Exec 4-21-11

<body topmargin=0 leftmargin=0 marginheight=0 marginwidth=0> <table cellpadding=0 cellspacing=0 border=0><tr> <td valign="top" rowspan="2" width=210 BGCOLOR="#99CC99" TEXT="#080000" bgproperties="fixed" background="03e8dfc3.jpg"> <div> <A HREF="id125.htm" TARGET="_top" TITLE="Board of Directors"><B>Board of Directors</B></A></div> <div> <A HREF="id2.htm" TARGET="_top" TITLE="Meetings"><B>Meetings</B></A></div> <div> <A HREF="id122.htm" TARGET="_top" TITLE="CEDS"><B>CEDS</B></A></div> <div> <A HREF="id66.htm" TARGET="_top" TITLE="Scenario Planning"><B>Scenario Planning </B></A></div> <div> <A HREF="id80.htm" TARGET="_top" TITLE="Task Team"><B>Task Team</B></A></div> <div> <A HREF="id117.htm" TARGET="_top" TITLE="Regional, State Federal Links Docs"><B>Regional Plans </B></A></div> <div> <A HREF="id65.htm" TARGET="_top" TITLE="Regional Links NW CT"><B>Links</B></A></div> <div> <A HREF="id39.htm" TARGET="_top" TITLE="ByLaws"><B>By-Laws</B></A></div> <div> <A HREF="id6.htm" TARGET="_top" TITLE="Contact"><B>Contact</B></A></div> <bR> <div> <B>CEDS Sponsors:</B></div> <bR> <div> <A HREF="id125.htm" TARGET="_top" TITLE="Board of Directors"><I><U>Platinum Sponsor</U></I></A></div> <div> <B>Borghesi Building & Engineering</B></div> <bR> <div> <I><U>Gold Sponsors</U></I></div> <div> <B>CL& P</B></div> <div> <B>Yankee Gas</B></div> <bR> <div> <I><U>Silver Sponsors</U></I></div> <div> <B>Bicron Electronics</B></div> <div> <B>CEDAS</B></div> <div> <I>(CT Econ. Dev. Assoc.)</I></div> <bR> <div> <I><U>Bronze Sponsors</U></I></div> <div> <B>E. J. Murphy Realty</B></div> <div> <B>Litchfield Bancorp</B></div> <div> <B>Litchfield Inn</B></div> <div> <B>NW Community Bank</B></div> <div> <B>Parker Productions</B></div> <div> <B>Union Savings</B></div> <div> <B>Winvian</B></div> <bR> <div> <I><U>Patron</U></I></div> <div> <B>Bill Baxter</B></div> </td> <td valign="top" colspan=2 height=82 style=" border-bottom: 1px solid #999980;" BGCOLOR="#CCCC99" TEXT="#080000" bgproperties="fixed" background="03f8dfe1esnpes.jpg"> <div> <FONT SIZE="5" COLOR="#006600" FACE="Bangle" ><B>Northwest Connecticut Economic Development Corporation</B></FONT><FONT SIZE="2" COLOR="#000000" FACE="Bangle" ><B> </B></FONT><B>    </B><B>|</B><B>  </B><FONT SIZE="2" COLOR="#000000" FACE="Bangle" ><B> </B></FONT><FONT SIZE="2" COLOR="#006600" FACE="Bangle" ><B> </B><B> </B><A HREF="index.htm" TARGET="_top" TITLE="Northwest Connecticut Economic Developme"><B>home</B></A></FONT></div> <div> <A HREF="bod_1_20_11.htm" TARGET="_top" TITLE="BOD 12011">BOD 1-20-11</A>   |   <A HREF="bod_3_31_11.htm" TARGET="_top" TITLE="BOD 33111">BOD 3-31-11</A>   |   <B>Exec 4-21-11</B>   |   <A HREF="bod_5_19_11.htm" TARGET="_top" TITLE="BOD 51911">BOD 5-19-11</A>   |   <A HREF="bod_7_21_11.htm" TARGET="_top" TITLE="BOD 72111">BOD 7-21-11</A>   |   <A HREF="exec__8_18_11.htm" TARGET="_top" TITLE="Exec. 81811">Exec. 8-18-11</A>   |   <A HREF="bod_7_21_118d.htm" TARGET="_top" TITLE="BOD 92911">BOD 9-29-11</A>   |   <A HREF="bod_7_21_118e.htm" TARGET="_top" TITLE="BOD 111711">BOD 11-17-11</A></div> <div> </div> </td> </tr><tr> <td valign="top" height=398 width="100%" colspan=2 BGCOLOR="#CCCC99" TEXT="#080000" bgproperties="fixed" background="03f8dfc3.jpg"> <div> <I>Exec 4-21-11</I></div> <DIV ALIGN="LEFT"></DIV> <div> <B> <TABLE BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="708" BORDERCOLORLIGHT="#C0C0C0" BORDERCOLORDARK="#808080" FRAME="BOX" RULES="ALL" HSPACE="0" VSPACE="0" BGCOLOR=#FFFFFF > <tR> <tD VALIGN=TOP HEIGHT= 3201 WIDTH="708"><div> <B><U>Northwest Connecticut Economic Development Corporation</U></B></div> <div> <I>333 Kennedy Drive, Torrington, CT 06790</I></div> <div> <B><U>860.567.2204 - info@nwctedc.com - www.nwctedc.com</U></B></div> <div> <B>Minutes - Executive Committee</B></div> <div> <B>Thursday, April 21, 2011</B></div> <div> NW CT Chamber of Commerce</div> <bR> <div> <B>Attendance</B>: Allan Borghesi, JoAnn Ryan, Rose Ponte, Bill Baxter, Bob Axelrod, David Dean, Dan McGuinness, Rick Lynn and Doug Parker Guests: Vance Taylor, Alex Garmon, Dale Martin, Fran Delaney</div> <bR> <div> Meeting was called to order at 8:05 a.m. by Doug Parker.