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HomeMy WebLinkAbout1990.11.14_OEDA MinutesOWASSO ECONOMIC DEVELOPMENT AUTHORITY MINUTES OF THE REGULAR MEETING NOVEMBER 14, 1990 O.E.D.A. CONFERENCE ROOM, 315 S. CEDAR, 12:00 NOON 1. CALL TO ORDER Brenda Lawrence called the meeting to order at 12:25 p.m. 2. ROLL CALL Present: Absent: Staff Present: Guests Present: Alan Anderson Brenda Lawrence Frank Enzbrenner Patricia Marlar Bill Retherford Tom Kimball Mark Thompson Richard Hall Rodney Ray Janice Fields Ron Cates Sherry Lambert 3. CONSIDERATION TO APPROVE THE MINUTES OF THE REGULAR OCTOBER 10, 1990 MEETING. Frank Enzbrenner made a motion to approve the minutes of the regular October 10, 1990 meeting with a correction to the minutes to show Brenda Lawrence as absent. Patricia Marlar seconded the motion. The vote on the motion was Aye 6, Nay 0, the motion carried 6 -0. 4. CONSIDERATION TO APPROVE WARRANTS. The Authority and Richard Hall discussed the claims. Tom Kimball made a motion to approve warrants in the amount of $5,072.91. Bill Retherford seconded the motion. The vote on the motion was Aye 6, Nay 0, the motion carried 6 -0. 7. CONSIDERATION OF A PLAN OF ACTION TO REORGANIZE THE O.E.D.A. STAFF RESPONSIBILITIES AND ADMINISTRATION. Rodney Ray, briefed the Authority about a proposal to reorganize the O.E.D.A. administration. He, Ron Cates and the Authority discussed the procedure of the reorganization, financing of the O.E.D.A. and the division of shared equipment and office space shared by the O.E.D.A. with the Chamber of Commerce. Motion was made by Tom Kimball and seconded by Frank Enzbrenner to approve the concept of the reorganization proposed by Rodney Ray with the provision that O.E.D.A. surplus property be leased or sold as provided by law. The vote on the motion was Aye 6, Nay 0, the motion carried 6 -0. Owasso Economic Development Authority Minutes of November 14, 1990 Page 2 5. FINANCIAL REPORT Sherry Lambert distributed and explained the Financial Report to the Authority. 8. EXECUTIVE DIRECTOR'S REPORT Richard Hall summarized his report which is attached as part of these Minutes. 6. DISCUSSION OF 1990 -1991 ECONOMIC INNOVATION NETWORK (EIN) FUNDING Richard Hall discussed the Economic Innovation Network funding situation with the Authority in the context of the Director's Report. 9. ATTORNEY'S REPORT There was no Attorney's Report. 10. UNFINISHED BUSINESS There was no Unfinished Business. 11. NEW BUSINESS There was no New Business. 12. ADJOURN Motion was made by Alan Anderson and seconded by Patricia Marlar to adjourn. A vote on the motion was Aye 6, Nay 0, the motion carried: 6 -0 r MEMORANDUM TO: Owasso Economic Development Authority FROM: Richard Hall, O.E.D.A. Director SUBJECT: Director's Report DATE: November 14, 1990 STATUS OF WOODS PRECISION PRODUCTS C.D.B.G. - E.D.F. APPLICATION On Monday October 22nd, the Mayor received a letter from the Oklahoma Department of Commerce that asked that some issues be addressed concerning the Woods Precision Products C.D.B.G. - E.D.F. application. We had been expecting the letter and I answered the questions addressed in it and returned information to the O.D.O.C. on October 30th. We are now awaiting the actions of several committees that review all C.D.B.G. applications. I expect that Jerry Fidler of Woods Precision will want to borrow money from the local banks when we receive word that the application has been approved. It is typical for a company to borrow based on the approval letter before funds are released by the state. I attended a meeting concerning the new EIN program on Wednesday October 24th at the Department of Commerce in Oklahoma City. After the meeting I went upstairs to visit with Gary Schamp and Gary Miller about the status of the Woods Precision C.D.B.G. application. I talked with Mr. Schamp first about the letter that they had sent to the O.E.D.A. and about the 12 issues that they had requested to be clarified. It was ironic that Mr. Miller had called the O.E.D.A. earlier in the day about the application and I then visited his office to see how things were progressing. The reason that he had called was that he had heard from Senator Cullison concerning the Woods Energy deal. He was mildly upset that I had written a information memo to Sen. Cullison that had asked for help in the job retention /job creation situation. We had an interesting visit and Mr. Miller offered some advise about how to work with the Department of Commerce staff in future applications by engaging O.D.O.C. first before requesting political help. He said that Senator Cullison was very easy to work with and very fair. I understand Mr. Miller's position and I hope to work more with the O.D.O.C. staff before involving the politicians if there is a problem. Another issue has arisen in our effort to get the company to town. The real estate broker who lists the Owasso property where the business will be located now says that the building owner is wanting to sell the property to others. Jerry Fidler called me about the development and asked that I visit with broker Greg McClain about the timing of the deal so as to reassure him that the financing process is continuing. I did visit with Greg and I know O.E.D.A. Director's Report November 14, 1990 Page 2 that he also talked with Gary Schamp of the Department of Commerce to determine the status of the C.D.B.G.