JUNE 3, 2013 MINUTES MUNCIE COMMON

MINUTES
MUNCIE COMMON COUNCIL
300 NORTH HIGH STREET
MUNCIE INDIANA
JUNE 3, 2013
PUBLIC HEARING: 7:15P.M., 1sT FLOOR, CITY HALL AUDITORIUM.
ORO. 10-13 AN ORDINANCE OF THE CITY OF MUNCIE, INDIANA DESIGNATING
AN AREA WITHIN THE CITY AS AN ECONOMIC DEVELOPMENT TARGET AREA.
Chris Hiatt asks for clarification of what the ordinance is about. Council Attorney
Joseph Hunter gives Hiatt a copy of the ordinance.
REGULAR MEETING: 7:30P.M., 1sT FLOOR, CITY HALL AUDITORIUM.
PLEDGE OF ALLEGIANCE: Led by Councilman Julius J. Anderson .
INVOCATION: Given by Anne Elliades from Temple Beth-El.
Councilman Anderson recognizes an outstanding group of young athletes that are
present this evening . They are called Hurricane Select under the direction of Joe
Anderson. They are just coming back from Illinois where they finished 15 \ 2nd and 3rd in
their various age groups. They are present to observe the City Council meeting and
see how things work.
CITIZEN RECOGNITION: Councilman Julius J. Anderson recognizes Ezell and Viola
Coates. Mr. & Mrs. Coates have lived at 611 South Shipley for some 42 years where
they have raised their five children, Jerry, tony, Janet, Monique and Lula. Ezell and
Viola have been married 56 years. Ezell started cooking while serving in the U.S. Army
from 1957 to 1959. That life followed him to cooking at John Hulse Catering, Duffs
Smorgasbord, The Roberts Hotel and The Downtown Inn. Ezell is a Deacon and for
many years drove the church van to pick up members-who needed a ride to church.
In his 25 years of working for the city, Ezell went from being a truck driver to
Superintendent of the Muncie Animal Shelter. Ezell has received many awards
throughout his life. The Trail Blazers Aware presented to him by the Muncie Black
Expo. The Certificate of Appointment to Superintendent of the Muncie Animal Shelter
by former Mayor Dan Canan. Viola is a great wife and mother. One of her favorite past
times is riding the Mits Bus where she has met many friends down through the years.
Always humble and soft spoken, she loves her children and grandchildren. Viola has
been a member of her church for over 50 years .
Ezell always kept a large garden of vegetables at his home and would receive waves of
compliments. H would allow his friends and neighbors to come and pick from the
garden at their leisure. In addition he would deliver vegetables to the elderly and shut-in
for free. The Coates met the Howell family from Middletown who are the owners of
Howell Farms. They allowed Ezell to pick watermelons. Ezell and his son, Tony would
load up his van and deliver them door to door in the community. It got to be such a
tradition people began coming to his house for them . Now that age has caught up with
them, they both just try to continue to be good neighbors doing God's will and
supporting the community they both love.
The acts of kindness in their community are the reason for them being here tonight.
They have compassion and a deep love for people. The Citizenship Award goes to
Ezell & Viola Coates. Mrs. Coates thanks everyone and appreciates the award. Mr.
Coates states he feels at home in City Hall because he had to be here for meetings. He
has known Councilman Anderson all his life and just to be able to accept another award
is a great honor and they appreciate everything .
ROLL CALL:
Doug Marshall
Mark Conatser
Mary Jo Barton
Brad Polk
Jerry D. Dishman
Julius J. Anderson
Alison Quirk
Nora Powell
Linda Gregory
PRESENT
ABSENT
X
X
X
X
X
X
X
X
X
APPROVAL OF MINUTES: A motion was made by Barton and seconded by Marshall
to approve minutes from May 6th and May gth_ A roll call vote showed 9 yeas and 0
nays. MINUTES APPROVED.