</div> <bR> <div> <B><U>Torrington Updates</U></B></div> <div> Rose Ponte, Torrington Economic Development Director</div> <div> Torrington is continuing efforts to remediate and redevelop existing brownfield sites. Six brownfield properties are currently undergoing phase I & II assessments utilizing grants obtained from DEP & EPA. A "Developer's Night" is being planned for June to encourage potential end-users to take advantage of the (BRLF) Brownfields Revolving Loan Fund ($1,000,000). </div> <bR> <div> Several small manufacturers started operations in the city and a "Power Yoga" company is beginning a new business. The Torrington Development Corporation (TDC) is working closely with the new Torrington Downtown Partners to revitalize the business community in downtown Torrington. "Main Street Marketplace" was very successful last year including special recognition from CERC. Plans are underway to create a "bigger and better" experience this year beginning on Thursday, June 30th (5-9 pm) and continuing until August 24th. The Arts & Culture Commission led by Steve Criss of the Warner Theater is pursuing grant opportunities to help fund this venture. Torrington will host the CT Main Street Awards at the Warner Theater including a presentation about Torrington's "Main Street Marketplace" program.</div> <bR> <div> Rick Lynn, Planning Director - Litchfield Hills Council of Elected Officials</div> <div> Rick reminded everyone of opportunities through the BEEP (Business Energy Efficiency Program) to provide financial support for businesses improving energy efficiency. Information is available at www.nwctedc.com (regional docs).</div> <bR> <div> Bill Baxter, Executive Director - Torrington Development Corporation (TDC)</div> <div> The TDC approved phase I of the plans submitted by the Torrington Downtown Partnership to provide a mixture of retail and residential spaces in the downtown area. TDC is working closely with the downtown partners, UConn, and the Torrington Arts & Culture Commission to create an enticing environment for businesses associated with arts and culture. Bill has attended several conferences and workshops centered on "What Makes Cities Work" to learn from the experiences of other communities in revitalizing city centers. </div> <bR> <div> <B><U>Winchester Updates</U></B></div> <div> Dale Martin was recently hired as the new Town Manager in Winchester. He was welcomed by everyone at the meeting. Fran Delaney, head of the "Main Street" program in Winchester also was in attendance.</div> <bR> <div> Arthur Bogen (Down to Earth Consulting) was not able to attend, but forwarded the following update:</div> <bR> <div> "As to the significant progress made by the City (of Winchester) on their Brownfields Revolving Loan Fund (BRLF)" - </div> <bR> <div> -  The grant agreement has been approved by both the City and the WHA Development Corporation.</div> <div> -  EPA has approved both the WHA Development Corporation and the sites on Gay Street for a grant.</div> <div> -  EPA permitted the BRLF to be extended to May 20, 2011</div> <div> -  The WHA DC anticipates receiving letters of commitment from other funding sources that should enable the project to move forward.