2006-03-06 - Laserfiche WebLink

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64 Ms. Rochelle Small-Toney, Assistant City Manager, said that establishment of a general partnership is necessary to allow tax credits for Jefferson School and a legal structure is needed. Mr. Dan Gecker, attorney consulting on tax credits, explained that Council needs to convey the building to a private entity and a limited partnership will be formed to take title. He said this board will be responsible for taking Jefferson School to conclusion. He suggested that the board have no more than five members. Mr. Caravati asked about the advantages or disadvantages of Council choosing two of the members. Mr. Gecker said that Council cannot pick the entire board because it cannot be related to the City. He said there is no good law on the matter, but feels it would be best if Council does not pick any of the members. He said he cannot say absolutely that Council cannot pick one or two members. Mr. Lynch asked when the roof and bricks at Jefferson School can be repaired. Ms. Small-Toney said that the condition of the roof has been evaluated and work on the roof and bricks will begin as soon as the weather improves. Responding to a question from Ms. Hamilton, Ms. Small-Toney said that the site of the old Jefferson Graded Elementary School was not part of the original application and no dig of the site was done. She recommended that the application be amended to include the School and that a dig be done. Mr. Caravati noted that Council has not discussed the dig and amending the application and we may want to talk about the implications of doing this. Ms. Small-Toney said that this was discussed by the Task Force. She said the dig will not prohibit further development on the site. Mr. Lynch asked if it would be appropriate to create a fund raising mechanism at the same time as the LLC is created. He said he would want assurance of $10 million to $15 million in fund raising, and asked how we make sure that happens before we turn over the building. Mr. Gecker said that conveyance of the deed will be coupled with restrictions, such as starting or completing the work by a certain date or the building reverts back to the City. He said he has found that funding raising is relatively impossible until a building is transferred. He said one responsibility of the board will be to oversee fund raising and possibly appoint a fund raising board. Regarding the Jefferson School General Partner, it was the consensus of Council to approve the following: 1) appointment of a five member General Partner; 2) appointments will be made by the City’s tax credit consultant; 3) membership will be advertised and Council will receive the names of individuals; 4) Councilors may interview prospective partners and makes recommendations to the tax credit consultant on an individual basis; 5) understanding that a 4 – 1 affirmative vote is necessary to convey Jefferson School to the General Partner; 6) agrees that the General Partner will require reasonable funding to support its activities and mission and said funds are available in the Jefferson School capital fund account; and 7) directs the tax credit consultant to present the names of the General Partner, a proposed budget and scope of work to be accomplished over six months within 60 days. Mr. Lynch noted that most of the money spent to date on Jefferson School has been on studies and very little has been spent on improving the building. Responding to a question from Mr. Schilling, Mr. Gecker said that General Partners are generally not compensated.