Call to Order:
The Goshen Redevelopment Commission met in a regular meeting on February 14, 2006 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.
Roll Call:
On call of the roll, the following members of the Redevelopment Commission were shown to be present or absent, as follows:
Present: Wesley Culver, Daniel Grimes, Thomas Stark, and Thomas Stump. Laura Coyne arrived later.
Absent: None
Approval of Minutes:
A motion was made by Commissioner Culver and seconded by Commissioner Stark to approve the minutes of the January 10, 2006 regular meeting and the minutes of the January 10, 2006 executive session. The motion was adopted unanimously.
Approval of Claims:
Shannon Marks distributed the Register of Claims for the February 14, 2006 meeting. An additional claim in the amount of $212,000 is shown on the Register that was not included on the February 11, 2006 memorandum. This claim, payable to Barkes, Kolbus & Rife, LLP as the closing agent, is for the acquisition of right-of-way from J & K Rentals, LLC. Ms. Marks explained that the exact amount of this claim will more than likely be less once the taxes, rents and closing costs are calculated.
Shannon Marks also stated that the Common Council must first approve an additional appropriation before the payment in the amount of $664,444.30 to HRP Construction, Inc. can be processed. The additional appropriation will be the funds received from Elkhart County as reimbursement to the City for expenses related to the reconstruction of Kercher Road/County Road 38.
A motion was made by Commissioner Stark and seconded by Commissioner Culver to approve payment of the following claims:
Appraisal Services
7999 Constitution Drive
Syracuse, IN 46567
REDEVELOPMENT DISTRICT CAPITAL FUND
Professional/Contractual Services
406-000-00-00311-00
Appraisal for 65736 State Road 15
(J & K Rentals, LLC)
$725.00
Barkes, Kolbus & Rife, LLP
118 North Main Street
Goshen, IN 46526
RIVER RACE CORRIDOR ALLOCATION FUND
Professional/Contractual Services
355-000-00-00311-00
Legal Services for:
Review lease agreement with Pottinger - $67.50
Counteroffer for 400 West Lincoln Avenue - $202.50
$270.00
Barkes, Kolbus & Rife, LLP
118 North Main Street
Goshen, IN 46526
EDIT FUND
Redevelopment Commission
276-000-00-00309-00
Legal Services to amend North US 33 Econ. Dev. Plan - $303.75
Attend 1/10/06 Redevelopment Commission meeting - $303.75
$607.50
Barkes, Kolbus & Rife, LLP
118 North Main Street
Goshen, IN 46526
REDEVELOPMENT DISTRICT CAPITAL FUND
Professional/Contractual Services
406-000-00-00311-00
Legal Services for:
Eisenhower Dr. N. extension right-of-way acquisition - $405.00
Link Road right-of-way acquisition - $438.75
Missionary Church North Central District, Inc. deed preparation - $67.50
$911.25
FIDUCIARY ACCOUNT
Barkes, Kolbus & Rife, LLP
118 North Main Street
Goshen, IN 46526
REDEVELOPMENT DISTRICT CAPITAL FUND
Capital Projects
406-000-00-00450-00
Balance of Funding for Closing with Hoogenboom Nofziger Realty Corporation, M.A. Investments, and Waterford Development Corporation – Right-of-way acquisition for Eisenhower Dr. N. extension.
$892.08
FIDUCIARY ACCOUNT
Barkes, Kolbus & Rife, LLP
118 North Main Street
Goshen, IN 46526
REDEVELOPMENT DISTRICT CAPITAL FUND
Capital Projects
406-000-00-00450-00
Link Road right-of-way acquisition from:
J & K Rentals, LLC
22926 C.R. 36
Goshen, IN 46526
$212,000.00
Brads-Ko Engineering & Surveying, Inc.
1009 South 9th Street
Goshen, IN 46526
RIVER RACE CORRIDOR ALLOCATION FUND
Professional/Contractual Services
355-000-00-00311-00
Survey for 400 W. Lincoln Ave.
