MINUTES OF REGULAR MEETING OF
THE HEALTH, EDUCATIONAL AND HOUSING FACILITY BOARD
OF THE CITY OF MEMPHIS, TENNESSEE
Wednesday, October 4, 2023
The regular meeting of The Health, Educational and Housing Facility Board of the City of Memphis, Tennessee (the “Board”) was held pursuant to public notice published in The Daily News on Wednesday, September 27, 2023, and posted on the Board’s website at: www.memphishehf.com. The published meeting time was 12:00 Noon. The meeting was held in the conference room in the offices of the Board, located at 65 Union Avenue, Suite 1120, Memphis, TN 38103.
The following Directors were present:
Daniel T. Reid, Chairman Buckner Wellford (Zoom)
James Jalenak (Zoom) Cliff Henderson
Katie Shotts (Zoom) Howard Eddings
The following Director was absent:
Monice Hagler, Secretary
Staff and others attending: Stephanie Bryant and JP Townsend; Charles E. Carpenter and Corbin I. Carpenter, General Counsel; Cheryl Hearn, Deputy City Attorney.
Also participating in person and/or via remote Zoom virtual platform were Joyce Warren, Becky Scott, Andrea Smith, Peggy Wilkin, William Tuggle, Mary Godwin and James McNab, residents of Memphis Towers; Yvonne Collins, former resident of Memphis Towers; Alex Uhlmann and Caroline Francisco of the Memphis Tenants Union; Claudine Gearring, Arthur Krauer, Tom Mignogna, Angelica Sinito, and Renee Weiss of Millennia Housing Development, Ltd representing Memphis Towers; Deborah Payne and Luretha Phillips of Memphis Housing Authority (MHA) representing Edgeview at Legends Park; David Shores of Multi-South Managements Services, LLC representing Jamesbridge Apartments and Macon Manor Apartments; Phil Balderston, Brett Goldenhorn, Tameca Parker, Stephanie Reed, and Pauline Olden of Odin Properties and David Upton representing Creekside Meadows (f/k/a Bent Tree) and Mill Creek Apartments; Jacob Steimer of MLK50; Zaneta Lowe of WREG News Channel 3; and several members of the public were also present.
With a quorum present, the regular meeting of the Board was called to order at 12:00 Noon by Daniel T. Reid, Chairman.
Chairman Reid stated that in compliance with the Open Meetings Law codified in Section 8-44-101 to 8-44-108 inclusive of the Tennessee Code Annotated, as amended, The Health, Educational and Housing Facility Board of the City of Memphis, Tennessee is holding its regular meeting on Wednesday, October 4, 2023 @ Noon as an open public meeting in its conference room located at 65 Union Avenue, Suite 1120, Memphis, Tennessee 38103.
Chairman Reid stated supplemental Board meeting materials could be accessed on the Board’s website: www.memphishehf.com and reminded all attendees participating via remote access to enter their name and affiliated entities into the Zoom platform for record keeping purposes.
Approval of Minutes
Cliff Henderson moved for approval of the Minutes of the September 13, 2023 Regular Meeting, which was seconded by James Jalenak and the motion passed unanimously after proper roll call vote of the Board members.
Finance Committee Report
Cliff Henderson presented the financial results for the month ended August 31, 2023. Henderson called the attention of the Board to its investment accounts, stating that even though the Board has a high balance of investments, those dollars are intended for use over the next twenty to twenty-five (20-25) years. Henderson stated that the Board is self-funded and the Board had a few years following the 2018 resolution when it took in funds for a number of PILOTs that were able to extend the PILOT term, but that will now be reduced and the investment funds are not funds that the Board considers as surplus, because the funds are to be restricted and set aside to fund Board operations over the next twenty (20) plus years.
Buckner Wellford stated that Henderson has emphasized several times that the balance of funds that the Board has is not simply just money that can be used for anything, but that inevitably will have to cover things that relate to the lengthier time frames that the Board is issuing PILOTs for with the change in the law brought about by the Resolution passed by City Council in 2018. Wellford stated that is very good thing for the Board to be thinking about and he had not fully appreciated that, and the Board needs to quantify in some way what it is expecting to have to spend in order to do a reasonable job at compliance and monitor the PILOT properties for the lengthier periods of time and try to get a feel for what the Board’s burn rate is likely to be each year with operational costs and other things. Wellford stated that he does think that there is still a surplus that the Board is likely to have beyond what it will probably need. Wellford stated that he believes the next step in this process is going to be with some professional help, determining how much the Board will likely need, what is going to happen with the fund balance in the next five (5) years, and try to plan on a reasonable and proactive way for the Board to use some of those funds to advance the purposes that the Board was created for. Chairman Reid stated that Henderson had done a really good job at forecasting, and has provided that information to the finance committee, which Wellford was not privy to and asked Henderson to share an update to the Board on that. Henderson stated that he has done a model and cash forecast going over the next twelve (12) years, and there would be a surplus, but it would all depend on the return on the Board’s investments, certain things the Board would do from a burn rate perspective with staffing, and the emphasis on compliance. Henderson stated that the current annual burn rate is approximately nine hundred thousand ($900,000), and the organization runs lean. Henderson stated that from that perspective there would be a surplus, depending on assumptions being made about new term extensions and other items going forward. Henderson stated that with of the Board’s total current portfolio of one hundred fourteen (114) active PILOT properties, 90% have already extended their terms to the maximum allowable term, and that is why you see a surplus that has come in over the last few years. Those that remain will not bring in a lot more money over the next five (5) years, so Henderson stated that is something the Board needs to be careful of, but he agrees that the Board needs to have further discussion. Wellford expressed his appreciation to Henderson, stating that he looks forward to seeing those materials and having further discussion at a Board level. Wellford thanked Henderson for his work on this and stated that the Board is doing what the public would expect the Board to do in trying to figure out the responsible way to go about managing the money. After discussion,
Buckner Wellford moved for acceptance of the Finance Committee Report for the month ended August 31, 2023, properly seconded by James Jalenak, and the motion passed unanimously after a proper roll call vote of the Board members.
Attorney’s Report
Charles Carpenter presented the legal report, as follows:
1. Carpenter reported that there are three (3) PILOT Property claims that have been received since the last Board meeting:
a. Binswanger Glass vs. Memphis Towers; being a Notice of Non-Payment and lien in the amount of $115,182.50.
b. Lowe's Pro Supply vs. New Horizon Apartments; being a Notice of Non-Payment of $63,697.04.
c. A Notice of Judgment through the Environmental Court.
