Anderson Redevelopment Commission

MINUTES ANDERSON REDEVELOPMENT COMMISSION September 25, 2018 DEVELOPMENT PLAN OR REDEVELOPMENT PUBLIC MEETING PLAN FOR THE CITY ’S EXISTING 4:30pm CONSOLIDATED ANDERSON REDEVELOPMENT ED Conference Room #1 AREA AND 29 th STREET ECONOMIC 120 East 8th Street DEVELOPMENT AREA, RE-DESIGNATING THE Anderson, IN 46016 CONSOLIDATED ANDERSON REDEVELOPMENT AREA, CONSOLIDATING SUCH AREAS AND MEMBERS PRESENT RELATED ALLOCATION AREAS AND THE PLANS Kevin Sulc, President RELATED THERETO, AND RELATED MATTERS Richard Symmes, Vice President Danny McGhee, Treasurer RESOLUTION ARC08-18 – A PRELIMINARY BOND Michael Collette RESOLUTION OF THE CITY OF A NDERSON Aspen Clemons REDEVELOPMENT COMMISSION Mr. Sulc introduced Resolution ARC08-18. Mr. STAFF PRESENT Pitman, Barnes and Thornburg, briefed members on Ann Marie Bauer, Attorney the opportunity to merge four existing TIF districts into Greg Winkler, ED Director one district and at the same time taking advantage of Karen Soetenga, ED Staff a market favorable to refinancing resulting in significant savings. The consolidation would consist OTHERS PRESENT of blending the principal district with the Nestle, Farm Mayor Thomas J. Broderick and Kroger TIF districts to create one allocation area. David Eicks, BOW Chairman The refinancing involves the Sirmx, P3 and 2006 Jack Keesling, BOW Member Nestle tax-exempt bonds as well as the pay down of Doug Whitham, City Controller the Kroger bond. Defeasement for the 2009 Nestle Stuart Hirsch, Herald Bulletin bonds will be accomplished by utilizing a portion of Buzz Krohn, OW Krohn and Assoc. existing cash with the remainder to come from the new Jarrod Hall, OW Krohn and Assoc. money secured through refinancing. The Preliminary Tom Pitman, Barnes and Thornburg Bond Resolution provides for the issuance of bonds, Rebecca Crumes, Anderson City Council repayment of debt and sets a maximum for the Jennifer Culp, Anderson City Council repayment of the bond, interest rate and interest JoAnna Collette, Job Source/Work One return. ROLL CALL AND DECLARATION OF QUORUM Mr. McGee entered the meeting. Mr. Sulc called the public meeting to order at 4:30 pm. A quorum was established with three (3) members Brief discussion followed. present. Mr. Sulc introduced Resolution ARC 07-18. Mr. MINUTES Pitman stated you cannot have a TIF allocation area Mr. Collette moved to approve the September 6, 2018 without an underlying Redevelopment Area or minutes as presented. Ms. Clemons seconded. Economic Development Area. Three of the four TIF Motion passed unanimously; 3 yes, 0 no. districts fall under one redevelopment area and the Kroger TIF district is an economic development area. Mr. Symmes entered the meeting. Mr. Pitman stated to combine the districts the redevelopment area will need to be recast as an BUSINESS economic development area and then the two consolidated economic development allocation areas RESOLUTION ARC07- 18 – RESOLUTION OF THE could be merged. All funds would then be comingled CITY OF ANDERSON REDEVELOPMENT and can be used throughout the area. Brief COMMISSION APPROVING CERTAIN discussion followed. Mr. Collette asked if the AMENDMENTS TO THE RESPECTIVE resolution includes cleaning up the TIF area. Mr. DECLARATORY RESOLUTION AND ECONOMIC Krohn, O.W. Krohn and Associates, stated they looked at the parcels and decided there were not enough matter the number of students. Mr. Pitman stated losing increment to worry about. Discussion followed. while he is sympathetic to the plight of schools, he feels strongly the Commission’s activity is not causing Mr. Sulc called for a motion to approve Resolution 07- the hardship. 18 for the Consolidation of the TIF. Mr. Collette made a motion and Mr. Symmes seconded. Motion passed Mayor Broderick stated two referendums have been unanimously; 5 yes, 0 no. passed with strong support by the community with the bulk designated for capital improvements and a Brief discussion followed. portion for operational expenses. Brief discussion followed. Mr. Sulc called for a motion to approve Resolution 08- 18 for issuance of bonds. Mr. Symmes made a Meeting was adjourned at 5:18pm. motion and Mr. Collette seconded. Motion passed unanimously; 5 yes, 0 no. MISCELLANEOUS Mr. Collette inquired about an update on the letter received from the Anderson School Board regarding questions about the use of TIF funds for educational purposes. Mr. Pitman stated state statute allows for 15% of annual TIF funds to be used for educational purposes. Mr. Pitman informed members, in his experience, the statute has been primarily used for the funding of vocational projects or other identified projects on a one time basis. Mr. Pitman stated he is not aware of the authority to transfer TIF funds to any other taxing unit and there are differing points of view on how TIF districts impact school districts. Mr. Pitman stated it is his opinion, like in the case of the Nestle project, TIF projects would not likely have occurred without TIF as an incentive and it is not accurate to suggest dollars would be available without the existence of TIF to prompt the investment. Mr. Pitman briefed members on his opinion that there is no statistical correlation between TIF and tax cap loses; they do not rise and fall together giving reason to believe they are not causing the other. Discussion followed. Mr. Pitman stated if you are good stewards and are careful to offer TIF only when companies would not come without it; it seems a good tool to use. Mr. Pitman stated he would encourage the Commission to ask for a specific proposal to see if it fits into the mission of the ARC and the furtherance of Economic Development. Brief discussion followed. Councilwoman Crumes inquired where the funds would come from and Mr. Pitman stated the TIF Levy. Mr. Hirsch, Herald Bulletin, inquired whether teacher salaries and operational expenses would be acceptable requests for use of TIF funds. Mr. Pitman stated he has seen it only used for capital projects but can’t say it wouldn’t be. Mr. Pitman reviewed the past and current school financing structure. Discussion followed Mr. Pitman stated if a City’s population is declining and student enrollment is going down, fewer dollars are available. Many costs are fixed costs no Page 2