Economic Development Commission

MINUTES ECONOMIC DEVELOPMENT COMMISSION April 14, 2016 Ms. Wagner moved to approve the October 8, 2015, PUBLIC HEARING / MEETING minutes as received. Mr. Bibbs seconded. Motion 4:30 p.m. passed unanimously; 5 yes, 0 no. Conference Room #1 120 East 8th Street BUSINESS Anderson, IN 46016 Resolution #EDC01-16 A Resolution MEMBERS PRESENT Recommending Residential Tax Abatement for Bill Nagengast, President Mustin Builders, 4900 Stratford Drive Robin Wagner, Member Mr. Frischkorn presented a location map. He Mary Jamerson, Member Roger Reed, Member explained the resolution is for a residential tax Antony Bibbs, Member abatement for 4900 Stratford Drive, Lot 190A located in Southmain Village West Phase 3. The STAFF PRESENT improvements to the property will be at an estimated Tim Lanane, City Attorney cost of $227,000. The request is for a three-year tax Greg Winkler, Director abatement as it is not considered in-fill housing. Michael Frischkorn, Deputy Director Construction will commence before December 31, April Phillips, Economic Development Staff Karen Pettigrew, Economic Development Staff 2016, for a single-family dwelling intended for human habitation. The area has unimproved lots and has OTHERS PRESENT been undesirable for normal development and Ann Marie Bauer, Anderson Redevelopment occupancy due to a cessation of residential growth Commission Attorney and development. The project will promote Jennifer Culp, City Council municipal development objectives by making Lawrence Johnson, Mustin Builders effective use of the vacant lot and expanding the tax Ken da la Bastide, Herald-Bulletin base. If the Commission approves the resolution, it David Eicks, Board of Public Works Jim Diterich, Italpollina will be forwarded to the City Council for their Kevin Sulc, Anderson Redevelopment Commission consideration of an ordinance to adopt the Commission’s recommendation. Staff recommends ROLL CALL AND DECLARATION OF approval. QUORUM Mr. Nagengast called the meeting to order at Mr. Johnson stated tax abatements help to stimulate 4:30 p.m. and declared a quorum with five (5) growth in the area. The house is under construction members in attendance. and should be completed in June or July. PUBLIC HEARING The public hearing was opened at 4: 31 p.m. Ms. Wagner moved to approve Resolution #EDC01- 16. Mr. Bibbs seconded. Motion passed ELECTION OF OFFICERS unanimously; 5 yes, 0 no. After a brief discussion, a slate of officers was selected: Mr. Nagengast for President, Ms. Wagner Resolution #EDC02-16 A Resolution for Vice-President, and Mrs. Jamerson for Secretary/Treasurer. Recommending Residential Tax Abatement for Mustin Builders, 4902 Stratford Drive Mr. Reed moved to approve the slate of officers. Mr. Mr. Frischkorn explained the resolution is for a Bibbs seconded. Motion passed unanimously; 5 yes, residential tax abatement for 4902 Stratford Drive, 0 no. Lot 190B located in Southmain Village West Phase 3. The improvements to the property will be at an estimated cost of $227,000. The request is for a three-year tax abatement as it is not considered in-fill MINUTES housing. Construction will commence before December 31, 2016, for a single-family dwelling intended for human habitation. The area has investment is $4,500,000. The company, Italpollina, unimproved lots and has been undesirable for will lease the building on a 15-year term with a normal development and occupancy due to a buyout option after three years. The company will cessation of residential growth and development. be investing $4,700,000 in equipment. This is a The project will promote municipal development capital intensive process. It can be described as a objectives by making effective use of the vacant land brewing process but with soybeans. The total and expanding the tax base. If the Commission investment is $9,200,000. The City’s incentive to the approves the resolution, it will be forwarded to the developer is $1,050,000. This is a three-party City Council for their consideration of an ordinance agreement because the money is going to the to adopt the Commission’s recommendation. Staff developer to build the building, but the claw backs or recommends approval. liquated damages are with the company regarding the 35 jobs to be created and the $1,800,000 in Mr. Johnson stated the subdivision is a zero lot line aggregate payroll. He is excited that Mr. John development. It is similar to a duplex as the units Paugh and Bill Fredericks (2700 Scatterfield Road are attached. LLC.) stepped up to put $4,500,000 on a brownfield site. This project could not have been leveraged any Mr. Lanane mentioned they have separate legal other way without the developer’s involvement. The descriptions. location is a five-acre brownfield site. It will produce approximately $115,000 in real property taxes and Ms. Wagner moved to approve Resolution #EDC02- approximately $47,000 in personal property taxes. 