THE TOBYHANNA TOWNSHIP ECONOMIC DEVELOPMENT AUTHORITY

REGULAR BUSINESS MEETING

MARCH 14, 2018

The March 2018 Regular Business Meeting of the Tobyhanna Township Economic Development Authority was held on March 14, 2018, at the Tobyhanna Township Government Center Building, 105 Government Center Way, Pocono Pines, Pennsylvania, 18350.

Present are members Anne Lamberton, John Holahan, III, Edwin “Win” Miller, Solicitor John “Jack” G. Dean, Robert “Bob” Bossuyt, and Township Manager John Jablowski Jr. William “Bill” Van Gilder is absent.

  1. Chair Anne Lamberton calls the meeting to order at 6:00PM. It is determined that a quorum is present.
  2. The Pledge of Allegiance is recited.
  3. John Holahan motions to accept the meeting minutes for the January 17, 2018, Regular Business Meeting, Robert Bossuyt seconds. Vote: all in favor; minutes accepted.
  4. Solicitor’s Report
  5. John Dean states that the draft bylaws were originally provided by Stevens & Lee. This is an example of typical bylaws to set terms, officers and election powers, and specify that the treasurer and assistant treasurer must be bonded. There is an error in the meeting times that will be corrected to reflect that the Authority meets on the first Wednesday of every month at 6:00PM. The reorganizational meeting is scheduled for the first Wednesday in January, with the regular meeting to follow immediately after. The treasurer and assistant treasurer must sign checks, and the Authority is obligated to complete a financial statement. An annual report and budget must be submitted to the township, and the Executive Director may execute contracts as long as the Authority authorizes him to. John Dean recommends adopting the bylaws with the aforementioned changes. John Holahan motions to adopt the bylaws as presented with changes, Robert Bossuyt seconds. Vote: all in favor; motion carries.
  6. Old Business – none.
  7. New Business
  8. Senate Bill 651. John Jablowski states that he wanted to call Senate Bill 651 to the Authority’s attention. Concerning the Revitalization Capital Assistance Program (RCAP), Tobyhanna Township has $40 million of allocations, $20 million of which has been submitted for. There is still another $20 million that the township can apply for. There is no guarantee that the township will receive these funds, but the township is on the list to ask. This was largely through efforts of Jason Fitzgerald, Representative Rader, and Senator Scavello. Anne Lamberton states that this is very positive: a municipality cannot ask for RCAP money if they are not on this list. John Jablowski states that this packet will remain in the Authority’s binders for future reference.
  9. Consider Draft Resolution – Stevens & Lee Hiring. John Dean states that he did review the hiring resolution, the letter from Brian Koscelansky, and the developer’s agreement to pay legal fees. The documents meet what the Authority wants to have accomplished, and each one must be voted on.

Thomas Bowen of Stevens & Lee presents a packet to the Authority. In the packet there is a PowerPoint presentation, a memorandum that discusses the Public Improvement Levy (PIL), a representation of facts, the hiring resolution, two engagement letters (one for bond council work and one concerning the PIL), and the developer’s agreement. An opinion from the firm will be forthcoming. Thomas Bowen states that as per the engagement letter, Alberta Development will pay the legal fees to Stevens & Lee for the contract between Stevens & Lee and the Authority. John Jablowski states that the relationship with Alberta is very amicable, and he foresees no problems.

Concerning the Public Improvement Levy (PIL), Thomas Bowen states that this in an innovative use of the Public Authority Act. This may be the first of its kind in the Commonwealth. A PIL can be imposed as a levy, but the money collected must be used for facilities or properties owned by the Authority. A PIL may also fund the cost of maintenance and public improvements, both material and intangible. It is important that any improvements that use this money benefit the public. Because these facilities are all public improvement facilities, they can be financed by taxes and bonds. Thus, a bond issuance at the commencement of the project would fund the costs, and then the levy would pay for the bond debt service.

Anne Lamberton asks if the Authority could change the 1% levy. Thomas Bowen replies yes, the Authority would need an advertised resolution and would have to notify all parties, as well as being able to justify the change. The justification can be building funds for a capital project. The levy is ultimately subject to approval from the Board of Supervisors, who must also approve bond issuance.

Thomas Bowen states that it is technically not required for the Authority to receive approval from the properties they plan to include in the levy. Anne Lamberton replies that it is much easier to sell a product if people know what they are buying. This process is different from a Business Improvement District, which requires approval from the businesses. It is important that the Authority not consider this levy a tax, because taxes must be uniform across a Township; local gross receipts and mercantile taxes are barred unless they were grandfathered in or operating in Philadelphia.

