Anderson Redevelopment Commission

MINUTES ANDERSON REDEVELOPMENT COMMISSION March 12, 2019 PUBLIC MEETING APPOINTMENT OF SECRETARY/TREASURER 5:00 PM Mr. Symmes informed members of David Eicks’ ED Conference Room #1 appointment to the Commission and stated a new 120 East 8th Street Secretary/Treasurer would need to be appointed. Anderson, IN 46016 Mr. Sulc made a motion to appoint Ms. Clemons as MEMBERS PRESENT Secretary/Treasurer and Mr. McGhee seconded. Ricard Symmes, President Motion passed unanimously; 5 yes, 0 no. Danny McGhee, Vice President Aspen Clemons, Secretary/Treasurer MINUTES Kevin Sulc Mr. Sulc moved to approve the February 5, 2019 David Eicks minutes as presented. Ms. Clemons seconded. Motion passed unanimously; 5 yes, 0 no. STAFF PRESENT Ann Marie Bauer, ARC Attorney FINANCIALS / INVOICES Greg Winkler, ED Director After review of financials, Mr. McGhee moved to Karen Soetenga, Specialist approve the financials as submitted. Mr. Sulc seconded. Motion passed unanimously; 5 yes, 0 no. OTHERS PRESENT Mayor Thomas J. Broderick, Jr. After review of invoices, Mr. McGhee moved to Chuck Leser, City Engineer approve the invoices as submitted. Mr. Sulc Doug Whitham, City Controller seconded. Motion passed unanimously; 5 yes, 0 no. Tom Pitman, Barnes and Thornburg Councilwoman Crumes BUSINESS Ken DeLaBastide, Herald Bulletin Marc Slayton, ED Staff Resolution ARC02-19 – A Resolution Amending the Anikka King, ED Staff Plan Tim Stires, Municipal Development Mr. Winkler briefed members on Resolution ARC02- Gary McKinney, Environmental Consultant 19, a resolution adding the former Marsh property on Jeff Barranco, ACSC Nichol Avenue to the Plan and allowing for the G Randall Harrison, ACSC/AFT purchase and the future redevelopment of the Chad Pigg, Groundbreaking Development property. Ms. Bauer stated it provides for the Shirley Perry, Hydrotech acquisition of the property. Brief discussion followed. Jeremy Vanerman, Commonwealth Engineers Jack Keesling, Board of Works Mr. Eicks moved to approve Resolution ARC02-19, a Daniel Courtney, FEC Resolution Amending the Plan and Mr. McGhee Michael Collette, Public seconded. Motion passed unanimously; 5 yes, 0 no. Shannon Fuller, Public Lee Hartman, Public Mr. DeLaBastide asked if the resolution only included Julie Hartman, Public the former Marsh property. Mr. Winkler confirmed. Kojak Fuller, Public An executive meeting was held prior to the regular Resolution ARC03-19 – A Resolution to Approve scheduled meeting to discuss strategy with respect to Option to Purchase the purchase or lease of real property. Mr. Winkler briefed members on Resolution ARC03- 19 a resolution allowing the ARC to enter into an ROLL CALL AND DECLARATION OF QUORUM option agreement for the former Nichol Avenue Marsh President Symmes called the public meeting to order property. Mr. Winkler stated the process for adding at 5:00 pm. A quorum was established with five (5) the purchase of the building to the Plan would take at members present. least 30 days and the owner wanted some assurance of the ARC’s interest in inquiring the property. The option amount is $50,000 and will go towards the stated in the past the Commission reserved some purchase price. Ms. Bauer stated it was permissible to money for any needs that might arise within the park enter into an option agreement before adding the and that availability would be gone if the account is project to the plan but not permissible to purchase the retired. Brief discussion followed. Mr. Winkler stated property. Brief discussion followed. staff strongly recommends approval of the request. Mr. Eicks moved to approve Resolution ARC03-19, a Mr. Sulc moved to approve releasing the remaining of Resolution to Approve an Option to Purchase the the CTP funds, $286,237.70, closing out the account former Marsh store on Nichol Avenue. Ms. Clemons and allocating the funds to Flagship Enterprise Center seconded. Motion passed unanimously; 5 yes, 0 no. for upgrades to the Exit 222 Flagship facility. Mr. Eicks seconded. Motion passed unanimously; 5 yes, Mr. DeLaBastide asked how close we are to seeing 0 no. development. Mr. Winkler stated the City is working diligently to attract a grocer, pharmacy and hopefully ACSC Board of Trustees Correspondence hardware and the option to purchase gets us one-step Mr. Barranco was introduced, passed out copies of his closer. Mr. DeLaBastide asked Mayor Broderick if the presentation and stated he would read a letter from City is willing to offer incentives for the development. the Board of Trustees and share data concerning the Mayor Broderick stated it is too early to tell. It impact TIF has on the school system. Mr. Barranco depends on the type of development as to how the apologized that he would need to leave after his City would be involved. presentation because he had a school board meeting following. Mr. Barranco read the letter: MLK Roadwork discussion Mayor Broderick stated he asked to have MLK Pursuant to Indiana Code 36-7-25-7, as the Board of Roadwork placed on the agenda for discussion and Trustees for the Anderson Community School informational purposes with the intent of coming back Corporation, we formally invoke our right to request a with a formalized request in the near future. MLK Tax Increment Financing (TIF) allocation up to the and 73rd are within the TIF district and they serve maximum of 15% of annual tax proceeds. As a public businesses located at Exit 222. The roads have seen school corporation, we play a vital role in the wear and tear with heavy truck traffic and