Anderson Redevelopment Commission

MINUTES ANDERSON REDEVELOPMENT COMMISSION August 8, 2023 PUBLIC MEETING ARC06-23 Resolution Pledging Tax Increment 5:00 p.m. Revenues – Project FITT USA Inc. p ED Conference Room, Room #105 Mr. Winkler, Director of Economic Development, 120 East 8th Street reviewed ARC06-23, a resolution pledging tax Anderson, IN 46016 increment revenues for FITT USA, Inc. to locate a rubber hose manufacturing facility on the former MEMBERS PRESENT Guide parking area off Raible Avenue. Richard Symmes, President Danny McGhee, Vice President Mr. McGhee entered the meeting Kenneth Davenport, Secretary David Eicks Mr. Winkler introduced Matt Franklin, Levin Perry Washington Porter Architects, the project engineer for the project. Mr. Franklin presented renderings of the STAFF PRESENT Greg Winkler, ED Director new facility. Mr. Franklin stated the facility will Karen Soetenga, ED Dept have a modern look with glass and metal panels Mike Austin, Commission Attorney with clean sharp lines. There will be nice landscaping along Raible Avenue. Mr. Franklin OHTERS PRESENT stated the facility will serve as the US Councilor Crumes, City Council headquarters for FITT USA, Inc. A question and Doug Whitham, City Controller answering time followed. Matt Franklin, Levin Porter Architects Ken de la Bastide, Herald Bulletin Mr. Winkler briefed members on phase 1 of the Kim Townsend, Anderson Housing Authority project including a 20M investment, 104 employees Angie Strickler, Citizen and 4.4M payroll. Jobs will include 401ks and Kathy Badger, Citizen health insurance. Brief discussion followed. Mr. Kellie Kelley, Citizen Franklin stated the facility will have a self- OPEN PUBLIC MEETING contained water and air system and there will be no discharge. Mr. Symmes asked how many molding ROLL CALL AND DECLARATION OF QUORUM lines there will be. Mr. Franklin stated two Mr. Symmes, at 5:00 pm., established a quorum initially, five all together. Discussion followed. with four (4) members present. Ms. Strickler, citizen, asked if any new water MINUTES infrastructure was needed. Mr. Winkler stated no, Mr. Davenport moved to approve the June 13, 2023 they will just tap into existing source. minutes as presented. Mr. Washington seconded. Motion passed unanimously; 4 yes, 0 no. Mr. McGhee asked when the construction would start. Mr. Winkler stated they would like to break FINANCIALS AND INVOICES ground in September with the building completed Commission members reviewed financials and in June or July of next year. Discussion followed. invoices. Mr. Eicks made a motion to approve the bills Mr. Eicks made a motion to approve Resolution totaling $747,400.50. Mr. Davenport ARC06-23 a Resolution Concerning Pledging Tax seconded. Motion passed unanimously; 4 yes, 0 no. Increment Revenues for FITT USA, Inc., as presented. Mr. Davenport seconded. BUSINESS Mr. de le Bastide, Herald Bulletin, asked how much was being pledged. Mr. Winkler stated a 2M bond Mr. McGhee asked if the Commission has will be provided through TIF. Mr. Winkler stated jurisdiction concerning the utilities since it the project will generate an estimated 4M over 10 provided the bond. Mr. Austin stated it was a years. separate count with the ARC acting on behalf of the City. Mr. Austin stated the Mayor instructed Mr. Motion passed unanimously; 5 yes, 0 no. Podlejski, City Attorney, to file a separate suit against Madison Square Apartments for unpaid SMA Contract for Continued Plant 7 Monitoring utilities. Brief discussion followed. Mr. Winkler stated the contract with Saint John Mittelhauser and Associates consists of the Councilor Crumes informed Commission members a monitoring phase of the cleanup at former Plant 7 few residents remain at Bingham Square and asked for the next year. At that time the monitoring what the ARC could do to help relocate those should be complete but will be up to EPA to individuals. Mr. Eicks stated there is nothing the determine. Brief discussion followed. ARC is able to do as it is not an allowable expenditure for TIF funds but he had asked Kim Mr. Eicks made a motion to approve contract with Townsend, Anderson Housing Authority (AHA), SMA in amount of $56,528.00 for continued how much it would cost to relocate the remaining monitoring at Plant 7 as presented and Mr. residents. Mr. Eicks stated until he knows how Washington seconded. Motion passed unanimously; much is needed, he couldn’t say for sure where the 5 yes, 0 no. funds would