Anderson Redevelopment Commission

MINUTES ANDERSON REDEVELOPMENT COMMISSION April 5, 2016 ROLL CALL AND DECLARATION OF PUBLIC MEETING QUORUM 4:30 p.m. Mr. Sulc called the meeting to order at 4:35 p.m. ED Conference Room #1 and declared a quorum with three (3) members 120 East 8th Street present. Anderson, IN 46016 MINUTES MEMBERS PRESENT Mr. Collette moved to approve the March 1, 2016, Kevin Sulc, President minutes as received. Mr. Royer seconded. Joe Royer, Vice President Motion passed unanimously; 3 yes, 0 no. Michael Collette, Member FINANCIALS / INVOICES MEMBERS ABSENT Mr. Royer moved to approve the March Financial Justin Puckett, Secretary report from the City Controller. Mr. Collette Carolyn Scott, Member seconded. Motion passed unanimously; 3 yes, 0 no STAFF PRESENT Ann Marie Bauer, Attorney Mr. Collette moved to approve the invoices as Greg Winkler, Director submitted. Mr. Royer seconded. Motion passed Michael Frischkorn, Deputy Director unanimously; 3 yes, 0 no. April Phillips, Financial Specialist Gary McKinney, Environmental/Brownfield BUSINESS Specialist Resolution #ARC05-16 A Resolution of the City OTHERS PRESENT of Anderson Redevelopment Commission Debra Roland, Treat America & Company Pledging Certain Tax Increment Revenues to Kitchen Vending Food Services the Payment of Economic Development Chad Pigg, Groundbreaking, LLC. Revenue Bonds of the City of Anderson Tom Seal, F.C. Tucker Mrs. Bauer explained the resolution was a pledge Michael Watts, American StructurePoint to the repayment of bonds for the City of Mike Spyers, City Engineer Anderson through the Economic Development Greg Graham, City Council Commission (EDC) that will provide funds to the Joanne Collette, JobSource Italpollina project for $1,050,000. The project Stu Hirsch, Herald-Bulletin agreement states the funds are to be used for Tim Stires, Assistant Planning Director construction. The funds will be provided to the Todd Fisher, Building Commissioner developer/builder known as 2700 Scatterfield Darla Couch, Anderson TV Road LLC. Rob Sparks, Corporation for Economic Development Mr. Sulc asked if the proceeds would go directly Thomas J. Broderick, Jr., Mayor to the developer or will an account be set up for funds to be reimbursed to the developer? Mrs. Bauer stated it was set up to be provided to 2700 Scatterfield Road LLC. so that every $2 spent $1 will be reimbursed specifically to be used for construction only. Bond counsel does not see any way to give the funds directly. She Mr. Royer moved to approve Resolution has misspoke on this previously. #ARC05-16. Mr. Collette seconded. Motion passed unanimously; 3 yes, 0 no. Mr. Sulc asked who was administering and ensuring that all the money that is going to the Contract with Atlas Excavation for Installation 2700 Scatterfield Road LLC. is being used for of Water and Sewer Lines for NTN construction costs only. Mr. Spyers explained the Board of Public Works (BOW) signed a contract with Atlas Excavating Mrs. Bauer did not have the bond documents. In for the water and sewer lines in the amount of similar bonds, when the City was acting as the $3,320,760. trustee, invoices were submitted for the reimbursement amount then either the City Mr. Sulc mentioned that the Commission has had Controller, the Economic Development Director, this discussion before. After the BOW approves or both of the entities approved the request prior the contract, the Commission acknowledges the to the disbursement of funds. contract because the Commission is paying the bill. Mr. Sulc asked if the Controller’s Office was administering the P3 bond. Mrs. Bauer explained that actually in order for the Commission to be obligated under any contract it Mr. Winkler and Mrs. Bauer answered yes. must be approved by the Commission and signed by one of the officers by statute. This applies to Mr. Winkler stated the slight difference is that any contract. there is a construction manager for the P3 project in addition to the City doing inspections. On Mr. Collette did not see in the contract where it other projects such as this one, where the mentioned this was for the NTN project. developer does the work, then the Building Commissioner’s Office will do the inspections to Mr. Spyers stated it was noted that the project ensure the work is being done correctly prior to was a water and sewer extension. sending the reimbursement request to the City Controller for payment. Mr. Winkler stated this will remain public infrastructure and will benefit not only NTN, but Mr. Sulc wanted to have this discussion because other entities in the area. moving forward this Commission will not have a hand in the project. The intent of this Mr. Royer