Anderson Redevelopment Commission

MINUTES ANDERSON REDEVELOPMENT COMMISSION November 7, 2017 After review, Mr. Symmes moved to approve the financial reports and invoices as submitted. Mr. Sulc PUBLIC MEETING seconded. Motion passed unanimously; 3 yes, 0 no. 4:30 p.m. ED Conference Room #1 Mr. McGhee joined the meeting. 120 East 8th Street Anderson, IN 46016 Mr. Collette reviewed three authorizations to bill from Municipal Light and Power (MLP): NTK for MEMBERS PRESENT $279,000.00, Flagship Substation for $3,220,112.49 Michael Collette, President and Dollar General for $150,514.00. Carolyn Scott, Vice President Kevin Sulc, Secretary There were no questions on the NTK authorization to L. Richard Symmes bill. Danny McGhee Mr. Collette briefed members on the Flagship STAFF PRESENT Substation authorization to bill. Mr. Collette stated he Ann Marie Bauer, Attorney had called Mr. Whitham, City Controller, and was Greg Winkler, ED Director informed the original cost estimate for the project was Karen Soetenga, ED Staff 9.3M. If the commission approves the authorization to Gary McKinney, Environmental/Brownfield Specialist bill the project will be at $10,454,000, over budget by $1,154,000. Mr. Whitman stated an estimate was OTHERS PRESENT arrived upon but not drilled down to and we need to Doug Whitham, City Controller work together to achieve better estimates. Mr. Jack Keesling, Board of Works Collette asked if a project manager should be Ken de la Bastide, Herald-Bulletin considered for future projects. Mr. Winkler stated Mike Spyers, City Engineer several things came up as the project matured that no Councilwoman Crumes, City Council one had any concept would be needed such as high Councilman Graham, City Council pressure pump for the water tower. A brief discussion Tony Pochard, Municipal Light and Power followed. Mr. Collette stated he asked Mr. Whitman if Jim Dittrich, Italpollina this kind of overage has occurred in the past and was Nathan Taulman, Hageman Group told yes and confirmed that TIF funds can be used Tom Dickey, Hageman Group because the transfer of funds is to MLP not to NTK. Mike Sheek, GDI Construction Mr. Whitman informed Commission they would Mike Montgomery, KRM Architecture approve bills as the project progresses so the cash balances for both the Commission and MLP will be ROLL CALL AND DECLARATION OF QUORUM kept up to date. Brief discussion followed. Mr. Mr. Collette called the meeting to order at 4:30 pm and Pochard stated if any changes arose that escalated declared a quorum with three (3) members present. the cost, MLP would have to come back to the Commission with another authorization to bill before MINUTES an invoice could be paid. Discussion followed. Mr. Mr. Symmes moved to approve the October 3, 2017, Sulc stated when the project was approved the minutes. Mr. Sulc seconded. Motion passed discussion included the greater benefit the substation unanimously; 3 yes, 0 no. would offer other parcels in the general area. Brief discussion followed. FINANCIALS / INVOICES Ms. Scott joined the meeting. Mr. Collette called for a motion to approve the authorization for MLP to bill for the Flagship Substation expansion. Mr. Sulc made the motion with a maximum of $3,220,112.49. Mr. Symmes asked if entire amount was goes to Flagship, NTK area. Mr. façade and the developer stated they would consider it Winkler stated yes. Mr. Symmes seconded. Motion with no mention of it affecting the purchase price. Mr. passed unanimously; 5 yes, 0 no. Sulc stated this is the first public meeting where the change in the estimate concerning utilities has been Mr. Collette called for a motion to approve discussed. It was the combination of all the items authorization for MLP to bill for the electrical together that causes concern, not the individual infrastructure for NTK. Mr. Sulc made the motion with components and the end of day result is not what the a maximum of $279,000. Mr. McGhee seconded. Commission was presented with back in October Motion passed unanimously; 5 yes, 0 no. 2016. Mr. Sulc stated he has a problem with the communication received from the administration and Mr. Collette briefed Commission Members on staff and does not support what was currently being authorization to bill for the Dollar General Project. Mr. requested in the way of both the $150,000 in utilities Collette stated in the October 2016 meeting of the and the reduction of purchase price. Mr. Symmes ARC the sale of the property for $150,000 was stated if the items being requested would help the discussed along with the changing of the orientation of project move forward it is needed and he would the building resulting in needed modifications to support it. Ms. Scott stated she would not be in electrical lines in the amount of $10,000. Mr. Collette support due to the original agreement being altered stated he did not learn till a week ago that it actually without the Commission’s consent and other projects was going to cost $150,000 for the modification and, in might expect the same. Mr. Sulc stated he would be addition, the members were asked by the City to ok with selling the lot for the agreed upon price of reduce selling price from $150,000 to $80,000 $150,000 and willing to support the Authorization for assisting Dollar General to construct a nicer façade. MLP to bill but would not be ok with lowering the Mr. Collette asked Mr. Pochard what happened purchase price. Brief discussion followed. regarding the increase in the estimate for electrical work. Mr. Pochard stated the orientation discussed at Mr. Sulc made a motion to table the authorization for the October 2016 meeting would require one pole in MLP to bill for Dollar General and Ms. Scott seconded. front of the building be moved due to it being a traffic Motion passed; 4 yes, 1 no. hazard and visual impediment and the cost was estimated at $10,000. In an April 2017 Plat Review American Structurepoint Agreement for CSX meeting the plat did not show the