Carpenter reported that his firm has been spending a lot of time with the Environmental Court and staff, explaining how the Board’s PILOT program works and the statutory immunity that the Board has while serving its public function in the PILOT program. Carpenter reported that his firm did receive a judgement for one of the PILOT properties for approximately $1,600 and he informed the Environmental Court judge of the Board’s statutory immunity in open court, and the judge stated he understood and that the Board would not be held accountable for these PILOT properties, but Carpenter’s firm will be meeting with the Environmental Court judge outside of open court to further discuss the matter. Carpenter stated that the Environmental Court judge has the PILOT properties reporting on a weekly basis, and there are approximately twelve (12) PILOT properties administered by the Board in Environmental Court for code violations, with most being classified as not significant in nature which could result in a legal default of the PILOT. Carpenter reported that his firm is working with the Environmental Court, Code Enforcement, and the Board’s compliance monitors so that his firm can properly report and be efficient at all levels. Carpenter will continue to monitor all reported matters and keep the Board advised.
2. Carpenter reported that in connection with his firm’s communication with Tennessee Housing Development Agency (THDA), Millennia has formally withdrawn its application for the conditional approval received for The Memphian (f/k/a Serenity Towers) and Millennia has formally advised the Board that it has elected not to pursue a closing extension on its bond inducement and PILOT application for The Memphian (f/k/a Serenity Towers). Carpenter stated that the Board now has no involvement going forward with Serenity Towers. Carpenter stated that further discussions will be reserved for the action items for Millennia representatives to respond.
3. Carpenter reported that his firm has been monitoring the City Council activities and Board member appointments and reappointments have been going well but are still not completed as of yet. Carpenter advised that his firm is looking forward to providing any support or additional information to the Mayor’s office or the City Council may need to complete the process.
Buckner Wellford asked where the Board is with Memphis Towers. Carpenter responded that Memphis Towers is on the Board’s action items on today’s meeting agenda and the Board will receive a status report from two (2) representatives in attendance at today’s meeting which will be discussed following public comment. There being no further questions or comments, the Legal Report was concluded.
Public Comment
Chairman Daniel Reid opened the floor for public comment and advised that all comments should be limited to two (2) minutes per speaker.
1. Joyce Warren introduced herself as a resident of Memphis Towers. Warren asked when Millennia is going to be held responsible for what they have done to their residents and how do they have so much power to keep on getting public incentive contracts, seemingly referring to HUD incentives. Chairman Reid stated that is a broad policy statement beyond the Board’s scope and not something that this Board can answer. To clarify to Board’s role, Charles Carpenter stated that during public comment, if someone has a statement to make as a resident of Memphis Towers, which property is a participant in the Board’s PILOT program, this would be the opportunity to make the statement. The Board will then hear the status report that representatives of Memphis Towers will be providing specific information. Carpenter stated that if there are questions remaining thereafter, the Board members will ask for further explanation from Memphis Tower representatives on those points. Carpenter asked Warren if she had any other comments that she would like to make regarding her residency at Memphis Towers? Warren stated that she would just like them to finish her building and the construction workers say the reason they are not completing construction is because Millennia will not pay them.
2. Becky Scott introduced herself as a resident of Memphis Towers and stated that she has spoken to the Board on two (2) previous occasions. Scott stated that she would like to put for the Board’s consideration that there has been no improvement of conditions at Memphis Towers and when residents tried to have a meeting with representatives from Millennia, not only did the people from headquarters in Cleveland, OH not show up as promised but the local representatives, who are very largely complicit in all of the atrocities that go on at Memphis Towers on a regular basis, shut down the meeting because of the presence of media, which led her to believe that they never intended to be accountable or transparent with residents or with anyone else. Scott stated that there is only one working elevator for almost two hundred (200) people for an entire month. Scott stated that many of those people use wheelchairs and other mobility devices. Scott stated that the controlled access to the building that was promised to residents a month ago has not happened, in fact, the door has been broken the entire time and has been open, stuck open for an entire month, day and night, where anyone could just walk in and not until conveniently today, did they have someone show up to work on the door. Scott stated that as far as harassment, she does not think it is any coincidence that five (5) days after the last time she was very publicly in front of this Board and in front of media, she was harassed and threatened with police action by two (2) members of Memphis Towers staff for quite literally doing nothing. Scott stated that she would just like the Board to consider that for future dealings with Millennia, for Memphis Towers, and with any Millennia property, and that they have no interest in resident’s health, safety, or well-being.
3. Andrea Smith introduced herself as a resident of Memphis Towers. Smith stated that she came and spoke to the Board at the last meeting and said that she has mold in her ceiling, and when Millennia saw it on television, they spray painted the mold while she was not at home, and then she got sick with headaches. Smith stated that as Becky Scott stated, the door was broken and only today did they have someone come and fix it. Smith stated that the elevator was out last night, and she had to walk up six (6) flights of stairs and more had to walk up eight (8) flights. Smith stated that it is health wise, and Millennia needs to do something because when residents give Millennia money to pay rent, then Millennia needs to treat residents right and give respect to get respect.
4. Peggy Wilkin introduced herself as a resident at Memphis Towers for almost nineteen (19) years. Wilkin stated that residents have heard from reliable sources that Millennia is getting ready to sell some of their properties, and residents are pretty sure that Memphis Towers is going to be sold and they are being told that the building is sold, and they said they are going to be in Texas, Arkansas, and some place, and they aren’t going to mess around with those tricky complexes in Memphis, which is probably Memphis Towers. Wilkin stated that other areas have been on the news and they have left residents high and dry, with two (2) people that work in the office, and the door has been opened over a month, no security, and the last maintenance guy quit, and no one will tell residents anything. Wilkin stated that a resident went to the office to place a maintenance request on Friday, September 29, 2023, and they said that the building was sold yesterday. Wilkin stated that Millennia has never done anything and they are never going to, and no one would believe the mess they made in renovating those apartments and then had the nerve to try to make residents pay for them. Wilkin stated that she moved in June last year and had to sign a new lease and nothing to say about rent, it was not recertification, and three (3) months later, she found out Millennia had gone up on rent substantially and late fees start on the 6th and end when you pay your rent. Wilkin stated that Millennia charged them all three months and had her owing two thousand three hundred dollars ($2,300) in back rent and late fees at the first part of the year. Wilkin stated that she pays her rent the second Wednesday of each month and pays her late fees every month and she doesn’t owe them a dime. Wilkin stated that it is funny because they haven't been able to collect it because they are wrong when they did not tell residents they are going up on their rent. Wilkin stated that she feels like Millennia is trying to get back at residents for something they didn’t do, but that Millennia did themselves because they did not notify residents and Millennia doesn’t know what the truth is, and they do not want residents coming to the office. Wilkin stated that Millennia told the armed guards to harass residents and residents cannot congregate anywhere. Wilkin thanked the Board for doing what it can to help.