asked if the dollar amount fell within Commission is to have this administered properly the expected range. and to make sure that as these funds are distributed it is in accordance with what the Mr. Spyers answered yes. Commission intends by passing this resolution. Mr. Collette moved to approve the contract with Mrs. Bauer stated the requirement in similar bond Atlas Excavation. Mr. Royer seconded. Motion documents specifies that the information must be passed unanimously; 3 yes, 0 no. provided to the City Controller’s Office and the Economic Development Director and/or the Contract with Hannum Wagle and Cline Controller’s Office must sign off after review by Engineering for Construction Inspection for the Building Commissioner’s Office. NTN Mr. Sulc wants the record to show that he wants Mr. Spyers explained the contract is for the this process to continue. construction inspection for the sewer and water installation in the amount of $225,000. Mrs. Bauer stated that in some cases the notice to release the funds goes from the Controller to Mr. Royer asked if the typical inspection cost was whoever the trustee is holding the funds. a percentage. Anderson Redevelopment Commission: April 5, 2016 Page 2 Mr. Spyers noted that the cost was typically less Mr. Spyers stated it would be every so many than 10% of the construction contract. This is a years, probably about every ten years. good contract. Mr. Sulc stated the contract amount was Mr. Sulc asked if the BOW had approved the $43,144.50. contract. Mr. Royer moved to approve the contract with Mr. Spyers answered yes. Huey Excavating. Mr. Collette seconded. Motion passed unanimously; 3 yes, 0 no. Mr. Royer moved to approve the contract with Hannum Wagle and Cline. Mr. Collette Contract with Rayl Surveying for Nestle Ditch seconded. Motion passed unanimously; 3 yes, 0 Construction Inspection no. Mr. Spyers stated this is a contract with Rayl Surveying for the construction inspection of the Contract with Select Lawn Care for Mowing of Nestle Ditch work. Edgewood Plaza and General Motors Properties Mr. Sulc asked if all of the work in this area was Mr. McKinney explained the Commission part of the anticipated costs that were considered approved contracts for mowing for the General as part of the NTN project. Motors properties and the Edgewood Plaza property in 2015. The contract stipulated that the Mr. Spyers answered yes. Commission had the option to renew the contract for 2016 and 2017. Select Lawn is keeping the Mr. Collette moved to approve the contract with mowing cost the same as it was 2015. Select Rayl Engineering. Mr. Royer seconded. Motion Lawn is also aware there will be less property to passed unanimously; 3 yes, 0 no. mow as some property has been sold. He recommends renewal of the contract. Approval of Annual Report Mr. Sulc mentioned that the annual report was Mr. Collette moved to approve the contract with received electronically prior to the meeting. The Select Lawn Services. Mr. Royer seconded. Commission is required to submit an annual Motion passed unanimously; 3 yes, 0 no. report to the Anderson City Council. Contract with Huey Excavating for Nestle Ditch Mrs. Bauer explained this is the first year in doing for Silt and Mud Removal a combined report. Previously, the Commission Mr. Spyers explained the BOW signed a contract reported to the Mayor and the City Council and with Huey Excavating for the removal of silt and then provided a parcel list. She has been working mud in the Nestle Ditch. This was requested by with the Madison County Auditor’s Office on the the County Drainage Board as part of the NTN parcel list. project to get approval to drain into Foster’s Branch. Nestle Ditch was built in 2008. The Mr. Sulc thanked Mrs. Bauer for working with the request was for silt removal, re-grading and Auditor’s Office on getting the parcel information. seeding. Mr. Royer moved to approve the Annual Report. Mr. Sulc asked if this was part of the Mr. Collette seconded. Motion passed infrastructure work that was anticipated as part of unanimously; 3 yes, 0 no the project. Mr. Sulc encouraged the City Council members Mr. Spyers answered yes, the storm water. to review the exhibit regarding the bond debt. Mr. Royer asked if this was a one-time cost or Barnes & Thornburg Engagement Letters reoccurring. Mr. Sulc mentioned the engagement letters were to hire Mr. Tom Pittman of Barnes and Thornburg Anderson Redevelopment Commission: April 5, 2016 Page 3 as the Commission’s bond counsel. There were Mrs. Bauer stated the resolution approves the two separate engagement letters. One for the sale of the property to 2700 Scatterfield Road Italpollina project