Anderson Redevelopment Commission

MINUTES ANDERSON REDEVELOPMENT COMMISSION May 10, 2022 PUBLIC MEETING FINANCIALS / INVOICES 5:00 p.m. Commission members reviewed financials and ED Conference Room, Room #105 invoices. 120 East 8th Street Anderson, IN 46016 Mr. Washington asked when it was decided to use Barnes and Thornburg for services related to Flagship MEMBERS PRESENT Enterprise Center (FEC). Mr. Winkler stated the Richard Symmes, President Commission has used Barnes and Thornburg for the Danny McGhee, Vice President, by phone last 10 years for all TIF related issues; Tom Pitman conferencing knows the Commission and its projects. Mr. Kenneth Davenport, Secretary Washington stated he was not part of the decision to David Eicks use their services and discussion began with Mr. Perry Washington Pitman on March 13th and he was not aware of the project until well into April. STAFF PRESENT Greg Winkler, ED Director Mr. Eicks moved to approve the invoices in the Karen Soetenga, ED Dept amount of $217,100.96. Mr. Washington seconded. Mike Austin, Commission Attorney Motion passed unanimously; 4 yes, 0 no. OHTERS PRESENT BUSINESS Councilor Crumes Resolution ARC03-22 A Resolution Approving an Dan Courtney, Anderson University Economic Development Agreement and Related President Pistole, Anderson University Matters Terry Truit, Flagship Enterprise Center Mr. Winkler briefed members on Resolution ARC03- Doug Eckerty, WorkOne 22 concerning the funding of a Flagship Enterprise Kim Townsend, AHA Center project. Mr. Winkler stated Anderson Ken de la Bastide, Herald Bulletin University (AU) owns 2705 Enterprise Drive which is adjacent to 2701 Enterprise Drive, owned by the ARC OPEN PUBLIC MEETING and operated by the FEC. AU is not able to use it to its full capacity at this point and would like to sell. Mr. ROLL CALL AND DECLARATION OF QUORUM Mr. Symmes, at 5:00 pm., established a quorum with Winkler stated the building has been a significant and four (4) members present. valuable part of economic development efforts in the past and should be in the future. It has provided for MINUTES the incubation of businesses as well as a building Mr. Eicks moved to approve the April 18, 2022 used to start conversations with companies looking to minutes as presented. Mr. Davenport seconded. locate here. Mr. Winkler stated the building has Motion passed unanimously; 4 yes, 0 no. contributed to the success of landing companies such as Nestle, GTI, NTN and Interstate Warehousing and Mr. Austin, Board Attorney, stated Mr. McGhee is able the City desires continued access to the building. Mr. to participate the meeting via phone conferencing but Winkler stated the agreement being considered asks is unable to vote. Statute allows Commissions to the Commission to commit to FEC not more than 6M adopt rules for electronic participation but the in the form of a TIF bond to be used for the purchase Anderson Redevelopment Commission (ARC) has not of 2705 Enterprise Drive from AU. FEC will add an chosen to do so. Discussion followed. Mr. Eicks stated the Commission would have to first decide if additional 1M. Mr. Winkler stated the agreement they want to set rules for any type of electronic changes the FEC Board make up flipping the current participation to be allowed. Brief discussion followed. configuration of 7 AU appointments and 4 Mayoral President Symmes stated for today’s meeting Mr. appointments to 7 Mayoral and 4 AU, effectively giving McGhee would be allowed to participate but not vote the City control of Flagship Center Inc securing the and an executive meeting would be held to discuss asset if there was an issue in the future. Discussion the desire to create rules moving forward. followed. Mr. McGhee asked if an appraisal had been completed. Mr. Winkler stated his understanding of Mr. Eicks stated he sees the purchase of this building the law is none is necessary as the ARC is not as a valuable tool in the Economic Development acquiring the asset, FEC is. Mr. McGhee asked if a toolbox. 2705 Enterprise Drive and AU have helped to member of the ARC could sit on the FEC Board. secure jobs and investment in the community. President Symmes stated no, placement is at the discretion of the Mayor. Discussion followed. Mr. Councilor Crumes asked whether a land use plan was Winkler stated when the building was built in 2007 it being considered. Councilor Crumes stated the cost 8.9M and though the building may not appraise building is beautiful but FEC is a nonprofit and no for that amount today, if the building was occupied it taxes have been generated with the City providing the almost certainly would appraise for the 6.9 FEC will be 6M while our local community school had to give out paying for the building. Mr. Winkler stated the real 15,000 Fs this past year. Ms. Crumes stated the ARC value is in the collaboration with AU through FEC to has ability to give 15% of TIF revenue to the schools create business opportunities throughout the to help. Ms. Crumes briefed members on need for community. investment in schools, streets and organizations such as the Impact Center that will be adversely effected by Mr. Washington asked if AU had a bond coming due in the move of the Excel