Anderson Redevelopment Commission

MINUTES ANDERSON REDEVELOPMENT COMMISSION March 12, 2024 PUBLIC MEETING construction project consisting of a 60,000 square foot 5:00 p.m. building on the former GM Plant 10 site involving an ED Conference Room, Room #105 investment of 10.5M. Mr. Winkler stated the site sits 120 East 8th Street next to AMACOR and is located in the south west Anderson, IN 46016 corner of several former GM properties and will allow for future expansion. Mr. Winkler briefed members on an MEMBERS PRESENT Economic Development Agreement providing a 1.6M Richard Symmes, President tax increment financing bond, not to exceed 1.7 with Danny McGhee, Vice President bond issuance cost. Perfecto will not receive proceeds Kenneth Davenport, Secretary until substantial completion of the building. Mr. Winkler Larry Savage stated the agreement also authorizes up to $500,000 of JoAnna Collette, Non-voting Member General Motors Funds to build a retention-detention site for Perfecto and future development. Brief discussion STAFF PRESENT followed. Greg Winkler, ED Director Karen Soetenga, ED Dept Mike Austin, Commission Attorney Mr. McGhee entered the meeting. OHTERS PRESENT Mr. Skaggs gave a presentation on Perfecto Tool and Andy Skaggs, Perfecto Tool and Engineering Engineering and the proposed project. Mr. Skaggs Tiffany Harless, Anderson City Council stated they are a full service machine shop providing Doug Whitham, City Controller design and build, automated assembly and test Ken de la Bastide, Herald Bulletin equipment capabilities. Mr. Skaggs reported in 2015 Thomas Morgan, Brown Eyed Girls, LLC the company embarked on a ten year plan to become a Rebecca Crumes, Citizen manufacturing enterprise consisting of five business units: special machine building, detailed manufacturing, OPEN PUBLIC MEETING engineering services, jet shop and inventory details. All five units were important for growth and would ROLL CALL AND DECLARATION OF QUORUM require additional space. Mr. Skaggs stated options Mr. Symmes, at 5:03 pm., established a quorum with were being explored in 2023 for expansion at the four (4) members present. current site, 1124 W. 53rd Street, when it was suggested MINUTES by Greg Winkler that Perfecto think about a new facility Mr. Davenport moved to approve the February 6, 2024 on the 11 acre former GM Plant 10 site. Mr. Skaggs minutes as presented. Mr. Savage seconded. Motion stated the new 60,000 square foot facility will double passed unanimously; 3 yes, 0 no. their current capacity and the site will allow for an additional 60,000 in the future. The new facility will FINANCIALS / INVOICES consist of two build bays, CNC bay, fabrication and Commission members reviewed financials and invoices boring mill areas and a dock, which they currently do to be paid. not have. Mr. Skaggs stated they will need a team of 65 for the anticipated growth. Mr. Skaggs stated Perfecto Mr. Davenport moved to approve the invoices has implemented their own programs for employee presented in the amount of $6,131,662.30. Mr. Savage development including the Alexandria School Pathway seconded. Motion passed unanimously; 3 yes, 0 no. Program, summer internships, a COOP program and an BUSINESS active utility program allowing employees to move into Resolution ARC03-24 – Resolution Approving an any area within Perfecto. Mr. Skaggs provided Economic Development Agreement – Perfecto Tool renderings of the new facility. Discussion followed. and Engineering Mr. Winkler, Economic Director for the City of Anderson, Mr. Symmes stated he liked the apprenticeship program introduced Andy Skaggs from Perfecto Tool and but would like to see Anderson Community Schools and Engineering. Mr. Winkler briefed members on a new D26 involved. Mr. Skaggs stated the programs are scalable to other schools or other companies and he would love to work with ACSC. Mr. Davenport made a motion to approve the Taxpayer Agreement with Perfecto Tool and Engineering and Mr. Mr. McGhee asked what five business units are up and Savage seconded. Motion passed unanimously; 4 yes, running. Mr. Skaggs said all are active but not at the 0 no. size that Perfecto would like to achieve. Discussion