resurfacing economic development of our community. We can is needed, but expensive. Estimate for MLK work assure you that we fit the criteria found in Section 7(c) from I69 to the Fireplace Shoppe is 2.1M and from that our educational programs are of utility and provide there to 25th Street added, 3.8M. Mr. Leser, City a benefit to the community. Additionally, we can Engineer, distributed an overview and reviewed the assure you that we have the best interest of our local proposed resurfacing improvements and costs. residents in mind when we make programmatic and Discussion followed. financial decisions. As Mr. Winkler can attest, one of the biggest economic FEC request for reminder of CTP funds for upgrades drivers of any community is its public schools. ACS to the Flagship Building at Exit 222 has 6,715 enrolled students, employs 700 people, and Mr. Winkler introduced Mr. Courtney, Interim Director has a $67 million dollar annual budget for operations of the Flagship Enterprise Center (FEC). Mr. Winkler and education alone with a combined total budget of stated FEC has made a request for the remainder of $82 million dollars. We are no small player in the CTP funds, approximately $286,000.00. Mr. Anderson’s economy. Unfortunately, in Indiana almost Courtney informed members of a $400,000 project to every legislative body from the Statehouse to City Hall retrofit 10,000 square feet at to relocated LeClanche has policies in place which siphon money from public from the Flagship East building to 2701 Enterprise school budgets. We have a statutory right to request Drive and the stand-alone building Durham TIF money be allocated back to our school district. Engineering formally occupied. The project consists However, what we are really asking this Commission of adding needed parking, revising access to the lab to do is further invest in our community. After all, that space, and upgrading electrical capabilities. Mr. is the entire purpose for creating TIF Districts, to Courtney stated the FEC is requesting use of the revitalize and enhance the community. As ACS goes, $286,000 left in the CTP fund to offset the cost with so does the city of Anderson. If we are to revitalize our the rest paid by FEC’s available cash. Mr. Winkler community, we must do it together, in partnership. We stated the project benefits two companies. Go Electric come to you today asking to be a collaborative partner is growing and needs more space in the P3 building in that revitalization effort. Signed Board of Trustees, and LeClanche’s move will provide the space needed. Anderson Community Schools. Mr. Winkler stated the technology-based companies are companies the City desires to retain and they Mr. Barranco continued: provide good jobs. Brief discussion followed. Mr. Sulc Page 2 Page 3 of the packet is the copy of Indiana Code that We’ve officially requested a TIF allocation from this is applicable to our request. Page 4 is provided by the commission. We provided information about the Madison County Treasurer’s office and includes impact of TIF districts on our local school district in county tax information. The information goes directly order for this Commission to make an informed to the impact TIF Districts have on us, a taxing unit. decision. However, what we have been told privately You will notice in the far right hand column taxes are is that this request is dead on arrival. It has been listed that were incurred in 2017 and paid in 2018. The alluded to us that neither this Commission or this gross paid was 80.9M and that represents the tax pool administration has any intent of allowing any of this for the demographic of ACS. That is not what we get, money to be used as it can be allowed by statute. Let that is what all taxing units share; that is the piece of me be clear on a couple points. This administration the pie. If you look at ACS’s share it’s 29 ½ percent. did not start this policy using TIF districts; it goes back We get 29 1/2 percent of that tax pool, approximately a couple decades. This administration is not the sole 23.8M dollars. There are many other things that go reason public schools face financial difficulties. We into that, circuit breakers etc. that we all are aware of. absolutely know what we are getting hit the hardest That is not necessarily important, what I want to from and it is not locally, it is at the state house and we highlight to you is that second row. The taxes that fully understand that. However, in choosing to further represent TIF Gross, 9.8M dollars in 2017 pay 2018. a policy that affect us at almost 2M a year, each and That is the amount of money that is stripped out of the every year, that affects us greatly. It affects our tax pool for all taxing units. That is 9.8M that our classroom resources; we have to make decisions library, our schools, our townships our city our county based on that and some of those decisions are hard. do not get to touch. They do not receive that money That is going to continue, every single time we lose because it’s pulled out and that is how TIF districts another 2M that we cannot allocate to the classroom, work. Now, that also has a circuit breaker applied to and we have to make decisions based upon that. We it. So once that circuit breaker is applied the TIF net aren’t going to go away on this issue. We have a right amount is 6.4M. That is cash in hand that taxing units to request this money. This commission has a right to cannot receive because it is separated out and this ignore that request, but we are not going to go away commission