Anderson Redevelopment Commission

MINUTES ANDERSON REDEVELOPMENT COMMISSION July 7, 2015 ROLL CALL AND DECLARATION OF PUBLIC MEETING QUORUM 4:30 p.m. Mr. Sulc called the meeting to order at 4:35 p.m. and ED Conference Room #1 declared a quorum with four (4) members present. 120 East 8th Street Anderson, IN 46016 MINUTES Mr. Royer moved to approve the June 2, 2015, MEMBERS PRESENT minutes as received. Mr. Puckett seconded. Motion Carolyn Scott, President (arrived 4:38 p.m.) passed unanimously; 4 yes, 0 no. Kevin Sulc, Vice President Joe Royer, Secretary INVOICES Ben Orcutt, Member Mr. Sulc mentioned the invoices and fund balances Justin Puckett, Member were emailed to the members. MEMBERS ABSENT Mr. Puckett moved to approve the invoices as Roger Clark, Non-Voting Member presented. Mr. Orcutt seconded. Motion passed unanimously; 4 yes, 0 no. STAFF PRESENT Ann Marie Bauer, Attorney BUSINESS Greg Winkler, Director Michael Frischkorn, Deputy Director Continuing Discussion on Possible Uses for April Phillips, Financial Specialist Edgewood Plaza Gary McKinney, Environmental/Brownfield Specialist Mrs. Scott arrived at the meeting. OTHERS PRESENT Mike Montgomery, KrM Architects Mr. Tijerina gave a presentation on the Kids Creation Russ Willis, City Council Park in Defiance, Ohio which is based on local history Jim Riggs, NTN and created, designed, paid for, and constructed by Chad Pigg, Corporation for Economic Development local stakeholders. He suggested this type of interim Mike Spyers, City Engineer use for the south side of the former Edgewood Plaza Ken de la Bastide, Herald-Bulletin site. There are possibilities for expansion. The Craig Dunkin, W.R. Dunkin & Son Inc. amenities are constructed in such a way that they can Dirk Webb, Flagship Enterprise Center be moved to another location, if necessary. Andy Skaggs, Perfecto Tool & Engineering Frank Owens, Building Commissioner A discussion was held. Thomas Tijerina, Community Development Consultant & EPIC Initiatives The Commission agreed to hold a special meeting Jason Streeter, Deputy Controller near the site to engage stakeholders and community Jason Fenwick, City Controller members. The date will be determined. Darla Couch, Anderson TV Pete Heuer, Board of Public Works Resolution #ARC07-15 Pledge of Funds for David Umpleby, Krieg DeVault CRED/TIF Bond for Purdue Project Kevin S. Smith, Mayor Mrs. Bauer stated this resolution pledges tax increment to the payment along with the CRED revenues that are being pledged by the City Council to the bond issue to fund the construction of the Purdue back to the Commission, there may be some changes Polytech project on the former General Motors site. to numbers and dates, but nothing of significance. This is allowed by statute. Mr. Sulc stated that as he understands it TIF will pay back whatever CRED cannot. Mr. Riggs gave a PowerPoint presentation on the company and the project. Mr. Fenwick stated some TIF dollars are necessary because CRED alone is not enough to support the Mrs. Bauer explained if the resolution is approved total debt service. tonight it would then go to the Plan Commission, the City Council, and then back to the Commission. The Mr. Sulc asked if there was a best and worst case execution of the project development agreement will scenario. be delayed until the confirmatory resolution. The declaratory resolution authorizes execution; however, Mr. Fenwick stated the final interest rate has not been it will not be tonight. determined. The rough estimate is that the debt service would be about $1,200,000; $500,000 from Mr. Sulc moved to approve Resolution #ARC08-2015. TIF and $750,000 from CRED annually for 15 years. Mr. Orcutt seconded. Motion passed unanimously; 5 yes, 0 no. Mr. Sulc asked if the worst case scenario was that it would be paid by TIF 100%. Amended General Motors Property Contract with Select Lawn Mr. Fenwick answered yes. Mr. McKinney stated this was an amendment to the General Motors mowing contract so that the Mr. Royer moved to approve Resolution #ARC07-15. Edgewood property could be mowed until an official Mr. Puckett seconded. contract could be approved. This is an addendum. Mr. Sulc thought this project would prove to be one of Mr. Sulc moved to approve the addendum to the the best investments of TIF funds that the General Motors contract. Mr. Royer seconded. Motion Commission has or could make. This is due to the passed unanimously; 5 yes, 0 no. ramifications of the education of the future workforce which is desperately needed in this community. Contract for Edgewood Plaza Mowing with Select Lawn Motion passed unanimously; 5 yes, 0 no. Mr. McKinney explained this is the contract for the continued mowing of Edgewood Plaza. He requested Resolution #ARC08-15 Resolution of the City of three quotes. Two quotes were received. Select Lawn Anderson Redevelopment Commission was the lowest. He recommended Select Lawn be Approving Amendments to the Declaratory awarded the contract. Resolution and Redevelopment Plan for the Consolidated Southwest/East-Central Mr. Sulc moved to approve the contract with Select South/Downtown Redevelopment Area Lawn for Edgewood Plaza. Mr. Orcutt seconded. Mrs. Bauer explained this