Anderson Redevelopment Commission

MINUTES ANDERSON REDEVELOPMENT COMMISSION March 5, 2013 PUBLIC MEETING BUSINESS 4:30 p.m. Conference Room #1 HY-PRO AGREEMENT 120 East 8th Street The agreement was electronically presented to the Anderson, IN 46016 members for review prior to the meeting. MEMBERS PRESENT Mr. Winkler explained this agreement does follow Mike Farmer, Vice-President State Statute. The agreement asks the Commission Justin Puckett, Secretary / Treasurer to pledge the TIF dollars that will be created from this Carolyn Scott, Member project to the Economic Development Commission Kevin Sulc, Member that will in turn push the dollars forward to the Roger Clark, Non-Voting Member company with the approval of the City Council. In this situation, the property will become part of the TIF district and a separate TIF allocation area will be MEMBERS ABSENT created, and then the TIF will be pledged. The Joe Royer, President company has committed to 107 jobs and the construction a 122,500 sq. ft. facility with room to STAFF PRESENT expand on approximately 20 acres of land. Ann Marie Bauer, Attorney Greg Winkler, Director Mr. Sulc asked if the expanded TIF area will be larger Ashley Hopper, Deputy Director than 20 acres. Gary McKinney, Brownfields Redevelopment Specialist Karen Pettigrew, Small Business Specialist Mrs. Bauer answered that the area was slightly larger April Phillips, Financial Specialist due to a right of way. OTHERS PRESENT Mr. Sulc stated that generally speaking the expanded Mike Spyers, City Engineer TIF area is the proposed project area. It will also be Sam Pellegrino, City Controller part of the TIF Consolidated district with its own Pete Heuer, Chairman, Board of Public Works separate allocation area. Aaron Hoeg, Hy-Pro Filtration Buzz Krohn, O.W. Krohn & Associates. Mr. Winkler stated the company is investing Baylee Pulliam, Herald Bulletin approximately $10.5 million in real and personal property. There are assurances in the agreement. ROLL CALL AND DECLARATION OF The company agrees to pay up to $202,000 per year QUORUM for 12 years. If the property taxes are less than that Mr. Farmer called the meeting to order at 4:33 p.m. the company will make up the shortfall. This will give and declared a quorum with four (4) members us a marketable TIF bond. There is a potential buyer present. for the Hy-Pro and GTI bonds. Mr. Krohn prepared a financial spreadsheet that projects the potential MINUTES income of $5.6 million if the Commission decides to Mr. Sulc moved to approve the February 5, 2013, move forward with a taxable bond. It is anticipated minutes as received. Mrs. Scott seconded. Motion the interest rate would be 6.5% or less. passed unanimously; 4 yes, 0 no. Mrs. Scott was concerned there was not a definite INVOICES understanding of the source of employees. There are Mrs. Scott moved to approve the invoices as some Anderson residents currently working for Hy- presented including prepayment for Flagship Pro. Enterprise Center and Ja-May LLC. Mr. Puckett seconded. Motion passed unanimously; 4 yes, 0 no. Mr. Hoeg stated that approximately 40 percent of the current employees are from this area, not just the City 200 E 60TH STREET: RIGHT OF WAY AND SALE of Anderson. He anticipates some of the other existing OF PROPERTY employees will move to the Anderson area also. They Mr. Spyers explained that Mrs. Bauer prepared an have received a large amount of resumes from area easement grant for the Commission to sign. residents. The skilled labor force is why they want to Possession was taken of the property at 200 E. 60th make Anderson their home. They also plan on having Street with the intent of taking the right of way off internship programs with Purdue and Ivy Tech. the property and then selling the remainder of the property. He would like to put the property up for Mrs. Scott asked if he would put in writing that the sale and bring back bids at the May meeting. company’s first choice of qualified employees will come from the Anderson MSA. Mr. Sulc moved to approve the removal of right of from 200 East 60th Street and placing the property up Mr. Hoeg answered yes, although he cannot for sale. Mr. Puckett seconded. Motion passed guarantee where the best applicants will come from. unanimously; 4 yes, 0 no. Mrs. Bauer suggested Mr. Hoeg submit a statement of UPDATES policy and then include it as an exhibit rather than an amendment. Project World Mr. Winkler stated he met with the Jamersons this Mr. Hoeg and Mrs. Scott