Scio Township DDA Minutes
December 10, 2007
Scio Township Hall
827 N. Zeeb Road
Ann Arbor, MI 48103
Chairman Upton called the meeting to order at 12:12 PM
Members Present: Arbour, Cornish, Fox, Mayo, Nielsen, Upton and Weaver
Members Absent; Holland and Luckhardt
Others Present: DeLong, Fecho, Siddall, Del Vecchio, Hedberg
Cornish moved and Mayo seconded a motion to approve the minutes of November 12, 2007. The motion passed by a vote of all members present.
Notes from the Road Committee meeting of November 29, 2007 were received and filed.
Washtenaw County Road Commission Report:
Del Vecchio said that business signs flagpoles and parking lighting are being relocated. Five of the signs have been moved on the North side of Jackson Road and relocation will begin on the South side. There have been some delays issues, such as not being given the right of entry for the relocation of the signs to some properties, but these issues are being worked out with the property owners or their attorney.
There was a meeting held on November 19th at Scio Township to discuss issues on how the variances were granted on some of the properties in litigation. The new proposed language of some of the variances is being reviewed for clarification to ensure that the variances conform to the condemnation act. Doug Lewan is reviewing the proposed language. We are looking at a January application submittal of this clarification to the Zoning Board of Appeals for their review and action in February of 2008. Up-dated appraisals to the date of filling for condemnation will reflect the change in the language of the revised variances if it is granted by ZBA.
All but one property for phase III project ROW has been acquired. The deadline for certifying the right of way and for the submittal of the project is December 19, 2007. MDOT is willing to look at how we can move forward on the 19th if we do the submittal.
Del Vecchio is working on demolition and asbestos removal at the Farmer Grant building and the house on parcel 181.
At this point in the meeting Del Vecchio went through the Phase III Progress Report to update the Board. He gave an extensive explanation on the issues involved in the one piece of property which is yet to be acquired.
Siddall mentioned that MichCon was ready to make utility relocations and AT&T would be prepared to start shortly.
Landscape Consultant’s Report: Nothing to report at this time.
Chairman’s Report:
At the Chairman’s request, Fecho reported on the progress of the bond refinancing process (see below).
The Chairman asked Arbour for a report on the work being done by the joint subcommittee of the Planning Commission and DDA on an economic study for the Jackson Road corridor. Arbour distributed minutes from the December 5th meeting of the Scio Township Economic Study Sub-Committee (attached). He went on to explain that a study by an outside, independent consultant would have an estimated cost in the $40,000 to $50,000 range. We could ask for a Request for Information or could go directly to a Request for Proposal.
The question was asked as to which would be the controlling group, DDA or Planning. Upton felt that it was a truly joint project, and therefore, both groups would control.
There was some question as to the funding for the study. Fecho said the Planning Commission does not have funding for the proposed study. The cost would have to be born mainly by the DDA.
Fecho asked if Doug Lewan should coordinate the project. It was felt that Lewan and Carlisle, Wortman should be involved in the group, but not lead it. The consensus seemed to be that the study should be done by an independent firm. Several DDA board members expressed the opinion that we need a strong sense of the market from an independent view, and that we don’t want to simply validate what we are already doing. Mayo said that developers are pushing retail development. She feels retail is short run (development) and doesn’t look at the long run. She felt that the Planning Commission would rather go out and get what is needed and not just look at what comes down the pike. Arbour said we can shape the project scope with an RFI.
Upton handed out two sheets of financial projections. After a discussion with Township Assessor Merte, Upton’s projections are based on zero SEV growth over the next five years. Merte felt this was a reasonable depiction of a worst-case scenario. Upton went on to describe the results of his revised projections. Upton said that we would not have to revise our DDA plan to help fund the corridor economic study.
Township Manager’s Report:
Fecho reported on the refinancing of bonds. The State initiated this process. Fecho has done quite a bit of work with Miller, Canfield and Bendzinski & Co. to provide the information required refinancing the DDA’s old bonds at a lower interest rate. Several communities are involved, so the process has taken time. It is estimated that the refinancing of the Scio DDA bonds will save between $100,000 and $150,000 in interest expenses, with the State and the DDA sharing this benefit equally.
Fecho also said that the Township’s and DDA’s bond phasing is working out OK. We need to hold a meeting to review the overall bonding needs of the Township before the DDA begins the bonding process in 2008. It is desirable to stay within the $10 million annual limit for bonding, so that all Township entities doing bonding in 2008 will receive bank qualified rates. Fecho asked if $4.8 million or less would meet the DDA’s needs in financing Jackson Road Phase III. This looks reasonable.
The Township Board wants the DDA to review the possibility of establishing bus service in the Jackson corridor. AATA has been providing service to Eagle Point; however, it recently discovered that Eagle Point is outside the service radius covered by AATA’s grants. Fecho said it would cost $25,000 to keep bus service to Eagle Point. He described some other possible transportation solutions in addition to AATA. He said one problem is that Scio is part urban and part rural. This complicates funding sources. There was a long discussion about bus service. Upton reviewed what the DDA was and wasn’t permitted to fund under the law.
Arbour moved and Weaver seconded that the DDA Board agrees in principle to work with the Township Board to find ways to provide bus service in the DDA area and to contribute funding for that purpose. The motion passed by a favorable vote of all the members present.
Executive Director’s Report:
A Balance Sheet as of November 30, 2007 and a Cash Flow Report for the fiscal year through November was attached to the agenda. There were no questions. DeLong mentioned that a CD at United Bank & Trust was maturing. He will reinvest the funds at the best interest rate he can obtain.
Other Reports: None
Old Business: None
New Business:
Invoices:
Scio Township General Fund $1,920.00
UPS $14.42
Michigan Signs, Inc. $10,065.00
WCRC $545,467.13
WCRC $175,912.43
Frank Del Vecchio $9,500.00
Grand Traverse Pie Company $131.48
Hedberg Associates $360.00
Richard A. DeLong $1,000.00
State Ed. Fund $562,100.00
Ann Arbor Schools $590,100.00
Ann Arbor Library $142,800.00
WISD $296,100.00
WCC $253,400.00
Washtenaw County $413,700.00
The Bank of New York (1988 Notes) $262.50
The Bank of New York (1990 Notes) $250.00
The Bank of New York (1994 Notes) $300.00
Total $3,003,382.96
Arbour moved and Mayo seconded a motion to pay the invoices as listed.
Roll Call: Arbour yes, Cornish yes, Fox yes, Holland absent, Luckhardt absent, Mayo yes, Nielsen yes, Upton yes, Weaver yes
The motion passed.
Discussion and audience participation: None
Adjournment: Weaver moved and Arbour seconded a motion to adjourn at approximately 2:20 PM. The motion passed by a yes vote from all members present.
