Anderson Redevelopment Commission

MINUTES ANDERSON REDEVELOPMENT COMMISSION March 7, 2017 PUBLIC MEETING Anderson Girls and Boys Club Request 4:30 p.m. Mr. Collette asked Mr. Bostic if he had submitted a ED Conference Room #1 formal request other than the presentation. 120 East 8th Street Anderson, IN 46016 Mr. Bostic stated last month he submitted the materials that included the construction costs. The MEMBERS PRESENT Girls and Boys Club made an impact on the City of Michael Collette, President Anderson the day it opened and continues to do so. Carolyn Scott, Vice President Kevin Sulc, Secretary Mr. Collette stated proper protocol was for a formal Danny McGhee proposal to be submitted to the Economic L. Richard Symmes, Member Development Department. An agreement would be outlined and then the request would be brought to the Commission with the exact amount of funding for the STAFF PRESENT project proposal. Due diligence does need to be done. Ann Marie Bauer, Attorney Last month the Commission requested the attorney Greg Winkler, Director and outside counsel to give the Commission some April Phillips, Financial Specialist understanding as to what is allowable and what is not Gary McKinney, Environmental/Brownfield Specialist when it comes to TIF funding. He wanted the Commission and audience members to be aware that OTHERS PRESENT Ms. Crumes was video recording the meeting. Doug Whitham, City Controller Rebecca Crumes, City Council Mr. Pittman explained that certain questions should be Tim Stires, Municipal Development asked. The Anderson Township Trustee has the Ken de la Bastide, Herald-Bulletin power to build a community center. The normal way Larry McClendon, Executive Director Trustee Girls & to finance it would be through a bond issue at the Boys Club township level. He asked if a bond was being John Bostic, Anderson Township Trustee and Trustee considered at the township level. Girls and Boys Club Tom Tijerina, EPIC Initiatives Mr. Bostic stated it is one of the things they are Dan Keesling, CDL Training Program looking at. ROLL CALL AND DECLARATION OF QUORUM Mr. Pittman stated the Commission needs to weigh Mr. Collette called the meeting to order at 4:30 p.m. this alternative method of financing, because it is not a and declared a quorum with five (5) members present. standard approach. He does not know of any precedent around the State where a redevelopment MINUTES commission paid for a township project. He urged the Mrs. Scott moved to approve the February 7, 2017, Commission to run this proposal by the Department of minutes as corrected. Mr. Sulc seconded. Motion Local Government and Finance (DLFG) because this passed unanimously; 5 yes, 0 no. is an unusual way of financing. There is a statute that allows funds to pass through assessed value but when FINANCIALS /INVOICES that is done it must be done across the board and not Mr. Colette explained the financial reports and just for one entity. He urged the Commission to get the invoices. reaction from the other overlapping taxing units in the TIF district. He envisions them wanting funding also. Mr. Sulc moved to approve the financial reports and invoices as submitted. Mr. Symmes seconded. Mr. Sulc asked if the plan would need amended? Motion passed unanimously; 5 yes, 0 no. Mr. Pittman stated the property does not have to be BUSINESS geographically in the TIF district if it services the district, but the project would have to be in the plan. This would require Plan Commission, City Council and Commissions do not typically transfer title to other Commission approval. taxing units. He is trying to give the Commission items to think about before pulling the trigger with a Mrs. Bauer stated this is the same process that must final decision. be followed for any project. Mr. Winkler stated the property is owned by the City, Mr. Pittman stated a community center is within the but leased to the Anderson Township Trustee for 50 general powers of the Commission. What is different years. here, and the Commission needs to think about it, is that it is one thing to build a community center as part Mr. Pittman stated there is also the issue of priority. Is of their daily activities, but this is departing from the this a high priority? Is inner city relief a priority? If it is, norm to turn this over to another taxing unit for is this the best way to deal with that? He does not operation and control. The mirror image would be if have the answer. The Commission has a lot of the Commission asked the Anderson Township board demands on their resources. They need to decide if to issue a bond and build a project and then turn it this is what the Commission wants to spend their over to the Commission. This would raise eyebrows. resources on especially since the Anderson Township Trustee does have the statutory ability to do this apart Mr. Bostic stated this was different because it was from the Commission. The Anderson Township poor relief for the City of Anderson. He agrees with Trustee could do this project without even having to talking to the DLGF. talk to the Commission. Mrs. Bauer at the last meeting asked Mr. Bostic if he Mr. Sulc asked if the Girls and Boys Club was going to was requesting the Commission build it and turn it be a 501c3 in the future or would it stay as part of the over to the Township. The answer was yes. Trustee’s Office? Mr. Bostic stated they were