5. Yvonne Collins introduced herself as a former resident of Memphis Towers, and stated that in June 2022, she went on the news to try to get hot water to the building. Collins stated that two and a half weeks later, the manager told her that she probably would not get a lease because she went on television. Collins stated that she did not get a lease, and she moved out because she had no legal means to prove she was supposed to be in the building. Collins stated that she had no lease, so she had no choice but to vacate and has been homeless since July 2022. Collins stated that Millennia needs to quit retaliation and quit discrimination against their residents. Collins stated that residents are older and are handicapped, and when they try to get hot water, this is what Millennia did to her, and she has been homeless for over a year because of retaliation.
6. William Tuggle introduced himself as a resident of Memphis Towers. Tuggle stated that he is legally blind and has been disrespected by staff. He stated he has been called a blind cock-eyed crow, residents with leg problems on walkers or that limp have been called hop-along Cassidy. Tuggle stated that this is their job, and they should be professional about it and should not treat seniors like that. Tuggle stated that it just is not right and if residents are living there, they are living in a pig stye, and Millennia does not fix things. Tuggle stated that his bathroom sink has had a leak for two months and he has been asking maintenance for two months, at least twice a week, to fix it and he found out two days ago that the maintenance man quit. Tuggle stated that there now is no maintenance in the building whatsoever and conditions are terrible. Tuggle stated that Millennia would not want their grandmother or any other elderly relatives to live in those conditions, but Millennia does not care about them.
7. Mary Godwin introduced herself as a resident of Memphis Towers. Godwin stated that she has been a resident for a year and a half, and recently she saw mold on the ceiling of her bathroom. Godwin stated that Code Enforcement came to her unit and took pictures of the mold. Godwin stated that somebody came to her unit and washed it up. Godwin stated that it comes down to Millennia’s security and making sure that someone is licensed. Godwin stated that a man named Leon is not licensed and he cannot be licensed. Godwin stated that Leon was riding a bike through the building, where he is not supposed to be. Godwin stated that he harasses the tenants, and that Millennia needs to tell their employees how to talk to residents, because they are adults, not children. Godwin stated that there are also Christmas lights as decorations, and it rains inside the building, and she still has a leak. Godwin stated that it needs to be fixed or cut the funds off from HUD. Godwin stated that she will be going to City Council next Tuesday and she is going to be bringing this to their attention again and telling them that she has been before Millennia and she has seen no results and they are not fixing anything. Godwin stated that Millennia is backing it up and packing it up. Godwin stated that she is tired of living in mold and living like she has cockroaches.
8. James McNab introduced himself as a resident of Memphis Towers. McNab stated that the manager of Memphis Towers keeps telling residents that they cannot smoke in front of the building. McNab stated that when they go on the city sidewalk and smoke cigarettes, management still jumps on residents for being on the city sidewalk smoking. McNab stated that is not right and the sidewalk belongs to the city and that Millennia does not have anything to do with that sidewalk.
9. Alex Uhlmann introduced himself as an organizer that works for the Memphis Tenants Union. Uhlmann stated that the Memphis Tenants Union has been coming to Board meetings for a while now and the Board has repeatedly asked for Millennia to fix the problems that the Memphis Tenants Union has brought up and they have really seen no progress on all the many things that they brought up last meeting. Uhlmann stated that they talked about security and the Board talked about security and how things need to step up and they have not. Uhlmann stated that it sounded like the Board had ended their relationship with Serenity Towers and he is hoping that the Board takes a similar action with Memphis Towers because it has just come to that point now. Uhlmann stated that Millennia said they would have a meeting with the Memphis Tenants Union, and the Memphis Tenants Union wanted accountability and Millennia clearly did not, so they ended the meeting early and it is just par for the course in their interactions with Millennia. Uhlmann stated that they did not have the folks that could actually make changes in that meeting and that Memphis Tenants Union came very prepared to make statements and talk about their issues and have a back and forth about what could be done in the building, but Millennia was not interested. Uhlmann stated that the Memphis Tenants Union shared an article with the Board about Millennia selling out properties and he does not even know what the logistics are about what Millennia is going to be doing going forward, so he believes that is an open question. Uhlmann stated that given everything he has already gone over, he believes it is time for the Bard to end their relationship with Memphis Towers and he hopes that the Board will decide to do that today.
Chairman Dan Reid thanked everyone for their public comments and expressed his appreciation for everyone being here to voice their concerns. There were no further questions or comments.
Action Items-
1. Status Update for Millennia Housing (d/b/a Memphis Towers)
Charles Carpenter introduced this agenda item and invited representatives in attendance in person, to have a seat at the Board table and introduce themselves. Arthur Krauer introduced himself as the interim president of operations for Millennia and Claudine Gearring introduced herself as the corporate representative in attendance from Cleveland, OH and the regional manager in Memphis, TN, respectively. Cliff Henderson asked that the Board hear from its internal compliance monitors prior to receiving an update form Millennia representatives so that Millennia representatives may address those items appropriately. JP Townsend, Internal Compliance Staff Inspector for the Board, provided a report to the Board. Townsend stated that he and Compliance Coordinator Bryce Miller were on-site at Memphis Towers on Tuesday, October 3, 2023, and performed a walk-through of the property. Townsend stated that there was a fire alarm going off as they arrived on-site, and the front door had not been repaired or replaced at that time. Townsend stated that they observed new cameras that had been installed through the hallways and the back door was locked. Townsend stated that while on-site, they observed tenants coming to the back door and allowing each other access. Townsend stated that Gearing stopped this as they observed it happening, but as they all were going up the elevator, one of the residents proceeded to allow additional access through the back door. Townsend reported that one elevator was working, while the other elevator was not working. Townsend stated that at the entrance of the elevators, there were what seemed to appear like Christmas lights hanging that were also not working. Townsend stated that there was an improvement in the laundry room where there were windows that were previously there and exposed and easy to open from the exterior, and those have boarded up, framed, and drywalled and they looked good. Townsend stated that still the same issue remains with security, as the front door was not fixed, most of the cameras that were installed are not operating. Townsend stated that there is a system that is being installed for the security cameras, but only two (2) cameras seem to be operating at this point and only certain staff have access to those security cameras. Townsend also stated that with the back gate, where there is ongoing construction, at night, workers are putting a small fence with chains around it, and it is not very secure. Townsend stated that he and Miller spoke with the construction manager, and he stated that they are trying to figure out something that is more secure for that back gate. Townsend stated that the fence that is set up to be complete following the completion of construction will be secure, and they were able to see that portion of the fence that will be placed there at completion, but for now, it is not secure. Townsend stated that he would like to hear an update on the front door, security cameras, and an update on the pull cords.
