Anderson Redevelopment Commission

MINUTES ANDERSON REDEVELOPMENT COMMISSION January 12, 2024 PUBLIC MEETING Davenport seconded. Motion passed unanimously; 5 3:45 p.m. yes, 0 no. ED Conference Room, Room #105 120 East 8th Street INVOICES Anderson, IN 46016 Commission members reviewed five invoices to be prepaid. MEMBERS PRESENT Richard Symmes, President Mr. Eicks moved to approve the invoices to be prepaid Danny McGhee, Vice President in the amount of $21,858.79, as presented. Mr. Kenneth Davenport, Secretary McGhee seconded. Motion passed unanimously; 5 yes, David Eicks 0 no. Larry Savage BUSINESS JoAnna Collette, Non – voting Member Action on Assignment and Assumption of Project STAFF PRESENT Development Agreement – KennMar Project Greg Winkler, ED Director Mr. Austin reviewed KennMar project consisting of the Karen Soetenga, ED Dept rehabilitation of the former Marsh Store on Nichol Mike Austin, Commission Attorney Avenue. Mr. Austin stated KennMar is a solid group involved in large projects including in the Indianapolis OHTERS PRESENT area. Mr. Austin briefed members on KennMar’s desire Councilor Tiffany Harless to have a separate LLC, Anderson Development LLC, Doug Whitham, City Controller take ownership of the property and do business under Tim Stires, Municipal Development the same name. Mr. Austin stated the Commission is Ken de la Bastide, Herald Bulletin being asked to allow the LLC to take assignment and Rebecca Crumes, Citizen assumption of the Project Development Agreement with Angie Strickler, Citizen KennMar. Mr. Austin stated the Commission would not Amy Gustin-Brunner, Citizen be releasing KennMar; it allows them to work under the OPEN PUBLIC MEETING new LLC under the same project development agreement. ROLL CALL AND DECLARATION OF QUORUM Mr. Symmes, at 3:45 pm., established a quorum with six Mr. McGhee asked if the LLC was to have the same (6) members present. Board Members as KennMar. Mr. Austin stated the LLC would be an affiliated entity with Brent Benge ELECTION OF OFFICES remaining the manager of Anderson Development LLC. Mr. Symmes stated officers will need to be nominated Brief discussion followed. Mr. Winkler stated nothing and approved for 2024. has been paid to KennMar to date. Brief discussion followed. Mr. Winkler stated every draw is approved by Mr. McGhee made a motion to carry forward the officers KRM Montgomery, the Redevelopment Commission, from 2023: Richard Symmes, President, Mr. McGhee, Mayor Thomas J. Broderick, Jr. and the Anderson Vice President and Mr. Davenport Secretary and Mr. Community Development Corporation. Eicks seconded. Motion passed unanimously; 5 yes, 0 no. Mr. McGhee made a motion to accept the Assignment LEGAL COUNSEL and Assumption of the Project Development Agreement Mr. McGhee made a motion to retain Mike Austin as 2024 and Mr. Davenport seconded. Motion passed legal counsel for the Commission and Mr. Eicks seconded. unanimously; 5 yes, 0 no. Motion passed unanimously; 5 yes, 0 no. Action on Collateral Assignment of Project MINUTES Development Agreement – KennMarr Project Mr. Eicks moved to approve the December 5, 2024 and Mr. Austin briefed members on a Collateral Assignment December 20, 2024 minutes as presented. Mr. of KennMarr Project Development Agreement being requested by Anderson Development LLC’s financing bank. The assignment allows the bank protection if the Action on Assumption of Project Agreement - Sirmax LLC does not pay their bills; both parties would still North American, Inc. discharge obligations to the ARC and the City. Mr. Mr. Winkler informed members Sirmax had bought Austin stated the bank asked for this in order to SER. Mr. Winkler stated the assumption of Project complete the needed financing. The collateral is Agreement would allow Sirmax to assume all the terms between Anderson Development LLC and Stockyard of the SER agreement with no changes made. Mr. bank and Trust with the assignment having a consent McGhee asked how that affected employee numbers. form in which the ARC consents to the collateral Mr. Winkler stated the assumption does not change assignment. employee or investment numbers and all safety protections are still in place. Mr. Eicks asked if Mr. Mr. McGhee inquired what would happen if KennMar Austin had approved the document. Mr. Austin does not live up to the 10 year commitment; does the answered, yes, he had. ARC have first rights. Mr. Austin stated, yes, the Commission has the same rights. Mr. Eicks made a motion to accept the Assumption of SER Project Agreement by Sirmax North American, Inc. Mr. Davenport made a motion to accept the Collateral and Mr. Davenport seconded. Motion passed Assignment Agreement and Mr. McGhee seconded. unanimously; 5 yes, 0 no. Mr. de la Bastide asked how close they are on finalizing Action on payment to Corporation for Economic the project. Mr. Austin stated there is a hope to close at Development for expenses related to Project Smooth the end of the following week. Mr. Winkler stated work Sailing and Origin II. has already been completed including a Phase II, Mr. Winkler informed members Madison County asbestos remediation and demolition of interior. Brief Corporation for Economic Development had paid for a discussion followed. series of costs including surveying and environmental costs associated with potential projects, Project Origin Motion passed unanimously; 5 yes, 0 no. and Project Smooth Sailing, in order to move them forward. Both projects will be paying into the TIF district. Action on Second Draw – Needler/Ace Project Brief discussion followed. Mr. Winkler reviewed second draw with Commissioners. Mr. Winkler stated the spreadsheet provided has Mr. Savage made a motion to table the item and Mr. $141,000 in construction costs which actually were Davenport seconded. Motion passed unanimously; 5 approved in the 1st draw and needs removed. The yes, 0 no. second draw includes charges for Construction, Architectural and Engineering Services, Construction MISCELLANEOUS management, Legal, Insurance, CAM Carry, Third Party Reports, Developer Overhead and both Needler and Meeting was adjourned at 4:13 pm. ACE Tenant Improvements totaling $423,540.97. Mr. Winkler stated the $246,960 for Developer Overhead could be paid in it’s entirety now or be delayed. Mr. Austin stated KennMar was asking for the full amount at this time and no payments would be made until the closing. Discussion followed. Mr. McGhee asked Mr. Whitham how he felt about paying the entire Developer Overhead amount. Mr. Whitham stated KennMar has expended the funds already and he saw no issue with paying it in it’s entirety. Mr. McGhee made a motion to approve KennMar second draw in the amount of $423,540.97 and Mr. Davenport seconded. Motion passed unanimously; 5 yes, 0 no. Page 2