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Meeting Minutes
Industrial Development Authority
Regular Meeting
May 13, 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 7:31 a.m.
Roll Call
Commission Attendance
Staff Attendance
President Charles Ertl
Dawn Lang, Deputy City Manager | CFO
Secretary Shannon Wilson
Kristi Smith, Financial Services Director
Director Lee Kroll
Julie Goucher, Accounting Senior Manager
Director Anthony Yang
Jenny Winkler, Assistant City Attorney
Director Sunil Das
Karla Lange, Management Assistant
Other Attendees
Zach Sakas, Bond Counsel, Greenberg Traurig, LLP
Emily Abeln, Senior Vice President of Development, Brinshore Development LLC
Absent
Vice President William Nolde
Treasurer John Lok
Scheduled and Unscheduled Public Appearances
None.
Page 2 of 6
Approval of Minutes
1.
Director Kroll moved to approve the April 8, 2025, Regular Meeting Minutes. Secretary
Wilson seconded the motion. Motion approved unanimously (5-0).
Briefing Items
2.
Chandler Career Center Grant - 3rd Quarter Report: Ms. Lang voiced that the 3rd
Quarter Chandler Career Center Grant Report was provided to the Board in the agenda
packet. She noted that the report does reflect some very positive performance in
relation to their FY 2024-25 goals.
Director Kroll voiced that he was very impressed with the progress of the program.
3.
March 2025 Financials: Ms. Goucher presented the Financials for March 2025, attached
to these minutes as Exhibit A.
Responding to Director Das, Ms. Goucher reported that the funds that are in the cash
account at Chase Bank are being held for upcoming grant requests. She continued that
approximately $250,000 was recently moved from the cash account to the investment
account.
Ms. Lang offered that the upcoming grant requests will be paid on a reimbursement
basis, and they do have to accomplish certain goals before they can request
reimbursement, so staff can explore tightening up the balance in the cash account.
Mr. Sakas reported that the IDA is restricted in the investments it can make with public
funds, so the IDA may not be able to achieve what a typical money market account might
realize.
Ms. Lang voiced that the City of Chandler has an investment policy, that IDA also follows.
She continued that the Board cannot invest out more than 5 years and are restricted to
local investments, but there is a money market option available, and staff can certainly
explore moving some funds into that account. She confirmed that this account would
likely earn at a lower rate compared to a regular money market.
Ms. Lang conveyed that there is a Local Government Investment Pool (LGIP), which the
city has chosen not to invest in, and neither does the IDA. The city and IDA have utilized
a private investment advisor, Public Finance Management (PFM), who manages the
investments, based on the city’s investment policy, which is available on the city’s
website.
Page 3 of 6
4.
Discussion Regarding a Request Submitted by Brinshore Development, LLC,
for an Extension of the Preliminary Approval of the Authority to issue its Multi-
Family Housing Revenue Bonds in an Amount not to Exceed $55,000,000 for
Brinshore Development, LLC or its Affiliates.
Mr. Sakas reported that Brinshore Development, LLC, has been working diligently
on project planning for the proposed multi-family housing project, and one of the
steps they will need to accomplish prior to the IDA being able to issue bonds is to be
awarded volume cap from the Arizona Finance Authority (AFA). Mr. Sakas noted
that the volume cap for this year was oversubscribed, which is very atypical,
compared to historical practice – essentially more projects applied for volume cap
allocation than was available from the Finance Authority. He continued that
Brinshore was at the top of the waiting list, however no one canceled, so they have
been working on a strategy to ensure they are in the best position to be awarded
next year, in 2026. The advantage for Brinshore to finance the project through
bonds issued through the IDA is that it will be exempt from federal income tax,
however they need to be awarded volume cap, before any bonds can be issued.
Mr. Sakas continued that Brinshore is requesting that the IDA Board approve an
extension to their preliminary approval to accommodate them while they wait for the
volume cap award. He noted that extensions have been awarded in the past, most
recently to Intel. In the past, this has been accomplished by the board making a
motion for approval. This time, the request is more formal, as the board is
requested to approve the extension via resolution, which will make it easier to
provide proof to the project developers of the board’s approval.
Ms. Abeln voiced that Brinshore Development is requesting the extension until
November 2026, versus the more typical 6-month timeframe. This extension period
lines up with the overall project decision date. She continued that she recently met
Greg Ghelfi, Executive Director of the Arizona Finance Authority, who indicated that
he expects oversubscribed applications for volume cap next year, as well. She
continued that if Brinshore does not get volume cap through the lottery hosted by
the AFA in January 2026, there is a pool of volume cap issued at the Director’s
discretion, which is allocated based on the priorities of the AFA. Ms. Abeln reported
that if Brinshore is not allocated volume cap in the lottery, she is hopeful that there is
potential to receive it through this discretionary pool.
Responding to Director Kroll, Ms. Lang conveyed that the current residents at the
Haven on Hamilton will be relocating to a new complex currently under construction
on McQueen Road (between Chandler Rd. and Frye Rd.). Once that move is
completed, the building on Hamilton will be demolished, and replaced with the
project that Brinshore Development is proposing. The construction on the project
located on McQueen Road is scheduled to be completed in April,2026.
Ms. Abeln voiced that the new development is tentatively scheduled to begin the first
quarter of 2026.
