Anderson Redevelopment Commission

MINUTES ANDERSON REDEVELOPMENT COMMISSION February 22, 2023 EXECUTIVE SESSION Mr. Eicks moved to approve the January 10, 2023 4:00 p.m. minutes as presented. Mr. Davenport seconded. ED Conference Room, Room #105 Motion passed unanimously; 5 yes, 0 no. 120 East 8th Street Anderson, IN 46016 PAYING OF BILLS Commission members reviewed invoices. PUBLIC MEETING 5:30 p.m. Mr. Washington stated the bills from Barnes and ED Conference Room, Room #105 Thornburg related to Flagship Enterprise Center 120 East 8th Street (FEC) should be paid by FEC. Mr. McGhee Anderson, IN 46016 questioned whether two invoices from Barnes and Thornburg had already been paid. Ms. Phillips, MEMBERS PRESENT Controller’s office, stated they have not been paid as Richard Symmes, President the system will not allow for duplication of payment. Danny McGhee, Vice President Mr. Winkler, Director of Economic Development, Kenneth Davenport, Secretary stated he would double check the payments. David Eicks Perry Washington Mr. McGhee made a motion to approve the bills totaling $1,606,188.72 with the exception of Barnes STAFF PRESENT and Thornburg invoices 305429 and 301468 until Greg Winkler, ED Director verified they have not previously been paid. Mr. Karen Soetenga, ED Dept Washington seconded. Motion passed unanimously; Mike Austin, Commission Attorney 5 yes, 0 no. OHTERS PRESENT BUSINESS Mayor Thomas J. Broderick, Jr. Action on Request for Issuance of Public Offering Councilor Crumes, City Council Sheet Adam Steuerwald, Barnes and Thornburg Mr. Winkler stated the City is seeking authorization to April Phillips, City Controller’s Office advertise an offering sheet for the former Marsh Tim Stires, Municipal Development building to be advertised on February 25th and March Gretchen Parker, Economic Development 4th and due March 28th. Ken de la Bastide, Herald Bulletin John Bostic, Citizen Mayor Broderick briefed members on former Marsh Donita Thompson, NAACP building purchased by ARC. Mayor Broderick spoke William Kutschera, Citizen of his desire and ongoing efforts to secure a grocery Kellie Kelley, Citizen store for the property. Mayor Helen Wean, Citizen Broderick stated a Development Corporation, Angie Strickler, Citizen Jeremiah Greer, Lionwolf Enterprises Kennmar, spoke with the City about their interest in Gideon Loebe, Lion Wolf Enterprises 2810 Nichol Avenue for a new grocery store and other Betsy Pearson, Citizen complimentary retail and offered a proposal. Mayor Broderick stated the Memorandum of Understanding OPEN PUBLIC MEETING before the Commission offers intent but is not contractual in nature; there must be an offering sheet ROLL CALL AND DECLARATION OF QUORUM advertised setting the parameters for the project. Mr. Symmes, at 5:30 pm., established a quorum with Parameters in offering sheet include the purchase of five (5) members present. the building for $500,000, for a first rate grocer and secondary store to occupy the building for no less than Mr. Symmes stated an executive meeting was held to 10 years and the provision of at least 15 years of discuss strategy as it relates to real property grocery experience. Mayor Broderick stated if they do transaction regarding 2810 Nichol Avenue. not deliver as contracted the property would revert MINUTES back to the ARC. Mayor Broderick informed members of the 7M net cost to the ARC with an additional 1.5 M to the community as 70% of their product is off brands. from the developer. Mayor Broderick stated the public Mr. Winkler stated Kennmar is the first interest offering may bring other options that could be more bringing a quality grocer. Ms. Kelley asked if two favorable but Kennmar is the most favorable to date. appraisals had been done. Mr. Winkler stated yes, the Mayor Broderick stated the proposal insures fresh average was $258,000. Mayor Broderick stated the produce and name brands with a quality store for the appraisals are required by law and the starting asking community. Kennmar is also interested in distressed price must be for at least the average of two property near the former Marsh as part of their appraisals. Mr. Broderick stated the building has a proposal. Mayor Broderick stated he is asking for higher market value because of what the ARC has put strong consideration as he believes it is an important into it. Ms. Kelley asked if the annual report investment for future growth. requirements of IN Code for ARCs concerning fund balances, expenses and obligations can be viewed by Mr. McGhee asked why in the last paragraph of the the public. Ms. Phillips, Controller’s office, stated the MOU it addresses a “developer”. Mayor Broderick annual report was submitted and anyone can access it stated the proposal is meant to attract a developer as through Indiana Gateway. currently a developer with qualifications is interested. Discussion followed. Mr. Winkler stated the offering Mr. de la Bastide, Herald Bulletin, asked if the work sheet is about getting an operator that has the needed on the building will be paid by the 7M. Mr. expertise and will stay, at minimum, 10 years. Winkler stated it puts the grocer in the building. Ms. Stickler, citizen, asked why there is only an ask of Ms. Pearson asked how deeply investors are vetted 10 years. Mr. Winkler stated this proposal is not before they are considered for a bid. Mr. Winkler typical in many respects; the City is asking them to stated with Kennmar the City has done what they are come into a community not knowing how their able before Kennmar is required to provide financials. establishment will do and maintain it for 10 years. Mr. The City has looked at past projects’ performance and Winkler stated at that point they will be successful or properties they still own and operate. Discussion not. followed. Ms. Pearson, citizen, asked if there would be certain Jerimiah Greer, Lionwolf Enterprises, asked if the 15 compliances put in place insuring the store provide year experience request is as a business entity or fresh produce and meat. Mayor Broderick stated the running a grocery. Mayor Broderick stated the intent language in offering sheet says there will be a phase is 15 years in the grocery business and also applies to in schedule of funds as they progress with a clause the secondary business. Discussion followed. placed in the contract providing a revisionary provision saying if they fail to live up to the contract agreement Mr. McGhee made a motion to approve the issuance the ARC would take back title of the building. of a public offering sheet for 2810 Nichol Avenue and Mr. Eicks seconded. Motion passed unanimously; 5 Councilor Crumes asked if this would be a bond. yes, 0 no. Mayor stated it could be done different ways; through a bond or cash, however, the development would not Action on Requested Approval of Memorandum of receive the funds all at once but as they do what they Understanding say they will do. Councilor Crumes asked if there Mr. Eicks made a motion to approve a Memorandum would be public meetings involved. Mr. Winkler stated of Understanding with Kennmar Development group the ARC will need to do a TIF pledge which would be with the exception of striking out number twelve. Mr. done at a public meeting. Discussion followed. Mayor Steuerwald stated the strike needs to be replaced by Broderick stated the MOU will be signed by Kennmar wording “subject to the execution of a binding PDA”. and the ARC but it is not a contract but rather an Discussion followed. Mr. Davenport seconded the understanding if they are awarded the bid. Discussion motion with the strike and added language. Motion followed. passed unanimously; 5 yes, 0 no. Ms. Kelley, citizen, asked how Kennmar came about. MISCELLANEOUS Mr. Winkler stated the City has talked with all the Mr. Winkler informed members the City will be major grocers in this area with no interest except for advertising Mowing services for ARC owned Save a Lot, which the City felt would not be attractive Page 2 properties in the near future as directed by the ARC last year. Meeting was adjourned at 6:04pm. Page 3