Anderson Redevelopment Commission

MINUTES ANDERSON REDEVELOPMENT COMMISSION June 4, 2013 nor was any received via email, USPS, or phone. The PUBLIC HEARINGS & MEETING legal notice was published in the Anderson Herald 4:30 p.m. Bulletin. Conference Room #1 120 East 8th Street Hearing no remonstrance, the public hearing was Anderson, IN 46016 closed. MEMBERS PRESENT PUBLIC HEARING Joe Royer, President Mike Farmer, Vice President RESOLUTION ARC07-13 A RESOLUTION OF THE Justin Puckett, Secretary / Treasurer ANDERSON REDEVELOPMENT COMMISSION Kevin Sulc, Member AUTHORIZING ADDITIONAL APPROPRIATION Roger Clark, Non-Voting Member Mr. Royer called the public hearing to order at 4:41 p.m. and declared a quorum with four (4) members MEMBERS ABSENT present. There were no remonstrators in attendance, Carolyn Scott, Member nor was any received via email, USPS, or phone. The legal notice was published in the Anderson Herald STAFF PRESENT Bulletin. Ann Marie Bauer, Attorney Greg Winkler, Director Hearing no remonstrance, the public hearing was Michael Frischkorn, Deputy Director closed. April Phillips, Financial Specialist Karen Pettigrew, Small Business Specialist PUBLIC MEETING OTHERS PRESENT ROLL CALL AND DECLARATION OF Kevin S. Smith, Mayor QUORUM Pete Heuer, Chairman of the Board of Public Works Mr. Royer called the meeting to order at 4:43 p.m. Sam Pellegrino, City Controller and declared a quorum with four (4) members Mike Spyers, City Engineer present. Baylee Pulliam, Herald-Bulletin Brian Elpers, Tru-Cut MINUTES Tony Anderson, Tru Cut Mr. Sulc moved to approve the May 7 and 14, 2013, minutes as presented. Mr. Farmer seconded. Motion PUBLIC HEARING passed unanimously; 4 yes, 0 no. RESOLUTION ARC06-13 CONFIRMATORY INVOICES RESOLUTION OF THE ANDERSON Mr. Farmer moved to approve the invoices as REDEVELOPMENT COMMISSION APPROVING presented. Mr. Puckett seconded. Motion passed VARIOUS AMENDMENTS TO THE unanimously; 4 yes, 0 no. REDEVELOPMENT PLANS FOR THE CONSOLIDATED SOUTHWEST / EAST / BUSINESS CENTRAL / SOUTH / DOWTOWN REDEVELOPMENT AREA RESOLUTION ARC06-13 CONFIRMATORY Mr. Royer called the public hearing to order at 4:37 RESOLUTION OF THE ANDERSON p.m. and declared a quorum with four (4) members REDEVELOPMENT COMMISSION APPROVING present. There were no remonstrators in attendance, VARIOUS AMENDMENTS TO THE REDEVELOPMENT PLANS FOR THE repairs when presented a bill. There is language in CONSOLIDATED SOUTHWEST / EAST / the easement that the parties can develop some CENTRAL / SOUTH / DOWTOWN alternative resolution if they both agree. REDEVELOPMENT AREA Mrs. Bauer explained that the resolution amends the Mr. Winkler stated that the rail spur is important to redevelopment plan to include the property recently Tru-Cut. They move 10-15 rail cars per month. Tru- annexed and add a project. It has been through the Cut purchased the property from EVI. They have Plan Commission and City Council reviews and made approximately $11,500 worth of improvements approval. to the spur. The ties need replaced now. CSX has some oversight as this is their spur. Mr. Sulc asked if there was any opposition expressed at any point. Mr. Elpers stated the rail spur is being inspected today. The rail spur is very instrumental to their Mrs. Bauer answered no. business. A few years ago there were some issues with the spur and the City paid one third, Tru-Cut paid Mr. Sulc moved to approve Resolution #ARC06-13. one-third and the company to the north paid one- Mr. Farmer seconded. Motion passed unanimously; 4 third. This is a pro-active approach. yes, 0 no. Mr. Anderson commented that 60% of their business RESOLUTION ARC07-13 A RESOLUTION OF THE is rail car delivery. They are poised for growth. On- ANDERSON REDEVELOPMENT COMMISSION going maintenance of the spur is an issue. AUTHORIZING ADDITIONAL APPROPRIATION Mrs. Bauer explained that this resolution did not Mr. Royer asked if the maintenance issues will be an require additional approvals. The resolution is to on-going issue or is this a onetime request. appropriate the proceeds of the taxable bond when it is sold. Mr. Elpers stated there has not been a lot of work done on the rail spur since it was installed by General Mr. Puckett moved to approve ARC07-13. Mr. Farmer Motors in the 1970s. They have tried to keep the seconded. Motion passed unanimously; 4 yes, 0 no. spur in good shape; however, the ties need replaced. They have replaced all the ties on their property. RAIL SPUR MAINTENANCE COSTS (SOUTHEAST CORNER OF 29TH & MADISON AVENUE) Mr. Anderson stated there should be some predictable Mr. Winkler noted that there is an easement that the annual costs. Commission owns. Mr. Elpers mentioned that nothing has been done in Mr. Bauer explained that prior to the donation of the years to the spur except for what they have done. property at the southeast corner of 29th Street & Madison