Columbus, Georgia

MINUTES OF THE MEETING OF THE

DEVELOPMENT AUTHORITY OF COLUMBUS GEORGIA

May 7, 2003



MEMBERS PRESENT

Dick Ellis, Bob Gilson, Stella Shulman, Allen Taber, Fernando Verdree, Jimmy

Yancey



MEMBERS ABSENT

Steve Butler



ALSO PRESENT

Richard Bishop, Billy Blanchard, Michael Dunbar, Mike Gaymon, Becca Hardin,

John Mills, Dayton Preston, Joe Sanders, Ed Sprouse; 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 May

7, 2003 meeting to order. He welcomed Stella Shulman as the newly appointed

member of the Authority.



MINUTES

Upon motion made by Fernando Verdree and seconded by Dick Ellis, the Authority

unanimously approved the minutes of the April 2, 2003 meeting hereto attached

as Exhibit ?A?. Upon motion made by Allen Taber and seconded by Fernando

Verdree, the Authority unanimously approved the minutes of the April 16, 2003

meeting hereto attached as part of Exhibit ?A?.



FINANCIAL REPORT

Fernando Verdree reviewed the financial report for April 2003 which is attached

hereto as Exhibit ?B?. Upon motion made by Allen Taber and seconded by Dick

Ellis, the Authority unanimously approved the April 2003 Financial Report.



ECONOMIC DEVELOPMENT UPDATE ? Attached hereto as Exhibit ?C?

1. Projects: Becca Hardin reported that there are 31 active projects. There is

one ?hot? prospect for Taylor County and several good expansion projects in

Columbus. Two projects are in the Enterprise Zone. There will 3 prospects

visits during week of May 19th. Three companies have been moved to the

completion list. Plans are on track with the Technology Incubator to begin

construction in August and interviews for a director are being scheduled.

2. Marketing: Over 150 defense contractors were at the Chamber last night for

Infantry Industry Day. Craig Barrs, new Georgia Power Economic Development

Executive and the Economic Development project team will visit Columbus on May

12th. The Greater Georgia European Exchange is scheduled for June 11th-13th in

Augusta.

3. Other items: The Valley Partnership is working on regional land planning.

Some individuals from Monroe County will meet with the task force to share

experiences they encountered during development of a joint regional park.

Talbot County is in the process of finishing water/sewer infrastructure to the

90-acre park. Individuals are being interviewed for the director of the

Incubator. Groundbreaking should be around August 1. An article about Greater

Georgia appeared in the latest Tech link Magazine.

4. Report on Occupation Tax ?As a result of the wording of state law regarding

gross receipts/occupation taxes, MUTEC was incurring significant additional tax

liability because of its shipment of material to a warehouse/distribution

facility in the state of Georgia for reshipment out of state rather than making

out-of-state shipments directly from the Columbus operation. Since the problem

related to the language of state law, members of our legislative delegation

were approached to amend state law in a manner that was consistent with the

original intent of the statute, but would not result in the additional tax

burden to MUTEC. As a result of the passage of the legislation and the strong

support of our legislative delegation, MUTEC will receive a significant

reduction in its gross receipts tax. A letter of appreciation will be sent to

Representative Tom Buck for his leadership in enacting the necessary state

legislation.



PROPERTIES

1. Upon motion made by Dick Ellis and seconded by Allen Taber, the Authority

unanimously authorized Dayton Preston to proceed with getting proper permitting

to fill the 7-acre lot by the privately owned spec building in CEIP. There

will no cost to the Authority for the fill.

2. There are still problems with dumping on the MTP land. The property will be

blocked by the ?old gates? to try to keep people out.

3. JJ&G should finish examining wetlands on FLBC today. The wetland situation

looks better than first reported.

4. The forester has send bid letters to seven loggers. City ordinances will be

observed. Cutting should be complete by end of July. City is deeding some

land in south MTP in order to assist in federal permitting.

5. MTP Covenants ? The final draft of the MTP Covenants had already been given

to the Authority members. Discussion took place to make sure that a couple of

items were covered. Upon motion made by Jimmy Yancey and seconded by Fernando

Verdree, the Authority adopted the MTP Covenants as presented.



NEW BUSINESS

Becca Hardin outlined the need for updating the Economic Development section of

the Chamber website and the importance of accessible information to site

selection. Following a brief discussion, upon motion made by Allen Taber and

seconded by Stella Shulman, the Authority unanimously approved the expenditure

of $4,000 from the Millage Account to be spent toward redesigning and updating

the Economic Development portion of the Chamber website.



LEGAL ISSUES

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

Authority approved the resolution for Administrative Fees for Refunding Bond

Issues in the form attached hereto as Exhibit ?D?.

2. Upon motion made by Jimmy Yancey and seconded by Fernando Verdree, the

Authority unanimously approved the Amended Inducement Resolution for Rivertown

Pediatrics Project in the form attached hereto as Exhibit ?E? reflecting a

change in name to Rivertown Property Leasing, LLC and reducing the amount of

the issue to $3.4 million.

3. Upon motion made by Dick Ellis and seconded by Fernando Verdree, the

Authority unanimously approved the $3.4 Million Bond Resolution for Rivertown

Property Leasing, LLC in the form attached hereto as Exhibit ?F?.

4. Upon motion made by Allen Taber and seconded by Dick Ellis, the Authority

unanimously approved the Inducement Resolution for 1043 Partnership LLP for $3

million in the form hereto attached as Exhibit ?G?.

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

Authority unanimously approved the resolution authorizing the execution of

necessary documents granting easements to Georgia Power in connection with the

Northgate Village Project.



OTHER MATTERS:

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

Authority unanimously approved changing the regular meeting for the Authority

to the first Thursday of each month at 8:30am.

2. Richard Bishop reported that the City Council would like for the Development

Authority to give an update at the Council Work Session on May 20th of the

Economic Development activities and expenditures of millage rate monies.





There being no further business to come before the Authority and upon motion

made by Fernando Verdree and seconded by Allen Taber and unanimously adopted,

the meeting was adjourned.





By:_____________________________

J. Edward Sprouse, Secretary



Approved by:



____________________________________

Robert M. Gilson, Jr., Chair