HomeMy WebLinkAbout05-11-2010 ~ .
CITY OF- COMMUNITY CENTER
URN COMMITTEE
x WASH INGTON
May 11, 2010
MINUTES
I. CALL TO ORDER
Vice Chair Lynn Norman called the meeting to order at 9:05 a.m. in Conference
Room 2 located on the second floor ofi Auburn City Hall Annex; One E. Main
Street, Auburn, WA. Committee members present were: Chair Rich Wagner,
Vice Chair Lynn Norman and Member Bill Peloza. Staff -members present
included: Mayor Pete Lewis; Director of Human Resources/Risk & Property
Management Brenda Heineman, Parks, Arts and Recreation Director Daryl.
Faber, Finance Director Shelley Coleman, C'ity Engineer/Assistant PW Director
Dennis Selle, Project/Construction Manager Steven Burke, Principal Planner Jeff
Dixon, and Human Resources Assistanf Cheryl Abner
Also in attendance were:
Consultant Paul Breckenridge Executive Director Shelley Puariea, Boys & Girls Club
II. APPROVAL OF MINUTES
A. Vice Chair Norman entertained: a motion to approve the minutes of the
April 24, 2010 meeting. Member Peloza seconded. Minutes approved unanimously 2-0.
IL Discussion
YVew Market Tax Credit (NMTC)
Director Coleman explained that King County Housing Authority (KCHA) is
applying for New Market Tax Credits (NMTC) from Department of Treasury for .
the Community Center project as the City was unsuccessful in acquiring them
from US Bank, Key Bank or Wells Fargo last year. KCHA asked if they could
include this project in this year's `ask'. Applications for the NMTC's are due June
4; 2010 and the credits, if successful, will be allotted in late November br early
December 2010.
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Communitv Center Committee Minutes
Mav 11. 2010
Consultant Paul Breckenridge presented handouts to the Committee to walk
them through the NMTC Conventional structure and then the Greenbridge
structure noting that the later is the sfructure that would be necessary forthe
Community Center project. He feels if KCHA is successful in acquiring the
credits, then the City will have success in finding a lender for the project.
In reference to the handouts, Chair Wagner requested that they be made into a
Gantt chart.
Consultant Breckenridge said the sources that will be used to make this happen
include,$5.6 million of city funds that will need to go into this project. $8 million
the City is going to receive from the sale of the property to the QALICB and $5.1
million in gross NMTC subsidy which totals $18.7 million.
Member Peloza asked to explain the sale of property. Consultant Breckenridge
said the City owns the property now. To accommodate the structure, they will set
up a new entity to own the property; a non-profit 501 c3 entity (QALICB). They ,
will take the value of that property which is the entire Les Gove campus and
improvements thereon including the new Activity Center which is estimated to be
approximately $8 million, and sell it to the QALICB. Running the property a.nd .
improvements upon it through the NMTC structure will generate more tax cred.it
. equity.
Chair Wagner asked what is Plan B if the Council is unwilling to accept the 108
Loan. Mayor Lewis said Council will have to decide what programs they want to
take the.funds from. He suggested a portion of the funds come from the
Community Development Block Grant (CDBG) housing repair that has not been
completely used.
There was in-depth dialogue on the use of CDBG funds. There were some
concerns regarding the funds being needed 'at a later time and none available, as
well as funds being available for human services if needed. It was recommended
that Community Services Manager Michael Hursh be invited to the next
Community Center meeting and review the entire CDBG.
Consultant Breckenridge is to meet with Chair Wagner, Council Member Backus
and Vice Chair Norman to explain in further detail the sequence of the
Greenbridge structure.
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Communitv Center Committee Minutes _
Mav 11, 2010
III. ADJOURNIVIENT -
There being no further business, the meeting adjourned at 10:30 a.m. `
, APPROVED THE DAY OF JULY, 2010.
,
ich Wagner, hair Cheryl bner, H. . Assistant
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