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

Wednesday, October 11, 2017

The regular meeting of The Health, Educational and Housing Facility Board of the City of Memphis, Tennessee was held pursuant to public notice on Wednesday, October 4, 2017.  The published meeting time was 12:45 PM.  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, Chairman                James Jalenak
        Monice Hagler                                     Dr. Manoj Jain
        Nancy Willis                                         James Maclin
        Ashley Foxx                                          Buckner Wellford    
                                             
    Also present were:

Staff members Martin Edwards, Jr. and Lauren Magallanes were in attendance. Charles E. Carpenter, General Counsel, and Corbin I. Carpenter were also in attendance. 

Archie Willis, representing South City Phase I Apartments, was also present. 

With a quorum present, the regular meeting of the Board was called to order at 12:45 PM by Chairman, Daniel T. Reid. 


Approval of Minutes
Nancy Willis moved for approval of the Minutes for August 9, 2017.  Buckner Wellford seconded, and the motion passed unanimously. 


Finance Committee Report
Daniel T. Reid presented the financial results for the month ended July 31, 2017. After a complete discussion of the financials: 

Monice Hagler moved for acceptance of the Finance Committee Report for July 31, 2017, and properly seconded by Nancy Willis, the motion passed unanimously. 

Daniel T. Reid presented the financial results for the month ended August 31, 2017.

Monice Hagler moved for acceptance of the Finance Committee Report for August 31, 2017, and properly seconded by Ashley Foxx, the motion passed unanimously.


Attorney’s Report

Charles Carpenter stated there have been no new claims or lawsuits since the previous Board meeting. 

Carpenter further reported that the Coves at Yale PILOT Transfer has been successfully completed. Further that the Eden at Watersedge Apartments PILOT which has been previously reported to be pending in Environmental Court has now been dismissed by the Environmental Court and Code Enforcement due to satisfactory compliance by the owners. Carpenter added Martin Edwards has also removed the property from the Board watch list. 

In addition to the above, Carpenter reported that Alco property Saint’s Court Code Enforcement violations issue with fire damaged units is continuing to be monitored and the units are being repaired. Moreover, Code Enforcement is continuing to monitor the restoration of the units.  

Finally, Carpenter reported that the Forum Flats Apartments closing for the bonds and PILOT proceedings have been delayed due to pending HUD approvals.  

The above concluded the legal report and there being no further concerns or questions, the legal report was completed. 


PILOT REPORT

Martin Edwards, Jr. reported continued monitoring of Bent Tree Apartments and Highland Creek Apartments. Edwards added Eden at Watersedge has been removed from the Board’s watch list as satisfactory progress has been made.  


Action Items:

Monice Hagler is recused and left the meeting.

CONSIDERATION OF MHA PILOT APPLICATION FOR SOUTH CITY APARTMENTS PHASE I

Archie Willis, President of ComCap Partners, gave an overall summary presentation of the planned South City Apartments development under the Choice Neighborhood program with the City of Memphis. Willis detailed the various Phases and financial composition of the Choice Neighborhood Initiative (previously Hope VI) projects in the downtown Memphis area. Willis projects Phase II will be presented for consideration early 2018. Willis also detailed various plans for the neighborhood, including early childhood education and social services, with the goal being economic self-sufficiency and affordable, safe housing for the community.

James Maclin entered the meeting.

Martin Edwards asked for clarification of the tenant benefit structure of the project, to which Willis responded that the benefits would span the all Phases of the project. Buckner Wellford asked about the rental rates of market rate units compared to income restricted units to which Willis explained, and added that historically there is a waiting list for market rate units in their similar developments. Wellford asked about the relocation of Foote Homes residents leading up to demolition and construction, which was discussed in detail. Willis responded that there will be an estimated two-year construction and lease up period and residents wishing to return to the location will be open to apply and subject to management underwriting, screening and approval. Willis confirmed the Memphis Housing Authority would own the property, while McCormack Baron and Salazar would own the leasehold improvements. Willis also answered the former Foote Homes residents will have preference of first choice for rent up. Charles Carpenter asked if there had been any transportation studies done, as many new units are being developed in the downtown area. Willis responded MATA has been involved and are aware of the new demand for transportation. Manoj Jain asked to the tax savings for the PILOT, to which Willis stated they based their numbers on their best assumption of what the properties will be assessed for. Willis added the properties would not be possible without the PILOT benefit. It was also discussed by Carpenter that the previous phased projects had been approved by the Board as a whole, with details of each phase being discussed as they are brought on line and asked Willis if this is a part of his request to the Board for this project, to which Willis responded affirmatively. 


James Jalenak moved for the approval of the OVERALL APPROVAL OF THE MHA PILOT APPLICATION FOR SOUTH CITY APARTMENTS CONCEPT AND APPROVAL OF PHASE I OF THE SOUTH CITY APARTMENTS. Manoj Jain seconded, and the motion passed unanimously. 

Monice Hagler re-entered the meeting. 

Ashley Foxx left the meeting due to other commitments.

CONSIDERATION OF THE PILOT TRANSFER APPLICATION FOR EDEN AT WATERSEDGE APARTMENTS
Martin Edwards detailed the property location and occupancy numbers. Martin and staff recommended approval. 

Buckner Wellford moved for the approval of the PILOT TRANSFER APPLICATION FOR EDEN AT WATERSEDGE APARTMENTS. Monice Hagler seconded and the motion passed unanimously. 

CONSIDERATION OF THE 2017 MULTIFAMILY PILOT CALENDAR ROUND III
Daniel T. Reid referenced the proposed dates for the calendar round.

Monice Hagler moved for the approval of the 2017 MULTIFAMILY PILOT CALENDAR ROUND III. James Jalenak seconded and the motion passed unanimously. 

Executive Director’s Report

No report.

New Business

None


There being no public comment, it was announced that the next scheduled meeting of the Board will be held on Wednesday, November 8, 2017 @ Noon. There being no further business, the meeting was adjourned by the Chair at 1:54 p.m.