COMMITTEE REPORTS: Greg Ballard from Spartech states they had a plant
expansion . He states they were purchased by another company. He states on the 29th
of November they had a serious fire. In March PolyOne purchased the company. He
states they got through all these things and they are ready for the grand opening of their
new building . He invites the council to the opening. He states PolyOne is a public
company. It's a $3 billion dollar company. It has more than 80 manufacturing
distribution locations across the world . The good news is that investment in Muncie
continues. They did have a fire that started in the ceiling of the plant. He was about 500
miles away in Wisconsin when he received the call and he got in his call to return to
Muncie. He would call every twenty minutes to see if the fire was out and it wasn't and
he was really concerned . The first thing is no employees were injured. The Muncie Fire
Department did an outstanding job minimizing the damage to their plant and equipment.
He states due to the hard work of their employees they have had partial production up
in two days. No production equipment was damaged but they did have to replace the
roof and some other equipment. The new building wasn't damaged . Ballard states on
June 20th from 4pm to 8pm they will have a grand opening. They will have some
PolyOne Management there and they are working with the Fire Department to have
Chief Bell along with some of the firemen that put the fire out to attend the grand
opening. He invites the council and they will have tours of the building. He mentioned
the presentation will start at 4:15p.m. and the open house continues until 8p.m .
President Dishman thanks Ballard for making an investment in Muncie. He knows they
had a problem with fire and they found their way back to stay in Muncie. Ballard states
they are located at 1401 E. Memorial Drive.
ORDINANCES PREVIOUSLY INTRODUCED:
ORO. 9-13 AN ORDINANCE OF THE CITY OF MUNCIE, INDIANA AUTHORIZING
THE ISSUANCE OF THE CITY OF MUNCIE, INDIANA, TAXABLE ECONOMIC
DEVELOMENT REVENUE BONDS (DAC/CARDINAL SQUARE PROJECT), AND THE
LENDING OF THE PROCEEDS THEREOF TO DELAWARE ADVANCEMENT
CORPORATION AND AUTHORIZING AND APPROVING OTHER ACTIONS IN
RESPECT THERETO.
A motion was made by Barton and seconded by Marshall to Adopt.
Todd Donati states this is one of the processes that have gone on for the past several
months. This bond is basically the last step to make sure they are able to move this
forward. The Economic Development Commission has already approved this. The City
Council needs to approve this. The bond will be established and the loan will be set up
sometime around July 11th. The work will start to proceed from IPA, which is the
investment group. They can't start demolition until this is passed. The project will be
stalled for at least a year if they can't start demolition in June. They apologize for the
last minutes detail. He states with them building a garage and they are building a
project, which exceeds $50 million dollars everything has to come together and be in
the right place. The main purpose is to stay on schedule so they can open by fall of
2014. If they miss that deadline then they miss entire year, which is about $7 million
dollars in revenue.
Chris Hiatt asks for a date that the legal notice was published for the indebtness of the
bond issue. Donati states it was published April 26th but he doesn't have it with him but
will be glad to show him that publication. Question called . A roll call vote showed 7
yeas and 2 nays. (Polk & Gregory). ADOPTED .
ORO. 10-13 AN ORDINANCE OF THE CITY OF MUNCIE, INDIANA DESIGNATING
AN AREA WITHIN THE CITY AS AN ECONOMIC DEVELOPMENT TARGET AREA.
A motion was made by Barton and seconded by Marshall to Adopt.
Muncie Redevelopment Commission Todd Donati states this is an ordinance is required
to establish this area for a target area for revitalization and to establish abatement
processes, which is vital to the project. The abatement is ten years at 50% per year.
Part of the requirement is they have to receive a minimum amount from them to make
their bond payments. If for some reason it comes in short $260,000 they would get less
than 50% of the abatement. Donati states he went back and looked at the minutes from
the Economic Development meetings, which establishes the areas. Because they are
aligned more with residential and retail they are well under the 15% required in the
geographic area of the City of Muncie. Gregory asks what other target areas they have
and how a target area is different from a Tiff District. Donati states the Tiff District
generates revenue from taxes and a target area establishes retail and businesses only
and they are being targeted for abatement. If it was a commercial or manufacturing he
wouldn't be establishing a target area for it, it would be a revitalization area. He states a
target area expires once the abatement expires. They are specific in nature. He states
this one will last ten years. He states the only thing they are doing target areas on now
are abatements on houses. Quirk states the state legislation has passed within the past
year that allows them to do this. Donati states with this process they get it slower to
allow them to utilize the Tiff for the parking garage and it's a great public/private
partnership. Question called. A roll call vote showed 8 yeas and 1 nay. (Gregory) .
