Anderson Redevelopment Commission

MINUTES ANDERSON REDEVELOPMENT COMMISSION November 8, 2012 approval of all parties and is now in the general TIF PUBLIC MEETING Levy. 4:30 p.m. Mr. Farmer moved to approve the invoices as Conference Room #1 presented. Mr. Royer seconded. Motion passed 120 East 8th Street unanimously; 3 yes, 0 no. Anderson, IN 46016 PUBLIC HEARING MEMBERS PRESENT Mr. Sulc opened the public hearing for public input on Kevin Sulc, President the resolutions on the funding of the bonds. Joe Royer, Vice President Mike Farmer, Secretary / Treasurer There were no public comments. The Public Hearing was closed. MEMBERS ABSENT Just Puckett, Member BUSINESS Carolyn Scott, Member RESOLUTION #RD09-12 RESOLUTION OF THE STAFF PRESENT ANDERSON REDEVELOPMENT COMMISSION Ann Marie Bauer, Attorney AUTHORIZING THE EXECUTION OF AN Greg Winkler, Director AMENDED AND RESTATED LEASE, CONTINUING Ashley Hopper, Deputy Director CERTAIN FUNDS AND ACCOUNTS IN Karen Pettigrew, Specialist CONNECTION WITH THE AMENDED AND April Phillips, Specialist RESTATED LEASE BETWEEN THE ANDERSON REDEVELOPMENT COMMISSION AND THE OTHERS PRESENT ANDERSON REDEVELOPMENT AUTHORITY Kevin S. Smith, Mayor RELATING TO THE POLICE STATION PROJECT, Pete Heuer, Board of Public Works Chairman PLEDGING CERTAIN REVENUES TO MAKE Sam Pellegrino, City Controller LEASE RENTAL PAYMENTS UNDER SUCH LEASE, Frank Owens, Municipal Development Director COVENANTING TO LEVY A SPECIAL BENEFITS Jim Treat, O.W. Krohn & Associates TAX IN THE EVENT SUCH PLEDGED REVENUES David Umpleby, Krieg DeVault ARE INSUFFICIENT TO MAKE ALL REQUIRED PAYMENTS UNDER THE LEASE, AND OTHER RELATED MATTERS ROLL CALL AND DECLARATION OF Ms. Bauer explained the resolution authorizes all the QUORUM activities associated with the refunding of a bond that Mr. Sulc called the meeting to order at 4:30 p.m. and was issued in 2002. This was the bond which was declared a quorum present. executed through the Redevelopment Authority. Through the mechanism of a lease it was funded by MINUTES the payments from the Redevelopment Commission Mr. Royer moved to approve the minutes from the as lessee on the building. The lease payments match October 2, 2012, meeting as corrected. Mr. Farmer the debt service on the bond issued by the seconded. Motion passed unanimously; 3 yes, 0 no. Redevelopment Authority. INVOICES Mr. Pellegrino stated that the balance of the bond is Mr. Winkler discussed a few of the invoices. The first roughly $5.4 million and matures February 2024. The GTI payment has been made. The FARM BAN was interest rate is 4.5 to 5 percent. When the bond is ref renewed, but it required the payment of the interest unded in January 2013, the bond will be $5.185 for 2012, plus the price of carrying the note until million with PNC bank with a maturity date of November 15, 2013. Approval for pre-payment was February 2023. The interest rate will be 2.02 percent. received by the members via email. A transfer of This will reduce the annual payments by $35,000 and funds has occurred from the Nestle TIF with the save $741,000 over the life of the bond. Mr. Royer moved to approve Resolution #RD09-12. Mr. Farmer capital in the project has passed. The City Attorney seconded. Motion passed unanimously; 3 yes, 0 no. will determine how to best proceed. RESOLUTION #RD10-12 BOND RESOLUTION Project Columbia OF THE ANDERSON REDEVELOPMENT Mr. Winkler explained Project Columbia is Hy-Pro COMMISSION AUTHORIZING THE ISSUANCE Filtration. This project will not be on the OF CERTAIN REFUNDING BONDS, CONTINUING Commission’s agenda until February. The property CERTAIN FUNDS AND ACCOUNTS, PLEDGING must be annexed, zoned, and platted. The project CERTAIN REVENUES, AND COVENANTING TO area will need to be included in the TIF district and LEVY A SPECIAL BENEFITS TAX then a TIF bond can be issued. The construction Ms. Bauer explained the resolution relates to a TIF cannot take place until the area is included in the TIF bond issued by the Commission. This bond was district. The company’s intention is to be in operation issued in 2002 for redevelopment projects. by this time next year. The project will create 107 jobs and $10.2 million investment. Mr. Pellegrino stated the bond was for the Dr. Martin Luther King Jr. Blvd project. The current balance is Hy-Tech Machining Systems, LLC. $4.2 million with a final maturity date of February Mr. Owens is continuing to collect information. He 2022 with an interest rate of 4.5 to 5 percent. The should be able to answer questions at the next re-funding of the bond will be $3.95 million with a meeting. final maturity date of February 2022 at an interest rate of 1.9 percent. This will reduce the annual Edgewood Plaza payment by $55,000 and save $453,000 over the life Ms. Pettigrew explained the staff is continuing to meet of the bond. The bond will be with PNC. with stakeholders. The staff will be meeting with the Edgewood Town Council, the two hospitals, the Board Mr. Farmer moved to approve Resolution #RD10-12. of Realtors, and the Edgewood area business owners Mr. Royer seconded. Motion passed unanimously; 3 next week. yes, 0 no. MISCELLANEOUS PROJECT WORLD Certified Tech Park Mr. Winkler stated there is an announcement Mr. Winkler stated $739,562 has been received from tomorrow, November 9, 2012, at 3:30 p.m. at Ford the State of Indiana for 2012. State Statute caps the Autoworld. It involves the purchase of approximately total funds at $5,000,000. We have received 19 acres of land from the Commission by Ja-My LLC $2,345,869 to date. Of this amount, $1,472,030 has for the purpose of building two new automotive been paid to the Flagship Enterprise Center (FEC). dealerships, Ford and General Motors. The There was an agreement signed in 2007 that dealerships, currently on Broadway, will be moved to $4,000,000 would be passed through to the FEC to Scatterfield Road. Approximately $7.5 million is being help support them in their efforts. The current invested in the project and will add new 30 jobs. Ivy agreement with the FEC says we will extend up to the Tech has accepted the donation of the existing Ford lesser of $500,000 or the total received from the CTP property owned by Mr. and Mrs. Jamerson to become each year. At the December meeting, he will ask the the new East Central Indiana Automotive Institute. Commission to consider paying the entire amount of There is a letter of support from INDOT regarding the $739,562 to the FEC since neither the City nor FEC traffic light. The staff wanted to make sure the traffic received funds in 2009 or 2010. light will be kept at this location as the traffic will increase with this new project. A formal offer to Next Meeting purchase should be presented at the next meeting. Mr. Winkler asked that the next meeting be moved to Thursday, December 11, 2012, at 4:30 p.m. UPDATES The Commission agreed. FARM Bond Anticipation Note Mr. Winkler stated the interest was paid for 2012 and ADJOURNMENT the due date was extended to November 15, 2013. Meeting adjourned at 5:00 p.m. The City Attorney is talking with The Farm LLC. The deadline of October 24, 2012, for The Farm to inject Submitted by: April K. Phillips Anderson Redevelopment Commission (ARC): November 8, 2012 Page 2