Economic Development Commission

MINUTES ECONOMIC DEVELOPMENT COMMISSION February 17, 2015 the reasons the project was incentivized as such. PUBLIC MEETING There is more money in this than usual for this type 4:00 p.m. of project. It is because the City wanted the Conference Room #1 brownfield property to be productive again, be put 120 East 8th Street back on the tax rolls, and produce jobs and Anderson, IN 46016 opportunities. Three million dollars is going into the Sirmax construction project. There is $260,000 to MEMBERS PRESENT assist in the purchase of the property. There is a David Eicks, Vice President $600,000 commitment from the Anderson Gracie Suko, Secretary / Treasurer Redevelopment Commission (ARC) for a rail spur. Dr. David Markle, Member The Indiana Economic Development Corporation Robin Wagner, Member (IEDC) will also be committing $600,000 to the rail spur. The rail spur as envisioned will become property of the ARC. The utilities are estimated to MEMBERS PRESENT cost $250,000. The total project cost is $4,110,000 Bill Nagengast, President with the company receiving $3,000,000 in direct benefit for the construction of the project. In order STAFF PRESENT to protect the investment, there is a liquidated Ashley Hopper, City Attorney damages schedule which allows for a maximum Greg Winkler, Director recapture of $3,000,000 if the company either does April Phillips, Economic Development Staff not meet the jobs and/or the payroll. In addition, a shortfall account has been created. If the property OTHERS PRESENT taxes paid do not meet a certain amount as listed in Michael Collette the document, the company must put the difference Richard Starkey, Barnes & Thornburg into a short fall account from 2017-2030. This was Hannah Pischon also done for the Hy-Pro project. They hope to take Ken de la Bastide, Herald-Bulletin the bond to market sometime in the middle of the Ann Marie Bauer, Anderson Redevelopment year and replenish the cash in the TIF Levy. Commission Attorney Kevin Smith, Mayor Mr. Eicks asked if the City retained ownership of the rail spur and the land it is on. ROLL CALL AND DECLARATION OF QUORUM Mr. Winkler answered yes. There will be a right-of- Mr. Eicks called the meeting to order at 4:03 p.m. way for the rail spur. The City will maintain the spur and declared a quorum with four (4) members in and pay the insurance as it does with the Nestle attendance. spur. CSX has a very strict list of guidelines for the spur as they have certain rights and regulations that OPEN PUBLIC HEARING they can enforce. The public hearing was opened at 4:03 p.m. Mr. Eicks asked if other economic development Mr. Winkler explained the members received the projects in the future would be able to use the spur. program development agreement and have had a change to read it. There is an amendment that Mr. Winkler answered yes. CSX is talking about the would lengthen the amount of time the company rail spur coming in from the south of the property has to close on the property. The property is a which would enhance the entire parcel of property. brownfield. There are two environmental umbrellas over the property, CERCLA and RCRA. There was a Mr. Eicks mentioned the public hearing was Phase 2 completed on the property, so the company advertised in the Anderson Herald Bulletin on is requesting that some of the builder covenants be February 6, 2015. dropped. IDEM is reviewing it, but it must also go through a 30-day comment period. It may not close CLOSE PUBLIC HEARING until May or June. This a brownfield project so there The public hearing was closed at 4:11 p.m. are a lot of hoops to jump through. This is one of MINUTES Ms. Wagner moved to approve the February 12, 2015, minutes as received. Dr. Markle seconded. Motion passed unanimously; 4 yes, 0 no. BUSINESS Resolution #EDC02-15 A Resolution Authorizing Certain Actions and Proceedings with Respect to Certain Proposed Economic Development Revenue Bonds Mr. Richard Starkey, Barnes and Thornburg, explained the statutory process calls for the Economic Development Commission (EDC) recommend to the City Council that they issue the bonds so that economic development project can proceed and the bonds can be issued for the benefit of the company. The resolution allows for the forms of the documents, the project agreement, the tri- party agreement, the ordinance that the City Council will review, and to transfer such to the City Council with the EDC’s recommendation that they be adopted. The first step was the public hearing. The second step in the process is to approve the resolution along with the forms of the documents. The documents can change, but not in any material way. Mrs. Suko valued being involved in the process during the Nestle project. She also appreciated receiving all these documents beforehand so they could be reviewed. Mrs. Suko moved to approve Resolution EDC02- 2015. Dr. Markle seconded. Motion passed unanimously; 4 yes, 0 no. MISCELLANEOUS ADJOURNMENT Ms. Wagner moved to adjourn. Meeting adjourned at 4:14 p.m. Economic Development Commission (EDC): February 17, 2015 Page 2