resolution is to add the NTN project to the redevelopment plan. The property is Mrs. Scott asked how often the property would be already included in the Plan. It was added in 2008. mowed. The consolidated area is not being expanded. There is the need to add the project to the Plan including the Mr. McKinney stated the plan was to mow 30 ft. in estimated cost and to state that the Commission along 16th Street and along Nichol Avenue with a intends to acquire real estate. The real estate is finish mower twice a month and then bush hog the approximately 86 acres of the property currently middle area once per month. known as the Hulse Farm. Through a series of approved transactions, the property would be Motion passed unanimously 5 yes, 0 no. transferred to NTN. Six acres would be used for roadways, utilities, easements, etc. This is the first step. By the time the confirmatory resolution comes Anderson Redevelopment Commission: July 7, 2015 Page 2 Resolution #ARC09-15 A Resolution Approving Mr. Fenwick answered yes, to start the clock on what an Option to Purchase Real Estate and a Notice can be reimbursed for the project. and Offering for the Sale of Real Estate Mrs. Bauer stated until such time as the confirmatory Mr. Sulc stated the TIF cash is less than $7,000,000. resolution is passed, the Commission cannot enter Mr. Fenwick stated there will be a fall property tax into a binding agreement or option for the purchase draw. As discussed, not all of the money will be spent of the real estate. This will expedite the process so this year. In looking at the timing of when payments that once the confirmatory is approved, then the will be made, there will be the fall property draw and Commission could immediately enter into an option or then the spring and fall of next year. With the cash purchase agreement. The resolution provides an flows coming in plus what has already been opportunity to discuss an option and enter into a non- committed, plus this project, it will work. This binding option. Appraisals were just completed and resolution preserves the option for the received today. The first move by the Commission is reimbursement. make an offer to purchase at the average of the two appraisals. If this was not acceptable to the seller, Mr. Sulc wanted the Commission to keep in mind that then a dialogue could begin regarding negotiating a the Commission has done a lot. Everybody agrees that price. With this resolution, the Commission can enter everything that has been done has been good for the into simple negotiations to purchase. community. There are additional projects that the Mayor wants to see, the members want to see, City Mr. Royer moved to approve Resolution #ARC09-15. Council members want, and Economic Development Mr. Puckett seconded. Motion passed 5 yes, 1 no. staff want. There is a ceiling to the TIF dollars. This Commission is looked at as the place to go for money. Resolution #ARC10-15 Reimbursement After these resolutions, this will come to end. Resolution Operation Downtown may not have TIF dollars Mrs. Bauer explained this resolution is stating the available for those projects. The Scatterfield West Commission’s official intent to reimburse the funds project also is looking at TIF dollars. There may be a that will be expended for the NTN project with a time when he will have to vote no on future projects subsequent bond offering. A bond is not going because the Commission cannot spend all the cash through at this time. This just says the Commission is and expect to maintain their reputation of a high officially anticipating issuing a bond not to exceed caliber Commission in the State of Indiana. He wants $10,000,000 and reimbursing the expenditures or a the word put out there that the Commission may be portion thereof with the bond proceeds. forced to vote no on projects even though they do not want too. The Commission cannot keep borrowing Mr. Winkler stated the usage of the monies is the money. Also, they will not have the cash on hand infrastructure that was discussed which includes either especially since the project that was just set in approximately $4,800,000 for electrical improvements, motion is requesting a 10 year 100% tax abatement. $1,800,000 in water improvements, $400,000 each for This means the Commission will have to make sewer and drainage improvements, and $300,000 in payments on the bond because NTN will not be road improvements. This totals $7,700,000 in paying taxes due to the abatement. The Commission infrastructure and up to $3,200,000 in property will have to look carefully at projects from this acquisition costs. NTN would be committing moment on. He wanted the other members to take $1,600,000 in property acquisition also. This can be the time to look at project development agreements. paid for as we go. Mr. Puckett and Mrs. Scott agreed. Mr. Fenwick stated the resolution preserves the option of a bond just in case something else comes down the Mr. Royer stated they had been putting all their eggs road and TIF cash is needed. This gives the option of in one basket and the basket is getting emptied. issuing bonds to reimburse the Commission at a later date. Mr. Sulc thought the Commission