Military Installation Development Authority

Transcription

1 Approved June 15, 2010 Military Installation Development Authority Board Meeting The Military Installation Development Authority Board held a public meeting on Tuesday,, at 9:00 a.m. at the Roy Simmons Entrepreneurial Building at 450 Simmons Way, Kaysville, Utah. Chairman Stuart Adams welcomed the group and called the meeting to order. On roll call, the following were found to be present and excused. Present Stuart Adams Gary Harter Joe Ritchie Bruce Burrows Don Wood Mike Ostermiller Jerry Stevenson Staff & Support Team Rick Mayfield Ron Richins Detlef Galke Paul Morris Dan Brinton Cory Shupe Reid Dickson Jason Thompson Doug Eldredge Beverley Jacobs Visitors David Williamsen - HAFB Darrin Wray HAFB Gary Stewart Sunset Ridge Developers Ron Kusina Weber EDC Kent Sulser Davis County Marlin Eldred Davis County Greg Scott WFRC Chad Liljenquist MicAm, LLC Michael Liljenquist MicAm LLC Loyal Hulst - MicAm, LLC John Liljenquist MicAm, LLC Bryan Kholer Rebecca Palmer Deseret News Tom Busselberg Clipper Today Greg Erickson Approval of Minutes Gary Harter made a motion that the minutes for the MIDA Board meeting held on Tuesday, April 6, 2010, be approved. Mayor Joe Ritchie seconded the motion followed by a unanimous vote to accept the minutes as presented. Mayor Joe Ritchie made a motion to go into a closed session to exclusively discuss the purpose described under Subsection (1)(a) UCA i.e., discussing the purchase, exchange, or lease of real property. Mike Ostermiller seconded the vote followed by a unanimous vote to adjourn at 9:03 a.m.

2 MIDA Board Meeting 2 At 9:43 a.m., Mayor Don Wood made a motion to reconvene the Public meeting. Jerry Stevenson seconded the motion followed by a unanimous vote to reconvene. Due to the visitors and a request from the press, Board members were introduced. Consideration of a Resolution Approving a Memorandum of Understanding between MIDA, Park City, and Summit County for the Development of a Military Recreation Facility dated November 10, 2009 Resolution is the result of MIDA s task from Governor Huntsman to serve as a mediator between Park City, Summit County and the Air Force in an effort to determine an appropriate site for an Air Force Resort. After several months of negations, MIDA s Executive Director executed a Memorandum of Understanding in November with Park City and Summit County, contingent upon MIDA Board approval, providing for an amicable resolution. Because the MOU contained sensitive information, and the Air Force had not selected a site for the hotel, the MOU became a protected record. The Air Forces site selection was independent of the MOU. With the upcoming Air Force announcement of their selected site, it is now appropriate for the MOU to become a public record. Recognizing the fact that the Air Force is going to need financial assistance to make the Air Force Resort a reality, Summit County and Park City have designated a piece of jointly owned land, referred to as the triangle piece, that MIDA can incorporate into the project area plan for development. Tax increment from development of this piece can be used to fund the hotel resort project. In return, the MOU allows Summit County and Park City to have the ability to approve the Air Force s accepted site for location within their community. If a site is chosen that is outside Summit County, they have no jurisdiction. The MOU also includes a formula which agrees to the sharing of taxes. The MOU also sets up a mechanism to buy the Quinn Junction site if the property owner is willing to sell. It is not mandatory nor is it a condition of the agreement, but it is contingent on the landowner. Park City is willing to allow MIDA to use their half of the money from the triangle piece to acquire Quinn Junction. Park City would also like to own the Red Maple site, the current piece of property that the military owns that is being traded. Owning the Red Maple site would allow Park City to maintain their open space. They are willing to pay $2 million for this property. However, all parties recognize that the landowner does not have to participate unless he is willing.

3 MIDA Board Meeting 3 It was noted that the Air Force bid proposals did not include the triangle piece or development on Red Maple. Military resorts are not a new idea. There are several military resorts around the world. A few mentioned are in Hawaii, Germany, Korea, Florida and Virginia Beach. The military has desired to have a resort in a mountainous area for several years, and because of Park City s year-round recreation opportunities, they felt this would be a good place for the a resort. If an acceptable site is found, and if the Quinn Junction landowner is interested, MIDA would own these pieces and would transfer title to Park City. MIDA would own the triangle piece which, in addition to the hotel, would become part of the project area plan. This is just the first stop in making the hotel happen. There are seven (7) parties involved in this project: MIDA, Park City, Summit County, the landowner, the commercial developer, Wadman (the builder or developer of the hotel) and the Air Force. The MOU deals with four (4) of the seven (7). Once the Air Force has announced its short list, MIDA will begin the formal processing. Public Comments There were no public comments. Chairman Stuart Adams expressed appreciation for all in attendance recognizing the presence of the landowner and the developer. Mayor Don Wood made a motion to adopt Resolution Approving a Memorandum of Understanding between MIDA, Park City, and Summit County for the Development of a Military Recreation Facility dated November 10, Mayor Bruce Burrows seconded the motion. Board Member Mike Ostermiller stated that he was surprised that MIDA has gotten to this point. To have MIDA serve as a facilitator appeared to be a simple task, but it has been a very complicated transaction which is very critical to moving forward. Having a tax increment is crucial to bringing income into the project. MIDA will not be breaking ground tomorrow, as it will still take time to get all the MOU s approved, but today s actions will allow the developer to move forward. He thanked Chairman Stuart Adams and the MIDA staff for their hard work in negotiating this difficult transaction and agreement. A unanimous vote followed adopting Resolution

