Minutes of the DDA meeting on September 10, 2007
Scio Township Hall
827 North Zeeb Road
Ann Arbor, Michigan 48103
Chairman Upton called the meeting to order at 12:10 P.M.
Members Present: Arbour, Cornish, Holland, Mayo, Nielsen and Upton
Members absent: Fox, Luckhardt and Weaver
Others present: DeLong (left at approx. 12:40PM), Del Vecchio, Fecho, Hedberg, Siddall, and Martin
Nielsen moved and Cornish seconded a motion to approve the minutes of August 13, 2007. The motion passed by a vote of all of the members present.
Notes from the Road Committee meeting of August 30, 2007 were received and filed.
Executive Director’s Report:
Financial reports for the fiscal year through August 2007 were included with the September agenda. DeLong asked if there were any questions. There were none.
New Business:
Invoices:
US Bank 2002 Bond Interest $120,981.25
WCRC $446,888.61
Grand Traverse Pie Company $131.48
Hedberg Associates $360.00
Richard A. DeLong $800.00
Total $569,161.34
Arbour moved and Nielsen seconded a motion to pay the invoices.
Arbour yes, Cornish yes, Fox absent, Holland yes, Luckhardt absent, Mayo yes, Nielsen yes, Upton yes, Weaver absent. The motion passed.
Delong said that CDAA9-10-07 is maturing today and we have a 10-day period in which to take action. The amount of the CD is $1,097,175.94 plus three month’s interest. As it is difficult to predict the upcoming ROW expenses and the fact that our checking account draws 4.84% or more interest, he recommended that the DDA Board direct him to transfer the funds in this CD to the DDA checking account.
Arbour moved and Holland seconded a motion to transfer the funds in CDAA9-10-07 to the DDA checking account.
Arbour yes, Cornish yes, Fox absent, Holland yes, Luckhardt absent, Mayo yes, Nielsen yes, Upton yes, Weaver absent. The motion passed
[DeLong left the meeting]
Township Manager’s Report:
Fecho reported that the Township Trustees would like the DDA to bond this year, so that the water fund can bond next year, thereby enabling both funds to receive bank preferred interest rates. Siddall distributed the most up-to-date cost estimate for Phase III, prepared by OHM, and she explained the breakdown. There was a discussion regarding how the funding for the sewer portion of the project should be allocated between the DDA and the sewer fund. The group reaffirmed that it made sense for those costs directly associated with the sewer expansion to be covered by the sewer fund. All other costs will be covered by the DDA, including: a) those associated with the road expansion, b) water main replacement and expansion, and c) construction of temporary pavement necessitated by the sewer project. Given this allocation, the DDA will be required to fund approximately $16.1 million for this project, while the sewer fund will cover $3.3 million, and federal grants will cover the remaining $6.1 million. In determining how much the DDA should plan to bond for this year, the group discussed two factors. First, based on other bonding already done by the Township in 2007, the DDA could bond for no more than $8.8 million in 2007 and still receive a bank preferred interest rate. Second, since the DDA already bonded for $9.7 million for Phase III in 2006, the DDA could bond for no more than an additional $6.4 million for Phase III without having arbitrage restrictions apply to the bonds (unless the costs of projects other than Phase III are to be covered by the bonds). Past projections of cash flow indicate that the DDA would be able to afford either of these amounts; however, these projections will be double checked. There was consensus among the DDA Board members to proceed with a bond sale in 2007 for an amount in the $6.0 to $6.5 million range. The next step is to meet with Bendzinski and Miller, Canfield to begin the bonding process. Fecho will set up this meeting. Upton will update his cash flow projections, both for the remaining life of the DDA and for the three year period covered by arbitrage restrictions. In doing so, he will take into account the likelihood that SEVs for the district will drop below current Taxable Values within the next year or two. [Following this discussion, Martin left the meeting.]
Township Treasurer Palmer joined the meeting to discuss the timing of payments of tax increment revenues to the other units. If possible, she would like to develop a system which would enable the DDA to make payments to the other units sooner. Palmer, DeLong, and Upton will meet with Sandy Egeler to see if this would be possible. [Palmer left the meeting.]
Washtenaw County Road Commission Report:
OHM has submitted another draft of the plans. They are nearing the end of the revision process.
Del Vecchio reported on a number of topics regarding right of way.