Howard Eddings, Jr. entered the meeting.
Claudine Gearing stated that the pull cords are working as intended and they are not connected to an outside provider, as that is not how they were set up, but they are monitored. Gearing stated that when a resident pulls a pull cord, the management does go and make contact and if the resident needs emergency care, management will contact the local emergency services at that time. Gearing stated that the pull cords are not the hospital kind of pull cords that go to ambulance and/or fire department, and they were not designed that way, so again, the pull cords are working as intended, Gearing stated that she did meet with Townsend and Miller and while they were inspecting, the back door was locked and secure, but there was a resident there, and because the young man did not want to go through the front door of the office because they have to provide ID and check in and he wanted to come to the back entryway. Gearing stated that she did deny him entry, but as she, Miller and Townsend were getting on the elevator, they could hear the door latching and him coming in. Gearing stated that Memphis Towers does have wonderful residents and many she knows and speaks to often, but many of the security issues are because some residents and their unauthorized guests are causing destruction and engaging in criminal activity, and Millennia is addressing those issues. Gearing stated that Millennia did implement a camera at the front door, and they constantly do monitor through patrols of the building, there is 24-hour a day front desk staff. Gearing stated that Millennia is getting some push back from residents when their guests do not have ID, but Millennia are unable to remove that measure at this time. Gearing stated that when she left the meeting between Millennia and the Memphis Tenants Union, an individual who was a resident, but is no longer a resident, damaged the front door and the elevator, and Gearing has the police report that she can provide to the Board. Gearing stated that they did call out repairmen for the door and they were able to provide a fix, however, they had to take the rollers off the door when some of the glass was removed, and those items were placed in a secure location.
Gearing stated that the repairmen are on-site today to make the repair, but that the repair does take time because it is a new door, and the original door has not been installed more than sixty (60) days ago when the same resident damaged the door and the parking lot lights. Gearing stated that the damage she had mentioned, she witnessed personally. Gearing stated that ADT is installing cameras in addition to the temporary cameras she had installed in the interim and anyone from the corporate office has access to the cameras.
Gearing stated that she installed the Christmas lights as temporary lighting because the common area renovations have not been completed yet, and it was a quick solution. Gearing stated that residents unplug the Christmas lights so she will readdress that and keep putting more lights up until the common area renovations are complete. Gearing stated that the resident that was evicted caused damage to the front door each time and to the parking lights also went into the elevator room and snatched cords, causing the second elevator to go offline. Gearing stated that she has been in contact with the contractor, and they will be working on the elevator. Gearing stated that the individual that was evicted has been back to the property three (3) times and management has had him arrested each time. Gearing stated that when Millennia representatives were meeting with the Memphis Tenants Union, the Memphis Tenants Union provided this resident that was evicted a t-shirt to include him in the meeting and giving him permission to be part of the meeting and Gearing had to ask the resident to step outside, and he refused and it became a very hostile situation and he was fighting with police and the police had to arrest him. Gearing stated that management is improving, although they are not complete and still have things to put in place. Gearing stated that management is going door to door knocking to ensure all residents have received fobs for the front door for when it is fixed and operating so that they are able to secure the front door.
Arthur Krauer stated that he wanted to make a response to the issues related to the Memphis Tenants Union meeting with Millennia. Krauer stated that the meeting had a Zoom component to it and when the Memphis Tenants Union stated that there was no leadership on the call, Krauer stated that he was on the call, there was another Executive Vice President of Operations on the call, and two (2) other Vice Presidents of Development were on the call and all were available to answer any questions. Krauer stated that Millennia representatives follow two things when it comes to dealing with residents and that is (i) discretion and (ii) respect and Millennia did not feel like those two values were followed.
Krauer stated that Millennia had no idea that the press was going to be invited to the meeting and Millennia does not discuss resident business in front of the press. Krauer stated that Millennia is happy to continue to meet with residents and offered to meet with Becky Scott the following day privately, and with anyone else that would like to meet, and he has not received a response. Krauer stated that Millennia is always willing to meet with residents and he has heard several issues related to tenant units and he is happy to go outside the Board meeting today following the Board meeting and discuss those issues and identify what has not been addressed and he will address them. Krauer stated that Millennia meets with residents and Millennia is proud of resident associations and their property and will continue to be.
Gearing stated that the Memphis Tenants Union has stated that they want someone who has the ability to make change, and that is why she is there. Gearing stated that if she makes a recommendation and tells the executive team what she is doing, they agree with her, and she is able to make change. Gearing stated that she is unsure of what the Memphis Tenants Union is asking, and she is not the individual property manager for Memphis Towers, but the representative from the corporate office here in Memphis. Gearing stated that the meeting with the Memphis Tenants Union followed a similar fashion as the Board’s Zoom procedures in that no one on Zoom was able to comment and they were muted, so whatever answers the Memphis Tenants Union was looking for, they were not able to receive, because the representatives were muted. Krauer stated that Millennia did not agree to these terms when arranging the meeting. Krauer stated that this was in an email Millennia received the day prior with the rules of engagement so ultimately anyone and everyone that could make change at the property was on that call, but again, Millennia operates with discretion and will not conduct business with residents in front of the press.
Charles Carpenter stated that he would like to make a comment that would set the stage for what the role of this Board is for the participants on the Zoom call and guests in attendance today. Carpenter stated that this Board has two (2) relationships with Memphis Towers: (i) one is that this Board helped to facilitate the tax-exempt financing that allowed Millennia to purchase Memphis Towers and to do the funding for certain rehabilitation work that they did and are completing now, which has extended for a period of time for a number of reasons, and (ii) the second relationship is with a payment in lieu of tax program, which froze the pre-development tax assessment so that once the improvements were made, the existing taxes are still being paid, but not the taxes on the improvements, so that in that case, it helps to stabilize the benefit to the tenant. Carpenter stated that the Board is not HUD, Code Enforcement, or Environmental Court, so those issues are addressed by other bodies and what the Board does as part of the PILOT program is to make sure that there are tenant benefits and those tenant benefits for the tenants are carried out and that is the primary purpose of the status reports. Carpenter stated that the status reports are to understand the tenant benefits to see that they are actually being conducted and if not, this is the area that the Board can do to make sure that those issues are addressed. In that case, if Millennia refuses to timely cure a default, the Board’s remedy is to terminate the PILOT, which would increase the property taxes; thereupon, Millennia would have to pay the additional taxes from equity out of pocket, or Millennia could seek some additional benefits from some other incentive provider or from HUD. Carpenter stated that the Board does not want to do that if it can find balance. Carpenter stated that the Board is not a referee here, but if deficiencies are significant enough, the Board can rule to put this PILOT in default and if it is not cured, it can terminate the PILOT. Carpenter stated that this explanation is for the tenants and others to know in this public meeting that the Board wants to have a forum for people to address concerns and hear what Millennia has planned.