Center to the Flagship building. June and if the proceeds of this bond will be used to Discussion followed. Councilor Crumes asked what defease the one coming due. Mr. Courtney, Anderson individuals Mr. Winkler was working with on this University, informed members yes, their 2017 bond, project. Mr. Winkler stated until he has a project to originally for 39M, had three tranches the last tranch present it’s not usually shared with many because of consisting of 6.9M which was required to be paid off if confidentiality. Discussion followed. the building was ever sold. Mr. Courtney stated AU’s fiscal year ends May 31st and having the transaction Mr. Davenport made a motion to approve Resolution happen before then is helpful to AU to meet all debt ARC03-22 Approving an Economic Development covenants. Mr. Washington stated he want to see AU Agreement and related matters and Mr. Eicks flourish but they must be transparent about the use of seconded. Motion passed; 3 yes, 1 abstention. the funds. Mr. Winkler stated if AU was just asking for 5.9M to defease the 2017 bond it would be a different Councilor Crumes stated there was no diversity on the conversation but there is an asset involved that comes FEC board and representation is important. under the City’s control due to the agreement being considered today. Mr. Washington expressed concern Resolution ARC04-22 A Resolution Pledging over FEC’s financial sustainability. Mr. Truit, FEC Certain Tax Increment Revenues to the Payment of Director, stated while the bottom line may not be Economic Development Revenue Bonds positive it is calculated after amortization and Mr. Winkler informed members of Resolution ARC04- depreciation, non cash expenses, are added and if 22 consisting of a TIF pledge of 6M, 5.9 net proceeds, they were removed, FEC would actually be liquid; to go to FEC to purchase 2705 Enterprise Drive. Mr. cash inflow would be larger than cash outflow. Austin stated the resolution was prepared by Tom Discussion followed. Mr. Davenport stated he had Pitman and was of standard format. toured the facility and spoke with Mr. Truit and was impressed with the potential of the site. Mr. Winkler Mr. Eicks made a motion to approve Resolution stated that Mayor Broderick specifically asked the ARC04-22 pledging TIF revenue to the payment of FEC and AU how they can engage more with the Economic Development Bonds and Mr. Davenport Anderson community. President Pistole briefed seconded. Motion passed; 3 yes, 1 abstention. members on efforts to keep local talent local including $100,000 of scholarships made available for Anderson Mr. McGhee congratulated the parties for the passage and Madison County students. Discussion followed. of the resolutions and stated he felt a precedent had Mr Eckerty shared information concerning the Family been set on use of TIF dollars and the Commission Scholars House program which supplies housing and needed to reflect on what has been done in the past wrap around services for single mothers in and what it wants to do moving forward. generational poverty who want to go to college. Mr. Eckerty stated they are partnering with AU in the MISCELLANEOUS purchase of 12units to be used for housing and for educational opportunities. Page 2 Attorney Austin update and request for authorization Meeting was adjourned at 6:20pm. for President to execute contingent consent for Property Resources, LLC sale on behalf of ARC. Mr. Austin stated at the April meeting of the ARC it was decided to allow Property Resources LLC to sell the Bingham Square Apartments on West 16th Street if , the bond and utilities were fully paid. Mr. Austin stated it was suggested by Mayor Broderick and Bingham’s counsel there be a written agreement stating the ARC would not oppose the sale provided the bonds were paid and utilities are up to date. Mr. Austin stated the Consent to Sell Agreement the Commission is being asked to approve also contains a mutual release. Mr. Washington stated the ARC doesn’t know anything about the buyer, MAS Capital and it could be a Ponzi scheme and until that is proven it shouldn’t be signed. Mr. Austin stated the problem is they cannot sell without ARC’s consent and the agreement allows for the ARC to walk away whole with bond and utilities being paid in full. Discussion followed. Mr. Eicks made a motion to approve the Consent to Sell Agreement. Mr. Eicks asked if there was an expiration date. Mr. Austin stated no. Mr. Eicks stated he wanted an expiration date, tied to the purchase agreement, added to the Consent to Sell. Mr. Davenport seconded. Ms. Townsend, Anderson Housing Authority, stated she has a lien against the property. Discussion followed. Mr. De le Bastide asked if the agreement included payment of back taxes owed on the Madison Square Apartments Property Resource LLC owns. Mr. Austin stated, no, the ARC has no ties to the Madison Square property. Councilor Crumes stated there are 400 people waiting for housing in the City of Anderson and asked if the ARC is looking into things they can do. Discussion followed. Motion passed unanimously; 4 yes. Councilor Crumes asked if there was a plan to update the land use plan. President Symmes stated he would look into it. Page 3