Anderson Redevelopment Commission

MINUTES ANDERSON REDEVELOPMENT COMMISSION March 23, 2021 PUBLIC MEETING of 1109 Jackson Street LLC. Mr. Pitman stated Nate 5:00 p.m. Taulman, the existing controller of the LLC has found Via Zoom Conferencing someone willing to take control of the LLC on condition the second mortgage be released. Mr. MEMBERS PRESENT Pitman informed members the complexity of the Richard Symmes, President transaction requires more than a simple release; there Danny McGhee, Vice President will be documents needed including the release of Kenneth Davenport, Secretary mortgage, amendment to the taxpayer agreement and Perry Washington David Eicks removal of the accelerant provision. Mr. Pitman Diane Airhart, nonvoting member informed members the taxpayer agreement would stay in place. Mr. Pitman stated ARC03-21 will authorize STAFF PRESENT the president to execute the release of second Greg Winkler, ED Director mortgage subject to 1109 Jackson Street LLC Karen Soetenga, Specialist reporting back in writing the necessary financing, Mike Austin, Commission Attorney payment of $25,000 and the execution and notarization of documents as necessary and OHTERS PRESENT appropriate to protect City and accommodate LLC. Mayor Thomas J. Broderick Ken DeLabastide, Herald Bulletin Mr. Winkler introduced Mr. Taulman, 1109 Jackson Thomas Pitman, Barnes and Thornburg Street LLC. Mr. Taulman stated he hoped the Nate Taulman, 1109 Jackson Street LLC Arthur Drozd, Potential buyer Commission viewed the renovation of the building as Jennifer Messer, Legal for 1109 Jackson St LLC successful. The project is now fully assessed and Aaron Kuroiwa paying 150% of the needed taxes to fulfill the taxpayer Austin Meeker agreement, resulting in an increase of revenue for the City. Mr. Taulman stated their willingness to provide OPEN PUBLIC MEETING an income incentive of $25,000. Discussion followed. ROLL CALL AND DECLARATION OF QUORUM Mr. Winkler introduced Arthur Drozd, potential new Mr. Symmes, at 5:03 pm., established a quorum with owner of the property. Mr. Drozd gave an overview of five (5) members present. himself and his current projects. Mr. Drozd stated he has purchased dilapidated buildings in both the San Resolution ARC03-21 A resolution concerning the Francisco Bay area and in downtown Las Vegas. Mr. former Tower Apartments Drozd expressed interest in historic buildings and Mr. Winkler briefed members on ARC03-21 a stated he has remodeled half a block at a time. Mr. resolution allowing for the release of a second Drozd informed members of his plans to try to have mortgage for 1109 Jackson Street LLC. the bottom floor of the building occupied in the near future possibly with a gym. Mr. Pitman, Barnes and Thornburg, briefed members on the original project agreement with 1109 Jackson Mr. DeLaBastide asked if Mr. Drozd plans to do other St LLC. One of the requirements of the LLC was to projects in Anderson. Mr. Drozd stated it is too early agree to be responsible for certain low-income to tell, but he will be looking at another project in the requirements tied to the property. Mr. Pitman stated If near future and he likes to stay in an area if proven a TIF revenues had a shortfall 1109 Jackson St. LLC good synergy. was required to make shortfall payments to make the commission whole. The shortfall requirement was Mr. McGhee asked where the release of mortgage converted into a tax lien, memorialized in the taxpayer places the Commission in relationship to TIF funding agreement. The Project Agreement had a provision responsibilities. Mr. Winkler stated the taxpayer that prevented the direct disposition of the property agreement and tax lien stands first in line with other within 5 years but did not prevent a change in control financing. Mr. Pitman informed members the second mortgage was always junior to the primary lender and was never intended to be the primary way to protect the Commission; the taxpayer agreement provided that. Discussion followed. Mr. McGhee made a motion to approve Resolution ARC03-21 subject to the 1109 Jackson Street reporting in writing necessary financing, payment of $25,000 and the execution and notarization of documents necessary and appropriate and Mr. Davenport seconded. Motion passed unanimously; 5 yes, 0 no. Mr. Symmes made note that Ms. Airhart was present. Meeting was adjourned at 5:34pm. Page 2