- E.D.F. application. Greg has informed me that the property owner is waiting for Jerry's financing to be approved before proceeding with the sale to the other interested company. The deadline for the decision to sell to Jerry or the other company is November 15th, the day O.D.O.C. will decide on Jerry's C.D.B.G. - E.D.F. application. EIN MEETING The October 24th I attended an E.I.N. meeting which is an annual gathering to where the Department of Commerce informs contractors about the program and new guidelines and regulations. There were twice as many potential contractors as were present at last year's meeting. The guidelines change annually for the program which is about three years old. We were informed that contractors, such as the 0.E.D.A. , must now bid on being contractors just as any other business would bid to the state to sell goods or services. Bids for next year's E.I.N. must be submitted to the Department of Commerce on or before November 30th. We therefore must have E.I.N. basic public and private sector contributions to the Department of Commerce by that date. It may also be more difficult to s-olicit money from area cities and counties since many other economic development agencies are also now interested in the program and will be requesting funds. PLASTICS PROSPECT Mark Thompson, Rodney Ray and I went to the Tulsa office of the Oklahoma Department of Commerce on October 25th to meet with Tom Gray and discuss the business plan that we have received from the poly propylene manufacturer with whom we have been visiting. On October 22nd I visited with Lowell Eastman who has been a contact with the company. We later visited with Mark Uitz who is promoting the deal. The main obstacle in the deal now is, of course, money. The promoters have little cash and the deal is very expensive. BASIC ECONOMIC DEVELOPMENT COURSE I completed the first economic development course which was held last week at San Antonio. I am now eligible to attend the Economic Development Institute (E.D.I.) Advanced Symposium course that is held at Norman every summer. O.E.D.A. Director's Report November 14, 1990 Page 3 MONTGOMERY POINT LOCK AND DAM PUBLIC HEARING In early October I received a letter and technical information from Bob Portis concerning an engineering problem on the McClellan - Kerr navigation way at the junction of the White and Mississippi Rivers. It seems that the level of the Mississippi River is dropping and it will be necessary to construct another lock and Dam at Montgomery Point to continue to use the waterway. I attended a public hearing sponsored by the Corps of Engineers on the issue on October 16, 1990. At the hearing I spoke for construction of the lock and dam and gave a letter of support to the secretary of the hearing. I also submitted a letter from Mayor Mark Thompson in favor of the construction. LEADERSHIP OWASSO Education was the topic at the November 13th class of Leadership Owasso. We have invited Dale Johnson, Mary Armstrong, Owasso Economic Foundation member, Paul Wilson, the Owasso Teacher of the Year and Harold Charney, Board Member of the Tulsa Area Vo- Tech system to address our Leadership Owasso students. Our dinner speaker will be Leo Presley, assistant director of the state vo- tech system. After dinner we car pooled to the Tulsa Assembly Center to hear Dr. James Crupi discuss "Changes in America: Forces Shaping American Education in the 1990's ". The topic next month will be local government. 1990 E.I.N. FUNDS We have now received three checks from the Department of Commerce concerning business plans done by other area developers. The Tulsa Minority Business Development Center will receive $800, less 10 percent, and John Troop will receive $3,800 minus 10 %. One problem that we face is that Mr. Troop will receive more than our agreement specified. I was told that the O.E.D.A. had only a $4,000 allocation for business plans and job creation. In fact we had $6,000. The business plans and job development information that we submitted in our name for Mr. Troop added to $3,800 in D.O.C. refunds. I have submitted O.E.D.A. purchase orders to pay the T.M.B.D.C. and John Troop and Associates for $800 and $3,800 minus our 10 percent administration in spite of my agreement with Mr. Troop that we would pay him for no more that $1,300 in refunds. NOVEMBER CALENDAR OF MEETINGS AND EVENTS 5 - Owasso School Board, 7:30 p.m., Ator Elementary, 1500 North Ash. Special Meetings can be called. O.E.D.A. Director's Report November 14, 1990 Page 4 7 - Owasso Chamber of Commerce Board Meeting, 11:00 a.m., Rayola Baptist Retirement Center. 