October 17, 7:30 AM Room 901. Brian Smits, Vice-Chair Dave Shaffer, Commissioner Robert Porter, Member Jonathan Klooster Jana Wallace

Transcription

1 Economic Development Corporation Agenda Packet City Hall 300 Monroe NW - 9th floor Grand Rapids, MI October 17, 7:30 AM Room 901 Members: Staff Members: Legal Counsel: Terry Nicholas, Chair Francisco Vega, Secretary Kim McLaughlin, Member Kara Wood Emily Madsen Richard Wendt Brian Smits, Vice-Chair Dave Shaffer, Commissioner Robert Porter, Member Jonathan Klooster Jana Wallace Copies To: Eric DeLong Rick Chapla Stanley Wisinski, Treasurer Michael DeVries, Member Renee Williams, Member Christian Borg Regina Pell I. Call to Order II. Action Items 1. Resolution approving the Beacon Hill at Eastgate Phase III Project Plan Under the Economic Development Corporations Act 338 of 1974, As Amended* (Kara Wood) III. IV. Other Business Public Comment V. Adjournment *MOTION REQUIRED TO APPROVE Please RSVP to Regina Pell at rpell@grand-rapids.mi.us or (616) NEXT MEETING: Thursday, December 7, :30 AM City Hall, 300 Monroe NW - 9th floor, Room 901 Generated 10/17/ :01 AM

2 DATE: October 17, 2017 BOARD: FROM: SUBJECT: Economic Development Corporation Kara Wood, Economic Development Director Economic Development Department Resolution approving the Beacon Hill at Eastgate Phase III Project Plan Under the Economic Development Corporations Act 338 of 1974, As Amended Attached is a resolution approving the Beacon Hill at Eastgate Phase III Project Plan (the Project Plan ) and recommending that the City Commission hold a public hearing and consider approval of the Project Plan and the issuance of bonds. Michigan Christian Home dba Beacon Hill at Eastgate ( Beacon Hill ) wishes to finance the Beacon Hill at Eastgate Phase III Project (the Project ) through tax-exempt and/or taxable bonds to be issued by the Economic Development Corporation of the City of Grand Rapids. Beacon Hill is an existing not-for-profit retirement community located in the Eastgate residential neighborhood in the City of Grand Rapids. Beacon Hill has been providing quality senior services to the Grand Rapids market since From 2014 to present, Beacon Hill has undertaken development activities for an expansion located on six acres of open land on its campus at 1919 Boston Street SE. Fifty-six (56) new independent living apartments were constructed, in addition to underground parking and a variety of amenities and common spaces. The Project consists of acquisition of an adjacent property at 1945 Boston Street SE, demolition of a vacant building on the property, and site preparation activities for future construction of independent and/or assisted residential living units. It is expected that 147 full-time equivalent employees will be retained as a result of this Project. The total Project cost, to be paid for by Series 2017 Bonds, is expected to be $5,000,000. Proceeds from another $45,000,000 in Series 2017 Bonds ($50,000,000 total) will be used as follows: 1) refund outstanding debt from previous Beacon Hill projects consisting of Series 2015A, 2015B, 2015C and 2015D Bonds, 2) pay swap termination fees associated with the outstanding debt, 3) fund a debt service reserve fund, and 4) pay transaction costs of the issuance. The attached Project Plan meets all of the requirements of the Act and staff recommends approval of the attached resolution. KLW/cb Attachments Packet Pg. 2

3 .. Packet Pg. 3

4 THE ECONOMIC DEVELOPMENT CORPORATION OF THE CITY OF GRAND RAPIDS KENT COUNTY, MICHIGAN RESOLUTION TO APPROVE AND RECOMMEND A PROJECT PLAN FOR THE BEACON HILL AT EASTGATE PHASE III PROJECT At a meeting of the Board of Directors of The Economic Development Corporation of the City of Grand Rapids, Kent County, Michigan, held at City Hall in said City on Tuesday, October 17, 2017, at 7:30 a.m. local time. PRESENT: ABSENT: The following preamble and resolution were offered by Boardmember and supported by Boardmember : WHEREAS: 1. The following terms will have the meanings as herein set forth: a. "Act" means Act 338 of the Public Acts of Michigan of 1974, as amended; and b. "Applicant" means Michigan Christian Home, a Michigan nonprofit corporation; and c. "Governing Body" means the City Commission of the City of Grand Rapids; and d. "Issuer" means the Economic Development Corporation of the City of Grand Rapids; and e. "Phase III Project" means the project undertaken by the Applicant as set forth in the Project Plan; and f. "Project Plan" means the Project Plan submitted to the Issuer by the Applicant regarding the Phase III Project; and 2. This Board of the Issuer has received and reviewed a Project Plan for Applicant's Phase III Project prepared in accordance with Section 8(4) of the Act; and 3. This Board deems it advisable and in the best interest of the community to encourage the Phase III Project to be undertaken by the Applicant; therefore Packet Pg. 4

5 RESOLVED: 1. That the Project Plan, as presented at this meeting, meets all the requirements set forth in Section 8(4) of the Act; and 2. That the Phase III Project is reasonable and necessary to carry out the purposes of the Act; and 3. That the Project Plan is hereby approved and recommended to the Governing Body; and 4. That, based on information received from the Applicant, the Phase III Project will not have the effect of transferring more than twenty (20) full-time employees from another municipality of this State to the City of Grand Rapids where the Phase III Project is to be located; and 5. That the Governing Body is hereby requested, following a public hearing held in accordance with the Act and other applicable law, to determine that the Project Plan constitutes a public purpose and to approve the Project Plan. YEAS: NAYS: ABSTAIN: ABSENT: RESOLUTION DECLARED ADOPTED. October 17, 2017 Francisco M. Vega, Secretary CERTIFICATION The undersigned, the duly qualified Secretary of The Economic Development Corporation of the City of Grand Rapids, Kent County, Michigan, does hereby certify that the foregoing is a true and complete copy of a resolution adopted by the Board of Directors of said Corporation at a meeting held on October 17, 2017, the original of which is on file in my office. Public notice of said meeting was given pursuant to and in compliance with Act 267 of the Public Acts of Michigan of 1976, as amended. October 17, 2017 Francisco M. Vega, Secretary Prepared by Christian Borg Packet Pg. 5