Additionally, Carpenter stated that there has been a lot of publicity with Millennia and news media coverage, and during the week of September 25, 2023, Millennia did make a public announcement that it would be right sizing its business and changes would be made in Millennia’s multifamily and senor housing portfolios. Carpenter asked representatives to share some information about that, and specifically how the proposed changes may impact Millennia’s presence and the properties that Millennia owns here in Memphis.
Krauer stated that Millennia has right sized staff at the home office and Millennia will be putting potentially thirty-three (33) properties up for sale. Krauer stated that he is not in a place where he can discuss what those properties are, but he has heard no conversation whatsoever that Memphis Towers is one of those properties. Krauer stated that Millennia hoped to complete construction at Memphis towers in thirty (30) days, and the purpose for doing this was to improve the overall health and operations of Millennia and they believe these decisions and changes will help improve things in Memphis and Millennia will continue to do its work to manage its properties to the best of its ability. Krauer stated that Millennia believes they do a good job. Carpenter asked about the status of the elevator at Memphis Towers. Krauer responded that there is one elevator operating and Millennia is getting repairmen to correct the damages to the other elevator, and it should be up and running by Friday, October 6, 2023.
Carpenter asked Townsend to comment on tenant benefits at Memphis Towers. Townsend stated that he was able to see the common room that is under construction, and it is coming along nicely, and nice kitchens are being installed and equipment has been delivered, including refrigerators. Townsend stated that he and Miller were also able to view a newer unit that had floors installed, kitchen fixtures installed, and painting was being done. Townsend stated that as far as tenant benefits, the common room is going to make a big difference and will be very nice and provide a lot of opportunities to residents.
Krauer stated that Millennia also has two (2) service coordinators and when they begin bringing organizations on board, it will have a true and sizeable impact for the benefit of the residents. Krauer stated that it is unfortunate that the common areas and community spaces are the last to be worked on, but the challenge is always if you do those spaces first, that space gets severe use as construction is happening, so usually the common areas are the last things that Millennia will make sure they are new when the building is completed. Carpenter asked for the record, what is the timeline of completion. Krauer stated that sixty (60) days is what he is being told. Carpenter asked what the current occupancy is at Memphis Towers. Gearing stated that if including all three (3) towers, they are 58% leased, 53% occupied, and including just the two (2) towers that are complete, they are 80% occupied and 88% leased.
Cliff Henderson asked representatives to address the rumors that contractors are not being paid. Krauer stated that this property is obviously under construction and from the start of this construction to now, the economy has experienced unprecedented interest rate hikes, shortages in both labor and materials, and this has certainly impacted Millennia’s timeline and ability. Krauer stated that he believes Millennia has right sized everything now and the lien mentioned by Carpenter in the legal report has been taken care of and the lien will be released shortly, and Millennia believes they are on track to finish the structure and refinements. Henderson asked to confirm that construction is expected to be complete within the next sixty (60) days, to which Krauer stated that is what he has been told.
Henderson stated that he appreciates that there has been some action, but in speaking for himself, he is bothered that he has not heard Millennia representatives lay out a program to really nail everything down and get things done completely. Henderson stated that he has heard of some action being taken, but it does not seem that anything is being done about on-site property management and security. Henderson stated that the labor market is what it is, but that Millennia must have good people in place to deal with relationships with tenants and contractors, and the Board appreciates the action that has been taken thus far, but Millennia has not been presented the Board with a sustainable solution for this property. Henderson stated that there are two sides to every story, but if Millennia is employing unqualified maintenance personnel, and if there is anything remotely true about some of the things that the Board has been told by tenants, then Millennia needs to formulate a plan, or the Board will have to take some action.
Krauer stated that the reason he is here is to work with Gearing to make sure they have a consolidated plan to get to the finish line. Krauer stated that he is at a lot of properties and travels a lot for Millennia and that he has spent a lot of time in Memphis to make sure that Millennia has righted everything here. Krauer stated that he will meet with residents to be sure he understands what their units are and what the issues are and make sure those issues are addressed. Krauer stated that Millennia will have solid property management at Memphis Towers moving forward. Krauer stated that he does not agree with everything that has been said here by the residents, but ultimately, Millennia’s goal is to respond to maintenance requests within 48-72 hours depending on the request, to have the best social services on the property to assist the residents and improve their lives, and to have the best physical structure, which Millennia believes this rehabilitation is providing. Krauer stated that he hears the Board’s frustration with the day-to-day operations of the property, and Millennia will make sure that it meets the Boards expectations. Henderson stated to Krauer that he understands that the door is not yet fixed, as it takes time to call vendors and coordinate that, and he understands that there are going to be residents that get angry.
Henderson stated that what he would like to hear from representatives is that if the front door is broken, then Millennia has a fallback plan, and not relying on front desk staff who need to be available if a resident pulls a pull cord. Henderson stated that additional security would be an additional cost, but when you give good will, the benefit outweighs the cost. Gearing stated that when there is an emergency, Millennia does have someone that responds 24 hours a day, and they do have a team that is at other properties, so when the door was broken, they did come out in the middle of the night and secure the door as best they could. Gearing stated that she has made staffing changes because they were not providing the residents with service and genuine care and there have been three (3) managers that did not follow the Millennia protocol on customer service and resident services. Gearing stated there has been turnover in maintenance staff as well due to the higher standards and expectations that Millennia has and if they were not performing the job, Millennia would have to move them along. Gearing stated that Millennia is not getting as many qualified resumes, but they are working through that, and residents have seen some changes and she is there almost every day.