followed. Mr. McGhee asked how the ISO Certificate Action on Claw Back Agreement – Perfecto Tool and has affected business. Mr. Skaggs stated it allows Engineering Perfecto to bypass a great deal of paperwork making it Mr. Austin stated if employment goals are not met there much easier to get work. Brief discussion followed. is a means to claw back or recover funds that have been expended based on a ratio; dollars spent to Mr. Savage informed members the company was very employees hired. good to his step father as an employee and he would like to see the Commission assist Perfecto. Mr. Davenport made a motion to approve the Claw Back Agreement with Perfecto Tool and Engineering Ms. Collette stated she has worked with Perfecto and and Mr. Savage seconded. Motion passed has found them to be a great partner in the community unanimously; 4 yes, 0 no. and expressed thankfulness for their desire to expand in Anderson. Discussion followed. Action on Purchase Agreement for former Plant 10 site – Perfecto Tool and Engineering Mr. McGhee asked about current employment and how Mr. Winkler stated the Commission is being asked to many were from the Anderson area. Mr. Skaggs stated allow Mr. Austin to negotiate a final purchase of the 40 current employees he would estimate 30 live agreement with Perfecto for the former Plant 10 site. in Madison County. Mr. Winkler stated one of the reasons Perfecto is building on the site is at the City’s suggestion which will Mr. Davenport made a motion to approve Resolution place the property back on the tax roll. Mr. Austin ARC03-24 a Resolution Approving an Economic stated he did not anticipate a purchase price as it is part Development Agreement with Perfecto Tool and of what is being provided. Mr. Austin informed members Engineering and Mr. Savage seconded. Motion passed the site has challenges including geography, drainage unanimously; 4 yes, 0 no. and past contamination making the project an ideal use for the property. Mr. Austin stated a written agreement Resolution ARC04-24 – Resolution Pledging Certain will be formed and brought back before the commission Tax Increment Revenues to the Payment of Bonds – for final approval. Discussion followed. Perfecto Tool and Engineering Mr. Winkler stated Resolution ARC04-24 pledges tax Mr. Davenport made a motion to authorize Commission increment revenue to the repayment of a bond not to Attorney Mike Austin to negotiate a purchase exceed 1.7 for Perfecto Tool and Engineering. agreement with Perfecto Tool and Engineering for the former Plant 10 site and Mr. Savage seconded. Brief Mr. Davenport made a motion to approve Resolution discussion followed. Mr. Winkler stated Mr. House, City ARC04-24 a Resolution Pledging Certain TIF Revenue Engineer, recommended a new retention facility along to the Payment of Bonds – Perfecto Tool and Pittsford Ditch to capture any runoff from Perfecto as Engineering and Mr. Savage seconded. Motion passed well as any future development. Brief discussion unanimously; 4 yes, 0 no. followed. Action on Taxpayer Agreement – Perfecto Tool and Motion passed unanimously; 4 yes, 0 no. Engineering Mr. Austin, Commission Attorney, stated the taxpayer Action on Purchase Agreement f or former Delco Agreement is a typical document in the bonding process Remy Parking Lot – 2948 S. Scatterfield Road and it allows for the recovering of funds if a problem Mr. Winkler introduced Mr. Morgan from Brown Eyed arises. There will be a lien on the real estate and the Girls, LLC, current owner of 2948 S. Scatterrfield Road; ARC will hold super priority on the bond being paid off. formerly parking for the former GM Plant 18. Mr. Winkler stated the current offer is $275,000. Mr. Mr. de la Bastide asked if the bond was being paid off Winkler informed members of two appraisals completed with property taxes and Mr. Symmes stated yes. on the almost 10 acre site which came in at $250,000 Page 2 and $287,000 making the average $268,500. Mr. Austin Whitham, City Controller, stated the correction will also stated the asking price is just over the average of the be approved by ACDC, Mike Montgomery and the appraisals and within acceptable range allowing the