Anderson Redevelopment Commission

MINUTES ANDERSON REDEVELOPMENT COMMISSION September 6, 2018 BUSINESS PUBLIC MEETING 4:30pm A Discussion Regarding the Consolidation and ED Conference Room #1 Refinancing of certain TIF Bonds 120 East 8th Street Mr. Sulc stated the Finance Subcommittee met and Anderson, IN 46016 asked Mr. Pitman and Mr. Krohn to come and share recommendations. Mr. Krohn, OW Krohn and MEMBERS PRESENT Associates, stated consolidating the P-3-CRED, Kevin Sulc, President Sirmax, Kroger and Nestle 2006 bonds along with Richard Symmes, Vice President paying off the 2009 Nestle Bond and replacing it with Michael Collette new nontaxable money would be a savings and would Aspen Clemons improve ratio coverage. In order to do that, taxpayer agreements in place with Sirmax and Nestle would be STAFF PRESENT eliminated. Mr. Krohn indicated both agreements, Ann Marie Bauer, Attorney which include investment and payroll benchmarks, Greg Winkler, ED Director have been met or exceeded to date, foregoing the Karen Soetenga, ED Staff need for any claw backs. Mr. Krohn recommended taking the Nestle 2009 taxable bond out with cash on OTHERS PRESENT hand in the Nestle TIF and replace it with a new Mayor Thomas J. Broderick nontaxable bond to be used for future projects David Eicks, BOW Chairman including Edgewood Plaza. Discussion followed. Mr. Jack Keesling, BOW Member Whitman stated by using the cash available in Nestle Doug Whitham, City Controller TIF it would significantly lower overall borrowing cost. Ken DeLaBastide, Herald Bulletin Mr. Collette asked if the ability to bond in the future Gary McKinney, Environmental Consultant would be affected. Mr. Krohn stated it would be Kurt Byanski, HydroTech significantly enhanced and more flexible. Brief Buzz Krohn, OW Krohn and Assoc. discussion followed. Jarrod Hall, OW Krohn and Assoc. Tom Pitman, Barnes and Thornburg Mr. Pitman, Barnes and Thornburg, informed members how the Nestle Bond negatively affected ROLL CALL AND DECLARATION OF QUORUM bond calculations. Coverage ratios were higher Mr. Sulc called the public meeting to order at 4:30 pm. because you could not calculate Nestle TIF revenue A quorum was established with three (3) members coming in because you had access to the funds. present. Restructuring will simplify analysis significantly. Discussion followed. Mr. Krohn stated the MINUTES Commission might want to consider removing parcels Mr. Symmes moved to approve the August 7, 2018 that are not producing or losing revenue during the minutes as presented. Mr. Collette seconded. Motion restructuring process. There would be a need to passed unanimously; 3 yes, 0 no. identify specific parcels and see how it affects the general fund. Discussion followed. Ms. Clemons entered the meeting. Mr. Pitman reviewed the timeline for the process of FINANCIALS / INVOICES consolidating and refunding. Brief discussion followed. Mr. Sulc reviewed the financials. Brief discussion Mr. Pitman stated the savings would be approximately followed. 2.5M if refunding takes place. Mr. Whitham stated he recommends moving forward due to flexibility and After review of invoices, Mr. Symmes moved to significant savings in borrowing cost. Mr. Winkler approve the financials and invoices as submitted. Ms. stated he absolutely recommends moving forward. Clemons seconded. Motion passed unanimously; 4 Discussion followed. yes, 0 no. Mr. Collette moved to proceed with the consolidation Mr. Collette moved to authorize Mr. Sulc, another and refinancing of P3- CRED, Sirmax, Kroger and Commission Member, Mr. Winkler and Ms. Bauer to Nestle 2006 and 2009 bonds. Mr. Symmes seconded. negotiate for the purchase of the property. Motion passed unanimously; 4 yes, 0 no. Ms. Clemons seconded. Motion passed; 3 yes, 1 no. Consensus was reached to have a special meeting on Brief discussion followed. September 25th. Brief discussion followed. Scatterfield West/GM Properties Mr. Collette stated an additional staff member might Mr. McKinney, Environmental Specialist, stated the be needed to manage projects as it relates to onsite contractor for the former GM Plant 7 property is available cash and need. Brief discussion followed. still on schedule and the site should be closed by Thanksgiving. Brief discussion followed. SUB-COMMITTEE REPORTS Mr. Winkler stated Italpollina is waiting on a comfort Nichol/Raible Redevelopment letter from IDEM before moving forward with the Mr. Winkler stated the cleanup at the former option of acquiring the property to the north of their Edgewood Plaza site is finished and they are setting current facility. The property will be the home of a up the monitoring process. research and development facility. Mr. Winkler stated he received a call from Speedway MISCELLANEOUS and they stated they want to move towards closing the Mr. Collette asked to have a Strategic Planning site and want to talk about how that will happen. Brief Subcommittee meeting set. Brief discussion followed. discussion followed. Meeting was adjourned at 5:41pm. Downtown Redevelopment Mr. Winkler stated the former Tower Apartments is finishing demolition and moving forward. Ms. Bauer informed members of her attempt to reach Ms. Harris’ attorney to get feedback on the draft donation agreement for 1123 Meridian Street. If a donation agreement is not agreed upon, the Commission has the option to file for a tax deed but time is running out to acquire a tax deed. Discussion followed. Mr. Symmes asked if liens are removed as well as overdue taxes. Ms. Bauer stated two title companies have indicated the only lien on the property is a City lien which would have to be handled internally. Brief discussion followed. Ms. Bauer informed members if a tax deed is pursued title insurance would not be issued for a year. Ms. Bauer stated each option has potential issues but the donation agreement is a shorter process. I-69/MLK Development Mr. Sulc stated two appraisals have been received for the Bagot property. Consensus has not been reached concerning a resolution to Mr. Bagot’s concern of Nestle parking cars on a portion of the ARC owned rail spur. Mr. Sulc stated the options are either to proceed with the acquisition of the Bagot property or continue conversation with Mr. Bagot and his attorney. Mr. Winkler stated it was not feasible that Nestle will change their practices and the issue will need to be dealt with eventually as new projects are considered. Brief discussion followed. Page 2