Economic Development Commission

MINUTES ECONOMIC DEVELOPMENT COMMISSION October 8, 2015 runs with the number of jobs and the payroll. If PUBLIC MEETING there is a breach on behalf of the company beyond 4:30 p.m. the 30 percent grace there are liquated damages Conference Room #1 spelled out. This gives both parties a way to handle 120 East 8th Street a breach if it were to happen. Anderson, IN 46016 Mr. Eicks asked about the electric rider. MEMBERS PRESENT Bill Nagengast, President Mr. Winkler stated there is an electrical rider that will David Eicks, Vice President have to go back before the City Council. Gracie Suko, Secretary/Treasurer Dr. David Markle, Member Mr. Eicks asked the value. Robin Wagner, Member Mr. Winkler stated there was not value until they get up to the 10,000 KVA load level. This will have no STAFF PRESENT impact until they put in heat treatment in which it is Ashley Hopper, City Attorney anticipated to be two to three years. At that point, Greg Winkler, Director the City Council is in a position to assign within Michael Frischkorn, Deputy Director certain criteria what percentage that rider is worth April Phillips, Economic Development Staff as far as their utility bills. There is an ordinance in place that defines what the rider is now; however, OTHERS PRESENT that rider expires at the end of this year. This will Ann Marie Bauer, Anderson Redevelopment have to come back in front of the City Council, Commission Attorney probably after the first part of the year and the City Council will make a decision on what the rider ROLL CALL AND DECLARATION OF contains. Mr. Tony Pochard, from Municipal Power & QUORUM Light, will give his guidance on what is appropriate Mr. Nagengast called the meeting to order at for the rider. 4:30 p.m. and declared a quorum with five (5) members in attendance. Mr. Eicks asked if the rider being requested was higher than the current rider. MINUTES Mr. Markle moved to approve the September 10, Mr. Winkler explained the recommended rider is 2015, minutes as received. Mr. Eicks seconded. higher although this would be at the discretion of Motion passed unanimously; 5 yes, 0 no. the City Council. BUSINESS Mr. Eicks asked if the City Council was obligated to do it. NTN Project Agreement Mr. Winkler stated from his perspective the City Mr. Winkler explained that the Commission members Council would be obligated to do it; however, they were aware of what was in the agreement. The still get the final say. contract stipulates not only what the company will do, but what the City will do. The City Council Mr. Eicks asked if this agreement was different from approved a 10-year 100 percent tax abatement. what he was previously given. The remainder was authorized through the Anderson Redevelopment Commission (ARC) through the use Mrs. Bauer stated that newest agreement was of Tax Increment Financing (TIF) funds to build completed the day of closing. water, wastewater, deceleration lanes, and electric power. There is a liquidated damage schedule that Mr. Eicks stated the liquidated damages is not MISCELLANEOUS included and the verbiage on the number of jobs is different from what he previously saw. ADJOURNMENT Mr. Nagengast adjourned the meeting at 4:46 p.m. Mr. Bauer stated this is a revision from the very first agreement. The jobs dropped from 400 to 311. Mr. Eicks asked if the new goal was 311 jobs. Mr. Winkler answered yes, and that was shared with the City Council at the second meeting. Mr. Eicks asked if the liquidated damages did not kick in until 218 jobs Mr. Winkler stated yes, 218 jobs. The investment amount also dropped. The second phase will add another 100 jobs. The investment amount also dropped. The other tool that is handed to the City Council is to whether to address a new set of abatements for the second phase. Mr. Eicks asked if NTN would be seeking another abatement on the new equipment. Mr. Winkler stated that Jim Riggs indicated to him that they would not. Mrs. Bauer explained it is possible though. NTN purchased 80 acres of land; however, it is separated into two parcels and deeded in two separate corporate names. It will be transferred internally. Mr. Winkler stated there is another NTN company that is planning on building next door to this plant. He anticipates final negotiations the first part of next year. The last conversation he had with them was that they would like to start construction next year. There will be an abatement request. The majority of the infrastructure will be in place except one electrical piece will need to be added. Mrs. Bauer explained that when that facility comes online then there will be the full project as described in the first rounds of meetings with the City Council and the ARC. Ms. Wagner moved to approve the NTN project agreement. Dr. Markle seconded. Mr. Eicks asked if liquidated damages were part of this agreement. Mrs. Bauer answered yes. Motion passed unanimously; 5 yes, 0 no. Economic Development Commission (EDC): October 8, 2015 Page 2