The meeting of the Board of Commissioners for the ADD was called to order by Chairman Arnold at 5:32 p.m. Roll call was taken by Ms. Duplessis. Mr. Arnold referred the commissioners and others in attendance to the Rules of Order in the packet.
Members Present:
Board members present were Rep. Jeff Arnold, House Speaker Jim Tucker, Senator Derrick Shepherd, Assessor Tom Arnold and Mr. Tyrone Casby.
Others Present:
Executive Director Kathy Lynn Honaker, Office Administrator Vanessa Duplessis and a couple of members from various other organizations who signed in. Participating by teleconference from Philadelphia were Mike Vallan of the State Attorney General’s office who is the attorney now for ADD, Attorney Lee Reid Attorney for NOFA and Steven Grissom of the Louisiana Department of Economic Development.
Minutes
The minutes from June were presented for approval. Senator Shepherd made the motion to approve which was seconded by Assessor Arnold, and approved by all.
Treasurer’s Report
Ms. Honaker gave the Treasurer’s Report on behalf of Speaker Tucker. She covered the Balance Sheet covering each bank account and Profit and Loss Statement. She answered questions from Senator Shepherd regarding payments to Bearing Point for the year and from Speaker Tucker on money earmarked for road repair in Algiers. The road repairs were discussed with the city in January but the city has not met the dates as agreed upon. Ms. Honaker was requested to reserve the money for the match with the city on the financial statements. She will call Robert Mendoza and send a follow-up letter for the work to be done and request a new schedule. Speaker Tucker also requested that she research the entry marked “retained earnings” on the Balance Sheet. She will report back at the next meeting or send an email to all members of the board. Senator Shepherd moved to accept the minutes which was seconded by Speaker Tucker, and all approved.
Old Business
Federal City Update/Lease with Dept. of Navy
The Term Sheet for the future lease with the Department of the Navy was discussed by the board in-depth for approximately one hour. General Mize summarized the Term Lease Sheet which has been reviewed by the attorneys and state in depth. Joining the discussion with an overview of key points was Mike Vallan and Lee Reid and Assistant Secretary of the Department of Economic Development Steve Grissom.
General Mize summarized that the anticipated key change was that Algiers Development District would now be the responsible party to the lease with the Department of the Navy due to the Navy’s request for a state entity of the state to sign the actual lease. This has been reviewed by the state and the approval for ADD to enter the lease and sign the term sheet has been given per Economic Development, Administration and the Attorney General’s office.
General Mize further explained that nothing has changed in concept except that ADD vs. NOFA, would be the party to the lease. He further stated the lease was still on target to be signed September 30, 2008.
There was extensive questioning by the commissioners of General Mize and the attorneys as to ADD’s obligations and liabilities in the 75-year lease with the Department of the Navy. Speaker Tucker asked for a summary from the legal team as to liabilities of the lease for ADD. Lee Reid of NOFA gave a detailed explanation that obligations and liabilities would be pushed from ADD to HRI and ECC through NOFA. He stated that HRI and ECC would further push those liabilities and obligations to future sub leases.
Senator Shepherd questioned who with the Navy had been involved with the review of the lease, and was assured that the proper parties were involved.
Some of the other issues the commissioners inquired about were environmental liability, specific terminology, what specifically the term sheet binds the ADD to, and whether there should be a termination clause in the lease. Mike Vallan was asked to review the need for a termination clause in the lease on behalf of ADD.
General Mize informed the board that the term sheet laid the ground work for the draft of a lease. If the lease was not executed for any reason, that ADD would not be obligated for anything or any dollar amount.
Lee Reid and General Mize assured the commissioners they would have the opportunity—in addition to Mike Vallan—of reviewing the final lease in-depth before signing takes place on September 30. It was requested that another meeting would be required before September 30 with the commissioners for an in-depth coverage of the lease agreement.
Ms. Honaker asked that she be given ample time to notify everyone of the meeting in order to plan accordingly for a public meeting. She indicated it was tough to make meetings happens on such short notice.
A resolution for the lease agreement was offered by Senator Shepherd and seconded by Assessor Arnold and all voted to accept.
Following is the resolution:
RESOLUTION OF BOARD OF COMMISSIONERS
OF ALGIERS DEVELOPMENT DISTRICT
At a meeting of the Board of Commissioners of The Algiers Development District duly called and held on the __6th __ day of August 2008, the following resolution was offered, seconded, and adopted:
“WHEREAS, the Board of Commissioners of the Algiers Development District have reviewed proposed lease terms and conditions between the Algiers Development District and the Department of the Navy for the property encompassing the Federal City Project; and,
WHEREAS, the Board of Commissioners of the Algiers Development District have sought counsel from the Office of the Attorney General of the State of Louisiana to review said proposed terms and conditions and have been advised the proposed terms and conditions offered are acceptable and legally within the authority of the Algiers Development District to enter; and,
WHEREAS, the Board of Commissioners of the Algiers Development District believe executing a Summary of Lease Terms and Conditions Naval Support Activity New Orleans (West Bank) By and Between the United States of America and the Algiers Development District is the most efficient and effective way to bring the Federal City Project to fruition and such execution is in the best interest of the Tax Payers of the State of Louisiana and the Citizens of New Orleans, Louisiana; and,
WHEREAS, the Board of Commissioners of the Algiers Development District likewise believe that upon execution of the Summary of Lease Terms and Conditions, Naval Support Activity New Orleans (West Bank), By and Between the United States of
America and the Algiers Development District, entering a contractual arrangement with the New Orleans Federal Alliance, Inc. and/or HRI/ECC, LLC for the development of the Federal City Project is also the most efficient and effective way to bring the Federal City Project to fruition and is in the best interest of the Tax Payers of the State of Louisiana and the Citizens of New Orleans, Louisiana.