4 MIDA Board Meeting 4 Consideration of a Resolution Approving a Memorandum of Understanding between MIDA and MicAm LLC Concerning the Development of Property in Summit County dated November 23, 2009 Resolution is the second step of the first MOU. The first MOU required MIDA to enter an agreement with a commercial developer to move the process forward. The second MOU is an agreement between MIDA and MicAm LLC that sets forth the timing and the purchase price matching up the two (2) agreements for $70,000 an acre. MicAm is following a timetable and is doing their due diligence as they have already made their first $25,000 payment. After the process is complete, MIDA will close and MicAm will buy the property and will become the developer. This MOU is contingent on two (2) things Board approval and that MIDA creates a project area with MIDA having jurisdiction over the site. Because it was anticipated that the Air Force was going to make their selection earlier, the timing, dates and payments outlined in the MOU will need to be adjusted. Resolution adopts the MOU and gives Rick Mayfield, the Executive Director, the authority to make the necessary changes to keep the project moving forward. MIDA has been working with the developer on the preliminary plans and has found the developer to be motivated and excited to work on this project. The developer has indicated that the project is a viable commercial site that will create tax increment needed. A great deal of discussion has gone into the economic validity of the triangle piece, and it has been critical to make sure all questions have been answered. Public Comment - Greg Erickson Quinn Junction Landowner Greg wanted to know how long it was going to take to develop the triangle piece and if there was currently a schedule or a plan. He also wanted to know if the closing would occur before the issues had been resolved. Chairman Adams stated there is a schedule of payments as outlined in the MOU which works towards a closing. The issues will be resolved prior to the closing. Mayor Bruce Burrows made a motion to adopt Resolution Approving a Memorandum of Understanding between MIDA and MicAm LLC Concerning the Development of Property in Summit County dated November 23, Mayor Joe Ritchie seconded the motion followed by a unanimous vote to adopt Resolution

5 MIDA Audit MIDA Board Meeting 5 The June 30, 2009, Audit was thoroughly reviewed. The audit was performed by Crane Christensen and Ambrose. The auditor issued an unqualified opinion of MIDA s first audit finding MIDA to be financially sound. The payment approval process was reviewed in detail. It was noted that invoices are received by Ron Richins for approval. They are then sent to the MIDA CPA who enters the expenses and income into the correct budget categories and cuts the checks. The Executive Committee members review the invoices and sign the checks. This provides a separation of duties to ensure proper accounting procedures. The auditor made two suggestions in the audit regarding the Board approving the percentage of salaries to be paid into the retirement plans and the adoption of a record retention plan. It was noted that MIDA follows the State s record retention plan and a resolution regarding the retirement will be presented at the next Board meeting. Jerry Stevenson reviewed MIDA s staffing structure reminding the group that the Board is composed of individuals appointed by the Governor and the Legislature and includes three mayors. The MIDA staff is also composed of highly qualified individuals who know how to cooperate, move quickly to take advantage of economic opportunities, and understand what it takes to get things done quickly. MIDA s audit is proof that MIDA is doing what it was created to do. Jerry Stevenson made a motion to accept the audit. Mayor Don Wood seconded the motion followed by a unanimous vote to accept the audit as presented. The next audit will be going out for bid in July. A multiple year bid will be considered. Updates - Falcon Hill It is anticipated that by next month some formal announcements will be able to be made in regards to the Falcon Hill project. - Air Force Hotel This had already been discussed.

6 - Utah Data Center MIDA Board Meeting 6 For those who were not aware, MIDA is providing the offsite infrastructure for the Utah Data Center. This is a $1.5 billion project and MIDA has one year to provide the infrastructure. MIDA was tasked with this because of their reputation for efficiency and effectiveness. It was reported that progress is being made, and MIDA is about half way through the first TTO which is a utility master plan. It is anticipated that the master planning will be completed by end of June or the first of July. Attention is now on TTO s 2, 3 and 4 which deal with the temporary power, the transmission lines, the long lead items and the switch yard. These should be signed in the next couple of weeks. Things are moving at a rapid pace, and MIDA is staying on schedule. Contractors and inspectors will be brought on as needed. Other Business There was no other business. Next Meeting Everyone was shown appreciation for their attendance. The next MIDA Board meeting will be held on Tuesday, June 1, 2010 at 9:00 a.m. Mayor Don Wood made a motion to adjourn. Mayor Bruce Burrows seconded the motion with a unanimous vote to adjourn at 10:25 a.m.