Economic Development Commission

MINUTES ECONOMIC DEVELOPMENT COMMISSION May 14, 2013 approved, it was a standard bond resolution. PUBLIC MEETING Normally, after the sale of the bonds, the bond 5:00 p.m. proceeds are loaned to the project. With GTI, Conference Room #1 an escrow account was created. This was put in 120 East 8th Street place because they would be accessing the Anderson, IN 46016 monies before the bond process was completed. This project will be the same sequence of MEMBERS PRESENT transactions. Hy-Pro potentially may ask to Bill Nagengast, President access the money prior to the sale of the bonds. Pam Jones, Vice President The standard bond sale did not happen for GTI. Gracie Suko, Secretary / Treasurer This is the same process as before which would Robin Wagner, Member allow the creation of the escrow account. This is going through this Commission because there is a single bond to cover both projects. Tonight MEMBERS ABSENT the Commission is only authorizing the approval Dr. David Markle, Member of the evaluative report. This Commission will not see documents for approval of the bond until STAFF PRESENT another meeting. Ashley Hopper, City Attorney Greg Winkler, Director A minor discussion was held regarding the Michael Frischkorn, Deputy Director conversation at the last meeting. April Phillips Karen Pettigrew Mrs. Bauer stated the bond documents always state “approval of financing.” OTHERS PRESENT Ann Marie Bauer, Anderson Redevelopment Mr. Nagengast explained that Hy-Pro has agreed Commission Attorney to pay $202,000 in property taxes per year for David Umpleby, Krieg DeVault 12-years. If the assessed valuation drops and Buzz Krohn, O.W. Krohn & Associates the property taxes paid are less than $202,000, Sam Pellegrino, City Controller Hy-Pro will pay the difference. Joe Royer, President, Anderson Redevelopment Commission Mr. Winkler stated the difference will be paid to Kevin Sulc, Member, Anderson Redevelopment a City short fall account. Commission Mrs. Bauer mentioned that this is similar to the ROLL CALL AND DECLARATION OF Nestle personal bond with payments beginning QUORUM in 2014. Mr. Nagengast called the meeting to order at 5:00 p.m. and declared a quorum present with Mr. Winkler stated the Hy-Pro incentive is four members in attendance. $1.645 million. BUSINESS Mr. Nagengast stated Hy-Pro is investing approximately $10.1 million and signing an RESOLUTION #EDC07-13 RESOLUTION agreement pledging $2,424,000 in property tax APPROVING AN EVALUATIVE REPORT ON payments. Hy-Pro must also meet employment THE HY-PRO PROJECT goals. Mrs. Bauer explained this process is similar to the GTI process; however, there are some Mr. Winkler explained that the goals are tied transactions to approve differently which are back to liquidated damages. There is a schedule basically "point in time" related. When GTI was that shows number of jobs, amount of payroll, and investment. Hy-Pro is required to meet all of these items. If they fail to do that, there is a liquidated damage chart that shows exactly what they owe back to the Anderson Redevelopment Commission (ARC). In addition to that, GTI has a $4,000,000 corporate guarantee and Hy-Pro has pledged $202,000 for 12 years. There are built in guaranteed revenue streams. Mrs. Bauer stated the document tonight is not the transfer of funds. This will be done at the next meeting. The document tonight is a procedural requirement. The Commission must issue an evaluative report on the project. This is required for the process to proceed. It basically confirms that there is a need for an economic development project and reports that this project should be approved. The resolution will be distributed to the Chairman of the Plan Commission. This is a statutory requirement. Mr. Umpleby mentioned that if a project creates over 100 jobs then the local school superintendent most be notified. Also, the project is then set for a public hearing so the public has an opportunity to be heard. The Commission agreed to meet on June 13, 2013, at 4:30 p.m. Mr. Winkler stated the bond documents will go to the City Council, back to the ARC, to the EDC, and then final approval by the City Council. The Hy-Pro project will create 107 jobs. Mrs. Jones moved to approve Resolution #07-13 a Resolution approving an evaluative report on the Hy-Pro project. Mrs. Suko seconded. Motion passed unanimously; 4 yes, 0 no. MISCELLANEOUS ADJOURNMENT Mrs. Jones moved to adjourn. Meeting adjourned at 5:22 p.m. Economic Development Commission (EDC): May 14, 2013 Page 2