Avenue to the Commission, the purchaser of Mr. Royer explained the outcome may be different if property from General Motors was given a perpetual this is just a onetime request or if this will be continual easement for a rail spur across the property that was . subsequently donated to the Commission. The terms of that easement specified that the successors and Mr. Winkler believed this business was strategically the assigns of both the grantee and grantor would be located to be a growth engine for the community. bound by the terms of the easement. The original Some sort of financial participation on behalf of the purchaser was a company named Resin. Tru-Cut has Commission would be appropriate with the since purchased the property. The northern spur is understanding that moving forward the maintenance not used; however, the southern spur is still active of the spur would be done by the company. Tru-Cut and used. By the terms of the easement, the has already spent $11,500. If the Commission could successors of Resin have the obligation and assist with the tie replacement cost to get the spur responsibility for maintenance repair and replacement. serviceable for a long period of time and with the The successors of the grantor, which is the understanding that it is the company’s responsibility Commission, has a responsibility to pay based on use. to service the spur, then he thinks the problem would The Commission is responsible to pay a portion of the be solved. Anderson Redevelopment Commission (ARC): June 4, 2013 Page 2  Edgewood redevelopment area. Appraisals are Mr. Farmer stated the quote from Railworks pending on the building. He understands the mentioned that the ties would be left on site for Commission does not want to own property or be removal by others. Who will be responsible for landlords, but as a long term strategy, they may want removing those? The City administration is very big on to consider negotiating with Mr. Wilson in order to beautification. The rail ties just lying there would be a move the Edgewood project forward. He is asking for concern. authorization to negotiate and bring back an offer to the Commission to either approve or deny. Mr. Elpers will get a quote for the removal of the ties. Mr. Sulc moved to authorize the Economic Mr. Sulc stated the property (with the rail spurs) is not Development staff to negotiate with Southstar marketable. Have there been any thoughts on this? Properties. Mr. Puckett seconded. Mr. Winkler mentioned that there has been an interest Mr. Puckett asked if the Commission would have more from the residents in the area to utilize the northern control over the project with ownership of the portion of the property for an adult softball field. This properties. is an idea worth exploring. Mr. Winkler stated yes, this could create a critical Mr. Sulc asked if Tru Cut had any specific proposal for mass. The staff is trying to level the playing field for the Commission regarding the estimate. future development. Mr. Elpers asked the Commission to review it and see Motion passed unanimously; 4 yes, 0 no. how they can assist. The need is not immediate right now, but it depends on how the inspection went. He PARKING GARAGE LEASE will get an updated quote on removing the ties. They Mr. Sulc discussed the meeting the subcommittee had would be willing to remove the ties, if the Commission with the Board of Public Works regarding the parking took care of the rest. garage and the former Woolworth lot where the parking meters are located. The parties agreed the Mrs. Bauer asked what the estimated annual cost for parking garage and the metered lot are needed for upkeep was. sufficient parking for the Downtown businesses. He voiced the concerns of the Commission regarding the Mr. Elpers stated if everything was 100% functional, it condition of the garage. The garage is in need of probably would cost a couple thousand dollars a year. significant repairs over the next three years. The Their portion only costs about $3,000 per year which question is the money. As part of the original includes maintaining the switch. ordinance, a non-reverting fund was supposed to be created. This was not done. Most recently the Mr. Winkler stated there is some potential use for the Anderson Police Department (APD) has been the spur in the future. administrator of the parking garage and the metered parking spots. Potentially, with reservations for APD, Mr. Sulc suggested this item be taken under there could be approximately $119,000 annually. advisement until the next meeting. Mr. Heuer explained that there were 480 spaces with The Commission agreed by consensus to continue this 80 spaces reserved for APD. item until the next meeting. Mr. Sulc stated the lease agreement is in the initial Mr. Royer told the company that if a problem arose stages of discussion. His