$1,015.00
DLZ Indiana, LLC
111 West Columbia Street, Suite 100
Fort Wayne, IN 46802
REDEVELOPMENT DISTRICT CAPITAL FUND
Professional/Contractual Services
406-000-00-00311-00
Kercher Road Reconstruction (US 33 to Dierdorff Road)
Design Engineering Services
$22,190.75
DLZ Indiana, LLC
111 West Columbia Street, Suite 100
Fort Wayne, IN 46802
REDEVELOPMENT DISTRICT CAPITAL FUND
Professional/Contractual Services
406-000-00-00311-00
Eisenhower Dr. N. extension
Design Engineering Services
$26,887.00
Elko Title Corp.
130 North Main Street
PO Box 575
Goshen, IN 46527-0575
REDEVELOPMENT DISTRICT CAPITAL FUND
Professional/Contractual Services
406-000-00-00311-00
Title Searches for:
Schmucker - $75.00
RDM 65752 - $75.00
RDM 65750 - $75.00
RDM 65750 - $75.00
Waterford Development Corporation - $75.00
J & K Rentals, LLC - $75.00
Graham - $75.00
Hoogenboom Nofziger Realty Corporation - $175.00
MA Investments - $125.00
Waterford Development Corporation - $175.00
$1,000.00
HRP Construction, Inc.
5777 Cleveland Road
PO Box 266
South Bend, IN 46624-0266
KEYSTONE I ALLOCATION FUND
Capital Projects
357-000-00-00450-00 - $214,818.07
KEYSTONE II ALLOCATION FUND
Capital Projects
358-000-00-00450-00 - $179,850.49
CENTURY DRIVE ALLOCATION FUND
Capital Projects
359-000-00-00450-00 - $269,775.74
Kercher Road Reconstruction Project
$664,444.30
Kramer Appraisal Services
816 South 7th Street
Goshen, IN 46526
REDEVELOPMENT DISTRICT CAPITAL FUND
Professional/Contractual Services
406-000-00-00311-00
Appraisals for:
65750 State Road 15 (RDM 65750, LLC) - $500.00
65752 State Road 15 (RDM 65752, LLC) - $500.00
65736 State Road 15 (J & K Rentals, LLC) - $800.00
$1,800.00
Wightman Petrie, Inc.
4703 Chester Drive
Elkhart, IN 46516
REDEVELOPMENT DISTRICT CAPITAL FUND
Professional/Contractual Services
406-000-00-00311-00
C.R.38/US 33 Intersection Improvements (Project 2004-0017)
$4,037.50
TOTAL CLAIMS: $936,780.38
The motion to approve payment of the claims was adopted unanimously.
Unfinished Business:
There was no unfinished business this meeting.
New Business:
a. Resolution 08-2006 - Authorize Execution of an Agreement for Sale and Purchase of Real Estate with RDM 65750, LLC and RDM 65752, LLC.
A motion was made by Commissioner Stark and seconded by Commissioner Grimes to approve Resolution 08-2006.
Shannon Marks stated that this agreement was for the acquisition of the two apartment buildings at 65750 and 65752 State Road 15 from RDM 65750, LLC and RDM 65752, LLC.
The motion to approve Resolution 08-2006 was adopted unanimously.
b. Resolution 09-2006 - Authorize Execution of a Rental Management Agreement with Roger K. Miller.
A motion was made by Commissioner Stark and seconded by Commissioner Grimes to approve Resolution 09-2006.
Commissioner Grimes asked if the 10% management fee was the normal rate? Public Works Director Bob McCoige responded that this rate is also charged by another local rental management company.
Commissioner Grimes asked how much rent is being charged for these apartments. Shannon Marks responded that she did not have this information with her, but she could provide it.
Commissioner Grimes asked what the time line was until the city begins work on the new road? Bob McCoige responded that the project would begin with five years.
