bank selection recommendation will be based on total financing cost and flexibility, and acceptability to the Agency of the bank’s terms and conditions.

    Staff stated that Rebecca Chao, Regional Financial Advisors, Harvey Rogers of Preston, Gates and Ellis, are the Agency’s bond counsel along with Jeff Tashman, who is an independent consultant who provides financial projections on the Agency’s tax increment. Both individuals have been contracted in the past for previous Agency bond sales.

    The Agency is requesting that the Board consider a three-year bank placement which saves time and money by not having to repeat the Request for Proposals process. Interest rates would be set near closing time.

    Staff requested direction from the Board to proceed with a three-year single bank placement. Staff will bring to the Board, at a future date, its recommendation for selection of a bank to purchase bonds and a request for direction to proceed with final negotiations.

    The Board directed Staff to proceed with a three-year single bank placement and to proceed with the Request for Proposals for a placement provider.

    8.4 Discussion of Acquisition of 37 1W 30BB Tax Lot 4100.

    Staff stated 37 1W 30BB Tax Lot 4100 is property associated with the Middleford Commons Project that was not included in the properties adopted in the City Center Revitalization Plan (CCRP). The Agency is considering public and private redevelopment projects associated with Middleford Commons and acquisitions of certain privately owned parcels that will be necessary for carrying out that proposed project. Future steps in the process of acquiring those properties include: 1) A public hearing ; 2) Adoption of findings; 3) Adoption of a minor amendment to the City Center Revitalization Plan (CCRP); 4) Appraisal of the property; and 5) Acquisition.

    Section 603 of the City Center Revitalization Plan (CCRP) dictates the procedures for identifying property to be acquired. In November of 2005, the Board considered and added to the City Center Revitalization Plan (CCRP), the three adjoining properties by the same property owner.

    A step in the process is for the Board to contact the property owner of record and notify that owner of the Board’s interest in acquiring the property. That notification occurred on November 1, 2006.

    Recommendation from Staff is to set a public hearing for November 28, 2006 and to direct Staff to proceed with the acquisition process and to proceed with a minor amendment to the City Center Revitalization Plan (CCRP) for acquisition of 37 1W 30BB Tax Lot 4100.

    Jason Anderson disclosed that one of the partners at his place of employment is a title holder to the subject property, therefore Mr. Anderson will be abstaining to any recommendation and/or direction concerning any matter directly related to this or any other property related to the title holder.

    The Board directed Staff to set a public hearing for the November 28, Board Meeting to proceed with the acquisition process and proceed with a minor amendment to the City Center Revitalization Plan (CCRP) for acquisition of 30 1W 30BB Tax Lot 4100. Jason Anderson abstained from the Board’s direction to Staff.

    8.5 Consideration to approve “Evergreen Mixed-Use Development Amended and Restated Distribution and Development Agreement”.

    Staff restated Agenda Item 8.5 to read “Consideration of changes to the ‘Evergreen Mixed-Use Development Amendment and Restated Disposition and Development Agreement’ ”. This is the Disposition and Development Agreement that the Board approved in December 2005 that includes Amendment No. 1 that addresses the schedule extension due to “Unavoidable Delay”. The purpose of adopting a change is that a revised schedule needs to be included in the Disposition and Development Agreement because of the delay in the project.

    Board directed Staff to prepare a resolution to approve and include the modified schedule in the Evergreen Mixed-Use Development Disposition and Development Agreement.


    IX.
    Comments from City Council Representatives

    9.1 City Council Meeting, November 2, 2006

    Jason Anderson reported that Rob Scott, City of Medford Planning Director, provided an update on the SOU/RCC project, to the Historic Committee and the Site Plan & Architectural Commission.

    Skip Knight briefed the Board that in a Public Forum, Mr. Knight stated that the person replacing Mr. Knight as City Council Representative is unhappy that Medford Urban Renewal Agency Board members have no term limits. Mr. Knight also mentioned that this particular person is not happy with the Middleford Commons Project.

    Skip Patterson expressed his appreciation of Mr. Knight’s services and wished him continued success.

    Joy Pelikan thanked Mr. Knight for his faithful and intelligent services on City Council and the Medford Urban Renewal Agency Board of Directors.

    Staff agreed with Mr. Patterson’s and Ms. Pelikan’s remarks.

    X.
    Comments from Board

    There were none.

    XI.
    Adjournment

    The meeting was adjourned at 7:50 p.m. The proceedings of this Board meeting were recorded on tape and filed in the Medford Urban Renewal Agency office.

    ______________________________________
    Submitted by:
    Terri L. Rozzana
    Administrative Support Technician


    _____________________________________
    Approved by:
    Eric Stark, Board Chair
    11.14.2006 Agenda

    A. Executive Session
    1. Pursuant to ORS 192.660(2)(e), “The governing body of a public body may hold an executive session to conduct deliberations with persons designated by the governing body to negotiate real property transactions.”
    B. Open Session
    1. Attendance
    1.1 Roll Call (Exhibit 1.1)
    2. Approval of Minutes
    2.1 Board Minutes of October 24, 2006 (Exhibit 2.1)
    3. Communications from Audience (Non-Agenda Items)
    4. Communications from Staff
    4.1 Project Updates
    a. RCC/SOU Medford Higher Educational Facility
    b. Middleford Commons
    c. Bella Vita
    d. Theater Alley
    e. South Gateway DDA
    f. Central Oregon & Pacific Railroad Property Reconveyance
    5. Written Communications
    6. Report from Chair
    6.1 Board Holiday Meeting Schedule
    7. Report from Committees
    7.1 Parking (Agenda, November 8, 2006) (Exhibit 7.1)
    8. Business
    8.1 Presentation: Isler Corporation, LLC – FY 05-06 Financial Audit
    8.2 Consideration to Accept FY 05-06 Financial Audit
    8.3 Discussion: Bond Sale 2007
    8.4 Discussion: Property Acquisition of 371W30BB4100
    8.5 Consideration to Accept “Evergreen Mixed-Use Development Amended and Restated Distribution and Development Agreement”
    9. Comments from City Council Representatives
    10. Comments from Board
    9.1 Council Minutes, November 2, 2006
    11. Adjournment


    NEXT REGULAR BOARD MEETING: TUESDAY, NOVEMBER 28, 2006
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