Signs: Del Vecchio is working with Michigan Signs on moving signs out of the ROW. Michigan Signs has given him a revised estimate containing the changes identified at the August DDA meeting. The estimate total conforms to the anticipated amount of $150,032. Del Vecchio is meeting with each affected property owner, along with Michigan Signs and after Miss Dig flags utilities to identify exactly the new sign locations. When the relocation work begins, Michigan Signs will do the north side of the road first, starting at the east end and working toward the west. Then, they will move to the south side and work from west to east. Del Vecchio will also work with the property owners who are doing their own parking relocation to ensure that the signs will be placed in the proper location.
Building Demolition: There are two buildings and one shed that need to be taken down: the Farmer Grant’s Market main building, and the vacant house located on parcel 181 and the shed on parcel 22. This work should be done this fall/winter. The first step in doing this is to have an environmental firm inspect the properties to determine if they contain any hazardous substances, including chemicals and asbestos. If hazardous substances are present, they need to be removed safely. Del Vecchio is talking to the property owners to obtain right-of-entry permission to do this work. Property owner Larry Grant indicated a willingness to grant this permission prior to possession. Del Vecchio is getting bids from two firms capable of doing the inspection and removal. The WCRC has worked with both firms in the past and been satisfied with the work done by each.
Site Mitigation: There are five parcels requiring site mitigation. Two of these have already received and rejected offers for the work and value for the property required on their parcels. Del Vecchio will be working through the condemnation process on those two parcels. He advised the DDA on the steps he will need to follow to ensure that mitigation and road construction can be carried out without running the risk of the court granting a stop-work order to a property owner. It will be best for everyone concerned if the mitigation work can be completed this fall.
Property Descriptions: There are several parcels where property descriptions need to be resolved. Area calculations need to be rectified with the identified meets and bounds. Offers can’t be made on these parcels until this is done. OHM is working on clearing these up. The problems with these property descriptions have pushed back the planned submittal date for Attachment B by a month. There is no longer any slack in the schedule if we are to start construction in a timely manner next spring. Siddall has asked OHM for a detailed ’08 construction schedule, so that we can determine precisely when construction needs to start.
Parcel Acquisitions: Del Vecchio reviewed the status of the parcel acquisitions. Regarding the Honey Creek Development, he has given the property owners a draft of a donation agreement. They have indicated that they will sign it. However, due to the fact that several parties are concerned in the development the agreement is complex, and Del Vecchio doesn’t know if they really will sign it. As mentioned above, we are running out of time, and Del Vecchio said we will need to be prepared to move to condemnation on these parcels if we don’t receive a signed agreement. Regarding parcel 176, the property description has been resolved, the appraisal is ready, and an offer will be made to the property owner this week. This site will require mitigation. Regarding parcel 181, the appraisal is being reviewed and an offer will be made within the next two weeks. The parcels mentioned above are the only ones remaining where offers still need to be submitted or the property owner has not responded to our offer. The overall status of the project is:
ROW in hand 48
Filed with the court 8 (4 Received Possession)
In process to close 5
In Negotiations 7
Total 68
Landscape Consultant’s Report:
Hedberg reported that she will mark the Juniper bushes that need to be removed. We will be removing the Junipers located in front of the address signs in Phase I. This material does not look good. The Junipers behind the signs will remain. That material does look good. We’ll just plant grass in the areas where the Junipers will be removed. Tee to Green will do this work. It will be paid for by the Maintenance Fund. Hedberg also reported that she had driven up Parkland Plaza and noted that there is curb and gutter on both sides. This will help in the installation of sidewalks on this road. Some of the residents who need these sidewalks are handicapped.
Chairman’s Report:
A real estate agent working with American Broach will be visiting Malloy tomorrow (Tuesday, September 11th) at 1:00 p.m. to describe the Home Depot project being proposed on that site and the adjoining residential parcels. Upton invited any interested DDA Board members to attend. Upton has advised the real estate agent that whether or not he supports the development will not influence the Planning Commission. Upton’s greatest interest in this presentation is to see exactly where the improvements are being planned on this property, as some of it is in the DDA District and some is not.
Other Reports: None
Old Business: None
Discussion and audience participation: None
Adjournment: Arbour moved to adjourn the meeting at 2:21 P.M. Cornish seconded the motion. The motion passed by a yes vote of all the members present.
