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AGENDA ITEM REVIEW FORM |
6.A.
Regular City Council Meeting
- Meeting Date:
- 07/24/2024
- Department Head:
- Kay Macuil
- Submitted By:
- Kay Macuil, City Attorney, Attorney's Office
Action Requested:
Motion
ITEM:
Discussion and possible action on any and all matters regarding the appointment of a director to the Industrial Development Authority of the City of San Luis to replace a resignation. (Kay Marion Macuil, City Attorney)
SUMMARY:
The Function of the San Luis Industrial Development Authority ("IDA"):
Industrial Development Authorities are a special type of corporation created by state statutes and authorized by federal law that encourages governments to support economic development through tax incentives. San Luis created an Industrial Development Authority in the year 2000. It is a non-profit corporation under ARS Title 35, Chapter 5; it is a political subdivision. It serves as a conduit issuer of bonds to borrowers. Borrowers are solely responsible for the debt, but the IDA financing vehicle under Arizona and Federal law makes any interest income gain for bondholders tax-free. The board members are not paid and are appointed by the City Council. The board members meet as necessary when bond projects are presented to them. Their meetings are open to the public and follow the Open Meeting Law.
Recent IDA Action
The most recent financing project was the bond for the Regional Center for Border Health for Medical Mall on Oak Street in San Luis.
Need for Appointment:
The Regional Center for Border Health is constructing a hospital near the Medical Mall. The financing is expected to be finalized by the end of July or the beginning of August, and they want the IDA to issue the bond. The staff has been informed that the project requires a complete IDA board. One member of the five-person board resigned, and that vacancy needs to be filled. The remaining positions have expired, but they are renewed automatically.
IDA Directors' Eligibility
A.R.S. § 35–705 states: "A director shall not be an officer or employee of the authorizing municipality." The San Luis Board has five (5) directors, but the statute and the Articles of Incorporation allow a minimum of three (3) and a maximum of nine (9) directors.
IDA Board of Directors
There are currently four (4) Board members: Gary Black, Marco Pinzon, Francisco Magallon, and Maria Gonzalez. Under A.R.S. § 35-705, they serve without compensation.
Alex Joe Harper has volunteered to be considered for appointment to the IDA.
Industrial Development Authorities are a special type of corporation created by state statutes and authorized by federal law that encourages governments to support economic development through tax incentives. San Luis created an Industrial Development Authority in the year 2000. It is a non-profit corporation under ARS Title 35, Chapter 5; it is a political subdivision. It serves as a conduit issuer of bonds to borrowers. Borrowers are solely responsible for the debt, but the IDA financing vehicle under Arizona and Federal law makes any interest income gain for bondholders tax-free. The board members are not paid and are appointed by the City Council. The board members meet as necessary when bond projects are presented to them. Their meetings are open to the public and follow the Open Meeting Law.
Recent IDA Action
The most recent financing project was the bond for the Regional Center for Border Health for Medical Mall on Oak Street in San Luis.
Need for Appointment:
The Regional Center for Border Health is constructing a hospital near the Medical Mall. The financing is expected to be finalized by the end of July or the beginning of August, and they want the IDA to issue the bond. The staff has been informed that the project requires a complete IDA board. One member of the five-person board resigned, and that vacancy needs to be filled. The remaining positions have expired, but they are renewed automatically.
IDA Directors' Eligibility
A.R.S. § 35–705 states: "A director shall not be an officer or employee of the authorizing municipality." The San Luis Board has five (5) directors, but the statute and the Articles of Incorporation allow a minimum of three (3) and a maximum of nine (9) directors.
IDA Board of Directors
There are currently four (4) Board members: Gary Black, Marco Pinzon, Francisco Magallon, and Maria Gonzalez. Under A.R.S. § 35-705, they serve without compensation.
Alex Joe Harper has volunteered to be considered for appointment to the IDA.
RECOMMENDATION / SUGGESTED MOTION:
I MOVE TO APPOINT ALEX JOE HARPER TO THE INDUSTRIAL DEVELOPMENT AUTHORITY OF THE CITY OF SAN LUIS.
Fiscal Impact
- IS THERE FISCAL IMPACT ASSOCIATED WITH THIS ITEM:
- No
- CITY/STATE/FEDERAL FUNDS:
- N/A
- TOTAL:
- N/A
- BUDGETED AMOUNT:
- N/A
- AVAILABLE AMOUNT TO TRANSFER:
- N/A
- ACCT NAME & GL#/REMAINING BALANCE BEFORE PURCHASE:
- N/A
FISCAL IMPACT STATEMENT (IF THIS IS A BUDGET TRANSFER, YOU MUST ATTACH THE BUDGET ADJUSTMENT FORM):
There is no fiscal impact to making appointments of directors and officers to municipal corporations.