ADOPTED .
NEW ORDINANCES:
ORO. 11-13 AN ORDINANCE MAKING TRANSFERS WITHIN THE STREET FUND.
A motion was made by Barton and seconded by Marshall to Introduce.
Street Superintendent Duke Campbell states for a year now he has been looking for an
alley grater. He was alerted that Purdue University was getting ready to buy a new
grater. He went and looked at it and it's a 1996 champion road grater. He is asking for
money to be moved so they can buy the piece of equipment. He states the one their
using now is a 1978 model and people thought they were feeding them line when they
wanted their alleys done but the grater was down. He states they had to have a part
made for the grater to be able to use it. The company no longer makes part for it. He
states it is good buy. He states a new one would cost $100,000.00 and the market
value of a grater of the 96 is about $46,000.00 . Campbell states they lucked into this
grater. Barton states it sounds like he has done his job and appreciates the pictures.
Anderson states there had been a lot of complaints in his districts regarding alleys
because there hasn't been any grating. He thinks this will shine a lot of light when they
get this done.
Campbell states they will be able to get parts for the new one if purchased. They will
continue to run the old one until it is done. Polk states they are decreasing Other
Charges and Services and increasing Overtime and is that for the people to run the
grater. Campbell states that came from a very long winter and a lot of overtime. He
states once to two inches of snow takes just about as much time to salt and sand six or
eight inches of snow. They worked a lot this past winter and it depleted the overtime
budget. Barton asks when will purchase the grater. Campbell states he can get it right
away. He states their holding the grater contingent upon the council approval.
Question called . A vote by acclamation showed 9 yeas and 0 nays. A motion was
made by Powell and seconded by Barton to Suspend the Rules. A roll call vote showed
9 yeas and 0 nays. MOTION CARRIED. A motion was Marshall and seconded by Polk
to Adopt. A roll call vote showed 9 yeas and 0 nays. ADOPTED.
ORO. 12-13 AN ORDINANCE DECLARING AN ECONOMIC DEVELOPMENT
TARGET AREA FOR GREATER MUNCIE INDIANA HABITAT FOR HUMANITY, INC.
(REAL ESTATE-SINGLE FAMILY RESIDENCE) (2212 N. MACEDONIA).
A motion was made by Barton and seconded by Marshall to Introduce.
Muncie Redevelopment Commission Todd Donati states this went before the Economic
Development Commission with 100% favorable recommendation. The potential home
owner will be Waynita Wesby-Level and they are looking forward to this. Question
called . A vote by acclamation showed 9 yeas and 0 nays. INTRODUCED.
ORO . 13-13 AN ORDINANCE OF THE CITY OF MUNCIE, INDIANA, AUTHORIZING
THE ISSUANCE OF BONDS FOR THE PURPOSE OF PROVIDING FUNDS TO PAY
THE COSTS OF CERTAIN CAPITAL PROJECTS OF THE CITY; PROVIDING FOR
THE PAYMENT OF SUCH BONDS FROM CERTAIN LEGALLY AVAILABLE FUNDS
OF THE CITY AND, TO THE EXTENT THAT SUCH LEGALLY AVAILABLE FUNDS
ARE NOT SUFFICIENT, A PLEDGE OF A SUFFICIENT AMOUNT OF THE CITY'S
DISTRIBUTIVE SHARE OF THE COUNTY ECONOMIC DEVELOPMENT INCOME
TAX; PROVIDING FOR THE SAFEGUARDING OF THE INTEREST OF THE OWNERS
OF THE BONDS AND OTHER MATTERS CONNECTED THEREWITH, INCLUDING
THE ISSUANCE OF NOTES IN ANTICIPATION OF BONDS, AND REPEALING
ORDINANCE INCONSISTENT HEREWITH.
A motion was made by Barton and seconded by Marshall to Introduce.