Thomas Bowen states that the next step is to define the area for the levy. John Jablowski asks what would happen if one of the parcels was subdivided, and is there a mechanism to expand the levied area. Thomas Bowen replies that wording will be included in the resolution states that any subdivision of the area is included in the levied area. The Authority does not need to own the land on which the facilities are on, which is in the Authority’s favor because Alberta wants to retain ownership. He suggests a 99-year lease because that type of lease is viewed by the law as ownership, which makes the land eligible for tax-exempt bonds while allowing Alberta to retain ownership. That lease would be eligible for mutually agreed changes after twenty years, when the bond is scheduled to be extinguished. John Jablowski states that once the loan is paid off, there will be no need for tax-free status, unless the Authority wants to issue another bond.

Anne Lamberton states that Kalahari’s other location in Wisconsin is subject to a premier resort tax, and the company is familiar with that tax. John Jablowski asks if the levy would include alcohol. Thomas Bowen replies yes, the levy could be imposed on alcohol. Implementing the resolution while the levy has only one payer would be beneficial to the Authority, as any hiccups will be worked out with one entity rather than multiple ones. Anne Lamberton suggests putting the empty land of Pocono Manor Property onto the levy from the start of the project, so companies know exactly what is going on. John Jablowski suggests expanding the areas to include the vacant area across SR 940.

Thomas Bowen states that parcels in the levy do not have to be contiguous. The goal is to have the levy in effect by June 1, 2018. John Jablowski states that he is hoping for a half year of collections. Thomas Bowen states that for the Authority’s next meeting, he will draft a resolution to include definitions, the collection method, and the audit process. He also plans to create a work plan, which would state what parties are responsible for certain tasks. Both will be presented to the Authority on April 4th for their approval.

John Holahan asks if the levy area and some of the language is flexible enough to change. John Dean replies that tonight is an overview, and the draft resolution will be prepared for review and comment, and to potentially adopt in April.

John Jablowski states that he will not be present at the April 4th meeting because he will be at a conference. Robert Bossuyt states that he is leaving for Florida on April 2nd, but may be able to alter his plans. John Dean states that the bylaws state that a member may attend via conference call. Thomas Bowen asks John Jablowski to provide a copy of the Wisconsin premier resort tax.

John Holahan motions to adopt the Economic Development Authority Resolution 2018-001, dated March 14, 2018, with Stevens & Lee and the fee agreements with Stevens & Lee, one dated February 13, 2018, and one dated February 25, 2018, for the discrete issues identified by Mr. Bowen, Edwin Miller seconds. Vote: all in favor; motion carries.

Robert Bossuyt motions to authorize the Executive Director to execute the developer’s agreement now dated March 14, 2018, between the Tobyhanna Township Economic Development Authority and Alberta Development Partners LLC as contained in the board packet, John Holahan seconds. Vote: all in favor; motion carries.

  1. M & T Bank Presentation – Ryan McGowan, Greg Brenner, and David Worthing. Ryan McGowan states that he is a local contact for M & T Bank, Dave Worthing is the group manager of Pennsylvania, and Greg Brenner works with M & T Securities for the Broker/Dealer arm. Greg Brenner states that this project seems very marketable. Having the levy in place for a time can get a better rating for bonds. Tax exempt bonds sell 1.5-2% lower than taxable bonds. Typically, tax exempt bonds are sold in $5,000 increments. There would be a ratings call to pitch the rating to a rating agency, and the agency would probably be Moody’s or Standard & Poor’s. Greg Brenner states that he wants to market to people that want to invest in their community, and these bonds are exempt from federal, state, and local tax if the person purchasing them lives in Tobyhanna Township. He also offers the issuer to come to the bank and see how the pricing process works.

Dave Worthing congratulates the Authority on the project, and states that he looks forward to working with the Authority. He wants to make sure that the Authority understands the process.

  1. Public Comment
  2. John Jablowski states that at the next meeting, the Authority will have to appoint depositories. He recommends M & T Bank, ESSA Bank, and First Northern Bank and Trust. All three can be appointed and used in different capacities.
  3. John Holahan discusses the interest rates between these accounts and the NIDA report. Anne Lamberton states that Municap is looking into changing the funds, and will present that to the NIDA in June.
  4. Meeting adjourned at 7:07PM.

Minutes recorded by Julia Heilakka