7 - Owasso Chamber of Commerce Membership Luncheon, 12:00 p.m., Rayola Baptist Retirement Center Cafeteria. 10 & 11 - Holiday Arts & Crafts Fair, 9:00 a.m. -5:00 p.m. , Old Reasor's Grocery Store, 11650 E. 86th St. North, Three Lakes Shopping Store. 14 - Owasso Economic Development Authority, 12:00 Noon, O.E.D.A. Conference Room, 315 S Cedar. Special meetings can be called. 15 - Owasso Chamber of Commerce Goals Retreat, 9:00 a.m. - 5:00 p.m., Holiday Inn, 1010 N. Garnett Road. 15 - Owasso Chapter Builders Association Board Meeting, 11:30 a.m., Perry's Restaurant, 76th St. No. & Hwy. 169. 19 - Owasso Chapter Builders Association, 11:45 a.m., Golden Corral Restaurant, 7703 N. Mingo Valley Expressway. 6 & 20 - Owasso City Council, 7:00 p.m., Community Center,•301 S. Cedar. Special meetings can be called. 6 & 20 - Owasso Public Works Authority, Community Center, 301 S. Cedar, immediately following city council meetings. 21 - Owasso Ambassadors, 11:30 a.m., Golden Corral Restaurant, 7703 N. Mingo Valley Expressway. 22 & 23 - Thanksgiving Holidays, Chamber Office closed. 28 - Owasso Chamber of Commerce Executive Committee Meeting, 12:00 Noon, Golden Corral Restaurant, 7703 N. Mingo Valley Expressway. 0 MEMORANDUM TO: CHAIRWOMAN AND TRUSTEES OWASSO ECONOMIC DEVELOPMENT AUTHORITY FROM: RODNEY J RAY SUBJECT: OEDA /CHAMBER REORGANIZATION PROPOSAL DATE: NOVEMBER 9, 1990 I have enclosed, for your review, a proposal for the reorganization of the existing OEDA /Chamber management structure. It is my understanding that this issue will be discussed on Wednesday at the regular meeting of the Authority. It is my intention to be present at that meeting in order to answer any question concerning the content of the proposal. I have reviewed this proposal with each of the members of the City Council and it represents what I believe to be a compromise position on the part of the Council. Generally the proposal, if implemented, would: * Separate the OEDA management effective December 1st. * Lease the building to the Chamber for a dollar per year. * Give certain equipment to the Chamber (requires some understanding between the OEDA and Chamber). * Raise City dues to $1,000 (to the Chamber). * Provide for a $5,000 payment to the Chamber by the City in return for a contract that outlines what the Chamber will do for the payment. I had intended to wait until after the first of the year to pursue this matter, however, there seems to be some desire to move on with both programs and that we need to resolve the reorganization issue. After your review of the proposal please call me if you have questions you wish to have answered prior to the meeting. Proposal for OEDA Reorganization BACKGROUND The Owasso Economic Development Authority was formed by the City of Owasso in the Fall of 1987 for the purpose of assisting in the development of the long -term economic stability of the community. The Trust was funded by the City Council through a "one time" ($50,000) appropriation, and an ongoing revenue stream comprised of business license fees and a building permit surcharge. One of the three major goals of the OEDA program was to provide support for the Owasso Chamber of Commerce. Professional, full - time leadership was an ingredient that many believed was needed if the Chamber was to have long -term success. Therefore, an agreement was reached between the City and the Chamber that provided a framework for the creation and operation of the OEDA. That agreement provided for a sharing of services between the Chamber and the proposed Trust Authority. The Chamber was to provide office space and secretarial support and the OEDA was to provide salary for one professional executive director. Active implementation of the program began in January of 1988 when a full time executive director was employed. That program has now been operational for two years and ten months. V It is the position of the City that some major changes are required if the long -term economic goals of Owasso are to make the progress initially expected from the OEDA. The purpose of this proposal is to offer a proposed reorganization plan that will place the OEDA in a position to fully focus on the development of a long term economic strategy and the realization of both short and long -term economic development goals for the community. PROPOSAL It is proposed that the following series of actions be taken in an effort to reorganize the OEDA: 1. The separation of the OEDA and Chamber of Commerce in terms of management and facilities, be agreed to by all involved parties (Chamber of Commerce, OEDA, and City). 2. The City of Owasso create a City Department of Economic Development to be headed by a Director of Economic Development. 