Page 4 of 6
Mr. Sakas confirmed that the Board typically considers 6-month extensions,
however due to the project timeline, and its alignment with the deadline where the
decision will naturally be made as whether the project will be able to move forward,
or not, the November 2026 date is being requested.
Ms. Abeln added that she is happy to provide updates to the Board in the interim.
Responding to President Ertl, Mr. Sakas voiced that there is no cost to the Board, if
they approve a 9-month extension. He noted that there is a $500.00 fee that is
charged to the developer with each extension. The only fee with a variable amount
is the Administrative Fee paid to the Board, which varies due to the amount of the
bond. He reminded the Board that at the time that preliminary approval was
granted, that Brinshore may come back and request to discuss the fee structure
once the bond feels more real and sized.
Responding to Director Kroll, Ms. Abeln voiced that if volume cap is not allocated for
this project, making Brinshore unable to get the bond financing for this project, it
would be up to the landowner, the City of Chandler, as to what they want to do with
the project. At that point, they could either sell or hold the land for a period of time
until the financing does work out, as the goal is to create additional affordable
housing at that site.
Ms. Abeln conveyed that they could potentially apply again for the lottery for volume
cap within 2025, however, the approval no longer rolls into the following year. If
awarded, Brinshore would be required to close within 180 days, which would be
impossible to get drawings prepared and permitting completed, etc. Brinshore’s
goal is to ideally receive an allocation in January 2026, as the current residents
occupying the site will be moved, making the site will be available for demolition,
and to begin construction within 180 days from January, when the AFA lottery
happens.
Responding to Director Yang, Ms. Abeln noted that there is a significant risk for the
developers on these projects, because so much of the financing is out of their
control, including interest rates, cost of construction, the current tariff situation, and
multiple external market factors. Developers building market-rate housing projects
are able to increase the rent to offset these unexpected expenses, however, that is
not the case in projects like this, as any increase in cost results in an increase in our
gap. She continued that this is an area where Brinshore excels as a developer.
Action Agenda
5.
Consideration and Possible Adoption of Resolution No. 2025-02, Granting an
Extension of the Preliminary Approval for the Authority to Issue its Multi-Family
Housing Revenue Bonds in an Amount not to Exceed $55,000,000 for Brinshore
Development, LLC, or its Affiliates.
Page 5 of 6
Secretary Wilson moved to approve Resolution No. 2025-02, granting an extension of
the preliminary approval for the Authority to issue its Multi-Family Housing Revenue
Bonds in an amount not to exceed $55,000,000 for Brinshore Development, LLC or its
affiliates. Director Das seconded the motion. Motion approved unanimously, (5-0).
6.
Request approval of the FY 2024-25 Budget. Director Kroll motioned to approve the
proposed FY 2025-26 budget. Secretary Wilson seconded the motion. Motion approved
unanimously, (5-0).
7.
Election of Officers (President, Vice President, Secretary and Treasurer).
Ms. Lange reported that the previous year, the Board approved a nomination of
officers based on a rotation of positions. Utilizing the same method, the Board moved
to elect William Nolde to President, Shannon Wilson to Vice President, John Lok to
Secretary and Lee Kroll to Treasurer, with the others as Directors remaining in
rotation. Director Kroll motioned to approve as proposed, and Director Das seconded
the motion. Motion approved unanimously, (5-0).
Member Comments/Announcement
None.
Calendar
The next regular meeting will be held on Tuesday, June 10, 2025, at 7:30 a.m.
Informational Items
None.
Adjourn
The meeting was adjourned at 7:59 a.m.
___________________________
Charles Ertl, President
Page 6 of 6
Exhibit A
CHANDLER INDUSTRIAL DEVELOPMENT AUTHORITY
STATEMENT OF NET POSITION
ASSETS
CURRENT ASSETS:
Cash in bank
108,770
$
TOTAL CURRENT ASSETS
108,770
$
OTHER ASSETS:
Investments
1,386,252
TOTAL OTHER ASSETS
1,386,252
TOTAL ASSETS
1,495,022
$
LIABILITIES
CURRENT LIABILITIES:
Application deposits
3,000
TOTAL CURRENT LIABILITIES
3,000
TOTAL LIABILITIES
3,000
CAPITAL:
BEGINNING NET POSITION
1,325,396
$
Year-to-date change in net position
166,626
ENDING NET POSITION
1,492,022
$
MARCH 31, 2025
CHANDLER INDUSTRIAL DEVELOPMENT AUTHORITY
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN NET POSITION
9 Months Ended
March 31, 2025
OPERATING REVENUES:
Annual Admin Fees (Intel)
-
$
140,539
$
Other Revenue
-
10,418
TOTAL INCOME
-
150,957
TOTAL OPERATING REVENUES
-
150,957
OPERATING EXPENSES:
Refunded Admin Fees
-
6,000
Legal Fees
-
7,418
Miscellaneous (Account Analysis
Settlement Bank Charge, IRS Filings)
-
190
Grant Payment
-
9,100
TOTAL OPERATING EXPENSES
-
22,708
OPERATING INCOME (LOSS)
-
128,249
NONOPERATING REVENUE:
Investment Income (LOSS)-Note 1
5,085
38,377
TOTAL NONOPERATING REVENUE
5,085
38,377
NET CHANGE IN NET POSITION
5,085
$
166,626
$
Note 1 - Interest Income (Loss) is as follows:
Realized interest to date
5,085
38,377
March 31, 2025
March 31, 2025