Anderson Redevelopment Commission

MINUTES ANDERSON REDEVELOPMENT COMMISSION October 7, 2014 Mr. Royer moved to approve the invoices as PUBLIC MEETING presented. Mr. Orcutt seconded. Motion passed 4:30 p.m. unanimously; 4 yes, 0 no. Conference Room #1 120 East 8th Street Anderson, IN 46016 BUSINESS MEMBERS PRESENT Parking Garage LED Lights Justin Puckett, President Mr. Spyers stated the contractor looked at replacing Kevin Sulc, Secretary the existing lights with LED. It would result in a Ben Orcutt, Member 55% savings. With materials, labor, and electricity Joe Royer, Member costs, this amounts to about $18,000 per year. It will cost about $85,000 to install so it will take MEMBERS ABSENT about a four and half year payback period. There is Carolyn Scott, Vice President more work to be done on the parking garage next Roger Clark, Non-Voting Member year and they would like to move forward with this. STAFF PRESENT Mr. Puckett explained this was discussed at a Ann Marie Bauer, Attorney previous meeting. Greg Winkler, Director Michael Frischkorn, Deputy Director Mr. Sulc asked if the $85,000 was in addition to April Phillips, Financial Specialist what has already been approved. Gary McKinney, Environmental/Brownfields Specialist Mr. Spyers answered yes. OTHERS PRESENT Mr. Puckett stated this would be a significant Mike Spyers, City Engineer savings. Ken de la Bastide, Herald-Bulletin Chris Hutchinson, Garmong Construction Mr. Sulc moved to approve adding LED lights to the Michael Farmer, City Engineer’s Office parking garage project, but not to exceed $85,000. Mr. Orcutt seconded. Motion passed unanimously; 4 ROLL CALL AND DECLARATION OF yes, 0 no. QUORUM Mr. Puckett called the meeting to order at 4:33 Resolution #ARC19-14 Declaratory p.m. and declared a quorum with four (4) members Resolution of the Anderson Redevelopment present. Commission Approving Various Amendments to the Redevelopment Plan for the MINUTES Consolidated Southwest/East- Mr. Sulc moved to approve the September 2 and Central/South/Downtown Redevelopment 18, 2014, minutes as received. Mr. Royer Area (Madison Park) seconded. Motion passed unanimously; 4 yes, 0 Mrs. Bauer explained the resolution would expand no. the consolidated redevelopment area and pledge future tax increment from the area as expanded to INVOICES the consolidated redevelopment fund. There is a list of parcels and current owners included in the resolution. It is her understanding that there are increase in property tax values. Part of the value of no residential properties included. The major this particular project is that is gives the reason for the expansion is for the addition of a Commission an opportunity. The area around State new project, Madison Park Senior Living. This will Road 109 has little or no development. He would provide a credit enhancement through a pledge of argue the reason is because there is no TIF which would go through the Economic infrastructure to support new development. The Development Commission (EDC) much as the only way to get the water, wastewater, and Assurance Health project did. The EDC would be electricity for industrial, manufacturing, or relying on this Commission to pledge assistance in commercial uses is to TIF the area. This project the form of a credit enhancement. Basically, with gives the Commission the opportunity to do that the assistance of both Commissions, a bond would and gives a net windfall of 40%. be issued and up to 60% of the tax increment created by the project would be pledged for a Mr. Puckett stated the resolution and map were period of 15 years to the payment of the debt emailed to all the members. service on this bond. It is her understanding that the project’s bank would be the bond holder. Mr. Mr. de la Bastide asked if the resolution included Umpleby and Mr. Krohn are having the dialogue the Alexander property. with the bank and project developer. Mr. Winkler answered yes. Mr. Sulc asked if the EDC would determine if a bond was placed if the ARC is pledging up to 60% Mr. de la Bastide asked if the developer would of the TIF produced to repay the bond. move forward if they did not receive the $14,000,000 bond. Mrs. Bauer answered yes. Mr. Winkler stated the bond was not for Mr. Winkler stated there is also a dollar amount $14,000,000. The Commission will be asked to limit. He doubled checked the documents and the pledge the $150,000 or the 60% of the increment, pledge is for 12 years, not 15. The company would whichever is less, to the package as a credit be required to maintain their investment level for enhancement. In order for the Commission to do 15 years per the terms of the agreement. The limit that, they will have to be asked to take official is $150,000 per year or 60% of the net increment action and he would have a signed project created, whichever is less. It is estimated to be a development agreement that says the partner and $14,000,000 investment taxed at 2% for rental owners are guaranteeing the increment. If the property. Approximately $10,000,000 is real Madison County Assessor says the property is worth property and $4,000,000 is