personal position is that it and there becomes an immediate need to please needs to be determined what amount of repairs the contact Mr. Winkler. Commission would pay and what part the non- reverting fund pays for from the leasing of the spaces AUTHORIZATON FOR NEGOTIATIONS FOR and parking meters. He asked the other members to ACQUISITION OF SOUTHSTAR PROPERTIES give him their thoughts and ideas on the lease Mr. Winkler explained that Mr. Wilson from Southstar negotiations. The repairs are over $1,000,000. Even properties would like to sell the properties in the if this amount is spread over several years, this Anderson Redevelopment Commission (ARC): June 4, 2013 Page 3 money has to come from somewhere. Is the finalized late this afternoon. There has been an Commission willing to put money into the parking ongoing dialogue regarding the maintenance of the garage? His personal opinion is yes, the Commission TIF depository account. This issue has been resolved. needs to, but how much. A portion of the proceeds The resolution includes the terms of the bond. This is should go into the non-reverting fund to contribute to an amended and restated version because terms of the repairs. the bond are slightly different than the original. It is being required that there be a TIF depository account Mr. Royer agreed with Mr. Sulc. The discussion is for the life of the bond. The bond is callable in three headed in the right direction. years or the Commission may let it go through the entire 12 year period. There are no restrictions as to Mr. Puckett agreed the Commission should what the Commission does with their money. It is participate. This issue needs to be settled. basically a checking account. If the Commission entered into another bond agreement with another Mr. Sulc stated his goal is to get the issue settled this financial institution that requires a debt service year and in ten years have the plan still in place. The account be established, there is no limitation on the lease needs to be a long term lease, not annually. Commission’s ability to do that. UPDATES Mr. Winkler noted that even though it does require a depository relationship, there is no minimum amount GREATER EDGEWOOD PLAZA REDEVELOPMENT specified. The Commission, if they so desired, could PROJECT open other TIF accounts at other financial institutions. Mr. Winkler stated they are still discussing with area property owners on the acquisition of property, especially at the corner of Nichol and Raible Avenues. Mr. Sulc reiterated that the reason this was not settled when this was first brought to the Commission was MISCELLANEOUS because negotiations were still going on and the terms had not been finalized. 200 EAST 60TH STREET – EVELYN SMITH Ms. Bauer stated this property was purchased for the Mrs. Bauer stated it was finalized late this afternoon. 60th Street project. Mr. Spyers previously received approval to list the property for sale. She has Mr. Puckett moved to approve Resolution #ARC08-13. contacted Mr. Bill Carter because he is a Realtor and Mr. Farmer seconded. Motion passed unanimously; 4 is familiar with the workings of the Commission. She yes, 0 no. requested the approval of the execution of a listing agreement. SELECT LAWN CARE Mrs. Phillips explained the contract with Select Lawn Mr. Royer stated that was the spirit of what was Care was approved via email. The contract was previously approved. presented for signatures. The Commission gave their consensus for Ms. Bauer REQUESTS FOR PRE-PAY to move forward with the listing agreement. Mrs. Phillips requested authorization to pre-pay invoices for Anderson Municipal Light & Power for RESOLUTION ARC08-13 RESOLUTION OF THE $21.00 and to the Anderson Herald-Bulletin for $93.20 ANDERSON REDEVELOPMENT COMMISSION for legal advertisements for the public hearings. AUTHORIZING THE ISSUANCE OF CERTAIN TAXABLE BONDS, CONTINUING CERTAIN Mr. Sulc moved to approve the pre-payment of FUNDS AND ACCOUNTS, AND PLEDGING invoices for Anderson Municipal Light & Power and the CERTAIN REVENUES Anderson Herald-Bulletin. Mr. Farmer seconded. Ms. Bauer stated she and Mr. Umpleby discussed the Motion passed unanimously; 4 yes, 0 no. resolutions and authorizations for the taxable TIF bonds and that there may a need to amend the bond resolutions at a previous meeting. She presented a bond resolution. The amended bond resolution was Anderson Redevelopment Commission (ARC): June 4, 2013 Page 4 EVENTS Mr. Winkler invited the members to attend the Economic Development Commission meeting on Thursday, June 3, 2013, at 4:30 p.m. and the City Council meeting at 7:00 p.m. the same day. He also invited them to the ribbon cutting ceremony for the new Keihn facility at The Flagship on Friday, June 14, 2013. ADJOURNMENT Meeting adjourned at 5:37 p.m. Anderson Redevelopment Commission (ARC): June 4, 2013 Page 5