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1 10 rrl-ww rrrn rrrr,r rrrrrrrrrr rrrrrrr r, rurwrr AGENDA Tobyhanna Townshp Economc Development Authorty Aprl 4, : 00 PM 1. Call Meetng to Order: Anne Lamberton, Char 2. Pledge of Allegance 3. Consder the Mnutes of: March 14, 2018, Regular Meetng 4. Old Busness 5. New Busness f a. Consder appontng g depostores b. Consder Rley and Company Engagement Letter c. Consder Resoluton 2018-, establshng a PIL 6. Publc Comment 7. Adjournment oval//, m/l/., ar"". v' m rr/.lr1;:r11rr r
2 THE TOBYHANNA TOWNSHIP ECONOMIC DEVELOPMENT AUTHORITY REGULAR BUSINESS MEETING APRIL 4, 2018 The Aprl 2018 Regular Busness Meetng of the Tobyhanna Townshp Economc Development Authorty was held on Aprl 4, 2018, at the Tobyhanna Townshp Government Center Buldng, 105 Government Center Way, Pocono Pnes, Pennsylvana, Present are Anne Lamberton, John Holahan, III, Robert Bossuyt, Edwn Mller, and Solctor Mark Bufalno. Wllam Van Glder, Solctor John Dean, and Townshp Manager John Jablowsk Jr. are absent. 1. Char Anne Lamberton calls the meetng to order at 6: OOPM. It s determned that a quorum s present. 2. The Pledge of Allegance s rected. 3. Announcements a. Anne Lamberton announces that John Holahan' s brthday was yesterday. 4. Robert Bossuyt motons to approve the meetng mnutes for the March 14, 2018 Regular Meetng, Edwn Mller seconds. Vote: All n favor; mnutes accepted. 5. Old Busness none. 6. New Busness a. Consder appontng depostores. Robert Bossuyt states that Frst Northern had 1. 67%, M & T had 1. 27%, and ESSA had 1. 20%. John Holahan motons to appont Frst Northern Bank and Trust, ESSA Bank and Trust, and M & T Bank as depostores for the Authorty, Robert Bossuyt seconds. Vote: all n favor; moton carres. b. Consder Rley and Company Engagement Letter. Robert Bossuyt motons to accept the Rley and Company Engagement Letter, John Holahan seconds. John Holahan states that the hourly rates for Debra Borger s $ 265, Jay Grobelny s 135, and bookkeepng s $ 50. For other staff needs, the rates range from$ per hour. Vote: all n favor; moton carres. c. Consder Resoluton , establshng a Publc Improvement Levy( PIL). John Holahan motons to adopt Resoluton , establshng a PIL, Edwn Mller seconds. Thomas Bowen from Stevens & Lee states that there s an updated resoluton dated Aprl 3, 2018, n the green packet he gave the Authorty. He explans the followng changes he made compared to the March 28h draft: Page 1 of 4
3 On page 2, concernng c - Gross Revenues, he added a provson so a PIL payer could dsclose and show the I% gross recepts levy on ther bll. If they do show the 1% on ther bll, that total wll also be subject to the total 1% gross levy. Ths s consstent wth Wsconsn' s resort fee, whch Kalahar s famlar wth. On page 2, concernng tem d- Gross Revenue Exclusons, he moved the sourcng ssue of tangble personal property sales and servces sales from page 6 to here. The ntent s to subject only tangble personal property delvered n and servces provded n the PIL area to the PIL. Ths way, f a retaler sent a property drectly to a locaton outsde of the PIL area, t would not be subject to the levy. Ths provson exsts to lmt the levy to the gross revenues n the area. The presumpton s that f the property was frst used or purchased n the PIL area, t would be sourced to the PIL area. The Authorty dscusses deletng ths provson. Thomas Bowen states that wthout ths provson, the Authorty could potentally tax the sales Kalahar makes at ther Wsconsn Dells locaton. He recommends under tem c Gross Revenues, statng that the gross revenues are based on transactons n the PIL area. Thus, the ssue of sourcng and non-sourcng s removed, and the dscusson s lmted to transactons wthn the PIL area. John Holahan asks f ths would affect tckets purchased from stes lke Trp Advsor. Thomas Bowen reples that the resoluton can be amended to address any problems. Thomas Bowen suggests avodng the sourcng ssue by on page 2, d., takng the second sentence