Krauer stated that he has heard the Board’s feedback, and he believes that Millennia has met that standard and there are people at the front door. Krauer stated that it is unreasonable to expect that Millennia has people at every door of the property 24/7, and that there are cameras throughout the property and that is what they are there for. Krauer stated that some of this is that Millennia expects residents also to inform the quiet, peaceful enjoyment of the property. Krauer stated that he believes Millennia has met the standard and in addition, while he respects what has been said here today, the residents present represent less than 1% of the total population of Memphis Towers, and so what the Board is not hearing is the residents that are quite satisfied with the daily operations. Henderson stated that when the Board’s compliance monitors were at the property, they saw Gearing deny someone coming in the back, but as soon as they got on the elevator, the person came in anyway, and there should be something there to monitor that. Krauer stated that there is a camera at the door. Krauer further stated that he does not know of any property like Memphis Towers that he has seen either with Millennia or other companies that has 24-hour personal monitoring of every first-floor door at a property, and he does not think that is feasible, especially as interest rates are going up.
Henderson stated that Millennia needs to go back and retest their theories and do something different because it is not working so far. Gearing stated that the residents have to be part of the solution and not the problem. Henderson stated that Millennia will have to take the lead step in order to make that work. Gearing state that she has done that by putting a new lock on the door, by putting a new box system, cameras, people patrolling the property, and if residents are letting unauthorized people in the building, Millennia is holding the resident accountable by giving them lease violations, and unfortunately, those residents will have to move from the property. Henderson stated that if there is an area of security that is compromised, Millennia needs to have a fallback plan. Krauer stated that if Henderson is recommending 24/7 security at every door at Memphis Towers, that would be six (6) doors and would include three full time employment shifts per day and no property could afford that. Henderson stated that he agreed, but that Millennia needs to have a comprehensive security solution, which includes a combination of cameras, doors, and people. Gearing stated that Millennia does have that combination and that staff is patrolling those areas all day and are required to sign off and report what they see. Gearing stated that the problem is residents are letting people into the building.
Krauer stated that he hears what Henderson is saying is he respectfully disagrees, and that Millennia has met the standard and it is reasonable and appropriate and he cannot think of any more viable plan other than working doors, working cameras on site, front door security and an ability that if Millennia see residents bringing folks in, address those residents as Millennia sees them, that is the way it is supposed to work. Townsend stated that when he was on site one day prior to this meeting, that the only cameras that were functioning were two cameras. Townsend stated that he saw new cameras installed that are supposed to be run with a new computer system and when would those cameras be up and running. Krauer stated that those cameras are part of the final sixty (60) days, and he would get the Board the exact time frame.
Krauer stated that the front door is currently being fixed and until the cameras are fully functioning, they do have a gap in security, which is why there are patrols of the property, and he believes Millennia has addressed this and this updated security was part of the original plan for why Millennia needed to invest in this property to begin with and Millennia believe this is a holistic plan to make this building safe and Millennia believes it will do that.
Buckner Wellford asked what the current occupancy rate is at Memphis Towers. Gearing stated that for all three (3) Towers combined, they are 53% occupied and 58% leased. Wellford stated that he wanted to amplify Henderson’s comment that there are two sides to every story, and he understands that on some things, Millennia is going to have another perspective on, and he understands that economics comes into play. Wellford stated that he believes the Memphis Tenants Union has done a good job of creating some increased awareness, but everyone needs to recognize the everybody has a different agenda. Wellford stated that he is not convinced that the smartest move was to invite every local media outlet to a meeting with Millennia to try to resolve these problems, and that was probably counterproductive. On the other hand, Wellford stated that anyone getting a public benefit like a tax abatement that this entity is getting, any of them, if the media wants to show up for a meeting with tenants, then they should be granted access. Wellford stated that Millennia has given up its right to completely shut out media scrutiny of what they are doing by virtue of the public benefit that they are getting. Wellford stated that it is irresponsible to cut off that planned and touted meeting, as it was touted to the Board at the August meeting that Millennia was going to have this meeting with residents.
Wellford stated that he has watched the news story where the Memphis Tenants Union delivered its demand letter to the property manager who just refused to accept it, and there are some clumsy moves being made to try to engage Millennia’s own tenants, including trying to get the tenants who are perfectly satisfied with the level of services that Millennia is providing, maybe stepping forward and telling the Board the good things that Millennia is doing because all the Board is hearing is the bad things. Wellford stated that he accepts that some of this is possibly coming from people with a different agenda than just this building, but there is too much to just brush this under the rug. Wellford stated that Carpenter gave a great example of what the Board’s options are and they are limited. Wellford stated that if the Board terminated the PILOT and stripped Millennia of the tax abatement, the consequences of that would be dire. Wellford stated that it is rare that something like that happens and when it does, often you have the City of Memphis trying to come in, HUD trying to come in, the Board with limited resources, trying to find places for residents to go when the landlords pull out, and the property goes into foreclosure. Wellford stated that those involved should be very careful what they ask for and that is the nuclear option.
Wellford stated that he is troubled that Millennia does not want to move forward with the Serenity Towers project, and he is concerned about the long-term financial stability of the organization. Wellford stated that one would be naïve to think that Memphis Towers is not potentially on the block to be sold and if it is on the block to be sold, even though it is a nuclear option, if the Board were to strip the favorable tax treatment status form that property, it would significantly impact the market value of that property. Wellford stated that Millennia should be concerned that the Board would even consider that prospect, and it is a rarely considered prospect, but because of his concern about the overall financial stability and health of Millennia, he is considering it. Wellford stated that Millennia is going to need to do a better job of engaging with its tenants and solving some of these short term problems. If that does not happen, Wellford stated that everyone should be concerned about what the next steps would be. Wellford stated that if the tenants think that striping Millennia of the tax protection from the properties is going to be a great thing for them, they are mistaken, it will not be, but maybe there is no other option and Wellford hopes the Board does not get to that point.