Commissioner Grimes asked who would receive the rental income from the apartments? Shannon Marks responded that Roger Miller would remit 90% of the amount collected to the Clerk-Treasurer’s Office each month. Mr. Miller would also provide a monthly report to both the Clerk-Treasurer’s Office and the Redevelopment Commission.
The motion to approve Resolution 09-2006 was adopted unanimously.
c. Resolution 10-2006 - Authorize Execution of an Agreement for Sale and Purchase of Real Estate with J & K Rentals, LLC.
A motion was made by Commissioner Stark and seconded by Commissioner Grimes to approve Resolution 10-2006.
Shannon Marks stated that this agreement was for the acquisition of the house that contains five rental units from J & K Rentals, LLC. This house is located to the north of the two apartment buildings at 65750 and 65752 State Road 15. Ms. Marks stated that the city is currently negotiating a rental management agreement for this property.
The motion to approve Resolution 10-2006 was adopted unanimously.
d. Resolution 11-2006 - Authorize Execution of an Agreement for Sale and Purchase of Real Estate at 400 West Lincoln Avenue, Goshen.
A motion was made by Commissioner Grimes and seconded by Commissioner Coyne to approve Resolution 11-2006.
Shannon Marks stated that Larry Barkes is attempting to make contact with the other party’s attorney to confirm that the terms are acceptable, however, he has been unsuccessful so far. Thus, by passing this resolution, the Redevelopment Commission is only authorizing the execution of the agreement. It is possible that some minor changes could still be made.
Commissioner Grimes stated that he was concerned about what guidance is being given to the purchaser so that plans can be developed in accordance with what the Redevelopment Commission wants to see at that site. Shannon Marks stated that the purchaser must present a general design concept to the Redevelopment Commission for approval.
The motion to approve Resolution 11-2006 was adopted unanimously.
e. Discussion on Use of Allocation Funds.
Shannon Marks stated that this topic of what TIF funds can be used for was included as an item on the agenda for discussion among all Redevelopment Commission members. Indiana Code 36-7-14-39(b)(2) sets forth the purposes for which allocation funds may be used. The statute specifically states that allocation funds cannot be used for operating expenses. Ms. Marks stated that operating expenses can be paid from EDIT funds or the Non-Reverting Operating Fund.
Commissioner Stark stated that he thought that Redevelopment was to the point where it needed part-time help to keep track of funds, but we need to know where the help could be paid from. Commissioner Stark indicated that the County Redevelopment Commission was allocating TIF funds to pay for staff. Shannon Marks responded that TIF funds can be used only if the person’s time is spent working on a specific project within a TIF district.
Commissioner Stump asked who would be hired to do this? Public Works Director Bob McCoige suggested that someone from the outside be hired as a contract person.
Commissioner Stark stated that he did not think Bob McCoige and Shannon Marks have the time to keep track of all the funds.
Commissioner Grimes asked who is doing it now? Shannon Marks responded that she was attempting to and that she and Bob McCoige have been working together to keep track of the expenses related to the bond issue and how much has been spent thus far on each project.
Commissioner Coyne stated that she thought a job description for the new position needs to be developed.
Commissioner Stump stated that he would like to talk to Mayor Kauffman first about adding a position.
Commissioner Stark stated that he would like to see someone hired from the outside to keep track of the TIF revenues.
Commissioner Coyne asked how much was spent in 2005 for operating expenses, in particular, for legal expenses? Shannon Marks responded that she could provide her with copies of the ledger sheets.
Reports of Officers, Boards, Standing Committees, and Special Committees:
1. 2005 Annual Report – Shannon Marks reported that she received the cash balances and income received for all of Redevelopment’s funds from the Clerk-Treasurer’s Office just this afternoon, thus, she was unable to finalize the annual report for today’s meeting.
Ms. Marks read the beginning cash balance as of January 1, 2005, total income, total expenditures, and ending cash balance as of December 31, 2005
