Anderson Redevelopment Commission

MINUTES ANDERSON REDEVELOPMENT COMMISSION May 20, 2022 PUBLIC MEETING years ago FEC formed Bankable which has been 4:30 p.m. instrumental in financing small and mid-size ED Conference Room, Room #105 companies having difficulty obtaining loans. Mayor 120 East 8th Street Broderick informed members he and President Pistole Anderson, IN 46016 talked to the FEC Board regarding their desire to continue Bankable while not losing focus on MEMBERS PRESENT incubation and the educational component AU Richard Symmes, President provides through their Masters of Business residential Kenneth Davenport, Secretary program. Mayor Broderick stated AU has been under David Eicks financial strain for a number of years and President Danny McGhee – via phone Pistole came to AU and did a remarkable job of righting the ship and then COVID hit and, not unlike STAFF PRESENT many educational institutions, caused additional Greg Winkler, ED Director financial hardships. Mayor Broderick stated President Mike Austin, Commission Attorney Pistole approached him about selling off assets they didn’t need any more including the 2705 Enterprise OHTERS PRESENT Drive building which they had marketed with no Mayor Thomas J. Broderick, Jr. positive results. Mayor Broderick stated he considered Councilor Culp several things. The building is a gateway to the City as Councilor Crumes well as the Center contributes the educational Tom Pitman, Barnes and Thornburg component needed for the Certified Technology Park President John Pistole, Anderson University Angie Strickler, Citizen designation. In addition there would be an opportunity Kelli Kelley, Citizen to talk about the reorganization of FEC and increased Lyndsey Brown, Citizen ability to give direction on both incubation and Bankable’s mission. Mayor Broderick informed OPEN PUBLIC MEETING members he delved into the proposed documents and found a provision if FEC dissolved for any issue the ROLL CALL AND DECLARATION OF QUORUM assets would go to AU. Mayor Broderick stated he Mr. Symmes, at 4:30 pm., established a quorum with had issue with the City of Anderson being a major three (3) members present. contributor over the years to the building up of the asset so he requested that the language of board BUSINESS seats be changed and if FEC ever dissolves it’s Flagship Business assets, which includes the Purdue Polytechnic facility Mayor Thomas J. Broderick Jr. briefed members on totaling over 30M, would revert to the City of Anderson the Flagship Enterprise Center (FEC) bond process through the ARC. Mayor Broderick stated he then for funds totaling 5.9M. Mayor Broderick stated an learned the federal money given to FEC for Bankable Ordinance amended by the City Council changed the did not allow governmental entities to be in control intent of the five parties involved in the project making therefore his requests were not feasible. It was then it necessary to look for alternative ways to fund the decided there already was another corporate entity project. Mayor Broderick gave a brief history of the that had been created, the Flagship Capital Board formation and work of the FEC stating it was a Inc., which could oversee Bankable instead of FEC. It collaboration between Anderson University (AU) and was agreed Bankable would become its own entity the City of Anderson in an effort to bring back jobs and and lease space from FEC and AU would continue to business opportunities after the downturn of General operate the educational program. Mayor Broderick Motors. Mayor Broderick stated the FEC Board has stated it was his job to protect the assets of the City consisted of seven AU appointments and four City of and insure that Economic Development has a real Anderson appointments. Originally FEC’s primary chance to move forward as it has in the past. All five mission was to incubate small business to the point of parties involved were in agreement concerning the maturity allowing them to break off on their own. A few way forward. Mayor Broderick stated when the City Council made amendments to the Ordinance, which Mr. Pitman stated the shortness of time resulted from has not been received in writing yet which is required the action of the City Council on Thursday night and by law, it was not something that could be forced upon the law requires a 48 hour notice which was complied the five entities involved and put the project at risk. with. Mr. Eicks stated the resolution is before the Mayor Broderick stated under the circumstances Commissioners now and asked if the resolution in everyone decided to look at another alternative which essence duplicates the actions approved by the is before the Commission this evening; a resolution Commission in their May 10th meeting. Mr. McGhee pledging the exact same amount of money and use stated by making changes to what the ARC and City providing financial assistance to FEC to acquire and Council passed already and calling a meeting with no rehab 2705 Enterprise Drive for Economic information he feels he and the public have been Development purposes. FEC would be acquiring it deceived. Mr. McGhee asked President Symmes to through AU adding an additional 1M of their own table the request so that all Commission members funds. Mayor Broderick stated he was asking for the have a chance to review the resolution and give input. Commission’s consideration in passing ARC05-22 Brief discussion followed. Mr. McGhee asked if the including an Economic Development agreement. present resolution allows for the Commission to place anyone on the FEC Board. Mr. Symmes stated no Mr. Austin, Commission attorney, stated Mr. McGhee and neither did the resolution passed on May 10th. Mr. was trying to call in and placed him on speaker phone. McGhee stated he had a problem with giving 5.9M Mr. Austin stated Mr. McGhee could not vote or make without a placement on the Board. Discussion a motion but could listen in to the meeting and make followed. Mr. Symmes stated he did not feel tabling it comments. was a good idea and the