Anderson Redevelopment Commission

MINUTES ANDERSON REDEVELOPMENT COMMISSION January 26, 2016 ROLL CALL AND DECLARATION OF PUBLIC MEETING QUORUM 4:30 p.m. Mrs. Scott called the meeting to order at 4:33 ED Conference Room #1 p.m. and declared a quorum with four (4) 120 East 8th Street members present. Anderson, IN 46016 ELECTION OF OFFICERS MEMBERS PRESENT Mr. Royer moved to install Mr. Sulc as President, Carolyn Scott, President Mr. Royer as Vice President, and Mr. Puckett as Joe Royer, Secretary secretary. Mr. Puckett seconded. Motion passed Kevin Sulc, Vice President unanimously; 4 yes, 0 no. Justin Puckett, Member WELCOME MEMBERS ABSENT Mr. Sulc took over the duties of President. He Mike Collette, Member thanked Mrs. Scott for her service over the last year. The Commission is looking forward to STAFF PRESENT working with the new member Mr. Collette. He Ann Marie Bauer, Attorney welcomed the visitors and staff. He introduced Greg Winkler, Director Mayor Broderick and Jack Keesling and David Michael Frischkorn, Deputy Director Eicks from the Board for of Public Works April Phillips, Financial Specialist Gary McKinney, Environmental/Brownfield INTRODUCTIONS Specialist Mr. Winkler introduced Luca Bonin and Jim Dittrich with Italpollina and John Paugh. OTHERS PRESENT Randy Warman, American StructurePoint Mr. Sulc introduced Councilwoman Crumes. Rebecca Crumes, City Councilwoman David Roberts, Gutwein Law DISCUSSION AND APPROVAL ON LEGAL Jim Dittrich, Italpollina COUNSEL FOR 201 6 Darla Couch, City of Anderson Mr. Royer moved to retain Mrs. Bauer as legal Kevin Montgomery, KrM Architecture counsel. Mrs. Scott seconded. Motion passed David Eicks, Board of Public Works unanimously; 4 yes, 0 no. Tom Broderick, Mayor Jack Keesling, Board of Public Works MINUTES Mike Spyers, City Engineer Mrs. Scott moved to approve the December 22, Ken da la Bastide, Herald-Bulletin 2015, minutes as received. Mr. Puckett Buzz Krohn, O.W. Krohn & Associates seconded. Motion passed unanimously; 4 yes, 0 Luca Bonini, Italpollina no. Joe Newman, City Councilman  jobs will be in sales, two will be management, INVOICES and approximately 18 will be in production, Mr. Royer moved to approve the invoices as warehouse, or machine operator. Total submitted. Mr. Puckett seconded. Motion passed estimated annual payroll is projected to be unanimously; 4 yes, 0 no. $1,800,000. With the $1,050,000 investment, $1,600,000 would be received back into TIF over BUSINESS a ten year period, plus the job creation and putting a brownfield back on the tax rolls. No tax CSX Design Work for Scatterfield Road abatements are being offered. Mr. Winkler explained the agreement would enable the City to move forward with the Mr. Bonini gave an overview of the company. intersection and primarily the CSX portion of the They will be manufacturing biostimulant fertilizer work. It is for approximately $9,500. from soy beans. The fertilizers are based on safe animal byproducts and biostimulants of vegetable Mr. Sulc asked who requested the design. origin. They are establishing a research and development agreement with Purdue University. Mr. Winkler stated it was required by CSX. One of the reasons they chose Anderson and the location was the new Purdue Polytech facility. Mrs. Bauer explained the Commission would be approving and authorizing the payment as listed Mr. Winkler stated this is only phase one. They in the document. are asking for a first right of refusal on the property to the north which would be for Phase 2 Mr. Royer moved to approve the CSX design and 3. work for Scatterfield Road as presented. Mrs. Scott seconded. Motion passed unanimously; 4 Mr. Sulc asked when production would start. yes, 0 no. Mr. Bonini hoped to begin production in spring Resolution #ARC0 1-16 Resolution of the City of 2017. Anderson , Indiana Redevelopment Commission Approving a Project Development Mr. da la Bastide asked if he looked at other Agreement - Italpollina locations besides Anderson. Mr. Winkler explained the resolution supports the project development agreement between the City Mr. Bonini answered yes. They spent two years and Italpollina. The basic agreement will be for a looking for the right location. Anderson