Zionsville Redevelopment Commission (ZRDC)

DRAFT MINUTES OF THE AUGUST 27, 2012 MEETING OF THE ZIONSVILLE REDEVELOPMENT COMMISSION A meeting of the Zionsville Redevelopment Commission (“Commission”) was held on Monday, August 27th, at 6:30 p.m. in the Zionsville Town Hall Conference Center. Notice of the meeting was duly given to all Commissioners and posted in the notice area of the Town Hall. Those present at the meeting included Commissioners Mike Latz, Craig Anderson, John Tousley, James Longest, Mark Plassman, Town Manager Ed Mitro, Town Director of Planning and Economic Development Wayne DeLong, Boone EDC Executive Director, Dax Norton, Town Attorney Andy Buroker and Town Financial Consultant Brian Colton. Mike Latz called the meeting to order at 6:32 p.m. The first agenda item was the approval of the July meeting minutes. Craig Anderson made a motion to approve the July 23rd, 2012 meeting minutes with suggested corrections to Lance Lantz name, Carol Marquiss seconded the motion. The motion was approved 5 to 0. The next agenda item under Old Business was an update on the Micro Loan Program. John Tousley stated that Eagle Creek loan was drawn down and they will start the improvements and repairs soon. The next agenda item under Old Business was an update of the economic development strategic plan process. Ed Mitro stated that the process was moving along. He stated the Plan Commission unanimously approved a motion to forward the plan to the Town Council. John Tousley asked if this plan would be an amendment to the town comprehensive plan. Ed Mitro answered yes. The next agenda item under Old Business was an update on projects within the redevelopment area. Mike Latz gave a brief update on the 106th Street Sanitary Sewer/Water Extension project. He stated things were moving along very well. Mike Latz asked about the progress with the Domain apartments. Ed Mitro stated things were progressing well and the project should be complete by mid-June 2013. The next agenda item under new business was a continued discussion of the RDC 2013 Budget. Mike Latz began by reviewing the current and projected cash flow sheet. He stated that there may be a need to appropriate funds for the Bennett Parkway extension, but Brian Colton stated that this would be paid for out of bond proceeds. Mike Latz then began reviewing line items for the 2013 budget. He stated that some line items had changes from the last meeting and he began discussing some of these changes. Examples include $400,000 for the First Street Project and $65,000 for Sycamore Street path improvements. Mike Latz stated that the town would like the RDC to appropriate additional funds to extend the Sycamore Street path to Elm Street. John Tousley asked about the 106th Street/Zionsville Road intersection. He asked if it would be signalized or a roundabout. Mike Latz stated that it would need a separate engineering study. Craig Anderson asked about the 1st Street Project. Ed Mitro stated that Lance Lantz was still in discussions with land/home owners and will be making some changes to the plan based on those discussions. The plan will then be presented in final draft to the public and necessary municipal boards for approval. Mark Plassman asked how the group arrived at the $400,000 number. Ed Mitro stated that Lance Lantz put the budget together and the project would likely be completed in phases. Mark Plassman asked what would happen if the TIF ended with a negative balance. Ed Mitro stated that this could not happen. Ed Mitro stated that this is why it is good to build a balance. Carol Marquiss asked if this was the draft that will be forwarded to the town council. Ed Mitro stated yes. John Tousley asked for monthly reporting. Ed Mitro stated that he would make sure a monthly report was passed out. Craig Anderson asked if there were any comments from the town council regarding the draft budget. Ed Mitro stated that they understand that there are many projects and many needs. Craig Anderson stated that he would like Lance Lantz to look into costs of repairing the bridge on Sycamore and possibly include into the budget. Ed Mitro stated he would forward the request to Lance. Craig Anderson made the motion to approve the budget and send to the town council, Mark Plassman seconded the motion. Motion passed 5-0 The next agenda item was a consideration of TIF Agreement for Development of infrastructure for the Ripberger Business Park. Dax Norton introduced the project and stated that this was 2 projects in one. He stated that this would be the building of a business park and the attraction of a Fortune 500 tenant. The infrastructure was necessary to attract the potential client and others to the business park. Dax Norton introduced Courtney Lehman of Scannell Properties. Scannell Properties would own and development the park. Courtney gave a presentation describing the project and the need for road and water/sewer infrastructure to move forward with the development of the park and sign the potential tenant. John Tousley asked Courtney if it was ok to mention the name of the company since it was in the TIF agreement document. John then mentioned that the potential tenant is FedEx. Courtney Lehman explained the reason for the TIF agreement and the request for assistance from the RDC to fund the extension of Bennett Parkway and the extension of water/sewer infrastructure to the site with the use of TIF