Todd Donati states there is a representative that worked with the developers. He states
this bond will be requested up to $5 million dollar bond. He states he is looking at a
$200,000 dollar commitment from the Pilot Program, which will produce $300,000 in
payment in lieu oftaxes. He states $100,000 has been committed somewhere else and
that leaves the $200,000 and the other roughly $208,000 will come from the Edit
account. This is a commitment from the Mayor on several different projects which
include the Prairie Creek project, which will bring the bath house up to standard. He
states an expectation has to be updated with City Hall. Donati states if you look at the
outside of facade City Hall you will notice it is falling off. He states when you talk about
Economic Development to your city, you don't want City Hall to be the worse looking
building in condition wise in the downtown area. The other phase is continuing with the
street scape. They have had numerous people show their support of the downtown
area with extra parking. They have created 500 extra spots in downtown just by
remarking with very little funds involved. He states these three projects are imperative
to move forward. The money is there and there is justification with the cost. These are
tax exempt funds and the rates are lower. They are looking at a local financial
institution to keep the money in the city. They are looking for a favorable introduction.
Mark with the Energy Assistant group states City Hall has been suffering from deferred
maintenance for a number of years. It is really overdo and now they will begin a
strategic plan to rehabilitate the facility. He states the repair and maintenance
expenses grow, which transfer into a higher life cycle of ownership costs. It's not just
the building itself. They want to free up the support staff where they do a lot of
adjustments and manual intervention that they think can be automated and they can
free up their time. He states one of the boilers had failed and it didn't pass inspection.
It has to be addressed because it affects the insurance. They would be actually be
upgrading a boiler plant with a much higher efficiency design that will provide comfort
with a much lower operating cost. The refrigerant that is being used is being phased
out and their on borrowed time. One is the boiler and the other dynamic is the
refrigerant is scheduled for phase out. The time to upgrade or replace is now and they
will relocate that. He states when the building is damaged it breaks down. The result it
leaks water and allows water and moisture to leak into the facility, which then cause
mildew and mold. There is a ten year warranty. There was some prior work done but
they treated it like masonry repair and that isn't what it is. There are a series of leaks of
water infiltration. He states there are holes in the ceiling where the joints are that need
to be corrected . Those need to be corrected . They put a camera where the entire
water distribution is and there was some concern whether it was undersized or plugged.
The good news is the system is good in size but in the winter time the gutter system
freeze up and causes damage to the building exterior and as a result they will provide
additional clean outs. They will be taking care of a lot of water issues. He states there
are gaps in the window seals and they should be insulated because they have cold air
and moisture that get in. They need to make sure the building is sealed. They need to
re-grade the landscaping. He knows some work was done but if you have landscaping
toward the building there needs to be an appropriate slope. He states the carpeting is
old and in failed state. Part of the recommendation City Hall needs a new carpet
system . There will be a twenty year warranty. You will be able to replace sections very
· easily. He states there is evidence where there is water damage and tears in the
carpet. They want to improve the aging, failing, uncomfortable and inefficient structure
with a plan that is comprehensive, sustainable and cost effective. By partnering with the
energy assistance group they can accelerate these improvements and help fund with
some existing savings. The Mayor did a great job educating him on the value of the
building for Economic Development. This is the gateway to the citizens of the city and
they need to have their best foot forward and make the best impression so they are
encouraging business development. They are using the reduction of energy costs and
reduction in repair and maintenance costs to help fund or offset the investment. Energy
savings are guaranteed $33,400.00 a year. The maintenance and repair savings would
be $45,875.00.
Conatser thanks Mark for his presentation and they should follow through with this for
many different reasons. He states the efficiency upgrades on the building they are
being monumental. He states the refrigerant will not be available for much longer and
it's very expensive. Conatser states if it passes tonight he would like to see local
contractor's be used for the project. Barton thanks Mark for the information because it
explains everything well and his presentation was well given. Quirk asks whatever the
shortfall is it, they will be compensated. Mark states if there is a shortfall they will have
to make good on the difference. Hiatt asks if there are any property taxes being
pledged for the bond. Donati states it is all based on Edit Funding and Pilot Program,
which is payment in lieu of taxes and if anything it may offer a property tax backup if it
helps them get a better rate. There is no commitment of General Fund money or
property taxes. Donati states they are pretty competitive on the rate. Dan Sinkhorn
3120 W. Co. Rd. 400 S. asks if this bond includes the Prairie Creek project. It is stated
yes. Sinkhorn states he is a father of five children and two have spina bifida and it is a
birth defect that affects the nervous system . They have a number of disabilities and the
most apparent one is the ability to walk. His son is a student at Cowan High School and
he can walk with a cane and his ability is deteriorating slowly but he has made great
strides and loves the outdoors and will try anything other kids are doing . His daughter
Ruthie is confined to a wheelchair but can do some walking. She has braces for her
legs and a walker she can use around the home but essentially she uses her wheelchair
all the time. He has become acquainted with the Mayor through the prayer meetings
that he has with the local pastors. When the Mayor found out he has children with
disabilities he was eager to show him the pictures and tell him about the project.
