Anderson Redevelopment Commission

MINUTES ANDERSON REDEVELOPMENT COMMISSION July 2, 2013 INVOICES PUBLIC MEETING Mr. Sulc moved to approve the invoices as presented. 4:30 p.m. Mrs. Scott seconded. Motion passed unanimously; 3 Conference Room #1 yes, 0 no. 120 East 8th Street Anderson, IN 46016 BUSINESS MEMBERS PRESENT RAIL SPUR MAINTENANCE COSTS (SOUTHEAST Joe Royer, President CORNER OF 29TH & MADISON AVENUE) Carolyn Scott, Member Mr. Winkler explained the Commission members Kevin Sulc, Member received a copy of the quote for Tru-Cut for the Roger Clark, Non-Voting Member improvements to the rail spur. Staff recommends that if this is approved, the upkeep and responsibility MEMBERS ABSENT moving forward is Tru-Cut’s unless an additional use Mike Farmer, Vice President is added to the spur. Justin Puckett, Secretary / Treasurer Mrs. Bauer noted that under the terms of the STAFF PRESENT easement agreement Tru-Cut is responsible. The Ann Marie Bauer, Attorney Commission is not required to provide assistance Greg Winkler, Director because the Commission is not using the spur. Michael Frischkorn, Deputy Director April Phillips, Financial Specialist Mr. Winkler stated that staff recommends providing Karen Pettigrew, Small Business Specialist the assistance this time, but make it clear that in the Gary McKinney, Environmental Specialist future it will be entirely their responsibility. Mr. Sulc explained that the estimate was revised to OTHERS PRESENT include the disposal of the ties. The cost is a little over Pete Heuer, Chairman of the Board of Public Works $10,000 Ashley Hopper, City Attorney Mike Spyers, City Engineer Mrs. Scott moved to approve the repair of the rail Frank Owens, Building Commissioner spur and removal of the railroad ties in the amount of Stu Hirsch, Herald-Bulletin $10,302 with the clear understanding that from now Jim Hensley, UAW on Tru Cut is responsible unless there is future development. Mr. Sulc seconded. Motion passed ROLL CALL AND DECLARATION OF unanimously; 3 yes, 0 no. QUORUM Mr. Royer called the meeting to order at 4:34 p.m. PARKING GARAGE LEASE and declared a quorum with three (3) members Mr. Sulc discussed the meetings the subcommittee present. had with the Board of Public Works (BOW), City Engineer, Anderson Police Department (APD) Chief MINUTES Crenshaw, and Mrs. Bauer regarding the parking Mr. Sulc moved to approve the June 4, 2013, minutes garage and the metered lot otherwise known as the as presented. Mrs. Scott seconded. Motion passed Woolworth lot. Previous leases included both facilities. unanimously; 3 yes, 0 no. Different options and continued operations were discussed. Further discussions will take place between the BOW, APD, and the City Controller regarding the operations. Mrs. Bauer will draft a lease the Family Dollar store moves out. It is anticipated proposal to be presented to the BOW. The that Family Dollar will move out in April 2014 when Commission paid for a condition study for the parking their lease is up. Mr. Wilson is willing to sell, but he garage. There is approximately $1,500,000 worth of wants some type of binding purchase agreement in recommended and necessary repairs and maintenance place or his intent is to auction off the property. He needs through the year 2020. The subcommittee understands the Commission does not want to be explained to the BOW that before this Commission property managers, but it is essential that the would entertain the possibility of spending the monies Commission own these properties so the Edgewood on the repairs, there would need to be an agreement Plaza project may move forward. that the funds from the operation of the parking garage and lot would be used to pay back the Mrs. Scott asked if there were other options. Commission. Mr. Winkler stated yes, he can tell Mr. Wilson that the Mrs. Bauer reiterated the Commission could agree to Commission is not interested or they want to consider pay for the repairs and then over a significant number this for a longer a period of time. Mr. Wilson has of years the funds would be paid back. Everybody communicated that it is his intention to take this agrees the repairs need completed and the garage property to auction. The only way to get a beneficial needs to be operational and maintained. The proposal use is to be able to manage all of the surrounding should say something to the affect that after the lease properties. He does not think it can be developed is paid, the on-going maintenance and operational “piecemeal.” expenses are to be covered, but still leave room to fund the non-reverting fund for future improvements Mr. Sulc asked for a brief summary of the status of and incremental pay back to the Commission. the other properties in the vicinity. Mr. Sulc stated that up until now the proceeds from Mr. Winkler stated the Commission owns the former the operations of the parking garage and lot have not Edgewood Plaza property, the Speedway property is gone into the non-reverting fund. The funds went into in discussion for donation, and the Carneal property is the City’s general fund, which means there is not an in negotiations. This would leave just a few properties existing budget to repair and maintain the garage that would need to be acquired or worked into a other than what the Commission can provide. This development agreement over time. In order to