Anderson Redevelopment Commission

MINUTES ANDERSON REDEVELOPMENT COMMISSION March 28, 2023 PUBLIC MEETING Mr. Eicks made a motion to approve the bills totaling 4:30 p.m. $4,368,457.36. Mr. Davenport seconded. ED Conference Room, Room #105 Brief discussion followed. Motion passed 120 East 8th Street unanimously; 5 yes, 0 no. Anderson, IN 46016 BUSINESS EXECUTIVE SESSION Bid Opening for Mowing, Trimming and Vegetation 5:00 p.m. Spraying of ARC owned properties – Request for 5th Floor Conference Room Quote #23.01 120 East 8th Street Mr. Symmes stated the packet reflected a different Anderson, IN 46016 date then the newspaper advertisement for bid opening. The newspaper advertisement stated the bid MEMBERS PRESENT opening would be March 28th and the bid packet itself Richard Symmes, President stated April 11th. Brief discussion followed. Item was Danny McGhee, Vice President tabled until next month. Kenneth Davenport, Secretary David Eicks Bid Opening for Westside Grocery and Mixed-use Perry Washington Retail Development Project STAFF PRESENT Mr. Winkler stated one bid was received for Westside Greg Winkler, ED Director Grocery and Mixed-use Development. Mr. Austin Karen Soetenga, ED Dept opened the bid from KennMar. Six copies, sealed, as Mike Austin, Commission Attorney requested, were received at 11:55am with an electronic copy submitted to Greg Winkler at 11:07am. OHTERS PRESENT Mr. Austin stated the bid consists of the construction Mayor Thomas J. Broderick, Jr. of a Needler’s grocery store at 2810 Nichol Avenue Allie Rosenbarger, KennMar and as a companion, an ACE hardware. Mr. Austin Thomas Pitman, Barnes and Thornburg informed members further review needs to take place Councilor Crumes, City Council to make sure the bid is responsive to the bid request. Doug Whitham, City Controller Mr. Austin stated a representative from KennMar, Ms. Ken de la Bastide, Herald Bulletin Rosenbarger, was present. Mr. Winkler stated Mr. Kellie Kelley, Citizen Angie Strickler, Citizen Montgomery, KRM Architecture, will review the bid to Betsy Pearson, Citizen see if it is responsive and responsible. Brief Lyndsey Brown, Citizen discussion followed. Larry Savage Jr., Citizen Donita Thompson, Citizen Mr. Symmes stated when returning from executive Alice Flowers, Citizen session anyone who wants to speak will be allowed to speak one time with a time limit of two minutes. All OPEN PUBLIC MEETING speakers will be asked to give their full address. ROLL CALL AND DECLARATION OF QUORUM RECESS FOR EXECUTIVE SESSION Mr. Symmes, at 4:35 pm., established a quorum with Executive Session will be held to discuss strategy five (5) members present. for negotiations with commercial prospects pursuant to IC 5-14-1.5-6.1(b)(4). MINUTES Mr. Eicks moved to approve the February 22, 2023 minutes as presented. Mr. Davenport seconded. RECONVENE PUBLIC MEETING 6:12pm Motion passed unanimously; 5 yes, 0 no. Mr. Symmes stated an executive meeting was held to PAYING OF BILLS discuss strategy for negotiations regarding 2810 Commission members reviewed invoices. Nichol Avenue. Mr. Washington briefed audience on Resolution ARC02-23. Mr. Washington stated the resolution Ms. Thompson, citizen, asked how much land does not put funds in the hand of the developer, KennMar is acquiring, what type of businesses are instead it uses the Anderson Community Development they planning on placing there and what plans are Corporation as a pass through. The ARC will maintain there to incorporate the community. Ms. control of the funds until certain line items are Rosenbarger stated KennMar would like to submit completed and only then funds will be dispersed to the additional proposals for future development if invited developer. Mr. Washington stated the ARC will have and does not desire to build something the community a monitoring procedure in place; as they meet goals, doesn’t want. KennMar will be looking for community funds will be distributed. The result will be that the input to help determine how to plan for future City will get two stores: Needler’s Grocery and Ace development. Brief discussion followed. Mayor Hardware. Mr. Washington stated it will serve as seed Broderick stated he has had conversations with stores, the start of future development. Mr. KennMar about a larger plan which needs an anchor. Washington stated the community will have input; the The City is fortunate to have a good developer with ARC will listen. established relationships to look at long term development and cleanup of the immediate area. Mr. Symmes stated he was opening the floor to Mayor Broderick stated the last 5 years the City has questions. been looking to land a credible grocery offering brand name products and fresh meat and produce; Needler’s Ms. Pearson, citizen, asked what the contractual meets that. Discussion followed. Ms. Thompson agreement between Needler’s and KennMar was and stated it was important to involve community in the what is in place so the City does not lose if there is a process. Mayor Broderick stated conversations took split in the relationship. Ms. Rosenbarger informed place with KennMar about the importance of audience the real estate will have two tenants. Under community conversation. Brief discussion followed. the real estate arm KennMar is the developer and asset/property manager. Ms. Rosenberger stated the Mr. Brown, citizen, thanked the Commission for the real estate will be owned, 50/50, by Michael Needler project and asked if KennMar would be going to the and Brent Benge from KennMar. The Needler’s City Council for a tax abatement. Ms. Rosenbarger grocery will be owned by Michael Needler and Ace stated that is not in the plans at this time. Brief Hardware will be owned by Brent Benge. Ms. discussion followed. Mayor Broderick stated a tax Rosenbarger stated there will be a legal contract in abatement was not contemplated in preliminary place that will include a 10 year lease so it doesn’t conversations, the MOU or in the response to the matter if something were to happen with the offering. KennMar understands the City is offering a partnerships. If Mr. Needler breaks the contract he substantial amount and they will be paying significant also is part owner in the real estate and will have to taxes on their