had the building constructed on Italpollina’s behalf by a right mix of skills, environment, and people. partnership or S Corporation formed by John Paugh and Bill Fredericks. There will be a Mayor Broderick thanked Mr. Bonini for selecting purchase agreement that will come later between Anderson. He looked forward to working with the Commission and the S Corporation regarding him. He thanked Mr. Winkler and the Economic the ground the building will be constructed on. Development team for their hard work and efforts This agreement is between the Commission and as well as Messrs. Paugh and Fredericks. Italpollina. It authorizes the passing on an incentive to the company of $1,050,000 that can Mr. Sulc stated the resolution and the PDA were be used towards the construction of the building. sent to the members for review. He asked Mrs. What the company gets in return is a lower lease Bauer to explain the resolution. rate for three years as negotiated with John Mrs. Bauer explained the resolution approves the Paugh and Bill Fredericks. There are investment president’s signature on the PDA which will also goals for real property investment which is go to the Economic Development Commission for estimated at $5,000,000 and equipment goals approval. The resolution authorizes the over a two year period of approximately agreement in substantial form, however, the PDA $4,000,000 with a total of 35 jobs with a ten is its final the form as presented to the percent grace. They are estimating nine of the Commission Anderson Redevelopment Commission: January 26, 2016 Page 2  Mr. Puckett moved to approve Resolution Mr. Sulc stated the agreement is with the #ARC02-2016. Mr. Royer seconded. Motion company. He is assuming it is contingent upon passed unanimously; 4 yes, 0 no. the acquisition of the property by another party. Supplemental Agreement #1 with Butler Mrs. Bauer stated there are recitals in the Fairman & Seufert for NTN Project document. The words “as agreed to” become Mr. Spyers explained in talking with the Water basic contingencies. Department and Butler Fairman & Seufert it was determined it would be beneficial to run an Mr. Royer asked if the funds were available. additional line down Accelerator Drive and create a shorter loop. This will require an additional Mr. Krohn presented a spreadsheet of existing topographic survey, geotechnical engineering, and anticipated funds along with bond payments. and design. This agreement also discusses the He believes the Commission is in good shape. booster pump station for the water tower. He gave a brief overview. With a potential Currently the pressure zones range from 25 to 50 $6,000,000 bond, the coverage would be around PSI. When Nestle pulls water off the tank, this will 140 in the consolidated area. allow a constant water pressure for the area so there will not be dips. It should be a 55-60 PSI as Mr. Royer moved to approve Resolution a constant flow. The additional cost is $41,200. #ARC01-16. Mr. Puckett seconded. Motion passed unanimously; 4 yes, 0 no. Mr. Sulc asked how this relates to the previous agreement. Resolution #ARC02-16 Resolution of the City of Anderson , Indiana Redevelopment Mr. Spyers stated the other agreement was to go Commission Transferring Funds to the down Layton Road and come out onto 67th Economic Development Commission Pursuant Street. Accelerator Drive provides a shorter loop to IC 36 -7-12-19(b) for the Purpose of and provides an additional feed for Nestle in case Financing an Economic Development anything were to happen. Agreement Mrs. Bauer explained that the current statutory Mrs. Bauer stated this is an authorized framework does not allow TIF to be used as an transaction. The Commission is authorized to incentive; however, it does allow TIF to be work with other entities such as the Board of passed to an entity which is authorized to use it Public Works (BOW). as an incentive which would be the Economic Development Commission (EDC). This is the Mr. Sulc asked if the BOW has approved this. vehicle to pledge TIF to the EDC, then the EDC Mr. Spyers answered yes. will enter a financing agreement with the Company. Under the terms of that agreement, Mr. Sulc asked if the Commission