and one for a potential bond for LLC. who is the builder and for a period of time the infrastructure work being done for NTN. In the landlord for Italpollina. The resolution July 2015, the Commission passed a authorizes the sale and authorizes the president reimbursement resolution that reserved the right to sign when the documents are in final form and to do an infrastructure bond in the vicinity of 73rd ready to execute. The resolution states that it is Street and Layton Road. in substantial final form. They are doing wordsmithing on some of the terms in the Mrs. Bauer noted that Barnes and Thornburg document. The purchase price was already given provided a disclaimer of a potential conflict of to her. The property description in terms of interest because they are acting as the acreage is correct and accurate. She does not environmental consultant to 2700 Scatterfield have the recorded plat back from the Recorder’s Road LLC. She has discussed this with City Office so she does not have an attachment that Attorney Tim Lanane. She and Mr. Lanane do not would specifically describe it. There will be some consider this an issue since Barnes and wordsmithing on the environmental language Thornburg disclosed the relationship. The work also. The document as presented is in for the Italpollina bond is a flat fee of $40,000 and substantial final form. The resolution says we includes all documents required for the authorize the sale and authorize the president to Commission, the EDC, the City Council, and the make changes that are deemed necessary and closing. The infrastructure bond is a flat fee of sign the revised document. $45,000. Mr. Sulc stated the purchase price is proposed at Mr. Sulc did not anticipate an issue, but he asked $6,782 which in essence is giving them the that if the Commission did not move forward with property. Who negotiated this? anymore bonds would the engagement letters lock in the Commission. Mr. Winkler explained this went back to the initial discussions with the company and then bringing Mrs. Bauer answered no. If the process went the developer in. He would view that as part of through the Commission, the EDC, and the City the incentive to get the brownfield property back Council, and then the City decided not to move on the tax roll. This, along with the incentive forward with the bond, the Commission may have offered, leverages a $9,000,000 investment on a to pay a portion of the services, but not the entire bare parcel. amount. Mr. Royer had no concerns. Mr. Winkler stated most of the work is in the final bond closing documents and transcripts. Mr. Collette asked if there was any history on this that would be important. Mr. Collette moved to approve both engagement letters with Barnes and Thornburg. Mr. Royer Mr. Sulc explained the Commission has sold seconded. Motion passed unanimously; 3 yes, 0 property and has given property away before. no. Mr. Collette asked if there was any other history Resolution #ARC06-16 A Resolution of the City as it relates to this transaction. of Anderson, Indiana Redevelopment Commission Authorizing the Sale of Real Mrs. Bauer stated this is fairly close to the P3 Estate to 2700 Scatterfield Road LLC project. Mr. Sulc explained the resolution relates to the sale of the real estate. The Commission owns the Mr. Winkler explained the Jamerson parcel for property. The resolution was sent to the Myer’s AutoWorld sold for $100,000, but it is right members prior to the meeting. on Scatterfield Road. Anderson Redevelopment Commission: April 5, 2016 Page 4 Mrs. Bauer mentioned that there was also a Mr. Winkler answered no. The staff is in the significant amount of infrastructure work that was process of creating an invoice to submit to required along Scatterfield Road for that project Nestle. One of the requirements of the 2012 tax at the purchaser’s request. abatement for Nestle was to pay an abatement fee equivalent of 15% of their savings up to Mr. Royer moved to approve Resolution $500,000. Mr. Krohn is going through the #ARC06-16. Mr. Collette seconded. Motion process to make sure of the amounts. The passed unanimously; 3 yes, 0 no Controller’s Office will have to issue a W-9 to Nestle, then Nestle should be sending the Mrs. Bauer found an error in the resolution. She Commission a check. The agreement was for the requested the Commission’s approval to allow funds to be directly targeted for Edgewood Plaza. her to substitute page one with an identical resolution which will in fact have the correct transaction listed in item #1. Mr. Sulc requested the Controller’s Office create an account for Edgewood Plaza and that money Mr. Royer moved to allow the substitution