creating an avenue for Mr. Bostic stated he envisions the Girls and Boys Club poor relief for a Girls and Boys Club for the City of as being a 501c3. The best opportunity to get the Girls Anderson. How this is created and the ownership and Boys Club started was starting it with the could be up to those around this table. Trustee’s Office. Mr. Pittman stated the Commission could never justify Mr. Sulc stated that if this proceeds other entities will doing a project on the basis of providing poor relief definitely need to be involved. Has this been due to the statutes. The Commission would have to discussed with the City Council members? find that the project is in furtherance of economic and redevelopment purposes of the City. The township Mr. Bostic answered yes, except for one. findings are different than the Commission findings. It would be easier for the Township to make a finding Mr. Sulc asked if the discussion was about the which is why he suggested that the Township Board possibility of a bond that they would have to approve. consider doing this though traditional financing. All the Township has to say is that they want a Mr. Bostic answered yes. He has their support. community center. The Commission has to tie it to economic development. Mr. Pittman asked if the discussion was concerning a Township bond or a redevelopment bond. Mr. Bostic stated he is tying it to economic development. Mr. Bostic answered a redevelopment bond. Mr. Collette asked Mr. Pittman to define ownership Mr. Winkler presented a map of the Anderson and control. Township and the TIF district so they could compare. TIF is in a portion of Anderson, Adams and Fall Creek Mr. Pittman stated that if the Commission does a Townships. Anderson Township is approximately six Community Center then statutorily the Commission miles by six miles. When comparing the two, would be the one expected to operate and certainly to Anderson Township covers a significant area. own it. There could be a contract for operation, but he can’t think what policy would drive the Commission to Mr. Sulc asked if the Commission chose to proceed transfer title even though there may be one. He thinks with this who would the agreement be with since the the Commission would have to state in the record why City of Anderson leases the ground to the Anderson they thought it was important to transfer title. Trustee and the Commission would own the building. Anderson Redevelopment Commission: March 7, 2017 Page 2 The Board of Works would also need to be a part of this conversation. Mr. Collette asked Mr. Bostic to provide a formal proposal that addresses the issues and addresses the Mrs. Bauer stated the ground is leased to the questions that come forth through the Economic Anderson Township Trustee for 50 years, then the Development Office. He requested that Mr. Winkler building would be owned by the Commission, but do the due diligence and arrive at a recommendation would sit on City property that is being leased to and then bring it back to the Commission. somebody else. There are a bunch of tangles. Mr. Sulc suggested having a meeting with the various Mr. Pittman thought those issues could be resolved by entities mentioned today specifically a couple of City amendments to the lease. He asked the Commission Council members, Mr. Bostic, members of the to keep in mind that the request is not an all or nothing Township Advisory Board, as well as a member of the thing. The Commission could provide just a part of the Board of Public Works. This way all of this can be assistance. There is room for flexibility if the discussed without being in a public meeting so that all Commission so chooses. the possibilities can truly be considered and ultimately a proposal that may involve multiple entities and be a Mr. Sulc asked if there is a way to do this using some collaborative effort. There are some options and they of the cash reserves. should be fully vetted with everybody at the table. Mr. Pittman stated yes, if there were enough funds. It Mr. Winkler stated the structure as far as ownership is would depend on what the Commission could afford. key to this project. Mr. Pittman stated that is the potential challenge. This Mr. Sulc asked if hypothetically the Commission could appears to be the Township’s baby. If the afford partial assistance would a bond be needed. Commission owns and operates it then that is within their purpose, but if they just do it and hand it over Mr. Pittman stated if funds are available then a bond somebody may ask why did you do that. would not be necessary. There is no doubt that the construction of the community center is a legal use of Mr. Winkler stated the way to address the potential TIF as a general matter if it is the Commission’s DLGF and other taxing units questions would be for project. the Commission to own it. Mr. Collette was concerned because the Commission went through a strategic planning process last year. Mr. Pittman advised the Commission again to make The strategic plan said the project must create jobs, sure the school systems are not uncomfortable with increase tax revenues for the City, has to hopefully this. The school systems have their own budget increase tax revenues for the school system, and it challenges. must jump start the real estate market. A set of priorities was then established. The west side was the Mr. Bostic stated that when