NOW THEREFORE,
BE IT RESOLVED, that the Board of Commissioners of the Algiers Development District hereby authorize, empower and direct Chairman Jeff Arnold to execute a Summary of Lease Terms and Conditions, Naval Support Activity New Orleans (West Bank), By and Between the United States of America and the Algiers Development District.
I hereby certify that the foregoing is a true and correct copy of a resolution passed by a majority of the Board of Commissioners of the Algiers Development District on the date specified.
_______________________
Kathy Lynn Honaker
Secretary of the Meeting
_______________________
Jeff Arnold
Chairman of the Board
A second resolution was proposed by Senator Shepherd and seconded by Assessor Arnold for the board to go forward and have the city approve ADD entering the contract with the Department of the Navy. All voted to accept the following resolution:
RESOLUTION OF BOARD OF COMMISSIONERS
OF ALGIERS DEVELOPMENT DISTRICT
At a meeting of the Board of Commissioners of The Algiers Development District duly called and held on the __6th __ day of August 2008, the following resolution was offered, seconded, and adopted:
“Be it Resolved, that the board of commissioners, of this district hereby authorize, empower, and direct Chairman Jeff Arnold to request on behalf of the district that the Mayor and City Council of New Orleans to approve the district to contract with the New Orleans Federal Alliance and/or HRI/ECC, LLC for the development of the Federal City Project."
I hereby certify that the foregoing is a true and correct copy of a resolution passed by a majority of the Board of Commissioners of the Algiers Development District on the date specified.
_______________________
Kathy Lynn Honaker
Secretary of the Meeting
_______________________
Jeff Arnold
Chairman of the Board
Kathy Lynn Honaker as acting secretary of the meeting and Jeff Arnold as Chairman will sign the resolutions for the board.
New Board Assignment
Senator Heitmeier joined the meeting right after the vote and handed Chairman Arnold a letter. He said hello to everyone and left to return to his office. Chairman Arnold read Senator Heitmeier’s letter notifying the board that he assigned Mr. Tyrone Casby as his representative on the ADD Board of commissioners. As Mr. Casby was present, he was welcomed to the board and invited to participate in the remaining discussions.
Legislative Auditor Assessment /Audit Practices for NOFA
Chairman Arnold made a request to present a new agenda item to be discussed. He explained that the board must approve to discuss this item as it was received after the 24 hour deadline for publishing the board agenda. The board voted unanimously to put the item on the agenda for discussion.
The discussion topic was a Legislative Auditor Assesssment item for NOFA. Ms. Honaker explained that the auditors suggested that NOFA have the proper auditing procedures and paper trail in place in order to move forward. NOFA has asked ADD to approve assisting with the payment of an auditor up to $10,000.00 for this service to ensure proper audit practices are in place. General Mize further explained and answered questions from the commissioners. A motion was made by Assessor Arnold and seconded by Speaker Tucker, to approve up to $10,000.00 for NOFA to hire a state approved auditor to help with the set up of their financial system. Four voted to approve the motion with one Commissioner Senator Shepherd, abstaining.
Bearing Point Contract Extension
The BearingPoint contract extension was presented to the board for a two month extension until September 30, 2008. After discussion, and questions as to any changes from the original contract were answered by General Mize, Assessor Arnold made the motion to extend the contract to September 30 2008. It was seconded by Senator Shepherd and all voted to approve.
Contract Renewal for Independent Contractors as Executive Director and Office Administrator
The contract for Gatsby Consulting (Kathy Lynn Honaker as Executive Director) was presented by Chairman Arnold. He explained that the State Office of Administration (Melissa Flourney and Linda Nugent) had done the study for Chairman Francis Heitmeier last fall and that her range was between $75,000.00-$120,000.00, based on experience and work. As her duties have increased with the Federal City work in 2008 and now with the lease with the Department of the Navy, as well as additional allocations from the state for blight, she would be required to do even more than when the state’s assessment was performed last year. Chairman Arnold stated with that being the case, he is recommending $120,000.00 for the Executive Director due to her experience level and the position’s workload.
He also presented Vanessa Duplessis’ contract as an independent contractor to work as Office Administrator. After discussion, the board recommended she be paid one-third of Ms. Honaker’s amount as a part-time Office Administrator. This amount would be $40,000.00.
Both Ms. Honaker and Ms. Duplessis will pay their own benefits and taxes as independent contractors. He stated that Charles Rice reviewed and worked on both contracts with the assessment process.
Senator Shepherd made the motion to approve both contracts as discussed, and it was seconded by Assessor Arnold. All voted to approved the contracts.
New Business
Office Lease Renewal
Chairman Arnold stated that Senator Heitmeier had requested that in light of the assessment by the auditors, ADD should explore securing their own office space, instead of having a CEA with the AEDF. Ms. Honaker explained that she has been researching rents in the area and may be able to get a lease in the same building with a room large enough for public meetings and keep the annual amount equal to or less than the amount currently paid to AEDF. Ms. Honaker was asked to present a proposal in September to the board.
Public Input
There was not public input but several people stayed to ask individual questions of the commissioners.
A motion was made to adjourn by Tyrone Casby and seconded by Senator Shepherd.
The meting adjourned at approximately 6:55 PM.
Respectfully submitted,
Kathy Lynn Honaker |