both agreed to the afternoon. Mr. Spyers will be meeting with the suggestion. engineers, architects, and General Motors team to make sure there is a satisfactory site plan. This is not Mr. Hoeg explained they are already sponsoring a an easy project because General Motors is involved little league team in Anderson. Also, one of their and they are concerned about the appearance of the Anderson employee’s is active with one the local site and how it all works. This is being “shoe-horned” animal shelters. They anticipate starting construction into an existing brownfield site. Brownfield sites in April with a completion and full production date in present unique challenges as does the existing utility late October or early November. infrastructure that either needs to be worked around or relocated. After this meeting, there should be cost Mr. Spyers explained that the City will take bids for estimates and plans. Mrs. Bauer is preparing a vehicle the water and sewer lines on March 19, 2013, through in which to proceed. The Jamersons have offered to the Board of Works. Once these are received, he will assist in this process as well. bring them to the Commission for their approval at the April meeting. Mr. Krohn arrived at the meeting. Mr. Winkler explained the letter of intent for Hy-Pro Hy-Tech Machining offered a $1.9 million incentive; however, the contract There was nothing new to report at this time. is for $1,645,000. This is a difference of $255,000 which is the estimated cost of infrastructure. This amount was pulled out of the agreement so it could Parking Garage be done as a tax exempt bond or a “pay as you go” Mrs. Bauer explained the Common Council approved project. the first two readings. The third reading will be at their next meeting on March 14, 2013. Mr. Farmer thanked Mr. Hoeg for locating in Anderson. Mr. Spyers stated the parking study should be completed and ready to present at the next meeting. Mr. Sulc moved to approve the project agreement with Hy-Pro. Mrs. Scott seconded. Motion passed Greater Edgewood Plaza Redevelopment Project unanimously; 4 yes, 0 no. Mr. McKinney explained staff is continuing to work with the properties in the area and those that have This agreement will be heard by the Economic environmental issues. The staff will be contacting Development Commission on March 12, 2013, at 5:00 each member individually to give more details on the p.m. It also must be signed by a member of the City project and get feedback. administration. Anderson Redevelopment Commission (ARC): March 5, 2013 Page 2 Mr. Winkler commented that Mr. Royer had mentioned to him that he wanted to make sure there was enough financial flexibility to address Edgewood Plaza and other infrastructure issues. MISCELLANEOUS TIF Financials Mr. Winkler explained that the financial spreadsheet from O.W. Krohn & Associates contemplates the selling of the GTI and Hy-Pro taxable bond issues in 2013 and taking care of The Farm debt and continuing with “pay as you go” infrastructure projects. The one thing that is not contemplated is a tax-exempt bond for other infrastructure issues. Some of the infrastructure improvements that we are making now could be rolled into a tax-exempt issue which would enable the Commission to do other economic development and infrastructure projects. The Commission is in a position to do two taxable bond issues and one tax-exempt issue if it were so desired. Mr. Krohn thought the two taxable issues should be bundled as one bond. The spreadsheet shows each project will pay its own way. Mr. Winkler was committed to keeping the Commission’s funds financially flexible. Tax exempt bonds must be tied to infrastructure. Taxable bond issues can be used for any legal use for such things as economic development incentives or infrastructure issues. He suggested doing both types of bonds to maximum flexibility and to maintain an adequate cash balance so when the next opportunity comes along the Commission can respond. Mr. Krohn discussed the financial spreadsheet and other related issues. City Attorney Mr. Jason Childers, City Attorney, has resigned to take the Commissioner’s position with the Madison County Court system. Mrs. Ashley Hopper will be the new City Attorney starting March 18, 2013. April meeting Mr. Winkler will be overseas in April; therefore, he will not be attending the April meeting. ADJOURNMENT Meeting adjourned at 5:09 p.m. Prepared by: April K. Phillips Anderson Redevelopment Commission (ARC): March 5, 2013 Page 3