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Meeting Minutes
Industrial Development Authority
Regular Meeting
January 14, 2025| 7:30 a.m.
Chandler City Council Chambers
88 E. Chicago Street, Chandler, AZ
Call to Order
The meeting was called to order by President Charles Ertl at 7:32 a.m.
Roll Call
Commission Attendance
Staff Attendance
President Charles Ertl
Julie Goucher, Accounting Senior Manager
Vice President William Nolde
Jenny Winkler, Assistant City Attorney
Secretary Shannon Wilson
Karla Lange, Management Assistant
Director Lee Kroll
Other Attendees
Zach Sakas, Bond Counsel, Greenberg Traurig, LLP
Absent
Treasurer John Lok
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Scheduled and Unscheduled Public Appearances
None.
Approval of Minutes
1.
Secretary Wilson moved to approve the December 10, 2024, Regular Meeting Minutes.
Vice President Nolde seconded the motion. Motion approved unanimously (4-0).
Briefing Items
2.
November 2024 Financials: Ms. Goucher presented the November Statement of Net
Position that explained Total Current Assets with Cash in Bank of $233,521, and
Investments of $1,118,266, providing Total Assets of $1,351,787. Intel application
deposit of $3,000 is recorded as a Current Liability. The Beginning Net Position is
$1,325,396 and a Year-to-Date Change in Net Position of $23,391, providing an Ending
Net Position of $1,348,787. The Statement of Revenues, Expenditures, and Changes in
Net Position for the month ended November 30, 2024, includes Investment Income of
$3,912 and a bond application fee from Brinshore Development LLC of $3,000, providing
a Net Change in Net Position of $23,391 through November.
3.
Discussion of possible refund of annual fee overpayments in connection with the
Authority’s Revenue Bond Series 2012-A and Series 2012-B (Tri-City Baptist Church
Project.
Ms. Goucher voiced that as part of the annual audit for fiscal year 2023-2024, the city
reports the outstanding balance of the bonds that have been issued through the
Industrial Development Authority. Representatives from Tri-City Baptist Church
indicated that the bond issued to them had been paid in full as of December 2021, with
an original maturity date of 2034. Ms. Goucher stated that the representatives at Wells
Fargo Bank confirmed that the bond was paid in full. She continued that despite paying
off the bond, Tri-City Baptist Church continued to pay their annual administration fee of
$2,000 in 2022, 2023 and 2024 to the Board, as invoiced by city staff, for a total amount
of $6,000. Staff is recommending that the Board approve the overpayment of these
annual fees be refunded to Tri-City Baptist Church.
Mr. Sakas offered that sometimes bonds are sold to the general market and are publicly
sold and there is a corporate trustee in place who keeps track and notifies the Board if
a bond is paid off early. The bond issued to Tri-City Baptist was a direct bank placement,
so it was essentially like a bank loan. For this issuance, Wells Fargo acted as both lender
and trustee, and at some point, Wells Fargo sold off its Trust business to Computershare,
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splitting the responsibilities, so when the bond was paid off, neither the Board or the
City was notified. He noted this situation is unique, due to the combination of
circumstances, and that it is uncommon for no notification to occur.
Responding to President Ertl, Mr. Sakas voiced that Intel has not experienced anything
similar, because when Computershare purchased Wells Fargo’s Trust business,
everything related to Intel shifted to Computershare with that purchase. In the case of
Tri-City Baptist, the business was split, with the lending portion remaining with Wells
Fargo and the trustee portion moving to Computershare. He emphasized that it was
challenging trying to get information from the bank on what exactly happened.
Action Agenda
4.
Discussion and possible adoption of Resolution 2025-01, authorizing the return of
annual fee overpayments to Tri-City Baptist Church.
Vice President Nolde moved to approve Resolution 2025-01, authorizing the return of
annual fee overpayments to Tri-City Baptist Church as presented. Secretary Wilson
seconded the motion. Motion approved unanimously (4-0).
Member Comments/Announcement
None.
Calendar
The next regular meeting will be held on Tuesday, February 11, 2025, at 7:30 a.m.
Informational Items
None.
Adjourn
The meeting was adjourned at 7:39 a.m.
___________________________
Charles Ertl, President