receives the majority of that money for because quite simply, we can’t afford to. It’s too Economic Development. Again if you apply that 29 ½ important. We owe it to our kids, our staff, and our percent, ACS’ share of the pie, the net amount is 1.9M families. In addition, if we cannot reach some kind of dollars. Last year, we lost 1.9M dollars that we could resolution or collaboration on this we will just take the not allocate to classroom resources. That is the message elsewhere. We will reach out to those impact that TIF districts have on us as a taxing unit. I families. We will reach out to our staff, those 1,000 have applied that same process to all the taxing units employees that are affected directly by this. We will for that same year and the next page is a breakdown reach out to our families. There are about 4,000 of what that dollar amount is on each of the taxing families in our district. I am sure they would like to units. These dollar amounts represent what the taxing know why we cannot provide certain resources in the units are not receiving in their general fund to classroom for their kids. I know as a parent I would appropriate out. The very last page of your packet is ask that question. That is what we will have to do. information provided by the City during their annual Because that is what the environment we live in in financial report which I pulled from the Department of Indiana for school districts. We have to draw a line in Local Finance. They include the accounts and the the sand, and this is us drawing a line in the sand. account names for all the TIF districts. If you noticed, I With that, I will take any questions anyone would like listed the accounts 4400, 4405, 4415 which are the to ask. TIF Reserves for the bond funds. I did not list the dollar amounts because pursuant to our request and Mr. Symmes thanked Mr. Barranco and stated it was a state statute, they cannot be touched. I did however presentation only, and the Commission would provide the dollar amounts listed for disbursement for consider the request and get back with him. each year 2017-2014 for the TIF Levy, Nestle TIF Capital and Nestle Taxable TIF Capital Fund. I SUB-COMMITTEE REPORTS believe those are not bond related so those would be applicable for our request. I also listed in 2017 what Nichol/Raible Redevelopment 15% of that entire dollar amount would be. That is the Mr. Winkler stated the Commission took the first step information. I think officially we have made a request. in acquiring a key property along Nichol Ave. The City I think you as a Commission need some background continues to move forward with the attraction of a information just so you can make an informed grocery provider. Mr. Winkler stated he had been decision. However, there is another thing I would like contacted by two local food and beverage entities to share and then I will conclude. We have met our interested in the Edgewood Plaza area. statutory requirements in asking for this money. Page 3 Downtown Redevelopment balance is 18M+ however, that does not include Mr. Winkler stated Beverly Terrace and Tower commitments that have already been made. Mr. Apartments continue to be in the process of Whitman stated he does not have the exact number. renovation and should be ready for a tour in the next Brief discussion followed. Other commitments month or two. include, but are not limited to, the new Transportation Center, NTK upgrades, Tower Apartment and Beverly Mr. Leser stated the architect is still preparing his Terrace commitments and CSX viaduct. report on 1123 Meridian Street. Mr. Sulc made a motion to adjourn and Mr. McGhee Ms. Clemons asked if the Dickman Park upgrades seconded. There were no objections. Meeting was were part of a redevelopment strategy or a park adjourned at 5:46 pm. strategy. Mr. Eicks stated they were part of park upgrades. Ms. Clemons expressed the importance of continued park upgrades. Mr. Winkler stated the groundbreaking for the new Transit Center would take place tomorrow. I-69/MLK Development Mr. Winkler stated the Bagot property remains under option but there is a legal process in need of being settled before we can move forward. Mr. Winkler stated the City continues negotiations with companies at the Flagship Park looking to expand. Scatterfield West/GM Properties Mr. McKinney stated there is only one zone out of nine remaining at the former Plant 7 site that is above remediation levels. They are hoping to have a confirmation sampling event the end of March to hopefully conclude the remediation process. Following, a monitoring period will commence. Mr. Winkler stated Italpollina informed him they would like to close on the property across the street from their current location the first half of April. Brief discussion followed. MISCELLANEIOUS Ms. Bauer informed members Mr. Land, Lessor of the FARM property at Exit 226, received a request from his bank for a waiver of subordination. Ms. Bauer stated it is not an uncommon practice and is covered by commercial code in every state. The document states ARC’s right to sue Mr. Land for unpaid rent would be subordinate to those who have loaned him money to purchase seed and supplies. Brief discussion followed. Mr. Sulc moved to authorize Mr. Symmes to sign the subordination agreement associated with the lease of the FARM property and Ms. Clemons seconded. Motion passed unanimously; 5 yes, 0 no. Councilwoman Crumes asked how much money the Commission has available to do work that is not already committed. Mr. Whitham stated the overall Page 4