GOSHEN REDEVELOPMENT COMMISSION MINUTES OF THE REGULAR MEETING HELD MAY 12, 2015

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1 GOSHEN REDEVELOPMENT COMMISSION MINUTES OF THE REGULAR MEETING HELD MAY 12, 2015 CALL TO ORDER / ROLL CALL The Goshen Redevelopment Commission met in a regular meeting on May 12, 2015 at 4:00 p.m. in the City Court Room/Council Chambers at the Goshen Police & Court Building, 111 East Jefferson Street, Goshen, Indiana. The meeting was called to order by President Thomas Stump. On call of the roll, the following members of the Goshen Redevelopment Commission were shown to be present or absent as follows: Present: Laura Coyne, Thomas Stump, Vince Turner and Brett Weddell Absent: Cathie Cripe, Jeremy Stutsman APPROVAL OF MINUTES the minutes of the April 14, 2015 regular meeting. The motion was adopted unanimously. APPROVAL OF REGISTER OF CLAIMS payment of the Register of Claims totaling $268, The motion was adopted unanimously. PRESENTATION TO GOSHEN BREWING COMPANY Commissioner Coyne presented Jesse Sensenig, owner of Goshen Brewing Company, with a Brew Like A Champion Today wall sign in the spirit of the Indiana Regional Cities initiative. UNFINISHED BUSINESS a. Discussion Goshen Dam Pond Update Becky Hershberger, Brownfields Coordinator, reminded the Commission they had not committed any funding for this project, but last month, Commissioner Stutsman requested to see the bid tab once the bids were submitted. The bid tab was distributed to the Commission. b. Discussion Hartzler Property at 1245 Wilson Avenue (Millrace Canal) Project Update Becky Hershberger reminded the Commission they had committed $500,000 to the millrace project, but she wanted to formally request permission to go out to bid with bids to come back in June or July. No one from the Commission objected. NEW BUSINESS a. Resolution Accepting the Transfer of the Real Estate at 1215 Hickory Street City Attorney Larry Barkes informed the Commission the City acquired this property and demolished the structure because it was unsafe. Property being transferred to Redevelopment so RFP s can be issued. Resolution The motion was adopted unanimously. b. Resolution Approve and Authorize Execution of Engagement Letter with H.J. Umbaugh & Associates for Refunding of the Redevelopment District Taxable Tax Increment Revenue Bonds of 2008 Resolution The motion was adopted unanimously.

2 c. Resolution Approve and Authorize Execution of Engagement Letter with City Securities Corporation for Bond Underwriting Services for the Refunding of the Redevelopment District Taxable Tax Increment Revenue Bonds of 2008 Resolution The motion was adopted unanimously. d. Resolution Ratify Execution of a Contract with Stiver Group, Inc., d/b/a Stiver Lawn Care for Lawn Mowing Services Becky Hershberger requested the Commission ratify execution of the contract included in the packet and indicated there would be several more properties added to the list (including 1215 Hickory just transferred). Resolution The motion was adopted unanimously. e. Resolution Approve and Authorize Execution of the Project Coordination Contract with the State of Indiana for the Waterford Mills Parkway Construction Project Civil City Engineer Mary Cripe explained the breakdown of funding received for this project. Commission President Stump requested clarification of the transfer funds was that a total or just for this project? Mary Cripe responded the transfer funds were just for this project. Resolution The motion was adopted unanimously. f. Resolution Approve and Authorize Execution of the LPA-Consulting Contract with DLZ Indiana, LLC for Construction Observation Services for the Waterford Mills Parkway Construction Project Mary Cripe informed the Commission the City has to pay 100% of the fees, then submit a claim voucher to the State to be refunded the 80%. Once notice to proceed is given, a Contract will be completed with the maximum amount allowed not over $811, Resolution The motion was adopted unanimously. g. Resolution Approve and Authorize Execution of River Race Drive Change Order #5 Mary Cripe informed the Commission the change order was necessary to replace the sanitary sewer line in the intersection of 3 rd Street for a cost of just over $46,0000. Traffic will have to be shut down on 3 rd Street for at least a week. Resolution The motion was adopted unanimously. h. Resolution Approve Execution of Amendment No. 1 to Lease Between the Goshen Redevelopment Authority and the Goshen Redevelopment Commission Mark Brinson informed the Commission the amendment was changing the date from January to July for principal payments. Resolution The motion was adopted unanimously. i. Resolution Approve Bond Resolution for Refunding Redevelopment District Taxable Tax Increment Revenue Bonds of 2008 Larry Barkes, City Attorney explained to the Commission this resolution was for the advance refunding of the 2008 bonds & funding of debt reserve by the Redevelopment Authority. The Commission previously approved the lease between the two entities. A motion was made by Commissioner Coyne and seconded by Commissioner Turner to approve Resolution The motion was adopted unanimously.

