Anderson Redevelopment Commission

MINUTES ANDERSON REDEVELOPMENT COMMISSION December 20, 2023 PUBLIC MEETING properties for 5.5M creating 218 units or 198 units if 2:00 p.m. fire damaged building cannot be rehabbed. The rehab ED Conference Room, Room #105 of the properties will be at no cost to the City or 120 East 8th Street Commission and will be funded entirely by a private Anderson, IN 46016 company and private lenders. Mr. Austin stated there are delinquent utilities on both complexes equaling a MEMBERS PRESENT little over 1M and the purchase agreement will include Richard Symmes, President payment in full at closing. Mr. Austin continued, Kenneth Davenport, Secretary Woodlake would assume the TIF bonds in the amount Perry Washington of $935,000 plus interest. The bond would be paid off David Eicks when taxes are paid on the increased assessed Joanna Collette, Nonvoting member valuation after properties have been rehabbed. Mr. Danny McGhee, Vice President – by phone Austin informed members of release language included in the purchase agreement stating the City STAFF PRESENT Greg Winkler, ED Director will not sue the current owner and will drop all current Karen Soetenga, ED Dept suits and the owner will not issue any claims against Mike Austin, Commission Attorney the City or Commission. Mr. Austin reminded members if a foreclosure suit remained, the properties OHTERS PRESENT would continue to deteriorate, there would be no Councilor Crumes, City Council payment of bonds or utilities and the Commission Yehoshua Weisburg, Woodlake Co. would face possible demolition costs. Mr. Austin Nathan Mordowitz, Woodlake Co. stated this is what Woodlake does; they rehab Ken de la Bastide, Herald Bulletin distressed properties including two properties in Kim Townsend, Anderson Housing Authority Indianapolis and another in Merrillville. Mr. Austin Jesse Hinton, Citizen stated the Commission is being asked to approve an Donna Hawes, Citizen agreement negotiated between Gary Plichta, Ray Walker, Citizen Kellie Kelley, Citizen Woodlake Company and the Commission. Question Larry Savage, Citizen and answer time followed. Dalton Jennings, Citizen Ms. Kelley asked what accommodations are being OPEN PUBLIC MEETING made for the residents. Mr. Symmes, stated the building should be empty before closing but if not ROLL CALL AND DECLARATION OF QUORUM Woodlake stated they will have apartments available Mr. Symmes, at 2:00 pm established a quorum with while they renovate. five (5) members present. Mr. de la Bastide asked for the plan concerning the BUSINESS building that burned. Mr. Weisburg stated there is a Action on P.R. Bingham ’s sale of Bingham Square good chance it will have to come down but if there is Apartments any chance to rehab, it will be rehabbed. Mr. de la Mr. Austin, Commission Attorney, introduced Mr. Bastide asked what made Woodlake look at the Weisburg and Mr. Mordowitz from Woodlake properties. Mr. Mordowitz stated they talked to Ms. Company. Mr. Austin stated Woodlake has contracted Townsend, Anderson Housing Authority and the City for the purchase of Bingham Square and Madison very much wanted to do it. Mr. Mordowitz indicated Square Apartments. Mr. Austin stated the rehab for both properties will happen at the same time. Commission is being asked, per the P.R. Bingham project agreement, to approve their purchase of Ms. Townsend, Anderson Housing Authority, Bingham Square Apartments. Mr. Austin informed distributed and briefed members on information about members Woodlake anticipates rehabbing both voucher counts in Anderson. Ms. Townsend stated at one time Bingham Square did not have a cap on other properties they owned. Ms. Townsend asked if vouchers and asked members to work cooperatively to anything was going to be done to mitigate problems of provide needed low income housing. current residents of the building before a closing takes place. Mr. Mordowitz stated after closing they would Mr. Savage, citizen, stated he looked at the properties see what crucial issues need to be addressed. and felt 5M is not enough investment and asked if Discussion followed. Mr. Savage asked if it will be a Woodlake would be coming back to the City for more gated community. Mr. Mordowitz, stated that was a funds. Mr. Weisburg stated Woodlake will not be possibility. Discussion followed. coming back to the City for any funds and Woodlake has many backers in the New Jersey area. Discussion Mr. Jennings, citizen, asked why the rent would be so followed. Mr. Savage asked if they were intending to high for an apartment in Anderson. Mr. Mordowitz resell the properties. Mr. Weisburg stated no, they stated rents depend on what is offered in each setting. are not in that business. Brief discussion followed. Discussion followed. Ms. Collette stated from a marketing standpoint it takes time to redevelop an Mr. Walker, citizen, expressed appreciation for area and bring in businesses but things are trending in Woodlake and asked the Commission, in the future, right direction with Needler’s/Ace investment and this for time to investigate opportunities. Mr. Savage asked possible project; just because P.R. Bingham didn’t what the rent will be. Mr. Weisburg stated it will be fair work doesn’t mean another won’t work. Discussion market pricing. followed. Mr. Austin stated he had visited two complexes in Ms. Kelley asked that the Commission not take Indianapolis and found them being rehabbed questions as complaining. Brief discussion followed. successfully and well maintained. Mr. Austin spoke to a tenant that stated Woodlake had been the best Mr. Davenport made a motion to approve the sale of management company they had dealt with. Bingham Square Apartments to Woodlake Company Discussion followed. and Mr. Washington seconded. Roll call vote was taken. Ms. Hinton, citizen, asked how utilities will be paid. Richard Symmes, yes Mr. Austin stated approximately $900,000 will be paid Kenneth Davenport, yes by Woodlake, approximately 300,000 be paid by P.R. Perry Washington, yes Bingham. Ms. Hinton asked how it will affect the David Eicks, yes foreclosure. Mr. Austin stated the agreement will Motion passed unanimously; 4 yes, 0 no. resolve the issues of both lawsuits; utilities will be paid and the bond will be assumed by Woodlake. ADJOURNMENT Discussion followed. Ms. Hinton asked if there is a Meeting was adjourned at 5:46pm. timeline and what happens if not completed. Mr. Symmes stated 24-30 months for both. Mr. Austin stated Woodlake would need to show reason why they should be granted an extension. Discussion followed. Ms. Kelley asked what took so long for the purchase agreement. Mr. Weisburg stated reason involved the owner and negotiations with the owner. Ms. Kelley asked if they had concerns about coming in after a failed deal. Mr. Mordowitz stated Mr. Plichta was not equipped for rehab. Mr. de la Bastide asked if they will change the name. Mr. Mordowitz stated yes, definitely. Ms. Townsend stated past investors have said to look at other projects they have done and the City did. Ms. Townsend stated there are investors that have come in and managed Anderson properties differently than Page 2