Economic Development Commission Minutes 01/10/2013 ADOPTED

ECONOMIC DEVELOPMENT COMMISSION
SPECIAL MEETING - ADOPTED MINUTES
JANUARY 10, 2012

1. CALL TO ORDER
Mark Deming, called the special meeting of the Economic Development Commission to order on Thursday, January 10, 2013 at 5:35PM in the Main Meeting Room at the Town Offices. The following members and were also present: Allan R. Raphael, Kris Barnett, and Shannon Knall.
Also in attendance were: Hiram Peck, Planning Director; and other interested parties.

2. HEAR PRESENTATION FROM JESSICA BAILEY, DIRECTOR OF C-PACE
Ms. Heavner, Board of Selectmen, addressed the attendants saying the Board of Selectmen voted in favor of the C-PACE program and spoke about how Simsbury is open for business and the Town is committed to making Simsbury a great place to live and work. Ms. Heavner spoke about the efforts being taken by the Boards in order to make Simsbury more attractive to businesses.

Jessica Bailey, CEFIA’s Director of C-PACE, addressed the Commission by saying the goal of C-PACE is to bring money to Simsbury by helping building owners upgrade their buildings in terms of energy efficiency. Ms. Bailey began by providing an overview of CEFIA (a quasi-state agency) and its goals. She continued by describing the C-PACE, an innovative financing structure that enables commercial, industrial and multi-family property owners to access financing for qualified energy upgrades and repay through a benefit assessment on their property tax.  Ms. Bailey spoke about the history of the program, as well as the huge opportunities related to this program in CT. She spoke about how this program requires municipality approval, which Simsbury has already done. Ms. Bailey said there are 10 CT towns on-board already and hope to have many more within the next month. She spoke about barriers for commercial property owners, in terms of doing energy upgrades, and how C-PACE addresses those barriers, mainly the issue of lack of capital. Ms. Bailey then spoke about the lien structure that is involved with C-PACE, as well as the requirements, checks & balances throughout the process. Ms. Bailey then covered the key to energy efficiency investment in CRE and the benefits of this program to other key stakeholders.  She then spoke about the steps within the process, beginning with which properties are eligible. Ms. Bailey outlined capital sourcing and which banks are now involved, although she said building owners can work with whatever capital source they want, which is often the existing mortgage lender. Ms. Bailey reviewed the capital flow process and then provided specific details using a sample building as a model.

Mr. Wagner asked about attorney’s fees that can be expected. Ms. Bailey said they have a lot of the documents already prepared, so it is more attorney review and shouldn't be too cumbersome. When asked about the approval timing, Ms. Bailey said they try and move as quickly as possible and if the due diligence is done up front, it can be quite efficient. She said the timing is dependent upon the complexity of the job. When asked about a guarantee, Ms. Bailey said it is not a personal guarantee. When asked about the interest rate, she said they do not set the rate, so she cannot say exactly where it will be, but it will be dependent on the financial health of the building. Mr. Wagner asked about getting CL&P incentives and Ms. Bailey said she is hoping to coordinate with them a lot and she said they are excited about the program. When asked if there are any IRS rulings regarding the expense being labeled as an operating expense, Ms. Bailey said there is a lot of grey area within the accounting of this and it is something a property owner should discuss with their attorney. Rich Correia asked about an occupancy issue and how vacancies (or soon to be filled vacancies) can be incorporated into the ratio. The topic of fixtures that might be included was also discussed. Ms. Bailey spoke about the potential administrative costs to the Town and what CEFIA will do, in terms of software upgrades, to ease any administrative costs/burden.  Ms. Nancy Haase, Board of Selectmen, asked about the financing and Ms. Bailey said the financing goes with the life of project, up to 20 years. This topic was discussed further.

3. APPROVAL OF MINUTES FROM DECEMBER MEETING
As there was not a quorum at the meeting, the Commission was unable to vote on the December minutes.

4. REPORTS: SMSP’S PROGRAM REVIEW & BUDGET REQUEST
Mr. Deming said, at the previous meeting, he asked Ms. Nielsen about SMSP’s top programs/services that help with the EDC’s goal of growing the commercial tax base. Ms. Nielsen began by saying she thinks SMSP is one of the main reasons Simsbury has less vacancy than most towns.  She continued by saying retention of existing business is a major economic driver, and SMSP is a major contributing factor to keeping business in Simsbury. Ms. Nielsen spoke of SMSP’s efforts and successes regarding exposing Simsbury’s profile on a national stage. Ms. Nielsen then said SMSP was instrumental in the Charrette work and the grant funds brought to Simsbury. She then said they continue to present Simsbury as a tourist destination, which improves overall economic development.  Commissioner Deming asked what percentage of SMSP’s budget is made up of the EDC contribution and she said it is about one-third.  She said her membership information is delayed, but they currently have approximately 150 members. When asked how many potential members she thinks there are, Ms. Nielsen said they are limited by geographic borders, but they do get a nice cross-section of businesses. When asked by Commissioner Barnett, Ms. Nielsen said they have a membership decal for members to place in their window. Commissioner Deming then asked what percentage of SMSP’s total income is made-up of dues, Mr. Correia said it was maybe 10%. When asked about other sources of income, she spoke about the different events that bring money to SMSP, in addition to grants. Ms. Nielsen said they partner with many different organizations within town. Commissioner Deming asked if there was a 10% cut, what could SMSP cut from their budget, and Ms. Nielsen said that is something they will have to look at, but they always make their case in front of the Board of Selectmen and hope not to have a cut. Mr. Correia spoke of the work Ms. Nielsen does in order to get developers to invest in downtown Simsbury. Commissioner Knall asked if SMSP will be taking on Artwalk Simsbury and Ms. Nielsen said SMSP does anticipate taking it on.

5. EDC’s BUDGET REQUEST FOR 2013-2014; DISCUSSION & VOTE
Commissioner Deming said, while there is no quorum present, they can still make a consensus regarding the budget. He reviewed the EDC budget numbers totaling; $58,870. Mr. Peck said he recommends putting marketing money into the budget again, as he sees some meetings coming up in the spring for which they will use those funds. He also said some of the marketing money can applied to the marketing study, for which they are currently receiving RFP’s, and he thinks the numbers previously reviewed by Commissioner Deming are all justifiable. The Commissioners in attendance consented that these numbers are acceptable.

6. EDC's WEBSITE FRONT PAGE DESIGN; DISCUSSION
Regarding the Web site, Mr. Peck said Rick Bazzano will attend the next meeting in order to answer questions the Commissioners might have.

7. OLD/NEW BUSINESS: UPDATE ON MARKETING STUDY/CONSULTANT SELECTION PROCESS
Mr. Peck said he is setting up two (2) committees: one to review the proposals regarding the marketing study, and one for the Village District Study.  Mr. Peck said he would like a representative from the EDC and Commissioner Raphael agreed to represent the EDC.

Commissioner Deming adjourned the meeting at 6:45PM.