</div> <div> -  The Winchester Economic Development Commission met and provided comments to a draft Evaluation Criteria for selecting projects to receive future loans and grants - that criteria will be recommended to the Selectmen to vote on shortly.</div> <div> -  Some Commission members will contact other potential borrowers to support the next project.</div> <bR> <div> We look forward to providing your group with further updates as we continue to move forward. Thanks again for your interest and support. </div> <bR> <div> Arthur Bogen, President</div> <div> Down To Earth Consulting, LLC</div> <div> 728 A Heritage Village</div> <div> Southbury, CT 06488</div> <div> V - 203.405.3291</div> <div> F - 203.405.3292</div> <div> www.downtoearthconsulting.com</div> <bR> <div> <B>Son Chief Property in Winchester</B></div> <div> <I>Letter distributed by Vance Taylor at the meeting:</I></div> <bR> <div> Dear Doug, JoAnn and members of the Executive Committee: </div> <bR> <div> I wish to request your consideration of receiving the Son Chief real estate gift offered to you by the Fitzgerald family. I've read and copied that portion of your previous Board minutes as a means to review and then explain some of the legitimate concerns raised during that discussion:</div> <bR> <div> "Doug Parker discussed a proposal from the current owners of the Son Chief Property in Winchester to work with the NW CT Economic Development Corporation. After a lengthy discussion no action was taken. Concerns about financial support, liability and project management limit the ability of NWCTEDC to move forward in supporting this project at this time." NWCTEDC BOD Meeting Minutes 3-31-11</div> <bR> <div> As you know, the property has been listed for sale at $795,000; this figure was based on the property's current net operating income of approximately $55,000 annually, and assuming an investor would seek at least a 7%.  This "profit" figure of $55,000 accounts for all building operating expenses, including real estate taxes, maintenance personnel, and general repairs and maintenance, but does not include property management.  The figure, however, contains no reserve for capital improvements, such as roof repair or replacement and related "big ticket" items.  Unlike the mostly vacant Nidec property or the completely vacant Torrington Company Bearings Test Lab which the EDC had hoped to acquire years ago, the Son Chief building is home to 18 small and medium sized businesses, accounting for approximately 60% of the total square footage.  The EDC, therefore, could reasonably project a Net Operating Income of $100,000 when achieving a 90% occupancy. From that $100,000, you could readily hire a full-time EDC and Chamber staff person to manage this property and further, to coordinate economic development activities for the region, partnering with municipal economic development directors and commissions.  A portion of these revenues could also annually be set aside for capital repairs and replacements as well as clean-up dollars to match the Winchester Brownfields Loan/Grant.  Bear in mind that a non-profit would be eligible for a grant of up to $200,000 in remediation funds from the Town, and up to an additional $200,000 grant directly from EPA Region 1 in Boston, for a possible total of $400,000.  Phase I and Phase II environmental assessments have estimated total cleanup in the range of $500,000, and hence, the remaining $100,000 could be funded through the annual property income over a multi-year period.</div> <bR> <div> I therefore believe that the concerns raised regarding "financial support, liability and project management" can also be reasonably addressed given the present and projected income stream of the property.  