3. The City of Owasso employ the current OEDA Executive Director as the Director of the newly formed Economic CDevelopment Department. OEDA REORGANIZATION NOVEMBER 9, 1990 PAGE TWO 4. The equipment listed below be sold in a manner consistent with the laws governing the disposal of assets by a trust authority (auction sale to the highest bidder) A. Copier B. Laser Printer C. Conference table and chairs 5 The executive desk, chair, and bookcase used by the OEDA Executive Director remain property of OEDA and be assigned to the City. 6. All Chamber computer equipment be reviewed to insure a working condition exists and all software programming be provided by OEDA in order to allow "stand alone" ability. 7. The City of Owasso increase its membership dues to the Chamber of Commerce from $500 to $1,000 per year. 8. The Chamber of Commerce enter into a contract with the City of Owasso to: A. Provide for a contractual agreement between the Chamber and the City of Owasso to allow the Chamber to assist the City in the areas of economic development and sales tax enhancement, and provide compensation to the Chamber of Commerce in an amount not to exceed $5,000 annually for the services outlined in such contract. B. Provide for the lease of the current OEDA /Chamber facility to the Owasso Chamber of Commerce for the exclusive use of the Chamber for a sum of one dollar per year with an automatic annual renewal clause, provided, however, that the facility continues to be made available to the City from the Tulsa City - County Health Department. 9. The current Chamber employees shall continue to receive O benefits currently available to them, provided, however, no future employees are allowed such participation. OEDA REORGANIZATION NOVEMBER 9, 1990 PAGE THREE 10. The return of all current OEDA funds and assets to the City (except as provided above, under item #4), be accomplished in accordance with fiscal guidelines $5,000 shall, however, remain in OEDA account for Authority use in economic development activity as may be required of the Authority or requested in support of economic development activities. 11. The separation of management functions of the OEDA and Chamber be effective December 1, 1990. SUMMARY This proposal is presented as a recommended method of achieving reorganization of the OEDA /Chamber without creating an obstacle to the achievement of the economic goals of the community or the effective organizations, and is intended to: • Provide for the reorganization of the OEDA- Chamber without creating an obstacle to the achievement of the economic goals of the community or the effected organizations, and; • To place economic development responsibilities under the direction of the City, and; • To separate the management functions of the OEDA /Chamber, and; • To provide adequate building facilities for the Chamber activities at no cost to the Chamber of Commerce. It should be noted that in order to carry out this proposal, groper, and legal agreements must be developed and a legal review of the details accomplished. It may be necessary to be flexible when addressing some of the steps in this proposal in order to accomplish the overall goals of the plan. n OWASSO ECONOMIC DEVELOPMENT AUTHORITY MINUTES OF THE REGULAR MEETING OCTOBER 10, 1990 O.E.D.A. CONFERENCE ROOM, 315 S. CEDAR, 12:00 NOON 1. CALL TO ORDER Brenda Lawrence called the meeting to order at 12:30 p.m. 2. ROLL CALL Present: Alan Anderson Bre�Reer Frank Enzbrenner Patricia Marlar B1 Absent: Mark Thompson Sherry Lambert Tom Kimball Staff Present: Richard Hall Janice Fields 3. CONSIDERATION TO APPROVE THE MINUTES OF THE REGULAR SEPTEMBER 12, 1990 MEETING. Alan Anderson made a motion to approve the minutes of the regular September 12, 1990 meeting. Patricia Marlar seconded the motion. Aye: 5 Nay: 0 Carried: 5 -0 4. CONSIDERATION TO APPROVE WARRANTS. Alan Anderson made a motion to approve warrants in the amount of $2,422.91. Bill Retherford seconded the motion. Aye: 5 Nay: 0 Carried: 5 -0 5. FINANCIAL REPORT 6. CONSIDERATION TO INCREASE PETTY CASH FUND TO $100.00. Alan Anderson made a motion to increase the petty cash fund to $100.00. Bill Retherford seconded the motion. Aye: 5 Nay: 0 Carried: 5 -0 7. DISCUSSION OF WHO WILL RETAIN ANY CDBG MONEY RECEIVED. Richard Hall told the board that this was put on the agenda because it was brought up at the last meeting and Patricia Marlar said the City Council had already voted on this at the Tuesday City Council Meeting and reported that the O.E.D.A. would receive any monies from CDBG Grants. ! Cfj,,- 8. EXECUTIVE DIRECTOR'S REPORT Richard Hall summarized his report and is attached as part of the minutes. O.E.D.A. MINUTES OF THE REGULAR 10/10/90 MEETING PAGE 2 9. ATTORNEY'S REPORT None 10. UNFINISHED BUSINESS None 11. NEW BUSINESS None 12. ADJOURN Brenda Lawrence adjourned the meeting.