TIF was created 30 years priority. One question is that if existing cash is used it ago he was in many discussions. TIF was created for may delay something else that may take place on the the urban areas and to him it was the inner City west side. Typically under TIF, if an opportunity because they were the people that were losing comes up that will provides jobs, then an agreement is factories, had old buildings that needed torn down or reached where the Commission provides incentives that needed rehabbed. They were the people that had and then a bond is issued to provide those incentives old houses in the community that needed something so that increase of the taxes in the TIF and in to be done. The TIF dollars were taken and put into particular the organization the incentives were given to the rural areas and abandoned the inner city with TIF helps pay off the bond. In this instance if the dollars. Now we are doing it again. This is natural Commission issues a bond there will be no revenue so because factories want to be on the interstate and we the rest of the TIF would have to pay for the bond. need to develop that because we need to develop the The Commission needs to look at the entire TIF City of Anderson and we want to support those efforts district. in any way we can, but we cannot leave the inner city abandoned. There has been nothing built or done in Mr. Bostic agreed with everything Mr. Collette just the inner city since TIF was started. The TIF district said, but they will create an avenue to create was created and the money was taken to put in everything he said. Number one they create jobs, they electric lines and water lines and buildings were built, create people who want to live in the City of Anderson but it left the inner city abandoned. Now there is an for the quality of life. They are involved in all those opportunity and with the school systems they will areas mentioned. create some great things, we did this 30 years ago Anderson Redevelopment Commission: March 7, 2017 Page 3 and it ain’t nothing new. Madison Heights which is now know what issues were raised today. Everybody Anderson High School was annexed into Anderson. around the table recognizes the need. Everybody Highland was a county school that was annexed into around the table recognizes the worthiness of having Anderson. When they needed money to develop the facility. The question for us is what can we legally those schools and make tennis and basketball courts do or not legally do. The second question is how this and swimming pools we annexed them into Anderson fits with the existing priorities and how to move that and gave them a service and we are still left out of that around. The third one becomes a question of timing service in the inner city. There has been nothing done of bonds because we just did a bond and will have to in the inner city to develop young people to be better find the funds, and the fourth question becomes why is people. We are running into the problems with school the Commission as a taxing entity doing this rather systems because we have done nothing for them in than the Township when they are a bigger tax entity the inner city. Now he is here today because he is the than the Commission. This is a fair question. Anderson Township Trustee and he is over poor relief for the inner city, Anderson Township. We need to do Mr. Bostic stated it is a fair question. The reason he is something there. We are going to do something on here is because he is going back to 30 years of the outskirts. We are getting ready to do something fighting around these tables. He is going back to with the schools on the outskirts. We done did that 30 where we started TIF and where we begged the years ago. When we started TIF, we did that with TIF people where we were supposed to start TIF at. TIF dollars. Those TIF dollars should have been spent in was meant for inner cities. He said it again, TIF was the inner city of Anderson as we would not be going meant for inner cities. We did not create anything through the problem we are going through right now. during those 30 years of TIF in the inner city. We have So we need to spend some money in the inside of created everything in the rural areas where there were Anderson, TIF dollars. just fields. There wasn’t no abandoned houses, there wasn’t no abandoned buildings. Mr. Pittman explained there is a community center in the statute as a classic function of township Mr. Winkler explained that there were abandoned government. The question naturally rises as to why factories and that they have put an awful lot of money, you are not doing it with your powers. If he has the time and effort in rebuilding those brownfield sites ability to do it, why would he not do it? including the former General Motors sites on Scatterfield Road. Mr. Bostic stated he is the Trustee and since he has been the Trustee he has been doing just that every Mr. Bostic asked if that was inner city. day. Number one he is fighting to get a building, number two he needs to have enough money in the Mr. Winkler answered yes, he considers that inner budget to get this done. city. Mr. Pittman stated that bond debt service is outside Mr. Bostic stated ok maybe some of that has been his levy. He can add that on top of the maximum levy done. He is not going to argue those points. The and does not flow into their regular flow of