personal property. The less than that, the difference will be paid into a annual additional increment is estimated to be shortfall account. This is the same thing that was $200,000-$240,000. Before anything is signed, the done with Hy-Pro. company and the parent company and/or owners will have to agree to guarantee 100% of the Mr. Royer felt he should abstain due to the fact he increment. They will get 60%, but they will have to attends Madison Park Church of God. guarantee 100% or there will be no deal. Mr. Winkler explained this is not a Madison Park Mr. Sulc asked if they changed their development Church of God project. It is an outside entity that after the fact, would it nullify the deal. would purchase the property from the Church. Mr. Winkle answered yes. There are two questions Mr. Sulc asked if the resolution to declare the on the table tonight. One is whether to increase the expansion of the redevelopment area would also footprint of the consolidated TIF. The map shows have to go to the Plan Commission, City Council, the proposed area. It includes not only the area and then back to the ARC. around Madison Park Church of God, but takes in the area running down State Road 109. The Mr. Winkler answered yes. statute has changed so that a project must be included in the expansion that demonstrates an Anderson Redevelopment Commission: October 7, 2014 Page 2 Mr. Sulc asked if the agreement was worked out make the area competitive. with the developer would they come to this Commission first or the EDC? Mr. de la Bastide asked how much the bond would be. Mrs. Bauer was uncertain which sequence was first; however, both Commissions and the City Council Mr. Winkler stated the developers asked for a credit must approve it. enhancement. It is his understanding that the legal way to do that is in the form of a bond. His Mr. Sulc stated basically what is being done tonight understanding in talking to bond counsel is that the is the foundation for the bond. This resolution bond would be privately placed with the bank that stands alone even if the project falls through. It would be financing the project. was mentioned that State Statute requires a project for expansion, if the project falls through will this Mr. Sulc mentioned that it would not be a municipal nix the expansion? bond. Mr. Winkler thought that was a great question, but Mrs. Bauer stated it would be an economic he does not have an answer since this is a new development taxable bond. statute. Mr. Winkler stated there would not be the usual Mrs. Bauer stated this is the first time this has been costs associated with generating a bond because t done since the change in the law in July. he bond is being produced for a particular financial institution. The maximum is $150,000 per year for Mr. Sulc stated legally this may need to be re- 12 years. visited if the project falls through. A discussion was held on how the financing and Mrs. Bauer stated this is unchartered territory. It pledge would work for the project. would have to be looked at from a variety of angles. Mr. Sulc explained that the expansion of the consolidated area would open the door for other Mr. Orcutt asked if there was a potential downside projects where the Commission would have the by expanding the area. ability to do the infrastructure improvements to entice those projects to locate within this area. Mr. Winkler explained that when expanding the TIF district and taking in additional land, the question is Mr. Sulc moved to approve Resolution #ARC19-14. would the project happen if it was not in a TIF Mr. Orcutt seconded. Motion passed 3 yes, 0 no, 1 area. This particular project will not happen without abstention. the TIF increment because they need the credit enhancement. The staff has tried everything in the Contract: Pridemark for 14th & Main Street last ten years to market the area around State Fountain Road 109. The staff runs into the same issue and Mr. Spyers explained the City took bids again for that is there is not electric power capacity nor the fountain at 14th & Main Streets. Pridemark was water or wastewater. In making these types of the low bidder in the amount of $86,200. improvements it will take several million dollars. It could take six to eight million dollars in Mr. Puckett mentioned the contract was submitted infrastructure improvements to make the area via email to all members. comparable to Flagship. Mr. Sulc asked what fund would pay the contract. Mr. Sulc agreed. Mrs. Phillips answered TIF. Mr. Winkler stated the senior living facility is a worthy project, but he also sees the real benefit to Mr. Puckett asked what the contract amount was. the community is being able to finally put in infrastructure to the State Road 109 corridor and Anderson Redevelopment Commission: October 7, 2014 Page 3 Mr. Spyers explained the contract with Pridemark Mr. McKinney stated this Commission. was for $86,200; however, there were funds being paid to KrM Architects. The City is also paying Mr. Winkler stated the engineering documents $20,000 for electric, water, and sewer work for the indicate the cost will fit within the