Anderson Redevelopment Commission

MINUTES ANDERSON REDEVELOPMENT COMMISSION July 17, 2014 The resolution was sent digitally to all members for review. PUBLIC MEETING 4:30 p.m. Mrs. Bauer explained that the previous donee Conference Room #1 declined to sign documents agreeing, covenanting, 120 East 8th Street and warrantying that they would accept the Anderson, IN 46016 property no later than July 17, 2014. The Anderson Community School System (ACSC) has agreed that if the Commission agrees to accept responsibility to MEMBERS PRESENT pay maintenance costs of up to $10,000 per month Justin Puckett, President for a two month period then they will extend the Carolyn Scott, Vice President deadline to September 2, 2014. ACSC has Kevin Sulc, Secretary approved a demolition contract. It is ACSC’s Joe Royer, Member intention that if there is no resolution to this saga, Ben Orcutt, Member they will authorize the contracts to kick in on September 2, 2014. The resolution extends the MEMBERS ABSENT time line, authorizes the payment of utilities, and Roger Clark, Non-Voting Member opens up the transfer to other participants besides Wigwam Sports and Entertainment, LLC (WSE). STAFF PRESENT Greg Winkler, Director Mr. Winkler stated that ACSC was very gracious in Ann Marie Bauer, Attorney granting the extension. He has started a host of April Phillips, Financial Specialist conversations in the market place with developers he felt had the expertise to do a difficult project like OTHERS PRESENT this. These are on-going conversations and at least Kevin S. Smith, Mayor one that he believes will be productive. As legal Pete Heuer, Chairman, Board of Public Works counsel has mentioned, this would not exclude WSE Robert Jozwiak, Citizen from being a part of this. There may be a housing Stu Hirsch, Herald Bulletin component as part of the project. This is a critical piece as the tax credit portion would help fund the ROLL CALL AND DECLARATION OF rehabilitation of the entire project. Without that, it QUORUM will be difficult to do. There would also be a not for Mr. Puckett called the meeting to order at 4:39 profit component. This is an ongoing conversation p.m. and declared a quorum with five (5) members with no guarantee of success. He is hopeful. present. Mr. Puckett asked if this meant there was a least BUSINESS one other entity besides WSE that has a potential interest. Resolution ARC10-14 Resolution of the City of Anderson Redevelopment Commission Mr. Winkler answered yes and based on the due Amending its Resolution No. ARC07-14 diligence done to date, there is a high level of Authorizing the Acceptance of Real Estate to credibility. be transferred from the Anderson Community Schools Corporation Mr. Puckett asked when the Commission would back on. know more about this other entity. Mr. Winkler answered that there was a Mr. Winkler suggested placing in the MOU that if Memorandum of Understanding (MOU) that is being the entity does not intend to complete the discussed. transaction, then they will need to reimburse the Commission the utilities that have been paid. Mrs. Bauer stated tentatively they would take the transfer to the Common Council on August 14, Mr. Sulc stated he has some suspicions about this 2014, subsequent to that there would be the whole process. He asked a specific question to acceptance, but in order to have the acceptance WSE prior to passing the previous resolutions. He there will have to be a public hearing. If asked if WSE was financially viable. The answer September 2, 2014, is the anticipated latest was not representative of reality. This is very acceptance date, then it would be mid-August for frustrating to him. This also speaks to Mrs. Scott the MOU for approval and name the parties and concerns. The Commission passes these identify any and all terms. resolutions with their being a promise of an end use that is viable and the Commission is just taking the Mr. Royer wanted to make sure this resolution is developer’s word for it. He is to the point that if he basically just agreeing to pay up to $10,000 for does not see the entities financials on paper then utilities for the next two months. This is not boxing he will vote no on the project. He has been the Commission into ownership. through this too many times with this and past administrations. He is done with it. He asked if the Mrs. Bauer stated that was correct. The resolution locks the Commission into accepting the Commission and she have made it abundantly clear Wigwam and transferring it without having another that the only way the Commission would take the meeting and vote on final action. property is if there was a donee in hand prepared to take it the same day. Mrs. Bauer explained the Commission is required to meet again. There are a couple of more steps to Mrs. Scott stated the acceptance is not clear. It s final approval. One is a public hearing and a public eems as if the Commission is taking ownership for meeting. There will be a resolution to accept it, an indefinite period of time. How do we clarify identify the specifics, and a resolution to transfer it this? and then that will also have to go to the City Council. Mrs. Bauer stated the resolution states the Commission by passing its resolution has previously Mr. Sulc stated since there were more steps to be agreed to accept title to the Wigwam facility taken, this made him feel better about this contingent upon the agreement of WSE to accept resolution. The resolution in front the Commission immediate transfer. This is being amended, but the basically states they will be moving the time back acceptance being contingent upon is still there, it is and are willing to agree to the terms of ACSC. just changing dates and opens it up to other parties. Mrs. Bauer stated this resolution intends to extend the time to September 2, 2014, approve the