come from. Discussion followed. Update on Bingham Square Ms. Townsend said it is hard to say how much it Mr. Austin, Commission attorney gave a limited would cost as there are different costs for single update on Bingham Square because of pending individuals versus families. Ms. Townsend stated litigation and the inability to provide much the AHA’s cost is $2,700 to $3,000 to turn a space information publicly. Mr. Austin stated lawsuits for use, not including security deposits, in Westvale have been filed by the Commission and Anderson Apartments. It is almost $5,000 for a three City Utilities against PR Bingham and Gary Plicta. bedroom house and the private sector is a whole Their attorney has entered an appearance and different cost. Ms. Townsend stated she did not requested an enlargement of time in order to have a budget for people not in the AHA program respond to the suit. Mr. Austin stated the and if the City could provide a not to exceed fund enlargement has been granted until the 28th of she could draw from, it would be helpful. August. The lawsuit seeks repayment of $935,000 in bond proceeds and utilities at Bingham Square Mr. de le Bastide asked if the sale of the property Apartments in the estimated amount of $700,000. must be approved by the ARC. Mr. Symmes said Mr. Austin stated the City has allowed utilities to absolutely. Discussion followed. stay on in order for tenants to not be displaced. The suit requests the mortgage which secures the bond Councilor Crumes asked if the ARC is a lien holder be foreclosed and the court appoint a receiver to could they help with maintenance that is currently provide proper management of the company needed. Mr. Austin informed her the ARC has a pending completion of the lawsuit. Mr. Austin security interest which does not give them stated the suit has increased activity around the ownership or any right to go in and do anything. sale of the building and one interested party has Mr. Austin stated the City’s Municipal made a written offer. Mr. Austin stated the hope of Development department has filed an the Commission is the qualified investor would environmental ordinance violation. Discussion bring the property up to the standards expected, followed. but the Commission will continue to pursue the lawsuit to encourage a resolution. Mr. Austin stated Councilor Crumes asked what is put in place to the ARC will meet soon in executive session to protect the City when a project does not work out. discuss strategy and the possible sale of the Mr. Winkler stated our contract gives us first building. Page 2 standing if there is a bankruptcy. Discussion followed. Kathy Badger, citizen, voiced concern over the conditions the residents are living in and nothing is being done to help them. Mr. Kelley, citizen, asked if the project was to be done June 1, 2021 why did the Commission wait until July of this year to file suit and were there periodic checks done during that time. Mr. Winkler stated there was a force majeure clause (act of God) in the contract that was enacted when COVID hit due to failure in supply chains which affected timing. Mr. Winkler stated first breach of contract would have been when the bond came due, June of 2022 and part of the challenge was if the ARC forced a bankruptcy it would be tied up for some time and would make a sale difficult. The hope had been that there would be a suitor to buy the property and move the process forward. Discussion followed. Mr. McGhee stated the Commission is sympathetic to the plight of residents but unfortunately is unable to use the funds under its control to provide assistance, per state statute. Discussion followed. Mr. Townsend stated the Herald Bulletin published the Housing Authority was working with the City to find ways to help the residents and while the AHA has no vested interest in private pay situations, which is the case of Bingham Square, she was joining in the effort, but felt alone. Ms. Townsend stated she has been attending meetings and advocating but needed the City to work with her to relocate the families by providing the financial resources needed. Mr. Eicks asked if he had not communicated that he needed a dollar amount in order to move forward. Ms. Townsend stated I’ve given you a rough number for 10 units it’s $80,000. Discussion followed. Mr. Washington asked Ms. Townsend to get Mr. Eicks a figure and asked the City to try to work it out. ADJOURNMENT Meeting was adjourned at 5:54pm. Page 3