Economic Development Commission

MINUTES ECONOMIC DEVELOPMENT COMMISSION May 9, 2019 PUBLIC HEARING Mr. Carr stated a market study was completed 4:30 p.m. showing a demand that exceeds the 127 units Conference Room #1 supported by the project. Brief discussion followed. 120 East 8th Street Mr. Carr stated the anticipated tax credit investor is Anderson, IN 46016 Berkshire Hathaway, the largest affordable housing partner and most experienced in the country. The PUBLIC MEETING bonds will be purchased by Cedar Rapids Bank and Immediately following Public Hearing Trust out of Iowa. Mr. Carr stated the project is Conference Room #1 looking to the City with help for the issuance of tax- 120 East 8th Street exempt bonds and the inducement resolution is the Anderson, IN 46016 first step in the process. The second step will be a final City Council resolution issuing the bonds. MEMBERS PRESENT .Discussion followed. Lance Stephenson, President Roger Reed Mr. Umpleby stated there would be no financial Bill Nagengast exposure to the City. The bonds would be pass through conduit bonds where the City issues the STAFF PRESENT bond with the only collateral being the project itself. Tim Lanane, City Attorney If payment is stopped, it does not come back on the Greg Winkler, ED Director City; the developer is responsible. Discussion Karen Soetenga, ED Staff followed. Mr. Carr stated the operator for the project would be OTHERS PRESENT Gardant Management Solutions, one of the largest Mr. Hackleman, Tax Abatement Applicant assisted living operators in the country with 20+ Mr. and Mrs. Beverly, Tax Abatement Applicants years of experience. Mr. Carr gave a brief summary Ben Orcutt, Buckskin Bikes of the construction. Discussion followed. Marc Slayton, ED Deputy Director Meaghan Hobbs, BWI Mr. DeLaBastide asked if property taxes would be David Umpleby, Krieg DeVault LLP paid. Mr. Carr stated an ordinance allows for special Matt Carr, Quarles and Brady LLP evaluation of properties like these due to community Ken DeLaBastide, Herald Bulletin benefit. Mr. DeLaBastide asked who would be responsible for the care of the building. Mr. Carr ROLL CALL AND DECLARATION OF stated Guardant would be responsible for the day to QUORUM day. Ms. Hobbs stated projected date to begin Mr. Stephenson called the meeting to order at construction is September 1. Discussion followed. 4:30 p.m. and declared a quorum with three (3) Mr. Orcutt asked if Medicaid waivers were to go members in attendance. through changes how it would affect the project. Ms. Hobbs stated the facility could switch to affordable or OPEN PUBLIC HEARING market rate housing, if needed. Mr. DeLaBastide Mr. Winkler introduced Ms. Hobbs, BWI, and Mr. inquired about the name of the project. Ms. Hobbs Umpleby, Krieg DeVault. Ms. Hobbs stated Sweet stated her parents, owners of BWI, had made a trip Galilee at the Wigwam is a proposed 127 unit to Israel and were moved by seeing the Sea of affordable assisted living facility which will be located Galilee. The theme will be seen throughout the just west of the Wigwam, east of the Fieldhouse building. Mr. Orcutt inquired about job creation. Ms. Apartments. Ms. Hobbs introduced Mr. Carr, Quarles Hobbs stated there would be a projected 60-65 FTEs and Brady LLP, who further briefed members on the and they will be looking first to Anderson residents to project. The project will help to address the need of fill the positions. the 60-70% of seniors unable to afford market rate assisted housing by leveraging Medicaid waivers. CLOSE PUBLIC HEARING The project will leverage a 4% tax credit program for affordable assisted living. The program couples tax OPEN REGULAR MEETING credits with tax-exempt bonds, with 50% of development cost coming from bonds. The program is non-competitive. Discussion followed. MINUTES Mr. Nagengast moved to approve the April 11, 2019 and Mr. Reed seconded. Motion passed minutes as presented. Mr. Reed seconded. Motion unanimously; 3 yes, 0 no. passed unanimously; three yes, zero no. EDC09-19 AN INDUCEMENT RESOLUTION NEW BUSINESS FOR SWEET GALILEE AT WIGWAM EDC07-19 - RESOLUTION RECOMMENDING Mr. Winkler asked if anyone had any further RESIDENTIAL TAX ABATEMENT FOR questions regarding the EDC09-19. Mr. JACQUELINE AND FREEMAN BEVERLY DeLaBastide asked if the resolution called for a not Mr. Winkler briefed Commission Members on to exceed 21M. Mr. Umpleby stated yes, it did. Brief Resolution EDC07-19 residential tax abatement for discussion followed. Mr. Stephenson asked Mr Jacqueline and Freeman Beverly. Mr. Winkler Orcutt his perceptions on how the community was stated the address is 6606 Colt Lane, Lot 24 in the responding to the project. Mr. Orcutt stated most Apple Downs Addition. Improvements to the don’t know about it but the fence around the property will be at an estimated cost of $238,000.00. Fieldhouse Apartments has been a big concern as The request is for a three-year tax abatement, as it is well as the issue of walkability and the single not considered in-fill housing. Construction will entrance. Mr. Orcutt stated he has received commence before December 31, 2019, for a single- assurance that the same will not be an issue with family dwelling intended for human habitation. Ms. this facility. Beverly briefed members on the construction. Brief discussion followed. Mr. Reed moved to approve Resolution EDC09-19 an inducement resolution for Sweet Galilee at the Mr. Nagengast moved to approve Resolution Wigwam and Mr. Nagengast seconded. Motion EDC07-19 for Jacqueline and Freeman Beverly and passed unanimously; 3 yes, 0 no. Mr. Reed seconded. Motion passed unanimously; 3 yes, 0 no. MISCELLANEOUS EDC08-19 RESOLUTION RECOMMENDING ADJOURNMENT RESIDENTIAL TAX ABATEMENT FOR JAMES Mr. Nagengast made a motion to adjourn and Mr. AND CORAL HACKLEMAN Reed seconded. Meeting adjourned at 5:41 p.m. Mr. Winkler briefed Commission Members on Resolution EDC08-19 a residential tax abatement for James and Coral Hackleman. Mr. Winkler stated the address is 2619 Doe Meadow Drive, Lot 21 in the Deer Creek Addition. Improvements to the property will be at an estimated cost of $535,410.00. The request is for a three-year tax abatement, as it is not considered in-fill housing. Construction will commence before December 31, 2019, for a single- family dwelling intended for human habitation. Mr. Hackleman briefed members on the construction. Brief discussion followed. Mr. Nagengast moved to approve Resolution EDC08-19 for James and Coral Hackleman and. Mr. Reed seconded. Motion passed unanimously; 3 yes, 0 no. CONSIDERATION OF EDC REPORT FOR SWEET GALILEE AT THE WIGWAM Mr. Lanane stated an EDC Report was standard process for such a bond and was part of the inducement resolution. Discussion followed. Mr. Lanane stated he had reviewed the report and resolution and all needed protections were in place for the City. Mr. Nagengast moved to accept the EDC Report as submitted for Sweet Galilee at the Wigwam Project Page 2