Sinkhorn mentioned to the Mayor in their system of appointments of their denomination
they don't have a lot of say so to where they go. He was sent to Muncie and didn't
know anything about Muncie. When he saw the pictures and had conversation with the
Mayor and it made him realize the quality of life for his kids was part of the reason why
he was sent here. He and his family have found Muncie to be a tremendous community
and appreciate the hospitality and resources they found . There are a lot of resources in
Muncie that he didn't have for his children that have Spina Bifida and they are grateful
for that. He states if they support anything that makes the quality of life for a person
with disabilities better it gives him and his family a reason to stay here for a long time.
He states his three older children are successful and intelligent people doing
tremendous things with their lives. His two younger children he doesn't think more than
two years ahead . He has tremendous faith that God will take care of them . It means a
lot to him when someone in the community is thinking about his kid's needs. He urges
the council to support this . Polk states he understands about Prairie Creek and the
gentleman who just spoke. They do need more activities for their children . He asks if
they have tried for grants for the bathhouse for Prairie Creek.
Aaron Kidder states they have applied for several grants for this specific project. They
have been successful in procuring several. The agency hasn't made the announcement
but they are continuously searching for more private dollars. Polk asks if they need the
entire amount for City Hall. He asks if it is general that they're going to have Economic
Development projects and they are going to support them with more bonds. Donati
states when they first initiated these different projects the Mayor was looking at it added
up to well over $5 million dollars. After discussion with Grant Writer Aaron Kidder of
potentially bringing in grants he asked this be dropped to $4 million. There has been
savings and there will continue to be. If they can pull into additional grants and funding
they will apply that towards the bond if it comes after the fact. They do not want to tie
down any particular amount of fund ing any way if they can avoid it as much as possible .
Polk states the gentleman mentioned some lighting out in the parking lot. He heard the
County purchased some lighting such as solar lights and is that a possibility. Donati
states all those were used up. Now is the time to take advantage of the interest rate.
Quirk hopes that they have had an opportunity to make themselves familiar with the art
project they are working on for the community. She states the projects that were
mentioned tonight will be just the beginning of some great things coming to Muncie.
This will be a more quality of life for everyone. Question called . A vote by acclamation
showed 7 yeas and 2 nays. (Gregory & Polk) INTRODUCED.
RESOLUTIONS:
RES . 18-13 A RESOLUTION CONFIRMING THE DESIGNATION OF AN ECONOMIC
REVITALIZATION AREA AND APPROVING THE DEDUCTION FROM ASSESSED
VALUE OF NEW REAL PROPERTY IMPROVEMENTS. (CARDINAL SQUARE, LLC) .
A motion was made by Barton and seconded by Marshall to Adopt.
Todd Donati states what he had given out tonight was put together by IPA. He states
there were comments about the abatement and investment in the last few meetings.
There was an article regarding the numbers that were put together. This particular
project is a private investor but it will generate over the next fourteen or fifteen months
of operation over 693 jobs for this community. He states there is laboring loan is $25
million dollars of money that would not be here. Mr. Pittman from Barnes and
Thornburg and IPA has worked diligently to make sure everyone is treated fairly in this
process. Question called. A roll call vote showed 7 yeas and 2 nays. (Polk & Gregory).
ADOPTED.
A motion was made by Conatser and seconded by Marshall to remove from the table
Resolution 16-13. A roll vote showed 9 yeas and 0 nays. MOTION CARRIED.
RES. 16-13 A RESOLUTION APPROVING A FORM OF ECONOMIC DEVELOPMENT
AGREEMENT WITH CARDINAL SQUARE, LLC.