max levy points he is trying to argue is that nothing has been funds. built or delivered in the inner city of Anderson, Indiana from TIF dollars. Mr. Bostic stated they are looking into all of that why we talk. This City, this TIF board deserve to put Mr. Winkler took issue with that. Every single project something into the City. He gives Mr. Winkler and this that we do, every single project that he brings to this Board all the credit in the world in battling like hell to Commission has attached to it a return on investment get industry into the City of Anderson. He is not to the taxpayers of this City and jobs. Those jobs are condemning what has been done out there because if open to every single person, everybody, and he is we had not done what we done out there we could not passionate about this. What gets him up in the be doing what we doing right now to develop the City morning at this time in his life is that if he does his job of Anderson. Something needs to come into the City right, if the staff does their job right, if the of Anderson whether he does it or you do it. Redevelopment Commission does their job right, then Something needs to be done in the inner City of we will give some hope to people because they have Anderson. the opportunity to earn a living for themselves, they have hope that their children will be better off than Mr. Collette wants to bring the conversation to a close. they are, and that is what drives him. He asked Mr. Winkler and Mrs. Phillips to provide an unofficial copy of the minutes to Mr. Bostic so he will Anderson Redevelopment Commission: March 7, 2017 Page 4 Mr. Bostic stated that is what drives him too for the zip Mr. Winkler requested approval of the IWM proposal codes of 46016 and 46011. This drives him for those for $2,000. areas to have employment. He pays their utility bills every day. Mr. McKinney stated IWM has over 20 years of environmental records that they will need to review. Mr. Winkler knows it drives him, it drives both of them. This is a lot of work, but it will give us a clearer picture. There is no disagreement that there is a need. There is no disagreement that we need to do something. The Mr. Sulc wished Mr. Bostic would have stayed. This is question is what and how. a part of the inner City problem that they are dealing with. This is the number one priority that the Mr. Collette stated there is great positive passion Commission has. This $2,000 is well worth it. One of around the table, but he needs to bring the the subcommittees met a few days ago and we were conservation to a close. We will move forward with commenting and trying to figure out what we actually Mr. Bostic having a conversation with Mr. Winkler and do that meets are number one priority which is the bringing a proposal. Nichol / Raible Avenue corner. This is something we can say that we are moving forward. He is in support Mrs. Scott thanked Mr. Bostic. of looking at the corner and seeing if this is something we can take the bull by the horns and get it done. UPDATES Mr. Collette stated having this information gives the EPA: GM Properties Commission a better position to have some real Mr. McKinney explained that the contractor is almost negotiations with the property owners. done with installing the probes. Once that is completed within the next couple of weeks, then they Mr. Sulc moved to approve the agreement with IWM will start on the surface area. The entire area is fenced for $2,000. Mr. McGhee seconded. in and secure. There is video security. The project continues to move forward. Property lines needed to Mrs. Scott asked if this had been done in the past. be re-set, so Municipal Light and Power could install a pole and a tap box. He asked Mr. Dick Ward to do this. Mr. Winkler stated the Commission has relied on The estimate was $500-$800. Speedway’s information only. The challenge is that Speedway has so much funding set aside for clean- Greater Edgewood Plaza Redevelopment up, but quite honestly there may be additional issues Mr. Winkler stated there is a proposal from IWM to that the Commission needs to be aware of. assess the Speedway site and give an estimate for cleanup of the site and off-site liabilities. Once he has Motion passed unanimously; 5 yes, 0 no. the information, then the conversation will go to Speedway for their assistance in this process and Italpollina move from there to conversations with other property Mr. Winkler stated Italpollina continues on the path to owners. The hope is to get the entire corner under begin production in late July or early August. ownership either through the Commission or a consultant and then proceed with demolition of the NTK existing buildings. Buxton has provided deliverables Mr. Winkler stated this is a brand new project with a to the staff. The final meeting has not happened, but $92,000,000 investment with 198 jobs. The the meeting will provide a list of prospects. The Commission’s portion will be to fund $1,600,000 to prospects mainly are food and beverage, grocery, enable NTK to purchase the property from NTN. In hardware, and entities that fit the socio-economic addition, they will be seeking a 70% tax abatement pattern of the area. from the City Council. Mayor Broderick made note that even with the 70% tax abatement, NTK will still Mr. Collette asked if he was pleased with the initial pay over $7,000,000 in property taxes over