Minutes of the Centerville City Redevelopment Agency and the South Davis Cultural Arts Center Administrative Control Board meeting held Monday, January 26, 2009 at 4:40 p.m. in the Centerville City Council Chambers, 250 North Main, Centerville, Utah.

MEMBERS PRESENT
 Ken Averett, RDA of Centerville City Vice Chair
 Justin Y. Allen, RDA of Centerville City/ACB Board Member
 Paul Cutler, RDA of Centerville City/ACB Board Member, arrived at 4:43 p.m.
 Lawrence Wright, RDA of Centerville City
 Joe Johnson, ACB Vice Chair (Bountiful City Mayor)
 Beth Holbrook, ACB Alternate Board Member, representing Bountiful City Council

 MEMBERS ABSENT
 Ronald G. Russell, RDA of Centerville City Chair/ACB Chair
 Sherri Lindstrom, RDA of Centerville City/ACB Board Member

STAFF PRESENT 
 Steve Thacker, RDA Executive Director/Centerville City Manager
 Blaine Lutz, Finance Director
 Connie Larson, Recording Secretary

 VISITORS
 Jason Burningham, Lewis Young Robertson Burningham (LYRB)
 Mike Hogan, Hogan & Associates Construction
 Chris Hogan, Hogan & Associates Construction
 Glenn McKay, South Davis Cultural Arts Association
 Jim Lohse, FFKR Architects
 Jeff Fisher, FFKR Architects
 Antone Clark, Standard Examiner

SOUTH DAVIS CULTURAL ARTS CENTER PROJECT

a. Project Update
 
Steve Thacker, RDA Executive Director/Centerville City Manager, reported a meeting was held today with staff, the architects and the CM/General Contractor. The development design phase is now completed, which now takes the plans to where the contractor can do a more detailed cost estimate, which will take about three weeks. Construction is targeted to begin May 1, 2009. The overburden process is underway, and  the arrangements to get soil from Pineae Village have been made. It is expected to take until the end of April for the settlement of the soil to take place, and the overburden will be incorporated into the project itself when  the construction begins. The soil from Pineae will be used for berming on  this site, and perhaps over to the Frontage Road if a Master Site Plan is approved for both Lots 2 and 3. Blaine Lutz and Steve Thacker recently met with Scott Marquardt of MTC and asked Mr. Marquardt about using MTC’s tax increment credit of $140,000 now to fund the improvements on the MTC property, which would include fencing, berming, and a walking trail. The advantage to MTC would be the benefit of the tax credit now instead of over time.  The RDA plans to fund a parking lot on MTC’s property, immediately north of the existing parking lot. 

Lawrence Wright, RDA Director, asked if someone would be able to stand on the future berm and see into the trailer court. Mr. Thacker said it would be possible for someone to look into the trailer park, but staff’s concern is not if someone could look into the trailer court, but if the car headlights would shine into the trailer court.  Mr. Thacker said there will be a vinyl fence installed to prevent this problem.  Currently a chain-link fence separates the trailer court from the theater site.  The RDA will provide a fencing plan at a future date.

b. Review updated Feasibility Study Report
Jason Burningham, LYRB, distributed a Feasibility Analysis Update and Timeline for the South Davis Cultural Arts Center. He explained the theater organization will enter into a lease of the Cultural Arts Center. Financial statements from the Rodgers Memorial Theater are expected soon.  The RDA tax increment dollars will be greater than what was originally anticipated because of higher property values and more new businesses in the Parrish Lane Gateway area. Most communities have seen a downturn in sales tax revenues, but Bountiful and Centerville have not, which means the RAP Tax is still estimated to support $5 million in bonding.  Mr. Burningham said his analysis projects the Black Box revenues will exceed related expenses and debt service by $65,000 - $70,000 per year.  He also estimates the revenues from the rest of the facility will exceed operating and maintenance expenses by $60,000 to $70,000 per year.  These excess revenues could go into a reserve fund for building repair, equipment replacement and debt service payment, if needed.
 
c. Discuss Project Funding and Financing
Jason Burningham said the County appears willing to provide $2.5 million over a number of years, to support $2 million in bonding. The RDA could issue “limited purpose revenue bonds,” with repayment based on agreements with the two cities, the County and the South Davis Cultural Arts Association. It was recommended that Davis County enter into an agreement for eleven years where they would contribute $500,000 the first year and $200,000 per year thereafter for a total of $2.5 million.  Vice Chair Joe Johnson said it will need to be decided if it will be an annual County appropriation or multi-year agreement.  He said the Davis County Commissioners would like to have the Black Box.  Mr. Burningham said an annual appropriation is up to the County, but these agreements are hard to pledge to a bond holder.  If there is no long-term commitment from the County, the project may be difficult to bond for without a pledge of other taxes. 

Mr. Burningham said the bonds will be issued by the RDA with an operational lease agreement in place with the tenant. A bond trustee would make payments to the bond holder, from revenues coming from the RAP taxes, RDA tax increment and the County.

Mr. Thacker said the total project cost without a Black Box is estimated to be $13.25 million, and with a Black Box the estimated cost is $14 million.  The lease agreement with the South Davis Cultural Arts Association should commit them to fund-raising efforts to pay for repairs, or upfront enhancements. Mr. Burningham said if everything is on schedule, the parameters resolution would be ready for the RDA meeting on February 17.  This would allow the selling and marketing of bonds by April 2009. Vice Chair Johnson said Bountiful has committed to put 90 percent of their RAP Tax revenues towards the theater for eight years and they are not going to commit any more money or pledge Bountiful’s sales taxes. He said the sources of money need to be firm and not depend on donations for construction.

Three actions needed in the near future include:

1) determine if Centerville City is willing to pledge its sales tax or franchise taxes as additional security for the bonds;
2) approve agreement with County regarding tourism tax revenues; and
3) draft a lease agreement with the theater organization.

MINUTES REVIEW AND APPROVAL

Minutes of the January 20, 2009 joint Centerville City RDA and the South Davis Cultural Arts Center Administrative Control Board meeting were reviewed. Paul Cutler made a motion to approve the minutes as amended.  Justin Allen seconded the motion, which was passed by unanimous vote (4-0) of each board (i.e., RDA and ACB).

 The meeting was adjourned at 6:10 p.m.