investment. Ms. Rosenbarger stated a pay the rest of the lease and suffer other tax abatement has not been included in their repercussions; Ace hardware the same. underwriting. Mr. Savage, citizen, asked why Needler’s needs the Ms. Flowers, citizen, stated Ace hardware in an old City of Anderson’s funds. Ms. Rosenbarger stated name and is shutting down stores so why would they from a real estate prospective, it’s a number issue. revamp here. Mr. Symmes and others stated ACE KennMar took into consideration the rent they can pay hardware is not shutting down stores. Brief discussion and construction costs and those numbers tip the followed. scales whether they can do the deal. This deal isn’t without risk. Needler’s, Ace and KennMar Corporate Councilor Crumes asked what the timeline is on the couldn’t do the deal without the City’s offer because project. Ms. Rosenbarger stated they would like to get the numbers don’t pencil without it. Ms. Rosenbarger the contract done as soon as possible and then would stated their projects, in certain areas, need to get local begin architectural drawings hopefully breaking support. Those projects typically are community ground in June and opening the end of December. redevelopment projects. Ms. Rosenbarger stated the Brief discussion followed. Councilor Crumes asked if funds KennMar is putting into the project are for drainage issues would be resolved as a result of the improvements to the real estate totaling 1.89M. Brief project. Mr. Eicks stated there is an existing drainage discussion followed. system under the 2810 Nichol Avenue parking lot and the problem with drainage resides on the south side of Ms. Girinatis, citizen, stated she lives on the west side Nichol and will be addressed when the City knows and is hopeful that this is the start of additional growth what development will be there. Brief discussion and that there is a longtime commitment benefiting the followed. whole of Anderson. Brief discussion followed. Page 2 Mr. Brown asked if there were going to be upgrades to project. Mr. McGhee stated the Commission hasn’t the electrical infrastructure due to frequent outages. had funds to do a significant project but have done Mr. Eicks stated the reasons for outages are primarily what they could to clear some buildings but now have trees and animals and that area does not have a the resources and feel this is something we need to higher rate of outages as the area surrounding the invest in heavily for the community. Mr. McGhee property is not grassy and would not be subject to stated the Commission will have their eye on the trees or animals. Mr. Eicks state the poles and project and ACDC, KennMar and KRM will be involved transformers are solid. Brief discussion followed. Mr. helping to put together a solid project. Mr. McGhee Washington stated Mr. Montgomery will be helping to stated he hopes the community can entrust the ARC determine infrastructure needs and the Commission with this project that will benefit the whole City and be will be addressing those things. a jumpstart for future development. Councilor Crumes asked who is representing the City. ARC02-23 Resolution Pledging TIF funds to the Mr. Pitman stated the City would be represented by Westside Grocery and Mixed-use Retail the Mayor. Mayor Broderick stated by state statute Development Project the Mayor must approve contracts, deeds and bonds. Mr. McGhee moved to approve Resolution 02-23 a Brief discussion followed. resolution pledging TIF funds to the Westside Grocery and Mixed –use Retail Development Project and Mr. Mr. Savage asked what will be the median average Washington seconded. A roll call vote was taken. income and how many will be employed by the Motion passed unanimously; 5 yes, 0 no. project. Ms. Rosenbarger stated she could get the answer but wouldn’t feel comfortable answering as Action on Bid for Westside Grocery and Mixed-use she is representing the real estate side. Mr. Symmes Retail Development Project stated he hopes they use local people. Mr. Eicks moved to authorize President of the Anderson Redevelopment Commission to negotiate a Ms. Strickler asked if KennMar would be considering project development agreement with KennMar, with issues of diversity within their use of contractors for the advice from counsel, such agreement to be the project and do they consider such within the brought back to the ARC for final approval at a later company. Ms. Rosenbarger, stated real estate date. Discussion followed. Mr. Davenport seconded. companies at large do a horrible job. KennMar has a Motion passed unanimously; 5 yes, 0 no. program called KennMar Cares that addresses needs of the community where KennMar projects are Action on Bid for Mowing, Trimming and Vegetation located. The goal percentage of deals done with minority, veteran, women or disabled owned Spraying of ARC owned Properties businesses for this project has not been defined; goals Tabled until next month. for each market is different. Ms. Rosenbarger stated she sits on the Urban Land Institute that tries to Renewal of Bruce Land Farms, Inc. Contract increase diversity in real estate business and it is a Mr. McGhee moved to approve a renewal with Bruce passion of hers personally. KennMar’s has a goal of Land Farms, Inc. for the farming of ARC owned 2-5% depending on the market and it’s core mission is property and Mr. Washington seconded. Motion Focus on Good focusing on sustainability, obligation passed unanimously; 5 yes, 0 no. to community and governance. ADJOURNMENT Councilor Crumes asked if there have been Meeting was adjourned at 7:07 pm. discussions of putting in the contract the hiring of local individuals. Mr. Winkler stated the concern is noted. Brief discussion followed. Ms. Rosenbarger stated they are incentivized by hiring people that can walk to work; KennMar wants employees from the area and feels it is in everyone’s best interest to hire locally. Discussion followed. Ms. Kellie stated in 2020 Mr. Winker stated 70 grocers were approached and hurdles included Edgewood only bringing in only 6,000 shoppers with most grocers looking for 25,000. Ms. Kellie asked what the eureka moment was to invest 7.5M towards a grocery store and is community development coming alongside the Page 3