3 j. Resolution Authorize Negotiation and Execution of an Agreement with SME for Soil Borings for the Millrace Neighborhood Development Site Becky Hershberger informed the Commission that single family closure was needed on this brownfield property to get property properly transferred, for which 2 soil borings are required per lot. Goshen is one of very few communities attempting to do this; it s not a typical brownfield closure. The contract is not to exceed $10,600. Commissioner Coyne asked Becky what the worst case scenario would entail, to which Becky advised all fill material would have to be dug out to a depth of 10. For this particular property, hotspots have been addressed during previous remediation, but there is the potential for more widespread contamination issues. At a minimum, a 2 soil cap will be needed. Resolution The motion was adopted unanimously. k. Resolution Withdrawing Offer for the Sale and Purchase of Former Western Rubber Real Estate Larry Barkes informed the Commission that the Agreement with Genesis Products has never been executed and it is being proposed that the offer to Genesis Products be withdrawn so we can move forward. Becky Hershberger informed the Commission that Genesis is currently in the process of purchasing an alternate property in the industrial park. Resolution The motion was adopted unanimously. l. Discussion Western Rubber Site Becky Hershberger informed the Commission of the three options available for this real estate: 1) Going back out with an RFP; 2) Hire a real agent to market the site, with the Commission being able to review any offers; or 3) Hold off for a little while. Several adjacent property owners expressed an interest in the property, but nothing ever materialized due to the pending agreement with Genesis Products, Inc. Larry Barkes explained that only one proposal was received through the RFP process, so now the Commission has the option to hire a real estate agent at this stage in the process. Commission President Stump does not feel that we are ready to put out an RFQ for a realtor at this point. He feels we need to find out what the parking issues will be, what the stormwater issues will be once the pedestrian trail goes in. He agrees there is a traffic congestion issue currently, but wants to sit on it a month or two to see if any of these questions can be answered. Commissioner Turner fees a commercial broker is right way to go, but also wants to wait until some of these questions are answered or we ll be right back where we started. Becky Hershberger reminded the Commission that $750,000 has been invested above and beyond the federal grants. Commissioner Weddell asked what the proposed offer was from Genesis, to which Becky responded $137,500 with no tax abatement, plus ½ of the cost of the construction of the rail spur, or an additional $205,000. m. Discussion Norfolk Southern Railway Agreement Negotiated Cost Reduction Mary Cripe informed the Commission of a negotiated reduction in the agreement amount from $19, to $7, due to the number of projects currently in process with the Railroad. n. Discussion Keystone RV Corrie Drive TIF Reimbursement Larry Barkes informed the Commission that the Commission executed an infrastructure agreement to reimburse Keystone RV for the Corrie Drive extension. Payments should have begun in July, $203,500 should have been reimbursed by now, for which Redevelopment will catch up and get back on