Further, this strategy can be the means for the EDC and Chamber to hire a full-time economic development staff person, which I know has been a long-standing desire of both organizations in our efforts to aggressively promote the benefits of Northwest Connecticut to present and prospective employers.  Finally, the establishment of an incubator would bring our region into alignment with other parts of Connecticut where incubators are already operating, and would provide a means to cultivate small, high-tech and growth-oriented companies to start and stay in our area.</div> <bR> <div> Incubators do work, and companies that "fly the coop" typically end up relocating to their own buildings and often construct facilities in industrial parks, as history has shown elsewhere.  We have reasonably good industrial inventory, both building and land, so why not help companies get started and grow in Northwest Connecticut?</div> <bR> <div> Please give serious consideration to the possibility of accepting the Son Chief gift.  Naturally, I am committed to this proposal and available to offer my assistance in making the Northwest Connecticut Business Incubator a reality.</div> <bR> <div> Thanks again!</div> <div> Cordially,</div> <div> <I>Vance A. Taylor </I></div> <bR> <DIV ALIGN="LEFT"></DIV> <div> <TABLE BORDER="1" CELLPADDING="1" CELLSPACING="1" WIDTH="534" BORDERCOLORLIGHT="#000000" BORDERCOLORDARK="#000000" FRAME="BOX" RULES="ALL" HSPACE="0" VSPACE="0" > <tR> <tD VALIGN=TOP HEIGHT= 506 WIDTH="526"><div> <B>Property Flyer</B></div> <div> <B>41-43 MEADOW STREET, WINSTED, CT</B></div> <div> <B>+/-110,000 SQUARE FOOT INDUSTRIAL COMPLEX ON +/-4 ACRES</B></div> <div> <B>$795,000</B></div> <div> The Son Chief property is currently home to 20 tenants, together occupying roughly 75% of the total square footage, and producing gross income of nearly $200,000/year; NOI is estimated to be $60,000. Excellent redevelopment opportunity with strong current income stream.  All municipal utilities with direct access to US Route 44 & CT Route 8 in downtown Winsted.  Possible first mortgage owner financing to qualified buyer</div> <bR> <DIV ALIGN="LEFT"></DIV> <div> <IMG SRC="1bd2ba60.png" border=0 width="299" height="166" ALIGN="BOTTOM" HSPACE="0" VSPACE="0"></div> <div> <IMG SRC="1be2cab0.png" border=0 width="300" height="171" ALIGN="BOTTOM" HSPACE="0" VSPACE="0"></div> </tD> </tR> </TABLE></div> <bR> <div> Vance also suggested other potential partnerships with NWCC, SCORE and SBA. He also cited other projects around the state developed by other economic development corporations.</div> <bR> <div> Bob Axelrod stated strong opposition reiterating the concerns over liability as well as the lack of financial and staffing resources. He stated the NWCTEDC needs to determine if it wants to own and manage commercial properties. </div> <bR> <div> Rose Ponte suggested forming a task team to gather more information about other economic development corporations managing projects similar to the Son Chief property. Rose Ponte, JoAnn Ryan, Bill Baxter, Dan McGuinness and Doug Parker all agreed to serve on the task team. JoAnn suggested John O'Toole as an addition to the task team, she will contact John. Doug will work with Ned Moore at DECD and the task team to gather more information about the roles of other economic development corporations in CT.</div> <bR> <div> Meeting was adjourned at 9:40 am.</div> <bR> <div> Regards,</div> <div> Doug Parker</div> <div> President/Executive Director</div> <div> www.nwctedc.com</div> <div> info@nwctedc.com </div> <div> (860) 567-2204</div> <bR> <DIV ALIGN="LEFT"></DIV> <div> <A HREF="id100.htm" TARGET="_top" TITLE="NWCTEDC Minutes"><B>Back to Minutes</B></A></div> </tD> </tR> </TABLE></B></div> <bR> <bR> </td> </tr></table></body>