the life of results of the study. the abatement. He anticipates the cost of additional infrastructure to support the project will be less than Mr. Winkler was a little surprised. Buxton seems to be $500,000. pretty bullish on what they think we can do. Parking Garage Mr. Collette requested an invite if there was a public Mr. Whitham mentioned that he will have a report on presentation. this at the next meeting. All the numbers have been tracked down. The money is all accounted for. The Anderson Redevelopment Commission: March 7, 2017 Page 5 Commission leases the parking garage and adjacent and the parcel where the new Community Health lot to the Board of Works who in turn has the Police Pavilion is. The very north end along the railroad Department manage it. tracks has a 15 ft. utility, communication, and drainage Mr. de la Bastide stated nobody monitors the meters easement. They intend to build a transmission line, nor the two hour parking. but due to the curve of the railroad they will need to curve the line which creates the necessity for tension Mr. Whitham noted these were worthwhile points. with guide wires. They are asking for an additional 10 ft. for a total of a 25 ft. easement. The building MISCELLANEOUS setback is 25 ft. so this will not intrude on the building setback. Confidentiality Agreements Mr. Collette informed the Commission he had a Mrs. Bauer recommended a motion be made. Upon meeting with Mr. Winkler regarding upcoming projects. their agreement there will be a permanent easement He recommended to the Commission at the last document which will be recorded and references the meeting that all members sign Confidentiality plat. Agreements so the conversations stay within the membership until the item is on the agenda. Mr. Symmes moved to approve the easement request. Mr. Sulc seconded. Motion passed unanimously; 5 Mrs. Bauer created two Confidentiality Agreements. yes, 0 no. One was specifically titled Commissioner Confidentiality Agreement. Basically the members Dollar General Columbus Avenue Project acknowledge and agree to keep confidential any and Mr. Collette stated Mr. Pochard brought an issue all information written or verbal provided to them forward that helped Dollar General to agree to change through the course of briefings by the Economic the layout of the property to the Commission’s benefit. Development Director on projects that do, might, or could ever involve the Redevelopment Commission. It Mr. McKinney stated the Phase II environmental also does recognize that there is a public clause so it assessment has been completed. He forwarded the does not bring you into conflict with that. It is designed report to Mrs. Bauer, Mr. Winkler, and Mr. Collette. to let you basically have face to face meetings with The report showed there were no environmental free transfer of information. This basically says that if issues. you are asked to keep something confidential you understand and will do that. The other agreement is a Mr. Winkler stated as the progress occurs he will be blank form to be filled in at the point in time when you talking with the contractor about the façade treatment are actually meeting with somebody and requesting as far as how the building will look. confidential information which they agree to provide in the event you sign and provide them with the Anderson Girls and Boys Club Request confidentiality agreement. This is a fill in the blanks Mr. Winkler is meeting with Mr. Bostic tomorrow at form for when it is needed. 11:00 a.m. to start the conversation and dig through the process. Mrs. Crumes asked if this is the first time this has been done and is it just for the new members. Subcommittees Mr. Collette reviewed the appointments to the Mrs. Bauer answered no, but it is structured a little subcommittees. Mrs. Scott and Mr. Sulc are on the different. She explained again how the confidentiality Strategic Plan subcommittee. Mrs. Scott and Mr. agreement worked and why it was necessary. Symmes are on the Property List subcommittee. Mr. Mr. Colette stated Mr. Winkler is working on some McGhee and he are on the Education subcommittee. very exciting things. He would like the Commission Mr. Sulc and he are on the Project Review members to be made aware of these things, but there subcommittee. They will work with Mr. Winkler to must be confidentiality for him to be able to discuss complete a ten-year review of incentive packages and and work on a better level on the Commission’s the results. behalf. Mrs. Scott stated she and Mr. Sulc met and came up Municipal Light & Power with ideas on how to assess the plan, if it is Mr. Pochard explained they need an additional successful, and ways to ensure it is successful. easement. The Commission owns a parcel of ground behind AutoWorld on Intercontinental Drive just south Mr. Collette mentioned Mr. Winkler will appoint a staff of the southernmost railroad tracks between the tracks person to each subcommittee. He assumed Mr. Anderson Redevelopment Commission: March 7, 2017 Page 6 Winkler would continue to serve on the Strategic Plan subcommittee. Mr. Symmes presented a property map to the members. Some parcels are missing, but he will continue to work on it. A discussion was held as to the missing parcels. ADJOURNMENT Mr. Sulc moved to adjourn the meeting. Meeting adjourned at 5.50 p.m. Anderson Redevelopment Commission: March 7, 2017 Page 7