Mayor. Brief discussion followed. Mr. McGhee stated Commission to proceed. Mr. Austin stated it is a key ACDC should be reporting on what is happening with parcel for future development and is near anticipated the Pay Draws including any corrections. Brief investment including a new WAWA planned at the discussion followed. corner of Mounds Road and Scatterrfield Road. Mr. Winkler stated the ARC already owns the 20 acres Mr. McGhee made a motion to approve the KennMar located behind the parcel allowing the Commission to payment correction of $110,273.67 and Mr. Davenport own frontage along Scatterfield. The desire is to gain seconded. Motion passed; 3 yes, 1 no. control of parcels to the south and to complete demolition and have a 40 acre site with significant Action on renewal Agreement to Farm Unimproved power already in place making it attractive to non- Land – Bruce Land Farms, Inc. logistic, power heavy companies. Discussion followed. Mr. Winkler briefed members on acreage south of I69 and east of Scatterfield Road currently being farmed by Mr. McGhee asked who will be responsible for any Bruce Land Farms, Inc. Mr. Winkler stated the lease to contamination on site. Mr. Winker stated the City farm was bid last year and Mr. Land came in above the believes there is no contamination as multiple Phase 2 average appraised lease price. Mr. McGhee stated Mr. reports have been completed; GM funds can be used if Land has farmed the parcels for some time and has any issues are found. always paid as agreed. Mr. Austin stated the ARC is being asked to extend the contract for one more year, Mr. Davenport made a motion to approve the Purchase per the contract; new bids will be sought for the 2025 Agreement for former Delco Remy Parking Lot, 2948 S. season. Scatterfield Road, in the amount of $275,000 and Mr. McGhee seconded. Motion passed unanimously; 4 yes, Mr. McGhee made a motion to approve a renewal 0 no. agreement to Farm Unimproved Land for Bruce Land Farms, Inc. and Mr. Davenport seconded. Motion Resolution ARC05-24 – Approving the Use of TIF passed unanimously; 4 yes, 0 no. Funds for Gravity Sewer – Mounds Road Mr. Winkler briefed members on request for a gravity MISCELLANEOUS sewer in the amount of $140,000 for a proposed WAWA Mr. Winkler briefed members on 2023 bid process for at the southeast corner of Mounds road and Scatterfield the mowing of ARC owned properties and the contract Road. Mr. Winkler stated WAWAs are more than with Select Lawn Services allowing for a one year convenient stores providing a variety of food. Mr. extension per a written request. Austin stated this is the only incentive proposed for this project and WAWA is contributing $75,000 towards the Mr. McGhee asked how much we paid in total last year. total cost of $215,000. Brief discussion followed. Mr. Ms. Soetenga, Economic Development Department, Winkler stated Mr. House, City Engineer, desires a stated the Commission paid approximately $9,000 over gravity sewer which will aid future development to the the contract due to three parcels being added after the east. Brief discussion followed. bid process and additional requested mowing. Brief discussion followed. Mr. Davenport made a motion to approve Resolution ARC05-24 approving the use of TIF funds for a gravity Mr. McGhee made a motion to approve the written sewer in the amount of $140,000 and Mr. McGhee request for 2024 contract extension for Select Lawn at seconded. Motion passed unanimously; 4 yes, 0 no. 2023 pricing and Mr. Davenport seconded. Motion passed unanimously: 4 yes, 0 no. Action on KennMar Payment Correction Mr. Winkler informed members of a payment correction Mr. McGhee stated he would like to see the former K- needed for the first two KennMar project Draws. Mr. Mart site on Nichol Avenue be given the same Winkler stated $141,707.53 was pulled off of Draw #2 consideration for retention options as the Perfecto because it was mistakenly thought it was paid on Draw project has received. Brief discussion followed. #1. On Draw #1 the Commission overpaid by $31,433.86 by mistakenly paying the developer’s Meeting was adjourned at 6:04 pm. portion leaving $110,273.67 owed to KennMar. Mr. Page 3 Page 4