16. Mr. Reed seconded. Motion passed The annual payment on the bond using an estimated unanimously; 5 yes, 0 no. six percent interest rate will be about $115,000, however, the revenue will be approximately Resolution #EDC03-16 Resolution of the City of $162,000. He estimated the bond would be Anderson, Indiana Economic Development structured for ten-years, so at the end of the ten Commission Approving an Economic years, this creates an extra $50,000 per year when Development Proje ct Agreement with Italpollina the bond is paid off. USA, Inc. and 2700 Scatterfield Road LLC – The Italpollina Project Mr. Diterich hoped to break ground in May. The walls Mr. Diterich explained that Italpollina is a large would be available in June. The building should be fertilizer company based in Italy. The company is completed by Thanksgiving, but it will take nine wanting to construct a state of the art facility in months to a year to outfit the plant for production. Anderson. They make a product that nobody else September 2017 is when they need to start makes. This is cutting edge in the fertilizer business. production to meet their commitments Mr. Nagengast asked why Italpollina chose Mr. Lanane asked about the job creation. Anderson. Mr. Winkler explained 35 jobs are to be created, but Mr. Diterick answered Jacopo Tozzi and Mr. Winkler. there is a ten percent grace. The ten percent grace is very common for the jobs and payroll investment. Mr. Winkler explained that Mr. Tozzi works for the If they miss the numbers, there is a liquidated Indiana Economic Development Corporation. The damage schedule as to what the company would be fertilizer is soy-based. It works well with fruit, paying back. There is a maintenance period of ten vegetables, etc. This is cutting edge agro-science. years. This turns a brownfield site into something productive. This brings in an exciting company and Mr. Lanane asked what the commitments were helps to diversify and create jobs and payroll. It also under the project development agreement (PDA). creates an investment opportunity in TIF as far as taxes. Mr. Winkler provided the members a copy of the PDA. A copy should have been provided via email Mr. Nagengast reiterated this is on a five acre site wit as well. The developer, 2700 Scatterfield Road, h a 70,000 sq. ft. building. Is there room to expand? LLC., will purchase the ground, build the building and pay for the construction of the building. This Economic Development Commission (EDC): April 14, 2016 Page 2 Mr. Diterick answered yes, they could add on another 70,000-80,000 sq. ft. and then also add an Mrs. Bauer explained this resolution would additional 150,000 sq. ft. A rendering of the facility recommend to the City Council the issuance of an Economic Development Revenue Bond. The was presented. proceeds of which would be loaned to the developer backed by the commitment of the project to make Mrs. Jamerson mentioned there was continuity with substantial investments along with the liquidated this facility and the Purdue Polytechnic building with damages. This approval is a statutory requirement all the glass. This is a master plan for the area. and subsequently the City Council. This is not a bond that obligates the City. It obligates the Mr. Reed asked if the company planned on hiring redevelopment district and is exemplified by the fact that TIF was pledged by the Anderson locally or bringing them in. Redevelopment Commission to the repayment of the bond. It is not a general obligation bond of the City. Mr. Dietrick stated it would depend on what is It is a limited obligation bond of the redevelopment available in the area. It will be heavy on Research district. The redevelopment district is similar to a and Development. They will hire locally when they school or a library district. can. Mr. Lanane stated this is what will finance the $1,050,000 the City is putting in the project. Mr. Lanane explained Resolution #EDC03-16 is a resolution to approve the three-party agreement. Mr. Winkler stated a check would not just be issued to 2700 Scatterfield Road, LLC. for $1,050,000. For Mrs. Bauer has a copy of the agreement with the every $2 they spend, the developer will submit an original Anderson Redevelopment Commission invoice for reimbursement. The work will be verified signature. She was emailed the signature of the by the Building Commissioner before funds are released to the company. parties representing 2700 Scatterfield Road, LLC. She is waiting on the signatures from Italpollina and Mr. Eicks reiterated the City supports this project 100 the Mayor. percent. Mr. Eicks mentioned this was one of the first projects Mr. Lanane noted the public hearing for the Mayor Broderick had a direct head in. He is very resolution is being closed. The Commission is ready supportive. for a motion and vote. Mr. Winkler stated the project would not have Ms. Wagner moved to approve Resolution #EDC04- happened if Mayor Broderick had not stepped in and 16. Mr. Bibbs seconded. Motion passed said he wanted it. It was a conversation he had prior unanimously; 5 yes, 0 no. to him taking office. MISCELLANEOUS Ms. Wagner moved to approve Resolution #EDC03- Mrs. Phillips explained the advertising for the public 16. Mr. Bibbs seconded. Motion passed notice will need to be paid next month. The amount unanimously; 5 yes, 0 no. is $27.49. Since the Commission only meets when needed, a request was made to approve the Resolution #EDC04-16 A Resolution Approving payment once the invoice was received. and Authorizing Certain Actions and Mr. Reed moved to approve payment of the Proceedings with Respect to Certain Proposed advertising. Mr. Bibbs seconded. Motion passed Economic Development Revenue Bonds and unanimously; 5 yes, 0 no. Related Matters. Mrs. Bauer explained this is the resolution that was ADJOURNMENT designated for a Public Hearing as advertised in the Mr. Nagengast adjourned the meeting at 5:05 p.m. newspaper. Mr. Lanane mentioned that staff had a copy of the public notice. Mrs. Phillips pointed out the public notice was advertised in the Herald-Bulletin on April 4, 2016. Economic Development Commission (EDC): April 14, 2016 Page 3