MINUTES OF REGULAR MEETING OF
THE HEALTH, EDUCATIONAL AND HOUSING FACILITY BOARD
OF THE CITY OF MEMPHIS


Tuesday, October 11, 2016

The regular meeting of The Health, Educational and Housing Facility Board of the City of Memphis, Tennessee was held pursuant to public notice on Tuesday, October 11, 2016.  The published meeting time was 12:00 Noon.  The meeting was held at the Board office, 65 Union Avenue, Suite 1120, Memphis, TN  38103.

    The following Directors were present:
                        
        Lee Patton                     Paige Walkup
        Monice Hagler            Buckner Wellford
        Daniel Reid                    Curtis Thomas
        Nancy Willis                     

    The following Directors were absent:

        Carolyn Head        Carolyn Goodwin-Willett
                    
    Also present were:

Staff members Martin Edwards and Lauren Magallanes were in attendance. Charles Carpenter, General Counsel, Rachell Davis, intern for Assistant City Attorney and Corbin Carpenter, legal intern, were also in attendance. 

With a quorum present, the regular meeting of the Board was called to order at 12 Noon by the Chair, Daniel Reid. 

Approval of Minutes
Paige Walkup moved for approval of the Minutes for September 14, 2016. Nancy Willis seconded and the motion passed unanimously. 

Monice Hagler entered the meeting

Finance Committee Report
Lee Patton reported on the Financial Statements for the period ending August 31, 2016. He provided summaries of the income statement and balance sheet for the period and year to date. 

Motion
Nancy Willis moved for acceptance of the Finance Committee Report for August 2016. Curtis Thomas seconded and the motion passed unanimously.

Buckner Wellford requested the report include percentage to budget calculations be made available beginning in January. Daniel Reid added an accounts receivable aging schedule report is being created by our accountant. Martin Edwards added a significant amount of delinquent fees were collected in August due to staff diligence. 

Attorney’s Report
Charles Carpenter stated there have been no new lawsuits or claims. Carpenter reported Blair House and Mendenhall Gardens PILOT Transfer(s) closed and the PILOT for Patterson Flats closed. Carpenter reported working with the Trustee(s) for Ridgecrest and Hilldale projects on getting annual issuer and administrative fees paid, as both projects are in default. 

Carpenter reported contact with the Downtown Memphis Commission concerning two (2) PILOT properties located within the boundaries of the Central Business Improvement District, or CBID. Carpenter stated there was a previous informal agreement detailing the PILOT projects located within the CBID would not be charged with CBID tax, as there have been no mandates in place stating otherwise. Carpenter added that the previous informal agreement was between the Board’s former Executive Director and the former President of the DMC. Monice Hagler asked if there were any pending projects that would be located within the CBID, to which Carpenter responded there are none pending at this time. Buckner Wellford added his positive agreement with the cooperation moving forward with the DMC. 

Motion
Buckner Wellford moved for the acceptance of moving towards an agreement with the Downtown Memphis Commission concerning Central Business Improvement Tax as it relates to HEHF PILOT projects. Monice Hagler seconded and the motion passed unanimously. 

Carpenter reported shootings at two (2) PILOT properties and detailed previous discussions within the PILOT Committee regarding more thorough tracking of crime related matters, more communication with Lessees and management and an affirmative action plan for all future occurrences. Carpenter added he would be working with Martin Edwards to formulate standard written communication to send to PILOT Lessees that would require a speedy response as to the details of the incident(s) and what might be done to protect the residents from future crime related occurrences.  Paige Walkup added a provision might be put into place regarding a budget within the PILOT agreements for the maintenance of security features as a tenant benefit. Martin Edwards added an owner’s meeting is currently being planned that would highlight the Lessee’s responsibilities regarding tenant benefits and general safety property conditions. Paige Walkup added there might be quarterly reporting of all crime related incidents considered as a requirement moving forward.


PILOT Report
Curtis Thomas reported Committee’s discussions regarding four (4) outstanding Notices of Non-compliance, one (1) of which, Summit Park Apartments, has been cured. Martin Edwards detailed the three (3) remaining Notices of Non-compliance for Macon Manor, Macon Pointe and Chambliss Village. Edwards reported responses and a schedule of repairs had been sent to staff for the three properties, however, properties are not currently in compliance. Edwards added a tenant benefit listed in the Chambliss Village PILOT application was not in place and the management has since reported that due to property area challenges, said listed tenant benefit for working perimeter gates could not be implemented. Edwards reported the ongoing discussions with management to provide documentation from Code Enforcement, to which management has yet to provide. Edwards added letters would be sent from Charles Carpenter to the remaining three non-compliant properties to cure before the November scheduled meeting. Buckner Wellford asked for the management representative to appear before the Board at the next scheduled meeting to speak to the misstatement of tenant benefit within the PILOT application. Lee Patton added the gates could be retrofit to be in compliance with the stated tenant benefit. Charles Carpenter stated he would request the applicant to appear at the next scheduled meeting as a part of his default letter for Chambliss Village. 


Action Items


CONSIDERAION OF PILOT TRANSFER APPLICATION FOR ABINGTON APARTMENTS
Martin Edwards presented the project summary and added the property appears to be in good working condition. Edwards recommended approval.

Motion
Monice Hagler moved for the acceptance of the PILOT Transfer Application for Abington Apartments. Lee Patton seconded and the motion passed unanimously. 


CONSIDERAION OF PILOT EXTENSION FOR EASTERN CREEK APARTMENTS
Martin Edwards reported the project is a combination of two property locations in north Memphis and is owned and managed by Alco. Edwards added the extension fee and retainer fees have been paid. Charles Carpenter added the extension has been requested due to the THDA tax credit allocation schedule.

Motion
Nancy Willis moved for the acceptance of the PILOT Extension for Eastern Creek Apartments. Curtis Thomas seconded and the motion passed unanimously. 

 

There being no further business, the meeting was adjourned by the Chair at 12:35 p.m.