Mr. Winkler stated the resolution removes WSE as a payment for two months of utilities up to $10,000 defining aspect and opens it up and changes dates. per month, and to open the field to other entities. It does still have the language “immediate transfer.” Mr. Sulc asked when the other entity is ready to be publically identified is that when it will come back to Mrs. Scott stated if we proceed with a real estate the Commission for the final resolutions to accept transaction then there needs to be within the MOU and transfer the property. or resolution that the Commission expects non- refundable earnest money. Too many times too Mrs. Bauer answered yes, but the entity may be much work and money goes into a project and then identified before then. Tonight the Commission is the Commission gets stung and has nothing to fall just approving the time frame, opening the field, Anderson Redevelopment Commission: July 17, 2014 Page 2 and paying the utilities for the time frame. Another resolution would have to be approved accepting the Mr. Winkler stated as currently envisioned it does property and transferring the property to the entity not keep WSE from competing, but they would be and then a resolution must go to the City Council. expected to deliver the items mentioned such as earnest money and proof of financials. Mr. Sulc stated all of this must happen in August due to the September 2, 2014, deadline. He asked Mr. Puckett asked if they were still players at this the Commissioners to consider requiring entities to point. demonstrate their financial viability. He appreciates Mrs. Scott’s recommendation about earnest monies Mr. Winkler has not had any conversations since being required. their failure to perform was phoned in to legal Mr. Winkler asked if the entity was serious and counsel on July 8. moved forward would the earnest money become p art of what they are putting in. Mrs. Bauer explained that she did have a subsequent phone call from their legal counsel Mrs. Scott answered yes. asking if they were barred from participating. She basically told them that they were not barred from Mr. Sulc stated he has a little knowledge about participating, but it was now a whole different housing in Anderson. He would definitely want to game and the requirements are much higher such know more about the housing component with the as demonstrated proof of financial viability, pro Wigwam. If it is the typical two-bedroom, 55 and forma financials, list of investors, participation from over housing unit using tax credits, which is a fad in investors, etc. WSE is not unilaterally barred. Indiana, then he can say there is no market for it in Anderson. The YMCA only has one-third of its units Mr. Winkler understands and shares what Mr. Sulc on a waiting list. They will have empty units when has communicated. The YMCA market feasibility it opens, then there is the Tower Apartments. He study showed that they had a fairly robust market. does not want the Commission to be sitting here The application for tax credits will require a market five years from now with the Wigwam sitting empty study. His hope is that the value goes beyond and abandoned and then it needs to be housing. The key piece is a community place for redeveloped again. events. He has spoken with a community development corporation that is working at the Mr. Royer mentioned that he also he did not want street level. If we can successfully do this then we someone to ask the Commission to demolish it and start to leverage the real opportunities in the pay for the demolition of the Wigwam. community and as he sees it the real needs. There is not space for basketball camps, gymnastics, and Mr. Sulc stated that housing tax credits make him the other things the community would like to have. nervous. If this is for 55+ individuals, there will not If this can be created with the remainder of the be enough clients. This is the reality. Developers space, then the housing piece is a means to an will try to sell a community on it and say there is a end. market for it. He sees the reality that there is a glut in the market. Mrs. Scott stated she has asked a few people if they thought the Wigwam was worth it. Not one Mr. Puckett said this was a little bit out of his scope person has said no. Everyone she has spoken to of expertise, but he tended to agree with Mr. Sulc. says this is the remaining history of Anderson and there is no other historical building that everyone Mr. Sulc wanted to remain cautious about tax credit knows and everyone can talk about together. She housing. This is an easy way for developers to asked if it was worth the money. People are saying make money. His concern is not what happens in yes, it is worth more than money. October, but what happens in October five years from now. Mr. Royer says even with all the cautions, he is still in support of the resolution tonight. It does allow Mrs. Scott asked if WSE was off the table. two more months of the hope that something Anderson Redevelopment Commission: July 17, 2014 Page 3 productive can be done. He is willing to invest the maximum $20,000 if it is an avenue to help maintain this historic building. It does not mean it will happen, but we can do our part to attempt for it to happen. Mr. Jozwiak stated he was in attendance to observe. He asked if Mr. Thimlar from WSE was at this meeting. Mrs. Bauer answered no. Mr. Jozwiak asked if he was invited to the meeting. Mr. Winkler stated Mr. Thimlar knew the meeting was taking place. He was invited to attend the Blue Ribbon Committee meeting earlier in the day. Mr. Royer moved to adopt Resolution #ARC10-14. Mrs. Scott seconded. Motion passed unanimously; 5 yes, 9 no. MISCELLANEOUS ADJOURNMENT Mr. Sulc moved to adjourn. Mr. Royer seconded. Meeting adjourned at 5:01 p.m. Anderson Redevelopment Commission: July 17, 2014 Page 4