is just agreeing the incentive will be passed to the company. with them. Mr. Sulc asked if the Controller would need this Mrs. Bauer stated the Commission is agreeing to authorization to do the transfer. acknowledge and approve the existence of the agreement. This also means the Commission is Mrs. Bauer answered yes. acknowledging and approving payment in the future. Mr. Sulc answered if the EDC and the City Council would have to vote to approve the funds. Mr. Royer moved to approve Supplemental Agreement #1 with Butler Fairman & Seufert for Mrs. Bauer stated the EDC would have to the NTN Project. Mrs. Scott seconded. Motion approve the funds and a financing arrangement passed unanimously; 4 yes, 0 no. with the company. AT&T for an Easement Anderson Redevelopment Commission: January 26, 2016 Page 3 Mr. Spyers explained AT&T revised their parcels that need acquired and getting a agreement. This will also move the 8th Street viewshed from Nichol and Raible into the relocation project forward. property. Mrs. Bauer stated AT&T has agreed to bury the Purdue/Flagship Makers Space Facility line and go along the outside of the property in Mr. Winkler mentioned the project is proceeding the current easements. very well. They are making very good progress. Mrs. Scott moved to accept the easement with Scatterfield West Redevelopment AT&T. Mr. Royer seconded. Motion passed Mr. Winkler explained the Scatterfield Road unanimously; 4 yes, 0 no. infrastructure will begin construction in the first part of February which includes the roadway and UPDATES retention pond. The final location of the retention pond has not been determined due to another EPA: GM Properties prospective company wanting to locate in the Mr. McKinney mentioned SM&H completed the area. first round of sampling in order to delineate where the contamination is located. From the sampling, Sirmax Railroad Spur they discovered there were issues outside the Mr. Winkler mentioned the first railcar was slurry wall so they needed to do another round of received last week. The rail spur is complete. sampling. After talking to Mrs. Bauer he approved The final billing should be received and this work. They did the sampling last week and processed for approval for the March meeting. should have the analysis in the next few weeks. IEDC will be reimbursing the Commission The first reimbursement check was received $600,000 for the spur. January 12, 2016. Mr. Spyers stated CSX will also be reimbursing Greater Edgewood Plaza Redevelopment the Commission based on the number of railcars Mr. McKinney stated he is still negotiating with for five years. the College Foundation on the Baxter Pest Control property as far as donating it to the Mr. Sulc requested NTN and Italpollina be added Commission. They have hired a local attorney. to updates. He and Mrs. Bauer have had a few discussions with him. They are still working through it. Mr. Winkler mentioned that some of the Economic Development staff, the Corporation for Economic Development staff, Mr. Eicks, and Mayor Broderick talked yesterday on opportunities and how to move this forward. They are going to have some conversations with another community entity as far as how this might proceed. They also think it wise to start the process of preparing a Request for Information (RFI) to offer to commercial developers around the Country. They would like to get this into the marketplace prior to the large commercial real estate show that takes place every year at the end of April first part of May in Las Vegas. They want to see if they can attract some attention from developers that specialize in these kinds of niches as to what they could bring to the table if some additional hurtles were solved such as Anderson Redevelopment Commission: January 26, 2016 Page 4 MISCELLANEOUS Strategic Planning Mr. Sulc appointed a strategic planning subcommittee consisting of Mr. Winkler, Mrs. Bauer, himself, Mrs. Scott, and Mr. Eicks to set priorities for the Commission. The subcommittee will bring back a proposal to the full Commission for review and approval ADJOURNMENT Mrs. Scott moved to adjourn. Meeting adjourned at 5:25 p.m. Anderson Redevelopment Commission: January 26, 2016 Page 5