issue needed to move forward. Mr. Pitman stated the resolution, while in a ARC 05-22 Resolution of the City of Anderson different format, contains concepts which are the Redevelopment Commission Authorizing The same as the bond documentation. Mr. Pitman read Provision of Financial Assistance to Flagship the resolution aloud. Discussion followed. Mr. Eicks Enterprise Center, Inc. asked Mr. Pitman if, in his professional opinion, the resolution was done properly and was above board. Request for Economic Development Agreement Mr. Pitman stated absolutely. Mr. Pitman briefed members on the statute governing TIF which allows the ARC to grant funds for a project Mr. Eicks made a motion to approved Resolution that includes renovation or repairs stating the project ARC05-22 as presented and Mr. Davenport seconded. being considered tonight does include making some needed improvement to 2705 Enterprise Drive. Ms. Strickler, citizen, asked if the resolution Resolution ARC05-22 authorizes a grant in the circumvents the City Council Resolution. Mr. Symmes amount of 5.9M to FEC subject to finalizing the stated yes. Mr. Eicks stated he didn’t feel it Economic Development agreement. circumvented anything, as no ordinance has been submitted. Councilor Culp stated an emergency Mr. McGhee asked if the ARC is purchasing the meeting was called on something not even seen. Mr. building and Mr. Pitman stated no the ARC would be Eicks stated an emergency meeting was called to providing funds to FEC as a grant and they would be accomplish a task. Brief discussion followed. Mayor taking on a larger project for both the acquisition and Broderick stated what was conveyed by Councilor Bell improvements of 2705 Enterprise Drive. Mr. McGhee as orally amended at the City Council meeting would asked if the grant funds would be paid back. Mr. not be acceptable to all parties involved in the Pitman stated, no it is not required by the statute. Mr. agreement and AU is on a tight timeframe in order to McGhee asked if it would be possible to have an insure financial stability requiring it to be completed by appraisal done as statute states anytime over 5M is May 31st. Councilor Culp asked what the purpose of used for the purchase of a building an appraisal is bringing before the City Council if it could be done required. Mr. Pitman stated that does not apply in this through a grant. Councilor Culp stated she and other case as that is for the purchase of a building which elected members were not aware of the meeting and would not be what is being done; today’s action is the doors were locked leaving an issue with transparency. granting of funds to FEC. Brief discussion followed. Councilor Culp stated she desired to see AU and FEC Mr. McGhee stated he never received the resolution or prosper but noted there is not one woman or African an agenda until the Mayor sent the agenda just prior American on their Board. Discussion followed. Ms. to the meeting and never was informed of a meeting. Kelley, citizen, asked why the Mayor felt it necessary Page 2 to call the meeting. Mayor Broderick stated there was the City Council. Mayor Broderick stated the not a lot of consensus building as President Pistole quickness was due to the May 31st deadline and and he had made an offer the City Council get two Memorial Day holiday. Discussion followed. appointments on the FEC Board representing 18% of the Board and they turned it down choosing instead to Mr. Eicks called for the question. Motion passed vote on an amendment that lacked details and made a unanimously, 3 yes, 0 no. nonprofit entity a political football through derogatory statements which he would not tolerate. Ms. Kelley Mr. Eicks called for adjournment at 5:33 pm. Meeting stated she writes grants and has never heard of a was adjourned. grant given without some required reporting or objectives set out. Mr. Pitman stated there is an Economic Development Agreement that will require the use of money contemplated by the resolution. Ms. Crumes asked President Pistole if he had made a , public statement before a credit agency stating the Mayor had control of the City Council and the ARC and therefore had confidence the funds could be secured. Mr. Pistole stated no, not that he recalls. Discussion followed. Mr. Brown, citizen, asked when the community would get better about transparency and making citizens feel more included. Mr. Austin asked Mr. Pitman in light of the three parts of the motion passed at the City Council was there any way the Bond issuance could have proceeded. Mr. Pitman stated, technically no. It consisted of a practical matter in that there was not a clear meaning to what was added to the ordinance. Bond Ordinances have to have clear language. Mr. Pitman stated the changes were a great concept but didn’t lend itself to clear implementation. Discussion followed. Ms. Strickler asked if taxpayer money would be used to pay back the bonds issued in 2017 to AU. Mr. Pitman stated the funds aren’t being used for that purpose; they are being given to FEC for the purpose of acquisition and improvements; what AU does with the proceeds of the sale are up to them. Discussion followed. Mr. Pitman stated the ability of Redevelopment Commissions to grant money is covered in Indiana Code 36-7-14-12.2-A25. Discussion followed. Mr. Pistole stated he checked the meeting on May 2nd and he did have a call with AU’s bond holder and the discussion was public. Discussion followed. Ms. Kellie asked if this action reverts back to the City getting seven seats on the board and FEC getting four. Mayor Broderick responded yes and it won’t go into effect until January 1, 2023. Discussion followed. Ms. Culp stated what was crazy to her was how quick the meeting was convened, the lack of notice and communication and the City Council was never told it was going in a different direction. Discussion followed. Mayor Broderick stated the meeting was advertised legally as it was posted publically outside the meeting room and on the internet and there is no requirement to notify Page 3