Columbus, Georgia

MINUTES OF THE MEETING OF THE

DEVELOPMENT AUTHORITY OF COLUMBUS GEORGIA

July 1, 2004



MEMBERS PRESENT

Billy Blanchard, Bob Gilson, Stella Shulman, Allen Taber, Fernando Verdree



MEMBERS ABSENT:Dick Ellis, Jimmy Yancey



ALSO PRESENT

Richard Bishop, Steve Butler, Carmen Cavezza, Mike Gaymon, Biff Hadden, Becca

Hardin, Dayton Preston, Joe Sanders, Brian Sillitto, Kathy Steverson, Robert

Teem, Janeen Tucker, Chuck Williams, Katherine Kelly



Bob Gilson, Chairman, noting that a quorum was present and proper notice had

been given in accordance with the requirements of Georgia law, called the July

1, 2004 meeting to order. Steve Butler was recognized for his service as a

member of the Development Authority of Columbus since 1985. Upon motion made

by Stella Shulman and seconded by Fernando Verdree, the Authority approved a

resolution entitled ?A Resolution in Appreciation for Service of Stephen T.

Butler? attached as Exhibit ?E?. The Authority also presented him with a gift

of appreciation. Steve Butler responded with comments.



MINUTES

Upon motion made by Stella Shulman and seconded by Allen Taber, the Authority

unanimously approved the minutes of theJune 3, 2004meeting hereto attached as

Exhibit ?A?.



FINANCIAL REPORT

Fernando Verdree reviewed the financial report for June 2004. A question was

asked if a separate accounting of the millage funds is being kept. A record of

expenditures from the millage funds is being kept and there is a separate

account for the millage funds.Katherine will include a report of activity in

the next meetings packets. Upon motion made by Allen Taber and seconded by

Stella Shulman, the Authority unanimously approved the June 2004 Financial

Report which is attached hereto as Exhibit ?B?.



ECONOMIC DEVELOPMENT UPDATE ? Becca Hardin reviewed the status of current

projects. Her report is attached as Exhibit ?C?. Shehas just returned from a

marketing trip to New York City and Chicago. This was part of Greater Georgia

Initiative. While on this trip she took the opportunity to meet with some key

contacts for a couple of current projects. Two new marketing pieces have been

developed and a copy is in each packet. Consultants were very interested in

the fact that we have applied by FTZ designation. Currently there are 14

active projects with 3 of them being ?hot.? There have been 6 prospect visits

since last meeting with one being in West Point. Ed Advisory Board went on a

?prospect? tour of Columbus for its June meeting. The Taylor County project

will not happen but things are moving on.





OLD BUSINESS

1. Biff Hadden gave an update on BRAC. One of the most important

things under BRAC is mission value. The Department of Defense has offered at

the request of Ft. Benning a Joint Land Use Study (JLUS). DOD pays about 75%

of the cost, the Georgia Military Affairs Coordinating Committee will cover

12.5% and Fort Benning Future Partnership will cover the remaining 12.5%. In

order for DOD to do this a resolution expressing support is needed. The

Wexford Group has prepared three marketing pieces and samples are in members?

folders. There are growth opportunities already taking place even with BRAC.

Ft Benning is a candidate for a second 4,000man brigade.

2. Bob Gilson explained the status of the remaining 692 acres in

Cusseta-Chattahoochee County after the land exchange. In 1991 there was an

agreement between the counties to compensate then Chattahoochee County for

potential tax losses in the amount of $250,000. A partial payment was made for

land fill property and taxes on the land have been made during the interim.

When the exchange was completed in 2001, the land went off the tax digest of

Chattahoochee County. After researching the matter, it has been determined

that around $192,000.00 including interest is the balance due to

Cusseta-Chattahoochee County. Upon motion made by Fernando Verdree and

seconded by Allen Taber, the Authority authorized upon verification the payment

due to Cusseta-Chattahoochee County for the 692 acres which is being estimated

to be about $192,000.00 with interest at this time.



NEW BUSINESS

Bob Gilson appointed Billy Blanchard and Fernando Verdree to serve as

Nominating Committee for a Vice Chair of the Authority. Fernando Verdree will

serve as committee chair and report to the Authority at the next meeting.



LEGAL ISSUES

1. Upon motion made by Allen Taber and seconded by Fernando Verdree,

the Authority unanimously approved the Inducement Resolution in the amount of

$18,000,000 for Columbus Park East, LLC in the form hereto attached as Exhibit

?E.? Stella Shulman abstained from the vote.

2. Upon motion made by Fernando Verdree and seconded by Stella Shulman,

the Authority authorized requesting the City to convey the deed for the 40-acre

site known as Parcel 10 in MTP for H&K and Parcel 2 for the Spec Building to

the Authority.

3. Upon motion made by Stella Shulman and seconded by Fernando Verdree,

the Authority granted a general authorization for the Authority to enter into

such engineering and site contracts that might be needed to facilitate the

development of the property upon proper indemnification by H&K.



PROPERTY

1. Dayton Preston reported that a temporary road will be used to access

MTP Parcel 2 for construction of spec building. Each member has been given a

list of approved names which can be used in MTP. Biff reported that road names

are not limited to these but other appropriate names are okay.







OTHER ISSUES

Upon motion made by Fernando Verdree and seconded by Allen Taber, the Authority

approved up to $800 in expenses for Bob Gilson to visit a prospect in Indiana.





There being no further business to come before the Authority, the meeting was

adjourned by Bob Gilson, the chair.





By:_____________________________

J. Edward Sprouse, Secretary



Approved by:



____________________________________

Robert M. Gilson, Jr., Chair