that states " generally, gross revenues s sourced to the locaton where the purchaser( A) takes possesson of the product and/ or( B) makes frst use of a servce," deletng the word" generally," and nsertng ths sentence nto tem c, whch defnes gross revenues. He also suggests changng possesson" to" consummates the purchase" n the above sentence. Anne Lamberton clarfes that ths s based on pont of sale. The Authorty agrees. On page 3, tem x " nsurance proceeds for damages to tangble property located n the PIL area" was added. On page 6, under( d) PIL Reportng, tem, reference to electronc forms was ncluded, so reports and forms may be reported electroncally. Also, the last sentence was changed to comport wth language concernng unsworn falsfcaton to publc offcals. On page 6, under( d) PIL Reportng, tem was changed and expanded n an admnstratve capacty. On page 6, under( d) PIL Reportng, tem v, the word" reconclaton" was added. The concept behnd an annual reconclaton s to make sure the total gross revenues for the year are correct and up to date. Page 2 of 4
4 On page 7, ( f) Inspecton of PEL Payer Books and Records, was extensvely enhanced, and s entrely dscretonary. Much of ths language comes from the Ere Authorty. If on an audt or nspecton there s an unpad amount, n addton to nterest( at a suggested 1% per month), a servce charge of 2% a month could be mposed. The Authorty can wave these charges. If the unpad amount s sgnfcant, then the servce charge would be 3%. If a retaler s found to be underreportng by 25% or more, the statute of lmtatons can rse to 6 years. Ths provson s to lmt the number of years companes need to keep records. On page 9, Secton 3 Use of PIL Proceeds was added. It s not necessary, but delneates how proceeds wll be used. Debt servce on debt oblgatons s the frst prorty, second s other costs for debt, thrd s mantenance and operatng expenses, fourth s to fund aganst shortfalls, ffth s to defease or prepay amounts of ndebtedness, and sxth s to hold money n reserve to pay future costs. Thomas Bowen states that the Muncpal Authortes Act states that levy proceeds cannot exceed the amount of antcpated expenses. Anne Lamberton asks what the lead s for buldng captal. Thomas Bowen reples that there s no tme perod, percent, or amount. It s mportant to make sure that the project wll exceed whatever money the Authorty has. Bran Koscelansky states that Secton 3 wll also have a trust ndenture. Thomas Bowen states that the only other change was the effectve date n Secton 5. After the word" mmedately," he added language to state that the resoluton wll not go nto effect untl the" Board of Supervsors has approved( a) the TTEDA plan for ts " busness mprovements" and " admnstratve costs" as those terms are defned n Secton 5602 of the Act, (b) the estmated costs of such busness mprovements and admnstratve servces, and ( c) the proposed method of the PIL charge." Mark Bufalno states that the Authorty s not lookng to adopt the resoluton as s. John Holahan states that he speaks aganst the moton. Vote: all opposed, moton fals. John Holahan motons to adopt the Aprl 3, 2018, draft as amended and reflected n the mnutes of tonght' s meetng, Robert Bossuyt seconds. Vote: all n favor; moton carres. 7. Publc Comment a. Thomas Bowen states that t was not part of the moton to nclude addtonal parcels n the PIL. On page 4, only two parcels, beng Kalahar and the Pocono Manor parcel, are lsted. John Holahan suggests amendng the map at a later tme, and the Authorty agrees. Page 3 of 4
5 y - Thomas Bowen states that the Board of Supervsors does not necessarly need to approve every change the Authorty makes to ths resoluton; addng parcels may not affect any of the terms defned n Secton 5 as needng Board approval. 8. Meetng adjourned at 6:43PM; Authorty enters executve sesson at 6:45PM. Mnutes recorded by Jula Helakka ROspccetka IlyJs xntted: Obeq, I. Bossuyt, Secretary Page 4 of 4
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