Tremont West Development Corporationnn

TREMONT WEST DEVELOPMENT CORPORATION BOARD OF DIRECTORS MEETING
July 20, 2006

Present: Lynn McLaughlin Murray, Jon Boylan, S. Catania, Chris Krosel, Nina Swerdlow, Phil Pavarini, Scott Nagy, Karen Moss, R. Vinci, M. Leslie

Excused: B. Bergen, S. Smith, B. Riker., M. Hundt, B. Bergen

Staff: C. Gilson, S. Bloom

The meeting was called to order at 6:05 p.m. by President Vinci,

I. Minutes of June Meeting: L. McLaughlin Murray moved to approve, K. Moss seconded.

II. Committee Reports/Program Updates:

Economic/ Residential Development: Three homeward units have been sold; one remains on Scranton Road. New Grumpy's and Christmas House Museum are under storefront development. Please refer to Executive Director's Report for additional details.

Long Range Planning: The next planning meeting for the next series of Strategic Initiative Neighborhood Meetings has been scheduled for August 10th.

Finance: Treasurer Boylan reported that the large account receivables can be collected. Even though there were unexpected expenses, careful monitoring of expenses has kept TWDC within budgetary parameters. We have gained additional grant income. Both councilmen have provided us with block grant funds. TWDC was recently rated second highest in efficiency by the city.

The financial news regarding 2406 Professor has been good. Three of the apartments have been leased; one is in process. The storefront is nearly completed.

L. McLaughlin Murray moved to approve the financial report. K. Moss seconded it. All voted in favor.

Fiscal Sponsorship Agreement: A model agreement has been drafted to spell out the rights and responsibilities of TWDC and those groups for which TWDC serves as a fiscal agent. L. McLaughlin Murray wanted to know what provisions were made for funds that were left when a group closed down. After some discussion, that these groups be asked to create a plan for the dispersal of these funds.

It was moved by L. McLaughlin Murray and seconded by Jon Boylan to amend section two of the agreement defining the obligations and responsibilities of the groups whose funds are held by TWDC. The new language reads "If a group goes out of existence, prior to its dissolution, it shall commit in writing, at that time or within thirty day of its dissolution, its plans for the distribution of any remaining funds in its account." All voted in favor.

With the addition of this amendment, L. McLaughlin Murray moved to accept the
fiscal sponsorship agreement as now written. K. Moss seconded. All approved.

Financial Committee will meet on August 8th to prepare budget.

Fund-Raising: R. Vinci reported that the fund-raiser had grossed $48,000 with a profit of $30,000. We need to start planning now for sponsors and prizes.

Community Organizing: Arts in August with plays and ballets in Lincoln Park is coming along well.

Property Management: OCNW has informed TWDC that it wishes to dissolve the partnership that allows TWDC to manage OCNW properties including the West Virginia Building.

L. McLauglin Murray moved that we empower Executive Director Gilson to give OCNW a thirty day notice in writing that TWDC will no longer manage West Virginia Multi-Family 1. N. Swerdlow seconded. All voted in favor.

III. New Business:

Personnel: Walter Wright has left the organization. C. Gilson is re-thinking the job description. New post will have more fund-raising responsibilities. E. Gonzales has given notice. The new property manager must be bilingual.

Valleyview Homes: Executive Director C. Gilson gave a review of the problem surrounding the Valleyview Homes. TWDC had been involved in a partnership with CHN and Sutton Builders to construct twenty-four for sale units between Starkweather and West 7th. CHN has excessive inventory and has decided to sell its share in the partnership to stabilize its financial exposure.

Decision-making had been delayed because the CHN board needed to assess its options. A further difficulty was that the costs of these homes had increased because of the prevailing wage issue. Efforts to re-design and re-engineer these homes were unsuccessful because a redesign would less the quality of the home. Second mortgage money had been allocated by the federal government to cover these costs and still keep the project affordable.

CHN wants to sell their share for costs incurred (no profit). Sutton Builders is willing to assume the liability. VCC is willing to loan us the sum for TWDC to purchase the CHN lots. Our board needs to pass a resolution permitting C. Gilson to apply for this loan.

Questions came up regarding the nature of the partnership and the risk for TWDC.
Sutton will be the builder and the company will assume the risk. The second mortage money -- $900,000- is now available for use by anyone in Tremont. HUD permitted this since the new agreement will waive prevailing wage costs.

C. Gilson will send copies of the proposed agreement to all board members. This does not differ materially from our arrangement in regard to Metro Lofts.

J. Boylan proposed (moved) a resolution that could be presented to Village Capital Corporation. The Board of Tremont West Development Corporation permits
Executive Director Gilson to apply for a loan of up to $500,000 from Village Capital Corporation to facilitate the reconstitution of the Valleyview Homes Partnership contingent upon the formal ratification of the agreement by the TWDC Board at the next meeting. Lynn Murray seconded the motion. All voted in favor with Karen Moss and Phil Pavarini abstaining.

Board dismissed staff to discuss a personnel matter in executive session.

Web Site: Phil Pavarini reminded Board of responsibility of posting minutes and committee minutes on the web site. Our web master Walter Wright has left for new employment. S. Catania offered to see what he could do. One caution - minutes and committee minutes must be approved by Board or appropriate committee before posting.

Meeting adjourned at 7:55 p.m.