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HomeMy WebLinkAbout02/17/2004 Study Session Minutes~x _ _ ~:~, ~Y ~ ~1II~IUTES OF IDA/CHDO STUDY SESSION ~~ F-. .:" ~} ~,~, Y, <~ ; 1.,~~`MAIZt1NA T0`'vN I-TALL _. . ~~. .. . ~: - ~ .. FEB~2UARY 17; 200-1. PLACE AND DATE Marana Town Hall, February 17, 2004 I. CALL TO ORDER By Mayor Sutton at 5:05 p.m. The study session was held informally and no official roll call was given. Council Member Honea was excused from the study session. All other Council members were present and seated at the dais. Senior staff and Town consultants in attendance included Mike Reuwsaat, Jaret Barr, Jim DeGrood, Jocelyn Bronson, Frank Cassidy, and Roy Cuaron. A list of public attendees is attached. II. GENERAL ORDER OF BUSINESS 1. Study Session: Discussion of the Town's Formation of an Industrial Development Authority (IDA), IDA Non-Profit, and Community Housing Development Organization L HDO) (Dick Gear) Mr. Reuwsaat began the study session and stated that this item was brought before the Council for consideration as the Town might be able to leverage more dollars into the community through a CHDO. He introduced Ann Morales, an attorney with Rusing & Lopez, P.L.L.C. and said she had assisted several communities in establishing IDA's and non-profit organizations. Ms. Morales gave a presentation regarding the formation of three entities that would assist the Town with economic development, in setting up a community loan program, and in establishing greater links for funding of its affordable housing program. She listed the three entities as an Industrial Development Authority (IDA), and IDA non-profit, and a Community Housing Development Organization (CHDO) and provided a brief explanation of each entity. Ms. Morales explained that an IDA, authorized by Congress in 1954, was established as a means to promote industry and develop trade to assure adequate job opportunities and an improved standard of living. She said that an IDA was a conduit for the provision of affordable housing for citizens within its community and issued bonds to promote these goals. The attorney listed several characteristics of an IDA including the fact that, once formed, it became a political subdivision of the State of Arizona and was subject to Open ,,,,~,. Meeting laws per A.R.S. §38-431. She said that the initial Board of Directors of MI^~UTES OF IDA/CHDO STUDY SIJSSION I~~IARANA TOWN HALL FLBRUARY 17, 2[)0~ an IDA must be appointed by the Mayor and Council. She pointed out that the two primary functions of an IDA were issuing bonds to qualified projects and funding community loans with fees from the bond project. She described the Towri s role in the bond projects and said that, while there was no financial or legal liability for the Town, the Town would review and approve the proceedings of the IDA. Ms. Morales said that an IDA would benefit Marana by promoting economic development and housing development as well as neighborhood and community development. She continued her presentation by noting some of the IDA qualified bond projects such as housing, manufacturing facilities, health care facilities, educational facilities, redevelopment projects. She indicated that IDA bond projects would be funded by private lender with no public money and said that the projects would be a private investment for a public purpose. Ms. Morales continued by describing the features of the community investment loans and said that the loans would be to businesses and corporations within the Marana community with the purposes and parameters to be established by the IDA in cooperation with the Town. She listed the costs associated with an IDA and explained the funding sources for the costs. She went on to explain the Marana Resource Corporation (MRC), a 501(c)(3) non-profit corporation acting as an extension of the IDA. She said the MRC would be formed to lessen the burdens of the IDA and the Town. She explained that the MRC would engage in projects or activities that the IDA was not empowered to such as ownership of affordable housing projects, the administration of IDA programs, and to apply for various state and federal loan programs. She pointed out that the MRC could perform all functions or purposes of an Arizona non-profit corporation and must be controlled, either directly or indirectly, by the IDA and/ or Town of Marana. She said that the costs of the MRC would be funded through loans, grants, bond proceeds, tax credit proceeds and income generated from activities and/or projects. The next topic covered was the Marana Housing Authority (MHA) which is a 501 (c)(3) non-profit community housing development organization (CHDO). The presenter said that the parameters for a CHDO were established by the U.S. Department of Housing and Urban Development (HUD) and that the CHDO must serve a clearly defined geographical area. She noted that a CHDO 2 MINUTES OF ~Dr~/CHDO.STUDY SESSION MAR~iN~ TOWN HALL ' FEB,;~tUARY 17 200=L ~ - " could not be controlled by the IDA or the Town of Marana and that it would provide housing for low-to-moderate income families. She said that MHA costs were funded through HUD, federal, and State grants and loans, bond proceeds, tax credit proceeds, and income producing projects and activities. Ms. Morales described the MHA Board of Directors composition requirements such as one third having to be low-income community representatives and no more that one third may be representatives of the public sector Council Member Blake stated that this program seemed to be linked through the federal government with lots of paperwork. He recommended that staff study what comes before Council very carefully before committing to any project. XII. ADJOURNMENT The Mayor adjourned the meeting. The time was 5:30 p.m. CERTIFICATION I hereby certify that the foregoing are the true and correct minutes of the IDA,/CHDO Study Session held on February 17, 2004. I further certify that a quorum was present. celyn Br nson, Town Clerk ~~a~,~OF,~4~~~~~ `~~~~p~mrrpy~~ .. '~ a~huu--•u~- 3 ~h~ 1~Z9RANA TOWN COLiNCIL MEETING Public Attendees DATE: ~ ~ .Z ~ Name Address 4~ ~ ~~