Redevelopment Commission

MINUTES OF THE LAFAYETTE REDEVELOPMENT COMMISSION MEETING March 22, 2012 Board of Works Room, City Hall 11:00 am ATTENDANCE: COMMISSIONERS: John Thieme, Jr.; Jim Terry; Jos Holman; Mary Lundstrom; and Greg Eller. CITY OFFICIALS: Ed Chosnek, City Attorney; Cindy Murray, City Clerk; and Dennis Carson, Director of Development. STAFF: Margy Deverall, City Planner; Dan Walker, City Planner; Jennie Peterson, City Planner; and Nancy Hendricks, Administrative Assistant. GUESTS: John Hake, Rea Magnet; Eric Foster, Rea Magnet; Jody Hamilton, GLC; Ron Wilkins, Journal & Courier; Eric Demerly, Wabash National; Brianne Keyes, Wabash National; Ritsuko Abrams, Heartland Automotive; Toshio Kawashima, Heartland Automotive; Ronan Miot, Heartland Automotive; and Jameson Herring, BKD LLP. Welcome and Call to Order President John Thieme, Jr. welcomed everyone to the meeting, noted that a quorum was present, and opened the meeting of the Lafayette Redevelopment Commission. Approve Minutes of the Previous Meeting Jos Holman asked that the claims payment month be corrected to indicate February and then moved to approve the minutes of the February 23, 2012 meeting. Jim Terry seconded. The motion passed. Resolution LRC #2012-03: A Resolution Recommending Designation of an Economic Development Area (ERA) for Tax Abatement (Wabash National) Eric Demerly of Wabash National presented the petition for a designation of a new Economic Revitalization Area (ERA). Their plans are to build an additional manufacturing plant for a new line of vacuum trailers. In order to qualify for tax abatement, the designation needs to be established because the proposed site for construction is not currently within the ERA established for their main plant. The new line will provide sixty new permanent full time employment positions at a higher rate of pay. Job training will be provided by Wabash National to insure acquisition of the number of welders needed for the production line. Their school also provides welder certification if the employee desires. Jos Holman moved to approve the Resolution LRC #2012-03 for designation of an ERA for ten (10) years. Mary Lundstrom seconded. The motion passed. Resolution LRC #2012-04: A Resolution Recommending Approval of a Deduction for the Purpose of Tax Abatement in an Economic Revitalization Area (Rea Magnet Wire) John Hake, project manager at Rea Wire, introduced the request for tax abatement on a new small scale copper refining process that will replace older and now obsolete equipment. Rea Magnet intends to hire eight new hourly employees and one new manager. Jim Terry moved to approve Resolution LRC #2012-04 recommending seven year tax abatement on the new line. Jos Holman seconded. The motion passed. Resolution LRC #2012-05: A Resolution Recommending Approval of a Deduction for the Purpose of Tax Abatement in an Economic Revitalization Area (Heartland Automotive) Toshio Kawashima of Heartland Automotive introduced his staff and company representatives, and Jameson Herring spoke on behalf of the company. Heartland Automotive is looking to locate a new facility in several sites and their decision depends on the incentives offered. By manufacturing product that is supportive of Subaru of Indiana Automotive, they are anticipating an increase in productivity and the need for adding new space. Their plans are divided into two phases: the first (beginning now) will be for real estate acquisition and construction; the second (beginning in 2014) will be for production. The expected number of new employees will be one hundred fourteen (114) with thirty to forty temporary positions which will become full time permanent workers after their probationary service is complete. The property that they wish to purchase is 1 already in a designated ERA. Jim Terry moved to approve Resolution LRC #2012-05 for ten year abatement on real estate. Jos Holman seconded. The motion passed. Resolution LRC #2012-06: A Resolution Recommending Designation of an Economic Revitalization Area (ERA) for Tax Abatement (ALCOA) Jody Hamilton from Greater Lafayette Commerce presented ALCOA’s request for abatement. The highly publicized expansion for new production at the ALCOA plant includes real estate, personal property and information technology for a total of a $93 million investment. Construction will begin in May of 2012 with completion expected to be in 2014. Noting that this request is significantly distinguished by a total investment exceeding $60 million and that the type of equipment would depreciate over a longer period of time than most, Mary Lundstrom moved to approve Resolution LRC #2012-06 for ten year ERA, for ten year tax abatement on personal property, for ten year tax abatement on real estate, and for ten year tax abatement on information technology. Mary clarified with support from City Attorney Ed Chosnek, that this request represented such an unusually high investment to the community that it warranted the maximum length in abatement. Jos Holman seconded. The motion passed. Director’s Report Dennis Carson reported that most of the redevelopment and economic projects for this year are well under way.  Ernest Health broke ground on their new building and promises to bring at least one hundred fifty new jobs for the community.  Residents and business owners living in the area soon to be annexed to the city attended two nights of community meetings.  On May 10, 2012, the open house for Chatham Square will take place with tours of the apartments, new housing, and Purdue’s Solar Decathlon house.  The engineering phase for the MetroNet fiber optics project is now in process.  Jennie Peterson reported that for the Neighborhood Stabilization Program, two houses have upcoming sales and a third has a sale pending. Greg Eller (Lafayette School Corporation representative) reported that the number of students coming from the Chatham Square development has exceeded the projected expectation. Jos Holman moved to accept the director’s report. Jim Terry seconded. The motion passed. Approval of March claims Jos Holman moved to approve payment of claims in the amount of $377,750.18. Mary Lundstrom seconded. The motion passed. Public Comment/ Adjournment John Thieme, Jr. invited public comment. No comment was made. Jos Holman moved to adjourn the meeting of the Lafayette Redevelopment Commission. Mary Lundstrom seconded. The motion passed. Respectfully submitted, Nancy Hendricks, Recording Secretary Approved, _____________________________________________________ Secretary, Lafayette Redevelopment Commission 2