estimate. project. Mr. McKinney stated USEPA used a contractor Mr. Royer moved to approve the contract with during this process and looked at all the cost Pridemark in the amount of $86,200. Mr. Sulc estimates. In reviewing this, they felt it would fall seconded. Motion passed unanimously; 4 yes, 0 no. under the amount of funding that has been set aside. Contract: Partners-N-Concrete for Sidewalks in Greater Edgewood Area Mr. Sulc asked if this would be a reimbursable Mr. Spyers explained quotes were received for the situation. sidewalk in front of Edgewood Plaza. The low bidder was Partners-N-Concrete in the amount of Mr. McKinney answered yes. This will be done in $98,577.50. accordance with the Order of Consent that was done between the Commission and the USEPA in Mr. Puckett mentioned the contract was submitted 2011. via email to all members. Mr. Winkler stated this is the most thorough Mr. Sulc moved to approve the contract with solution. Partners-N-Concrete for $98,577.50. Mr. Orcutt seconded. Motion passed unanimously; 4 yes, 0 no. Mr. Sulc asked if the property could only be used for commercial or manufacturing use. UPDATES Mr. McKinney answered yes, no residences or 60th Street farms. Mr. Spyers explained the storm water lines are completed for Ivy Tech. Ivy Tech is now pumping into the storm water system. Culy Contractors has started on the sanitary sewer system. It is estimated to be completed in about three weeks. EPA: GM Properties Mr. McKinney stated he did receive the final decision document from USEPA as far as the cleanup remedy on the Plant 7 site off Scatterfield Road. USEPA has selected excavation and groundwater monitoring on the property. Excavation means removing and hauling away the dirt. Any water that comes out would have to be treated. This is not an easy process, but it is the quickest process to get the job done. He is in the process of writing an RFP for this. He hopes to have the draft completed within a couple of weeks. Once a contractor is selected, a work plan will be submitt ed to USEPA. Once USEPA approves the work plan, the Commission has 180 days to get the project started. Mr. Sulc asked what entity would decide on the contractor. Anderson Redevelopment Commission: October 7, 2014 Page 4 EDA Project Mr. Winkler stated the dirt has been set to the side Mr. Spyers explained the project is basically on plastic as required by IDEM and will be finished. He is waiting on EDA to do a final approval removed. and final billing. Fountain at 14th & Main Streets Mr. Spyers stated the shop drawings have been Greater Edgewood Plaza Redevelopment approved by KrM Architecture. Stonewear is Mr. McKinney explained the sidewalk project has constructing the fountain. started. The concrete has not been poured, but some of the forms are in place. Mr. Winker asked if it is anticipated to be completed this construction season. Mr. Sulc asked the location of the sidewalk. Mr. Spyers stated the fountain may be installed, but Mr. McKinney answered that it would be from it will be next year before it is in use. Raible Avenue to Brentwood Drive on the south side. Trees are scheduled to be planted in about Jackson Street Beautification Project three weeks in front of the former Edgewood Plaza Mr. Spyers explained MK Betts is up to 11th Street area. with their current work. The bricks should begin in the next couple of weeks and then the landscaping Mr. Sulc asked if lighting would be installed. should begin. The west side should be finished by the end of the month and then they will begin on Mr. Spyers answered that would be Phase II. The the east side. Two trees were removed in front the Gateway design is underway. Herald Bulletin offices, but they will be replaced. Hy-Tech Machining MISCELLANEOUS Mr. Winkler anticipated that the City Council will call a special meeting to hear the request for eminent Sign Contract for Wetland Mitigation domain next week. The City Council was briefed Mr. Spyers stated the Commission approved a pre- and had their questions answered at an Executive payment for the wetland mitigation for 67th Street City Council meeting. at the last meeting. The Board of Works signed the contract and it is in need of the Commission’s Scatterfield Park Improvements signature now. Mr. Spyers stated the project is complete and all bills have been paid. ADJOURNMENT Mr. Royer moved to adjourn. Meeting adjourned at 67th Street/Enterprise Drive 5:14 p.m. Mr. Spyers explained all the plans have been submitted to the State. The right of way has been signed off on. It is hoped that the project will be bid by INDOT in March 2015. Parking Garage Mr. Spyers stated MK Betts is working on the east stairway and tower section. They are about 90% complete for this year. 59th/60th Street Round-A-Bout Mr. Spyers explained the contractors are working. The water lines have been installed. The gas company has begun installing their lines. There has been a gasoline leak, but nobody knows exactly where it is coming from. They will keep an eye on this. The dirt has been placed off to the side. Anderson Redevelopment Commission: October 7, 2014 Page 5