orientation of the Viaduct Phase 1 building and no easement for the powerline was Mr. Spyers briefed Commission on contract with included. Mr. Pochard stated it was at that time he American Structurepoint for Phase 1 design inspection learned the building would be located directly below services for GM viaduct repair and coordination with the power lines which is a violation of safety code CSX for possible mural in the amount of $19,760.00. mandating the power lines be relocated off the property. Mr. Winker stated changing the orientation Mr. Sulc made a motion to approve the contract with of the building changed the scope of the electrical American Structurepoint for design inspection services work which was discussed at the April meeting with for the GM Viaduct and Mr. Symmes seconded. the estimate of $150,000, as he remembers, not Motion passed; 5 yes, 0 no. discussed but provided shortly after. Mr. Winkler stated the Commission had committed to having Dollar General locate there and if power needed to be moved the Commission would be responsible for Resolution ARC05-17 – A Resolution approving the getting it done in order to make the project happen. purchase of ARC owned property by Italpollina Mr. Collette stated the Commission was not informed Mr. Winkler briefed Members on Resolution ARC05- at the time of the change and the Commission is 17; a resolution approving the purchase of ARC supposed to be independent although members are owned property by Italpollina. Mr. Winkler stated a appointed by the Mayor and the City Council. Mr. parcel was created just north of the CSX tract and Collette stated all parties need to learn to work north of Connector way, adjacent to the GM viaduct off together and one of those ways is through Scatterfield Road. A brief discussion followed. Mr. communication which members are not getting Winkler introduced Jim Dittrich, representing currently and something needs to be done. Brief Italpollina. Mr. Winkler briefed Commission Members discussion followed. Mr. Sulc stated in a 2016 on the company’s two expansions, one involving the meeting with the developer the sale of half the purchase of the property being considered today and property for $150,000 was discussed along with a the other involving the triggering of an option. Ms. $10,000 estimate for electrical work. At that time the Bauer stated when Scatterfield LLC, current owner of Mayor requested the developer to consider a different the ground the existing facility sets on, notifies the Page 2 Commission they intend to exercise an option within EPA: GM Properties an agreement with the ARC, they will provide proof of Mr. McKinney explained at Plant 7 soil is still being a lease agreement with Italpollina. Ms. Bauer stated brought up to heat and will continue. the property the Commission is considering currently will be owned by Italpollina. Mr. Winkler stated the Greater Edgewood Plaza Redevelopment current expansion would be for research and Mr. Winkler introduced Mr. Montgomery, KRM development and the expansion associated with the Architecture and Mr. Sheek, GDI Construction. Mr. option would be additional processing and Montgomery and Mr. Sheek presented a conceptual manufacturing. site lay out of the Greater Edgewood Plaza area which maximizes the value of site use creating streetscapes Mr. Sulc made a motion to approve Resolution for offices, retail and grocery. The conceptual also ARC05-17 approving the purchase of ARC owned allowed for the capture of storm water in a less property by Italpollina and Mr. McGhee seconded. desirable area. Motion passes unanimously; 5 yes, 0 no. Mr. Winkler stated the lot sizes are based on Mr. Sulc exited the meeting. information from the Buxton study. A brief discussion followed. Mr. Winkler stated the 4M infrastructure cost Presentation regarding the development of the estimate gives a sense of the need in order to make Tower Apartments the area desirable and ready for development. A brief Mr. Winkler introduced Mr. Taulman and Mr. Dickey discussion followed. from Hageman Group. Mr. Taulman and Mr. Dickey presented a power point highlighting a proposed Mr. de la Bastide, Herald Bulletin, asked Ms. Scott if project to renovate the existing vacant Tower this is what she had been pushing for. Ms. Scott said Apartment building creating 32 units at market rate, yes. She was glad to see the progress and she would including six two bedroom units, and 5 affordable units like to see the efforts combined with Buxton’s studies. honoring a past agreement between current owner A brief discussion followed. . and City. Mr. Taulman stated 1.4M in renovation is anticipated and the ground floor would be converted to Mr. Symmes made a motion to adjourn and Ms. Scott some type of commercial space, possibly retail or seconded. office. Mr. Dickey stated their request included the City waving fees and the use of TIF increment generated from the project through the issuance of a bond. The bond would be self-sustaining in that it would be 100% capture of what the project generates and if the assessed value ever dropped below what is needed to service the bond the City would not be responsible. Mr. Dickey stated they would wait to take bond proceeds at construction completion and the project is not a Hageman project but is a project of Mr. Taulman and Mr. Dickey. Mr. Winkler stated the project would carry itself in that it uses the TIF increment over the life of the project, estimated at 13 years. Mr. Winkler stated the quality of the product they have produced and are proposing, the receipt of funds at the completion of the project and the coverage of overage if assessed value does not cover make the project very attractive. It is an opportunity to provide market rate units, along with 5 affordable units, in a building not currently being used. Mr. DeLaBastide asked when completion is expected. Mr. Taulman stated 6 months from time of construction. Brief discussion followed. UPDATES Page 3