item should be on next month’s agenda. attract developers or end-users, the playing field needs to be leveled. Mr. Royer expressed his appreciation to Messrs. Sulc and Farmer as well as Mrs. Bauer and the BOW for Mr. Sulc noted that the need for redevelopment is working together towards a resolution. The parking indisputable. garage is needed Downtown and needs to be in good repair. Mr. Royer stated the Commission does not want to be landowners and definitely not landlords, but this Mrs. Bauer stated the lease should be a long term seems to be the correct path to take at this point. lease, not annual. Mrs. Scott asked about the remediation. AUTHORIZATON FOR OPTION TO PURCHASE SOUTHSTAR PROPERTIES Mr. Winker did not know of any environmental issues Mr. Winkler stated he had a long conversation with with the former Kmart or Family Dollar store property. Mr. Glenn Wilson of Southstar regarding the There will be some infrastructure issues such as properties he owns. The properties are referred to as drainage that will need to be resolved when this the former Kmart property and the Family Dollar store project moves forward. There is an environmental and lot. The average commercial appraisal value is issue with the Speedway property that we are $305,000. Mr. Wilson has agreed to sale the attempting to resolve. Fortunately, there are ELF properties for $250,000. There is an active tenant in funds available for the clean-up of this property. The the Family Dollar building. Mr. Wilson is willing to entire proposed project area is approximately 30 to 33 maintain and make some improvements to the facility areas. provided he is still allowed to collect the rents until Anderson Redevelopment Commission (ARC): July 2, 2013 Page 2 Mr. Royer asked where the funds would come from to purchase the property. Mrs. Bauer wanted Mr. Hensley to be completely Mr. Winkler explained the funds would come from the aware of the risk that the railroad track could be re- TIF levy. There may be funds from the Nestle tax activated without his consent, because they run with abatement impact fee available to repay the TIF levy. whoever owns the former Resin property which is now Tru-Cut. Mr. Sulc moved to approve the authorization of staff Mr. Royer asked if Mr. Hensley was willing to take and legal counsel to negotiate with Southstar for an ownership of all the property. offer to purchase with conditions subject to the Commission’s final approval. Mrs. Scott seconded. Mr. Hensley answered yes. Motion passed unanimously; 3 yes, 0 no. Mrs. Bauer asked if he wanted to own it even though JIM HENSLEY: DISCUSION OF POSSIBILE the railroad easements would stay across the SOFTBALL DIAMOND AT 29TH AND MADISON property. AVENUE PROPERTY Mr. Winkler introduced Mr. Hensley. Mr. Hensley has Mr. Hensley answered yes, if they could still use the expressed his interest in developing the property for a other areas. softball field near the railroad spur that is not currently in use. Mr. Sulc explained the Commission needs to think about whether they want to donate a part or all of the Mrs. Bauer stated both the railroad tracks on this property. property have been perpetually transferred to Tru- Cut. Mr. Hensley stated they would like it all even though they realize the tracks are there and could be there Mr. Hensley asked if the rail spur to the north could forever. He just does not want somebody to be able be eliminated. to take the property back at a later time. Mrs. Bauer stated the railroad would have to be Mrs. Bauer stated the whole property was donated to involved and this process is lengthy and expensive the Commission. There is no restriction of transferring and almost never successful. She noted that the of ownership; however, the easements are there tracks can be removed; however, the Railroad has the perpetually. ultimate right to use it in the future. Mr. Heuer asked if the proposed development would Mr. Hensley stated he is with the UAW which is be for only UAW members or would it be open to comprised of four different UAW unions. They would anybody? like to build a softball diamond and possibly a playground. They do not have a lot of money, but Mr. Hensley stated it would probably be named the they do have a lot of volunteers. He presented the UAW Park, but it would not be closed off to anyone. Commission with a rendering of his proposal. Mr. Heuer asked if there would be leagues. Mr. Winkler explained the southern tracks are active with 10-12 cars per month. Mr. Hensley answered yes. They would eventually like three or four diamonds so they could bring in Mrs. Bauer reiterated that the owner of the Tru-Cut tournaments. There is nowhere to play softball property has the right to use the railroad easements anymore. They do play at 38th Street, but the field is forever. The easements are perpetual. too short. They have 20 teams that need a place to play for men’s, women’s, and co-eds. There is not A major discussion was held on the proposed use of one softball diamond in Anderson. When the school the property. system closed the two fields, it left the teams with no options. Mr. Hensley requested the Commission donate the property. Anderson Redevelopment Commission (ARC): July 2, 2013 Page 3 The Commission will take this matter under advisement. It will be placed on the August agenda. UPDATES GTI Road Project Mr. Spyers stated