4 track going forward. Mark Brinson noted that these numbers were factored into the five year plan discussed during the recent project priority meeting. o. US 33 and Ferndale Road Project Mary Cripe reported the Mayor had asked she inform the Commission of a proposed right turn lane going northbound on Ferndale Road to be considered for future funding with TIF revenue. Larry Barkes inquired why this wasn t mentioned during the recent project priority meeting, as well as why it would be entertained prior to Taco Bell s plans being approved and constructed, to which Mary agreed. MONTHLY REDEVELOPMENT STAFF REPORT Community Development Director Mark Brinson offered to answer any questions about the monthly report; however, the Commission did not have any questions. OPEN FORUM Attorney Bill Davis, 116 E. Clinton, Goshen, advised the Commission he represents Augustin Ramirez and Maria Calderon on behalf of Ramirez Salvage, Sale and Towing, which has recently been purchased by the Commission. Mr. Davis told the Commission they have acquired property by Wieland Design and now have to change their business to Sale and Towing only since there is no other place to salvage vehicles. They are trying to comply with their requirements of the contract. He stated they are before the Commission today because they have submitted a claim for reimbursement. Larry Barkes informed the Commission they approved a claim today in the amount of $8,000, of which $3,000 was compensation for expenses in looking for a new business location (the entire amount set aside in the Purchase Agreement) and $5,000 as the first installment as compensation for expenses for improvements, business signs, etc. at the new business location (for which $10,000 was set aside in the Purchase Agreement). Mr. Barkes informed the Commission there is also a clause in the Purchase Agreement for the actual, reasonable expenses in moving the business operation / personal property. Ramirez has submitted a claim(s) for reimbursement under this provision. Mr. Barkes is not satisfied with the claim(s) as submitted. Mr. Davis informed the Commission there are approximately 300 cars that need to be junked; taken to Omni Source, however Ramirez has been waiting for the price to rise again; it s currently at $ per ton and Ramirez expects the price to go back up to about $ per ton in about a month or so. Mr. Davis indicated the claim(s) that was presented to Mr. Barkes included gasoline expense in moving vehicles and labor used to get parts to different places so they can be used later, for equipment and supplies and for the purchase of a van and semi trailers for storage, etc. totally just over $31,000. He indicated that Mr. Ramirez is cash strapped and would like to get on a fast track for approval of claims submitted. Becky Hershberger informed the Commission that the City has RLF hazardous materials funding that has to be utilized by the end of July, 2015 or the funding will be lost. Timing is critical to begin the environmental testing. Mr. Davis introduced David Araujo, 1314 S. 11 th Street, Goshen, who is here to interpret for Mr. Ramirez, 502 Queen Street, Goshen. Through Mr. Araujo, Mr. Ramirez informed the Commission he has approximately 20 cars to get junked and more that are ready. With the 2 months he has been given to move, he has to recycle the cars at $ per ton because he has to get them out and doesn t know where else to put them until the price goes back up to $ per ton. He currently has 450 car engines and 220 transmissions on the ground that are deteriorating. He could only get $20-$30 per engine if he were to scrap them. There are companies that can bring in a crusher, but he has to have 150 cars ready and they only pay $70 per ton. Mr. Ramirez indicated part of problem is now that he is cash strapped at this point, he doesn t know what else to do to get anyone else to finance the moving part. He had an estimate done of how much he would lose if he scraps all of the cars and parts and they estimated $170,000.00, but he does not have anything in writing to support that estimate.

5 Mr. Barkes asked for a volunteer from the Commission to meet with staff at the Salvage Yard to further assess the situation. Council President Stump volunteered. After discussion, a motion was made by Commissioner Turner and seconded by Commissioner Weddell to approve a $10,000 advance payment toward reimbursement of the claims already submitted, which have not yet been fully reviewed and/or approved. The motion was adopted unanimously. ANNOUNCEMENTS It was announced that the next regular meeting is scheduled for June 9, 2015 at 4:00 p.m. ADJOURNMENT The regular meeting was adjourned at 5:35 p.m. APPROVED on June 9, Goshen Redevelopment Commission /s/thomas W. Stump Thomas W. Stump, President /s/jeremy P. Stutsman Jeremy P. Stutsman, Secretary