MINUTES OF REGULAR MEETING OF

THE HEALTH, EDUCATIONAL AND HOUSING FACILITY BOARD

OF THE CITY OF MEMPHIS, TENNESSEE

Monday, July 9, 2018

 

The regular meeting of The Health, Educational and Housing Facility Board of the City of Memphis, Tennessee was held pursuant to public notice on Monday, July 9, 2018.  The published meeting time was 12:00 Noon.  The meeting was held at the Board office, located at 65 Union Avenue, Suite 1120, Memphis, TN  38103.

            The following Directors were present:                                                   

                        Daniel T. Reid, Chair (via phone)                      Brittney Rowe

                        Monice Hagler (via phone)                                  Cliff Henderson                                          

                        James Jalenak                                                                     

            The following Directors were absent:

                        Nancy Willis                                                             Buckner Wellford

                        Dr. Manoj Jain                                                                                                                                                    

            Also present were

Staff members Martin Edwards, Jr., Lauren Magallanes, and Stephanie Wright were in attendance. Charles E. Carpenter and Corbin I. Carpenter, General Counsel, and Cheryl Hearn, Assistant City Attorney, were also in attendance.

Al Bright, Jr. representing Cedar Run Apartments, Geoff Benson, Richard Hamlet, and Chris Lamberson representing Bent Tree Apartments, and guest Elliot Edwards were also in attendance.

The regular meeting of the Board was called to order at 12:00 Noon by Vice Chair, Monice Hagler. Noting that a quorum was not present, the meeting agenda was adjusted to allow informational items to be presented to the meeting in anticipation of a quorum being established.

Al Bright, Jr. entered the meeting.

Cedar Run Apartments

Al Bright, Jr., representing Cedar Run Apartments came before the Board seeking a waiver of the PILOT extension fee imposed at the Board’s June meeting. In support of the waiver, Mr. Bright advised of the work completed to date and advised that the PILOT is scheduled to close on July 10, 2018. After a question and answer session with the Board Mr. Bright exited the meeting without any action being taken by the Board.

Finance Committee Report

Discussion of the financial report was deferred to the August 7, 2018 Board meeting.

Attorney’s Report

Charles Carpenter presented the legal report, as follows:

Charles Carpenter reported the three (3) Millennia Housing bond financings, to wit: (i) Gospel Gardens Apartments, (ii) Hope Heights Apartments, and (iii) Cavalier Court Apartments are not ready for Final Bond Resolution stating that the Developers and their purchaser are revising the structure of the respective financing documents. Following these revisions, Carpenter reported that these bond financings will all come before the Board at the August 7, 2018 Board meeting for Final Bond Resolutions and will not be considered on today’s agenda.

The above concluded the legal report and there was a brief question and answer session with members of the Board.

BOND INDUCEMENT RESOLUTION FOR HERITAGE OAKS SENIOR LIVING RESIDECES

Martin Edwards, Jr. made a staff recommendation to defer this action item to the August 7, 2018 Board meeting as no representative was in attendance.

PILOT Report

Martin Edwards, Jr. stated the PILOT committee did not meet because there were no new action items concerning PILOTs.

PILOT TERMINATION FOR BENT TREE APARTMENTS

For an informational update, Martin Edwards, Jr. welcomed Benson, Hamlet, and Lamberson into the meeting. Lamberson began the report on Bent Tree Apartments by first giving an update on the SkyCop, which has been installed and is now operational as of June 5, 2018. The second issue addressed was the fire damaged building. Geoff Benson, an independent contractor with Adirondack Construction, reported that rough inspections have been completed and he expects substantial progress and possible completion by the end of July 2018. Lamberson then reported on the drainage issue, stating MLGW has been to the property and marked all utilities, as well as provided their maps for the property. ETI Engineering Group completed construction plans at the end of June 2018 and Geoff Benson was selected as the contractor for this project as well. Benson has submitted the construction plans to the City of Memphis. The City will require up to three (3) weeks to sign off on these plans. Following the City’s approval, Benson stated the project could be completed by late September or early October of 2018. Following discussion, it was concluded that the next progress update would be

expected at the September 2018 Board meeting. Geoff Benson, Richard Hamlet, and Chris Lamberson exited the meeting.

Daniel T. Reid joined the meeting via phone thereby establishing a quorum. Following the establishment of a quorum, the Board elected to further consider the application of Cedar Run Apartments for waiver of the extension fee. After a further discussion of the matter,

James Jalenak moved to waive the extension fee contingent on Cedar Run Apartments PILOT closing no later than July 16, 2018. Brittney Rowe seconded, and the motion passed unanimously.

Approval of Minutes

The Board then considered the minutes of the June meeting.

James Jalenak moved for approval of the Minutes for June 6, 2018. Brittney Rowe seconded and the motion passed unanimously.

Executive Director Report

  1. Martin Edwards, Jr. reported on his June 12, 2018 visit with new management at Eden at Watersedge PILOT property. Edwards received new rent rolls and met the new resident manager and assistant manager. Edwards also received their new Maintenance Policies and Procedures and was very complimentary of the new management.
  2. Edwards reported on Washington Manor PILOT property, stating that none of the needed improvements have been completed at this property. Edwards referenced the Non-Compliance letter that was sent to the owner in June 2018 and reported that he has been in contact with the owner and the owner is in the process of trying to complete a sale of the property. Edwards stated this property is on the Board’s watch list and will continue under closer review.
  3. Edwards reported Eastwood Park Apartments PILOT property has responded to the Notice of Noncompliance that was sent on June 4, 2018.  A PILOT repair report was provided, which outlines completion dates by the end of August 2018. Some projects have already been completed, showing the property is in process of becoming compliant.
  4. Edwards reported on Thompson Court PILOT property’s extensive renovation plans and referenced a recent site visit showing little progress being made, as well as, lawn and landscaping maintenance issues that have not been addressed. Edwards also reported receiving an inquiry for approval of a refinancing for this property, however it was not received timely to be included on the July meeting agenda and therefore, the request for refinancing will be considered at the August 7, 2018 Board meeting.
  5. Edwards reported that there was a request from WREG news station, on July 4, 2018 with a deadline of July 5, 2018 at Noon requesting information on how the Board’s PILOT program works and if a particular PILOT property was still an active participant in the PILOT Program. Edwards visited the property with the resident manager and there were no issues to report. Edwards responded to the request of WREG by providing a copy of the PILOT application and PILOT process.

The above concluded the Executive Director Report and there was a brief question and answer session with members of the Board.

New Business

There was no official new business.

Public Comment

There being no public comment, it was announced that the next scheduled meeting of the Board will be held on Tuesday, August 7, 2018 @ Noon. There being no further business, the meeting was adjourned by the Vice Chair at 1:01 p.m.