Krauer stated that he wanted to correct a couple of items, stating that when Wellford asked about the vacancy numbers at Memphis Towers, he needs to understand that Memphis Towers has an entire tower that is still under construction and has not been delivered for leasing, and the property is 88% occupancy for completed units and management continues to lease the second tower. Krauer stated that Millennia’s goal is to be 100% occupied by the end of the fourth quarter 2023 or early first quarter 2024. Krauer then stated that he would like to correct the record in Wellford’s statement that Millennia chose to walk away from the redevelopment of Serenity Towers and that is wholly inaccurate. Krauer stated that Millennia submitted an application and obviously had preliminary inducement for the bonds from THDA and Millennia’s Vice President, Angelica Sinito, continued to work with THDA as the level of need for construction at Serenity Towers is extraordinary. Krauer stated for the record of the Board that he would like to contextualize for a second, stating that he has been doing this for twenty-five (25) years in the low-income housing tax credit world and used to work for the Ohio Housing Finance Agency and managed their public policy. Krauer stated that when he started in this industry, if a developer put in $40,000 a unit in the construction, that was a sizeable rehab and even as recent as in the last five (5) years, putting in anywhere from $70,000-$90,000 a unit, that was a major rehabilitation. Krauer stated that they are seeing properties now that have been neglected for years, such as Serenity Towers, by previous ownership, and it would take between $150,000-$200,000 per unit range for some of these, so the issue was not that Millennia walked away from Serenity Towers, it is the reality that THDA has fixed caps that in Millennia’s estimation may not be realistic in the current construction, interest, and cost realities, and so Millennia could not find a mechanism to make the deal work under THDA’s existing caps, and THDA was not willing to waive those caps, so Millennia will have to go back to the drawing board and figure out how to make the deal work. Krauer stated that he wanted to be very clear that it was not Millennia’s choice to walk away from the deal and Millennia has been working aggressively and continues to do so to find an appropriate solution to Serenity Towers.
Katie Shotts stated that she would like to echo Henderson and Wellford’s comments that she is disturbed and concerned about Memphis Towers and the conditions the Board has heard over and over, the same complaints, the same themes, and the Board is seeing firsthand some of the frustrations that the tenants are having and that concerns her very much. Shotts stated for the record that she is in agreement with Henderson and Wellford’s comments and concerns.
Henderson stated that Wellford made very good points on these issues with Millennia and the best remedy is for Millennia to take the lead on this and address the issues at Memphis Towers. Henderson stated that as Wellford put it best in that if the Board must take the nuclear option of terminating the PILOT for Memphis Towers, nobody wins. Henderson stated that it is on Millennia to take the next steps and if they are working with a small group of people that are being difficult and causing the majority of those issues, they will have to figure out a way to deal with that. Henderson stated that there are two sides, but the solution is somewhere in the middle. Henderson stated that he understands there are a lot of components and ongoing construction, but Millennia needs to invest in security, get the property managers corrected, because that seems to be an issue, and deal with the mold. Henderson stated that he understands that Millennia has put a lot of money into the construction, but if these other components can be addressed, that is the solution.
Chairman Reid stated that Millennia representatives should appear before the Board with an update at the Board’s November 1, 2023 Board meeting.
Chauncey Graham with the Cochran Firm introduced himself to the Board, stating that he will be representing some of the tenants of the Millennia properties from Memphis Towers and Hope Heights. Graham asked if there is a number of record as to how much money is actually made tax exempt through the tax abatement program that the Board administers. Graham asked if there is a number to quantify that or is it a percentage? Chairman Reid stated that the taxes are frozen pre-construction. Charles Carpenter stated that in order to enter into the PILOT program, the title is transferred to the Board and the PILOT Agreement, the PILOT Lease, and the Quit Claim Deed are all recorded of record, and that information is located on the Assessors website. Carpenter stated that under State law, there is an appraisal of all real property every four (4) years, so during that time, the Assessor will appraise the fair market value of the property and they could provide that information.
There being no further questions or comments,
There was no action taken by the Board and the update was provided for informational purposes for the Board.
Members of the Memphis Tenants Union left the meeting.
Claudine Gearing and Arthur Krauer left the meeting.
Laretha Phillips and Deborah Payne entered the meeting.
Chairman Reid took this opportunity to welcome Howard Eddings, Jr., the Board’s newly appointed Board member, and stated that this is his first meeting. Eddings abstained from each vote for this meeting.
2. 3rd PILOT Closing Extension for Legends Park Senior, LLC (d/b/a Edgeview at Legends Park Senior Apartments)
Charles Carpenter introduced this agenda item stating that this is a public private partnership with Memphis Housing Authority (MHA) and Pennrose dealing with Edgeview at Legends Park Senior facility. Carpenter stated that his firm has been working with the parties who have a well-established working group of professionals, and this project is scheduled to close the bond financing and PILOT during the week of October 9, 2023, and recommended approval. Carpenter reminded the Board that as long as the transaction closes prior to the Board’s November 1, 2023 Board meeting, there would be no closing extension fee assessed. Carpenter invited representatives in attendance to make any further comments on this agenda item. Laretha Phillips and Deborah Payne introduced themselves and stated they are with the Memphis Housing Authority (MHA). Phillips stated that her team has been working on this project with Pennrose for about three (3) years now and they are glad to be at this point of being able to provide some additional quality affordable housing for seniors and seven of the units are for veterans. Phillips stated that they are all glad to be at this point and looking forward to the closing that will take place the week of October 9, 2023. There being no further questions or comments,
Cliff Henderson moved to approve the 3rd PILOT Closing Extension for Legends Park Senior, LLC (d/b/a Edgeview at Legends Park Senior Apartments). Katie Shotts seconded, and the motion passed unanimously after proper roll call vote of the Board members.
3. Affordable Multifamily PILOT Term Extension Application for Jamesbridge 2017 LLC, Jamesbridge 5777 LLC, and CS Jamesbridge LLC (d/b/a Jamesbridge Apartments)
Charles Carpenter introduced this agenda item stating that Jamesbridge is a current PILOT and at the time it was applied, it was for a ten (10) year term, and this application is seeking a term extension for an additional ten (10) years. Carpenter stated that his firm and Board staff have had a submittal conference with the applicant and monitors have performed on-site inspections of the property. Carpenter advised the Board that at the time of the original application, the tenant benefits were not as developed as they are now and during the submittal conference, certain suggestions were made to the representatives, including David Shores, who is in attendance today representing this application. Carpenter asked JP Townsend for any comments from his on-site inspections of Jamesbridge Apartments. Townsend stated that this property overall is kept quite clean. Townsend stated that there was a substantial fire not long ago, and ownership has already begun renovations to repair damages from that. Townsend stated that the property is in overall good condition, there are a few siding, fascia and soffit issues. Townsend stated that he always observes families at the playground and families and children about the property, which is a great thing. Townsend turned the meeting over to David Shores, representative present for the applicant, for further comments.
Shores stated that the PILOT was applied for ten (10) years ago and the property was being purchased out of foreclosure and the owner did a lot of work from 2013 to 2017. In 2017, a group of investors purchased the property and Shores, through his management company, Multi-South Management Services, has worked diligently to keep the property in good standing, but it is a large property with a lot of activity. Shores stated that yes, there was a recent fire and management still does not have a cause, and it caused approximately $1.5 million dollars in damages. Shores stated that those areas damaged will be rebuilt, as well as some repairs to be made to the fence. Shores stated that there are some soffit and fascia issues that they will work on and get completed as well. Shores expressed his gratitude to the Board for allowing him to appear as the representative for the application in his client’s stead, as his client is currently in the middle of the orthodox Jewish Holiday Sukkot. Shores stated that he knows this is a deviation from the Board’s present policy and he and his client appreciate the accommodation.