of page can only be used for work in the area. one in Resolution #ARC06-16. Mr. Collette seconded. Motion passed unanimously; 3 yes, 0 Purdue/Flagship Makers Space Facility (P3) no Mr. Winkler stated the project is on schedule. They want to be open for the winter semester. Resolution #ARC07-16 A Preliminary Bond There is considerable interest by multiple small Resolution of the City of Anderson companies regarding the manufacturing space Redevelopment Commission and research and development. Mr. Sulc explained that Resolution #ARC07-16 is to be removed from consideration. The reason is Scatterfield West Redevelopment that doing an additional preliminary bond Mr. Frischkorn explained there was a need for resolution for infrastructure is unnecessary additional design work for the storm water because the Commission in July 2015 passed retention. The cost is about $7,200 for the Resolution #ARC10-15. There is no reason to modification of the drainage. duplicate what has already been done. Mr. Spyers stated that oversized swales would be UPDATES used instead of a drainage pond. EPA: GM Properties Mr. Sulc asked what prompted the change. Mr. McKinney stated SM&A is in the process of completing the RFP for the ERH contractors. A Mr. Winkler stated the area that was targeted for draft should be submitted by the end of the week the retention pond was found to be unsuitable. for his review and approval. Mr. Collette moved to approve the change order Greater Edgewood Plaza Redevelopment with American StructurePoint. Mr. Royer Mr. McKinney stated the subsurface investigation seconded. Motion passed unanimously; 3 yes, 0 of the former dry cleaner site is continuing as no. IDEM required to get a “No Further Action” letter. He thought there would be about another year of Mr. Spyers stated there is about 16,000 tons of sampling. The Madison County Council of recycled concrete. Material such as wire was Government’s brownfield grant is paying for the found in the concrete. It was agreed to take a next round of sampling. deduction of $1.00 per ton or $16,000. P3 is using the material for the parking lot and the City Mr. Sulc asked if there was any news on the of Anderson will use it for a stone base for Speedway property. sidewalks. Italpollina Anderson Redevelopment Commission: April 5, 2016 Page 5 Mr. Winkler stated the next review goes to the EDC and then the City Council. Both meetings NTN are on April 14, 2016. Mr. Winkler stated the walls are going up. They should have temporary power next month. Sirmax Railroad Spur Mr. Spyers stated the rail spur is completed so Parking Garage the reimbursement can be submitted to the State. Mr. Sulc asked that this item be added to the Updates. The Commission owns the parking Mr. Sulc asked who would submit the request for garage. There is a lease agreement with the the $600,000 reimbursement. BOW for the operation of it. The Commission is supposed to receive an annual report, but has Mr. Frischkorn answered the City Controller not. He requested the BOW to submit an annual would request the funds. Mrs. Phillips has all the report on the operations. The Commission is payments that have been made. interested not only because they own it, but because they invested a very large sum of money Mr. Sulc requested this item be left on the in restoration work. agenda until the funds are received. Mr. Collette was very familiar with this. There were problems as far back as 1992. It was recommended at that time to sell it. Mr. Sulc mentioned that a fund was to be set up to pay for the maintenance of the parking garage. The Commission wants a report on this also. MISCELLANEOUS Project Cooper Mr. Winkler stated the financing will take another six months. It will not be brought back until such time as the company’s financing is in place. Strategic Planning Subcommittee Mr. Sulc mentioned the subcommittee has met twice to discuss strategies moving forward. A non-binding resolution will be presented to the Commission that expresses their thinking for 2016-2017. After review and comments, it will be presented to the public by way of a resolution. Downtown Fountain Mr. Spyers stated a final bill was received for the fountain project in the amount of $18,000. There was about $4,000 left on what the Commission agreed to pay. There will be discussions with the BOW and Mr. Winkler on how this will be paid. Some of the costs were change orders, some were costs he was not aware of, and part of it was K.R. Montgomery’s design work. ADJOURNMENT Anderson Redevelopment Commission: April 5, 2016 Page 6 Mr. Royer moved to adjourn. Meeting adjourned at 5:40 p.m. Anderson Redevelopment Commission: April 5, 2016 Page 7