Economic Development Commission

MINUTES ECONOMIC DEVELOPMENT COMMISSION June 13, 2013 PUBLIC MEETING Mrs. Hopper explained that Mr. Nagengast has a 4:30 p.m. conflict of interest due to a business interest Conference Room #1 between his company and Hy-Pro. He has 120 East 8th Street recused himself from the vote on this matter. Anderson, IN 46016 He has completed a Uniform Conflict of Interest Disclosure statement. She asked the MEMBERS PRESENT Commission to make a motion and vote to Bill Nagengast, President accept. A copy of the form will be recorded with Pam Jones, Vice President the minutes of this meeting and kept on file. Gracie Suko, Secretary / Treasurer She will follow the procedures outlined by State Dr. David Markle, Member statute for filing with the appropriate governmental entities as required by law. MEMBERS ABSENT Dr. Markle moved to accept the Uniform Conflict Robin Wagner, Member of Interest Disclosure statement from Mr. Nagengast. Mrs. Suko seconded. Motion passed STAFF PRESENT unanimously; 3 yes, 0 no. Ashley Hopper, City Attorney Greg Winkler, Director PUBLIC HEARING Michael Frischkorn, Deputy Director Mrs. Jones called the public hearing to order at April Phillips 4:37 p.m. Karen Pettigrew MEMBERS PRESENT OTHERS PRESENT Pam Jones, Vice President Ann Marie Bauer, Anderson Redevelopment Gracie Suko, Secretary / Treasurer Commission Attorney Dr. David Markle, Member David Umpleby, Krieg DeVault Buzz Krohn, O.W. Krohn & Associates Sam Pellegrino, City Controller ROLL CALL AND DECLARATION OF Angie Strickler, Arbor Homes QUORUM LaKoya Rochelle, Petitioner Mrs. Phillips declared a quorum with three (3) Stu Hirsch, Herald-Bulletin members present. ROLL CALL AND DECLARATION OF RESOLUTION #EDC08-13 PROPOSED FINANCING OF AN ECONOMIC QUORUM DEVELOPMENT PROJECT Mr. Nagengast called the meeting to order at Mrs. Jones asked for remonstrators or 4:34 p.m. and declared a quorum present with comments from the audience. There were no four members in attendance. remonstrators in attendance. Hearing no remonstrance, the public hearing was closed at MINUTES 4:38 p.m. Mrs. Jones moved to approve the May 9 and 14, 2013, minutes as received. Dr. Markle BUSINESS seconded. Motion passed unanimously; 4 yes, 0 no. RESOLUTION #EDC08-13 PROPOSED FINANCING OF AN ECONOMIC CONFLICT OF INTEREST DEVELOPMENT PROJECT Mr. Nagengast recused himself due to a conflict Mrs. Bauer explained the resolution contained of interest with Resolution #EDC08-13. He left findings in respect to the necessity for economic the meeting. development and the specific project which is being supported by the appropriation of RESOLUTION #EDC09-13 RESOLUTION $1,645,000. The project is Hy-Pro. The name in RECOMMENDING RESIDENTIAL TAX the resolution is Huston because Hy-Pro and ABATEMENT FOR LAKOYA ROCHELL Huston are affiliated companies. The Mr. Frischkorn explained the resolution is for a Commission will be pledging the funds residential tax abatement for the Paramount necessary to make a capital contribution as Springs subdivision. The property is located at evidenced by the financing documents to Hy-Pro 6427 Paramount Springs Drive. The to be used for the acquisition and equipping of improvements to the property will be at cost of the facility and the subsequent employment. $118,495. The request is for a three-year tax This is according to State statute. There have abatement with construction commencing bef been no liberties taken. The Commission is ore December 31, 2013, for a single-family resolving that the financing of this economic dwelling intended for human habitation. The lot development facility will be for the purpose of is currently vacant. providing a portion of the cost of the acquisition and construction. The Commission is Ms. Rochell stated the house will have four (4) authorizing the execution by the Mayor and City bedrooms and an attached two-car garage. The Clerk of all the necessary documents. The house will be two-stories with vinyl siding and a project has been found to have no adverse brick front. It is approximately 2,795 sq. ft. affect or competitors or competitive operations in the area. The Commission will establish an Mrs. Hopper asked if construction has started. account within the Commission’s scope into which the funds would be deposited and Ms. Rochell answered no. They were waiting for disbursed. The project development agreement approval before they got the building permit. states that Hy-Pro must have spent and The closing is scheduled for October. document that an equivalent amount of funds have been spent prior to the ability to access Mrs. Jones moved to approve EDC09-13. Dr. these funds. Additionally in the agreement, Markle seconded. Motion passed unanimously; there are also “clawback” provisions that speak 4 yes, 0 no. to specific investment and employment targets and timelines. If they don’t meet these MISCELLANEOUS requirements, the funds would have to be Mr. Winkler alerted the Commission to the fact returned. The financing agreement was that the staff is currently working on several attached. There are some blanks in the opportunities. He asked the members to let documents, but they are in substantial final staff know if they would be on vacation for an form; however, the Mayor and City Clerk will be extended period of time. authorized to make necessary adjustments if needed. The ordinance was also attached. ADJOURNMENT Mr. Winkler stated in summary the approval is Mrs. Jones moved to adjourn. Meeting for $1,645,000. Legal counsel refers to adjourned at 4:50 p.m. “clawbacks,” but he refers to them as liquidated damages. There is a chart that tracks investment and employment in the agreement. If the company comes up short, the chart shows what amount will have to be reimbursed to the City. Dr. Markle moved to approve EDC08-13. Mrs. Suko seconded. Motion passed unanimously; 3 yes, 0 no. Mr. Nagengast rejoined the meeting. Economic Development Commission (EDC): June 13, 2013 Page 2