should keep their options open, but when asked for another bond they Mr. Orcutt asked if action was needed now to will have to look at it very carefully. preserve the option. Anderson Redevelopment Commission: July 7, 2015 Page 3 Mr. Sulc moved to approve Resolution #ARC10-2015. Mr. Spyers stated they are finishing up one of the Mr. Puckett seconded. bridges. They should start work on the second bridge within the next two weeks. Mr. Orcutt stated that as a new member he has only seen the rapid growth. He is still learning the ins and Parking Garage outs. He appreciated hearing this from experienced Mr. Spyers stated it is basically finished with the members, because the information is invaluable. He exception of the installation of the LED lights which thanked Mr. Sulc. should be later this fall. Fountain at 14th & Main Streets Mrs. Scott thought there should be prioritization of Mr. Spyers explained the fountain is in. They are projects to determine which project meets the needs waiting for the electricity to be installed. In August the of the Commission and community. benches and lights should be in place. Mr. Fenwick stated there is a limitation as far as once Scatterfield West Redevelopment the cash is gone it is gone, but only until the next Mr. Winkler stated the survey was completed. The settlement. There is also a limitation on additional roadway is under design. debt. He thinks roughly speaking the Commission could approve another bond in the $10,000,000 - MISCELLANEOUS $13,000,000 range and safely be within that limit. They are not maxed out, but it is certainly something Annual Report to be aware of. The Commission’s point was well Mrs. Bauer stated an annual report must be submitted taken. to the City Council by August 1 and to DLGF by October 1. She anticipated having this ready for Mr. Winkler stated the staff takes caution on the review tonight. She requested the Commission allow projects that are brought to the Commission. her to forward the report to the City Controller after it is completed. Every parcel must be listed within each Mr. Royer thought the Commission sometimes comes allocation area. She is working with the Auditor’s across as a rubber stamp. It is not that way. The Office. She and the Controller’s Office will make sure Commission puts a lot of thought into their decisions the Commission has a chance to review it prior to it and the future. This will in some sense tie the hands being submitted with each member being able to of the Commission for a while. It is important to weigh in and being able to say no. know that we are making decisions for the benefit of the community which may cause the Commission to Mr. Sulc asked if there was any official action that be more thoughtful down the road and for a period of needed taken. time. Mrs. Bauer answered no. Motion passed unanimously; 5 yes, 0 no. Sirmax Railroad Spur UPDATES Mr. Spyers stated they were supposed to take bids on the railroad spur today; however, due to a number of 60th Street questions from the contractors it will be next week. Mr. Spyers stated the base is all in. Paving should begin within the next two weeks. Prioritization of Projects Mr. Orcutt stated projects are brought to the EPA: GM Properties Commission one at a time. As the Commission is Mr. McKinney explained that no public comments making decisions on a project it would be beneficial to were received. EPA will now issue there final decision. have an idea on what projects are planned in the SMA has begun reviewing the Plant 7 project files in future. As they make financial decisions and preparation of writing the RFP for the contractors for commitments, being able to have a view of the future the ERH system. would help them understand what is being committed to now and what they may not be able to commit to 67th Street/Enterprise Drive later. Anderson Redevelopment Commission: July 7, 2015 Page 4 Mr. Sulc thought this speaks to Mrs. Scott’s point of prioritization. Mr. Orcutt stated that with each project coming one at a time it is easy to yes because they all look good, but there needs to be some comparison. Mr. Winkler stated a master plan would be necessary. There are many brownfield projects, downtown opportunities, the Edgewood Plaza idea, and new companies and business expansion. There is a need for some master planning. Mrs. Bauer thought this was a good idea. The Commission could set their priorities based on geography, number of jobs, etc. A discussion was held on how to proceed with the preparation of a master plan. Mr. Sulc requested Mrs. Bauer and Mr. Winkler prepare an agenda and set a date for a meeting to get input on a master plan. Sirmax Rail Spur Mr. Sulc asked that the Sirmax rail spur be added to Updates on the agenda. Commission Commended Mr. Heuer commended the Commission for approving the historic projects that will change the face of Anderson. Mrs. Scott stated the accolades that were given is why the Commission is here. The Commission is here to protect the best interest of the City. The west side is one of the top priorities. ADJOURNMENT Mr. Royer moved to adjourn. Meeting adjourned at 6:37 p.m. Anderson Redevelopment Commission: July 7, 2015 Page 5