bids will be accepted at the BOW meeting July 16, 2013. The estimate for construction was $400,000 with a total estimated cost of $450,000. The contract will come before the Commission in August. Mr. Winkler stated payment will come from the TIF Levy. EDA Project (GM Property) Mr. Spyers stated the bids will be accepted by the BOW on August 6, 2013. The contract will come before the Commission. The project should be started by September 17, 2013, according to the grant documents. It will be finished next year. The Commission’s responsibility is approximately $1,500,000. Community Development will be contributing $250,000 also. The funds will come from the GM fund and the TIF Levy. EPA: GM Properties Mr. McKinney apologized to the Commission for the lack of reporting on the former GM Plant 7 remediation site and the GM properties in general. He, Mayor Smith, and Mr. Rob Sparks met with Mr. Don Heller who is the USEPA project manager for the Plant 7 site and his boss Mr. Joe Cisneros, Director of Reuse and Remediation, for Region Five. The meeting went well. Their goal was to update USEPA on the Mounds Lake project because it will be adjacent to the GM Plant 7 property. They wanted to find out if there were any concerns or impacts to the proposed lake. USEPA’s feeling is that we should be in good shape. The process that they will put in place will remediate any problems at the site and will not affect the Mounds Lake facility. He felt they have established a good relationship between Region 5 and the City. He came away from the meeting feeling good. Region 5 was not fully aware of the Mounds Lake project and what it meant to Anderson’s future. Last year he received a $100,000 grant to do some off-site sampling of GM wells. He used the balance of the funds to do a sub-sampling report for the former Plant 17 site. The reports should be available within a few weeks. The fencing that was installed last year has been removed (stolen). He is not sure when this Anderson Redevelopment Commission (ARC): July 2, 2013 Page 4  becomes more urgent and maybe more opportunity happened or how. A few weeks ago he noticed the for discussion because of the EDA road project fencing that was around the pits was gone. Mr. Sulc stated his patience is about done in dealing with this situation. Hy-Tech has not fulfilled their obligations. He thinks it is time to kick this into the next gear. Mr. Winkler asked if Mr. McKinney was reassured that EPA understood the potential of the reservoir, the Mrs. Bauer said there may be more opportunities City’s concern with the given system for dealing with going to forward to precipitate action than before. the pollutants, and had a willingness to consider other options moving forward. Mr. Royer wanted further discussions on this subject. Mr. McKinney answered yes. Scatterfield Park Improvements Mr. Winkler stated there were improvements agreed Mr. Sulc asked if EPA had the public comment period. upon such as utility relocation as part of the AutoWorld project. Tom Donoho, Municipal Light & Mr. McKinney answered yes. They will continue Power Superintendent, has ordered the equipment internal discussions concerning this. They will get and is making preparations to begin the work of back with the City and work with the City. They just moving all of the utility lines underground. The want to be sure everyone is comfortable with what will estimated cost is approximately $1,100,000 for the be done on the site. overall improvements to the Scatterfield Road properties. A full set of plans has been submitted. Mr. Winkler stated that behind the scenes Mr. AutoWorld is to negotiate the drive easements with McKinney had made a lot of phone calls and done a INDOT. lot of work as far as talking to EPA officials and other environmental professionals that have dealt with this 73rd Street Water & Sewer type of contamination. He has brought this to the Mr. Spyers stated Poindexter is almost finished with attention of EPA. They have a willingness to consider the water line. They are currently installing well other options in addition to what they are doing at casings. The project is set to be completed by August their cost. 10, 2013. Mr. McKinney stated EPA was planning on doing some 60th Street field testing. There is a possibility that there could be Mr. Spyers stated there is a condemnation pending. a change on what they are proposing for the site as Ivy Tech will need to provide the right of way across far as remediation goes. If this is the case, they their property. would submit another statement of basis and go through another 45 day public comment period. If 67TH Street there is a change, he does not anticipate anything Mr. Spyers stated 67th Street is currently under happening until next spring. contract for redesign. The Farm Mr. Winkler stated the staff is actively marketing the Mrs. Bauer had nothing to report. GM properties. MISCELLANEOUS Greater Edgewood Plaza Redevelopment Mr. Winkler stated there are a lot of pieces that the staff is trying to pull together. ADJOURNMENT Mrs. Scott moved to adjourn. Mr. Sulc seconded. Hy-Tech Machining Meeting adjourned at 5:42 p.m. Mrs. Bauer had nothing to report. They have not come forward to pay and the issues as discussed at previous meetings are still there. At this point, this Anderson Redevelopment Commission (ARC): July 2, 2013 Page 5