funds. The improvements would be a 2600 foot extension of Bennet Parkway in a first stage (full extension to 96th street in phase 2 would not be included in this bond) and the provision of water and sewer to the site. Andy Buroker, town Attorney, then presented the TIF agreement. John Tousley stated that he would email his comments about the TIF agreement after the meeting. Brian Colton then presented the Tax Analysis and the bond mechanism that the RDC would use to fund these necessary projects. A copy of the Tax Analysis and the TIF agreements will be attached to these minutes. Ed Mitro asked if this bond would be rated. Brian Colton said yes and explained that the town has a very good credit rating (AA-) which could make this bond very attractive in the market. Brian Colton also explained that there was more than enough TIF coverage to reduce the rate and make this a very marketable bond. John Tousley asked if the RDC rate was the same as the town rate. Ed Mitro stated yes. Brian Colton stated that the bond numbers would be trued up as the RDC gets close to issuing the Bonds. John Tousely asked Brian Colton to explain the Doomsday Clause. Brian Colton explained the clause in detail. Brian explained that Umbaugh would complete the official report for the bonds. Ed Mitro explained that the rate was not locked in until the bond was sold but once the bond is sold there is no variability. John Tousley stated that he would like to see the extension of Bennett Parkway to 96th Street happen soon and asked if there was a timeline. Mike Latz stated it could be 1 year or 3 years. There was no timeline. Mark Plassman asked if the bonds could be paid off early. Brian Colton stated yes. Craig Anderson asked how the bonds would be marketed. Brian Colton stated that they would be competitively bid. John Tousley moved to approve the TIF agreement with changes made to the inconsistent acreage numbers and allowing Mike Latz to sign the agreement, Craig Anderson seconded the motion. The motion passed 5-0. The next agenda item under new business was the consideration of an economic development incentive for relocation/enhancement of Landscapes Unlimited. Dax Norton stated that part of the Ripberger Park project and Bennett Parkway expansion would be the necessary relocation of a long time, and well known exiting Zionsville Business. He stated that Landscapes Unlimited, owned by the Butz family, would need to be relocated. Courtney Lehman told the group that Scannell had been working with Lanscapes Unlimited and had offered to help with the relocation and expansion of the company by offering 11 acres on the Ripberger site (they currently owned 1 acre and operated on 3 acres) and some financial assistance to build a new headquarter facility. Dax Norton stated that Jeff Butz sent a letter describing this expansion project and need. Mr. Norton suggested that the RDC offer Landscapes Unlimited a TIF cash grant of $150,000 to assist with construction costs related to the relocation and expansion. He stated that this type of incentive had recently been approved for existing Zionsville businesses in the 96th Street TIF. John Tousley stated that he was in favor of the request but was concerned that there was no agreement that stated that this money was to be used for construction purposes only and that Landscapes Unlimited will only receive the money contingent upon the closing and construction of the FedEx deal and after Landscapes Unlimited received a building permit. The committee agreed with John. The committee also requested that the attorneys work out an acceptable claw back agreement with Landscapes Unlimited. Ed Mitro told the committee that any motion should grant Mike Latz authority to work with the town attorney on the details of the incentive agreement including claw back and timeline for a distribution of funds. Andy Buroker stated that the town has this type of agreement and he would modify it to be project specific. Craig Anderson moved to approve an economic development incentive in the form of a TIF Grant of $150,000 from the TIF allocation fund for relocation/expansion or Landscapes Unlimited giving Mike Latz authority to work out an acceptable incentive agreement with the town attorney and contingent upon an acceptable incentive agreement be signed by the town and Landscapes Unlimited with no funds being distributed prior to the closing of the FedEx project and the issuing of a building permit to Landscapes Unlimited, Mark Plassman seconded the motion. Motion passed 5-0. The next item under old business was the consideration of an Engagement Letter Addendum by Krieg DeVault for bond council related to issuance of bonds for the construction of the infrastructure for the Ripberger Business Park. Mike Latz moved to approve the addendum, Craig Anderson seconded the motion. The motion passes 5-0. The last item under new business was to consider an Engagement Letter Addendum by Umbaugh for financial services related to the issuance of bonds for the construction of the infrastructure for the Ripberger Business Park. Craig Anderson moved to approve the addendum, Carol Marquiss seconded the motion. The motion passed 5-0. Carol Marquiss made a motion to adjourn the meeting, Craig Anderson seconded the motion. The motion passed 5-0. The next meeting of the commission will be held at 6:30 on Monday, September 24th, 2012. The meeting was adjourned at 8:20 p.m.