Todd Donati states the parking garage will be built by general contractors provided by
DAC Corporation and it has to be built before the apartments being started . The
exhibits the received late are E, F, G & H. They are the lease agreement for the
particular spots. The lease agreement allows them to create revenue for the City of
Muncie for just this lease agreement. There is additional parking that would bring in
more revenue. (F) is the taxpayer agreement. (G) is the egress and ingress process
because they have to cross their apartment land in order to get to the parking garage.
They have to make sure the easements are agreed upon. (H) is the construction
entrance. They don't want anyone getting disrupted on where they come in and leave.
This is a $60 million dollar project that will be built on a block and a half in the City of
Muncie. Quirk asks what the time line is. Donati states they have to start demolition
around June 15th or 16th and it has to be completed by sometime mid-July. He states
somewhere around August 1st they get the land turned over to them so they can start
the garage process. It was stated that demolition should be completed by mid-July.
The intent is DAC will start parking garage August 1st and have structure up November
1st. They will begin foundation construction somewhere around August and September.
They need to have their structure up and under roof by April 2014 so they can open by
August 2014. In their development they will over 400,000 square feet of building area
so they have a lot to get built in a short period of time. It will be a great development for
the City of Muncie as well as Ball State University. Dishman asks if he has a plan with
the trucks coming in and out of the neighborhood for construction. He states the truck
route is University Avenue and the intent was there is going to be a street closure on Dill
Street, which is where all the trucks would come in and load and unload . He states
maybe those trucks could back out and go down University or around the block North
Street, Martin Street and back to University. There would be no reason for them be
traveling any farther than that quadrant to unload, whether it be for the parking structure
of the apartments. Quirk asks if the retail space would open the same as the residential
space . It is their intent to open as many as they can . Typically they will open about 50%
and they have had quite a bit of interest in retail. Barton states Donati has tax
abatement in there also. Donati states the tax abatement is part of what they have
approved, which is 50% for the ten years. The other 50% is the Tiff generated from the
leftovers that will pay the bond of the parking garage. Barton asks if it has gone before
the Tax Abatement Committee. Donati states it did go before the Committee. Gregory
asks on Exhibit C it is saying the assessed value is $21 ,000,000. Donati states the
commercial is square footage . The NAVis net assessed valuation so the tax consultant
said the captured NAVis $23,000 ,000, which is approximately 50% of the cost would
generate the minimum of $250,000 to $260,000 to be supported . Gregory states the
other tax abatement form filled out states $40,000,000 and was curious why the
different number. Donati states this was done by a finance expert and their process is
they introduce this part. When the tax abatement paperwork is being filled out it may
state the high end. Gregory asks what is their advantage of doing the flat fee for ten
years as opposed to the declining percentage. Donati states just say the taxes coming
in is $500,000 and if they did it that way he would be abating $500,000 and they would
only have $50,000 to pay the parking garage fees . They could have said they wanted it
that way but they agreed to accept less so they could have the money coming in. They
could pay their bond payment. This is better for the city because they are receiving
more money to pay for the parking garage. Donati states it's all just a percentage.
Donati states they are guaranteed $260 ,000 in order to cover the bond cost. Donati
states they have covered their basis on this. Council Attorney Joseph Hunter states the
original Economic Development agreement that was filed with the ordinance isn't the
same one their looking at today. They need to make a motion to amend ord . 16-13 to
include as Exhibit A the most recent Economic Development Agreement and the
exhibits that are included with that. A motion was made by Powell and seconded by
Conatser to Amend . Question called. A roll call vote showed 9 yeas and 0 nays.
AMENDED. A motion was made by Barton and seconded by Marshall to Adopt as
Amended. A roll call vote showed 7 yeas and 2 nays. (Gregory & Polk) . ADOPTED AS
AMENDED .
OTHER BUSINESS:
Rick Yencer thanks the council for their vision and forward thinking tonight. He has
seen a lot of cooperation on both projects not only to make the village a new community
but also to fix up some of their greatest needs. There is also a book that will be out on
amazon next month about the decline of print and the rise of online media.
A motion was made by Marshall and seconded by Powell to Adjourn. A vote by
acclamation showed 9
and 0 nays. ADJOURNED .
of the
lis Reagan, Mun
City Clerk
of the Muncie Common Council