Carpenter asked Shores to give the Board an update on the tenant benefits that will be implemented. Shores stated that ownership implemented more than what was originally outlined in the 2013 application. Shores stated that there are cameras around the office areas watching the gates at all times, and armed security on-site for about 120 hours a week. Shores stated that there were four (4) entrances to this property and two (2) of them were closed years ago. Shores stated that there are now two operable gates and the security gates have tag readers to that management can collect tag information in case anything happens on site. Shores stated that ownership upgraded lighting and continues to do that around the property constantly. Shores stated that in the original 2013 application, a tenant benefit of a pool was part of that application and ownership decided that would not be the best use of the space, so when the current owner purchased the property in 2017 and took over the PILOT Lease, a fitness center was put in place instead. Shores stated that management still does background checks and drug screens on all its employees and management does background checks and resident checks on all prospective tenants.
Carpenter asked what the current occupancy rate is, to which Shores responded that Jamesbridge is currently 98% occupied. Carpenter stated that this application complies with the Board’s policies and procedures and is helping to support the mission of the Board, to provide affordable housing to families in the community and he would recommend the Board look favorably upon this PILOT Ter Extension Application. There were being no further questions or comments,
Cliff Henderson moved to approve the Affordable Multifamily PILOT Term Extension Application for Jamesbridge 2017 LLC, Jamesbridge 5777 LLC, and CS Jamesbridge LLC (d/b/a Jamesbridge Apartments). James Jalenak seconded, and the motion passed unanimously after proper roll call vote of the Board members.
4. Affordable Multifamily PILOT Term Extension Application for Bent Tree LLC (d/b/a Creekside Meadows)
Phil Balderston and David Upton entered the meeting.
Charles Carpenter introduced this agenda item stating that at the August 2, 2023 meeting Board meeting, the Board approved a refinancing for the property and there were covenants. Carpenter stated that there was a set of improvements to be completed not only for Creekside Meadows, but also at Mill Creek Apartments and the Board’s internal and external monitors have worked closely with the developer and over a period of time, there has been significant improvement. Carpenter stated that the refinancing has not closed and the Board has been provided with a letter of support from Berkadia, the lender, indicating that things are going forward, and there are certain final details remaining in order to complete the refinancing.
Carpenter stated that one of the things his firm has shared with the legal counsel for the applicant is that the Board wanted to see evidence that there would be funding available to actually complete the improvements at each property. Carpenter stated that the original PILOT ends this month and that is one of the reasons the timing is essential, and Carpenter turned the meeting over to the owner, Phil Balderston, and his consultant, David Upton, for further comment.
Upton began by stating that the Board approved the refinancing and he understands that Carpenter has been working closely with representatives and the closing of the refinancing should happen soon. Upton stated that there is a plan to do significant renovations of both properties that the Board has reviewed, and representatives will hopefully close on that soon and set that process up. Upton asked Balderston to comment on the progress of the refinancing.
Balderston stated that attorneys for the lender, Creekside Meadows representatives and Board legal counsel have all been working very closely over the last couple of weeks and all documents have been accepted by all parties and he expects the closing to occur in the month of October 2023. Balderson stated that he was at both properties today and the physical condition of both assets continues to improve and Balderston stated that he is very happy with the way both properties look, as there have been some really drastic improvements over the last few months in terms of painting, railings, and fixing all kinds of curb appeal concerns that the Board had. Balderston stated that Odin Properties has convinced Comcast to come to Mill Creek and they have been out there for the past week and a half fixing junction boxes. Balderston stated that Odin Properties has also continued with their in-house electricians at Creekside Meadows to blanket the entire site and address all the electrical items that were part of the work and most of the work has been done and management will have Comcast go straight to Creekside Meadows once their work at Mill Creek is complete, so that along with removing some of the satellite dishes that are no longer there, inspectors will be able to see a difference between the board’s last meeting and today. Balderston stated that he is very proud of the work that his team has done, and he can confidently say that the condition this morning is something that both the owners and the Board can be proud of.
Balderston stated that there are still the siding issues at Mill Creek and the parking lot issues and painting at Creekside Meadows that ownership is anxious to get done, and those are very large, long term capital projects that they will need financing from the refinance to do. Balderston stated that the allocation of those funds is part of the documents package that has been approved by all parties and they are anxious to get the loan closed and get started.
Upton stated that with the PILOT Term Extension Application pending, perhaps an extension of some time period would be appropriate, as representatives will need to come back before the Board with a plan to do these improvements in order to get the Board comfortable with the longer-term extension of the PILOT. Carpenter stated that the Board’s concern is not to make a final decision, at least until the financing is in place, because as a part of the documentation for the refinancing, there will be escrow accounts set up for each property and then there will be the time frame and the monitoring and so forth. Carpenter stated that the trigger for the Board would be the closing of the refinancing. Balderston stated that he is committed to seeing this through to fruition and will be at the Board’s November 1, 2023 Board meeting to report a status update to the Board. Carpenter recommended that the matter be deferred to the Board’s November 1, 2023 Board meeting and if things are not in place at that time with the understanding that it would move forward to the December 6, 2023 Board meeting for consideration. There being no further questions or comments,
Action was deferred to the Board’s November 1, 2023 Board Meeting.
Phil Balderston and David Upton left the meeting.
PILOT Default Status Updates:
1. Creekside Meadows (Bent Tree)
2. Mill Creek Apartments
An update for Creekside Meadows and Mill Creek Apartments was provided during the Action Items.
3. Macon Manor
David Shores introduces himself as the representative for this agenda item. Shores stated that all exterior work has been completed and interior renovations will take place as residents move out. Shores stated that the property is more than ninety (90%) percent occupied and estimates the interior work completion will take a couple of years, unless they decide to displace residents, which they do not want to do. Shores stated that work has come along nicely. Chairman Reid expressed his appreciation to Shores for the hard work and dedication to get this property off the watchlist. Reid stated that the PILOT Committee met earlier, and it was decided that this is graduation day, and this property will now be removed from the Board’s watchlist.
New Business
There was no new business.
Chairman Reid stated that the next meeting of the Board is scheduled for Wednesday, November 1, 2023 @ Noon. There being no further business, the meeting was adjourned by the Chairman at 01:52 p.m.